Smaller firms employ 15.6 million people , which make up 60 % of all private sector employment in the UK . Access to the right skills , says the FSB , is a crucial requirement of smaller firms to ensure they can meet consumer demands and grow as a business . Such firms need to be able to hire the right person for the job , and sometimes this means recruiting from overseas . The FSB says that while we must focus hard to upskill the UK workforce , including both academic and vocational skills , access to skilled labour from the EU must remain in place in the medium-term . In addition , many UK small firms , the self-employed , consultants and freelancers want the right to work in the EU as they do now . The FSB is urging the government to ensure economic stability at this time of uncertainty . Mike

Cherry , national chairman at the FSB , said : “ FSB will be the voice of smaller businesses in the EU negotiations . As soon as the EU referendum results were clear , FSB called on the government and the Bank of England to provide economic stability , for small firms to get the confidence to continue to drive economic growth and create jobs . “ Smaller firms need simple access to the single market , the ability to hire the right people , continued EU funding for key schemes and clarity on the future regulatory framework . This is crucial to ensure economic growth and job creation .” One third of FSB members export or import , with the vast majority doing so with other countries within the single market . Access to the single market means access to 500 million potential consumers , more than 26 million businesses and is worth more

than £ 9 trillion . The UK decision to leave the EU will impact smaller firms which directly import , export , but are also part of a supply chain . FSB is calling on the government for assurances that smaller firms can maintain access to the single market , and for steps to protect inward investment . Directly and indirectly , many small businesses have benefitted from EU funds , some channelled toward infrastructure and others toward local initiatives . FSB members want reassurance that all schemes remain fully-funded in the short-term and a full assessment of the future of EU-funded schemes takes place . The government ’ s de-regulation drive has seen some success , but the FSB is now calling for a stronger role for the Regulatory Policy Committee in terms of tax regulations and rules coming from the EU . Government should now be setting out its approach

to boost this drive to remove red tape . UK / EU law has been developed over the last 40 years and now needs to be disentangled , and government must provide clarity over what new regulation may be required . Mike Cherry continued : “ FSB will continue to be a constructive partner in these negotiations and push for swift clarity on these crucial questions . We will seek to ensure that the confidence of the UK ’ s 5.4 million small businesses , which is already at its lowest level since 2013 , does not fall any further .” The latest FSB Small Business Index ( SBI ), gathered before the EU referendum , found small business confidence at a four-year low , following the largest annual drop since it started in 2010 , with smaller firms planning to cut jobs for a second consecutive quarter . FSB members reported falling profits with increases to the cost

of labour and the overall tax burden listed as major contributors to a rise in the cost of doing business . The index also saw a sharp fall in investment intentions with just 12.2 % of small firms planning new capital investment in the next 12 months - less than half of the 31.9 % planning the same a year ago . This came despite improvements to both the availability and affordability of credit . Mike Cherry said : “ We need ministers to take stock and roll back any plans that will make doing business more difficult or costly . This should also include honouring commitments to expand small business rate relief . The Low Pay Commission should be particularly vigilant when recommending next year ’ s National Living Wage rate , taking extra care to ensure small businesses can sustainably support higher wages at this challenging time .”