The (potential) impact of Brexit on UK SMEs: regional evidence and public policy implications

Abstract

This paper examines the potential impact of Brexit on UK small and medium-sized enterprises (SMEs). Using a major longitudinal survey of UK SMEs, the analysis suggests that Brexit-related concerns are escalating. Larger, export- and import-oriented SMEs are most concerned, as are those located in major urban and peripheral locations. Among SMEs with growth-related plans, many firms are scaling back on capital investment, innovation and (especially) exports. An appraisal of existing policy frameworks suggests that the devolved administrations seem better equipped to enact interventions in order to alleviate any negative effects arising from Brexit.

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