"SPRING 2020 BREXIT smooth operators Firms want to be Frictionless trade and access to talent are top the agenda for small businesses in the post-Brexit era, says a new report Now that the UK has left the European Union, the Federation of Small Businesses (FSB) wants the government to focus on securing an ambitious new trade deal with the EU, and building a flexible, fair immigration system. The EU will remain the No 1 trading bloc for most UK small business exporters (62%) and importers (55%) over the next three years, according to FSB research. One in three (32%) small firms is involved in overseas trade the vast majority (92% of exporting firms and 85% of importing ones) with the EU single market. The US (46%), Germany (38%) and France (36%) are considered the most important individual markets. It is critical that workers vital to unleashing the UKs growth potential are not locked out by an immigration system that doesnt meet the needs of the business community Given the importance of UK-EU trade for small firms, the FSB believes the government should prioritise a tariff- and quota-free arrangement on goods, and try to minimise nontariff barriers such as rules of origin compliance or product certification and labelling rules. It says mutual recognition of professional qualifications is also essential for the many employees of smaller businesses who travel to the EU to undertake a service. Any trade friction must be kept to a minimum, and businesses will need time to adapt to the new trading arrangements, as well as financial support to absorb additional costs. It is vital, therefore, that the government releases its negotiating objectives swiftly, to help small firms plan and invest. The FSB says the new immigration system will also need to be cost-effective, easy to navigate and efficient, and not worsen skills shortages in sectors such as care and construction that already struggle to recruit workers. Many small firms rely on talent from outside the UK to plug skills gaps and grow their businesses; one in five smaller business employers has at least one EU member of staff. So it is critical that workers vital to unleashing the countrys growth potential are not locked out by a system that doesnt meet the needs of the UKs business community. Previous FSB research has shown that 59% of small businesses with EU workers are concerned about accessing the skills they need after Brexit, and if additional barriers to recruitment were introduced some would consider moving their business abroad (13%), reducing operations (13%) or closing (8%). Alongside visas that require a job offer, the FSB says small firms want a temporary, non-sponsored route that allows EU/EEA nationals of all skill levels to stay in the UK for two years. This will give businesses time to adjust to the new system, by adopting new technologies and retraining staff. With only nine months to go to the end of the transition period, the FSB believes the only way to achieve all of this is if the government works hand in glove with the UK business community and it wants any new free-trade agreement to include a comprehensive small business chapter. Credit: Karen Woolley, FSB development manager Image: iStock / artvea For more information on this, read the federations report The representation of SME interests in Free Trade Agreements, or go to its Brexit Hub. For further information, please contact your local Trading Standards Service