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EU Referendum: A roundup of what London’s businesses are saying

Whether you’re for brexit, remain or still undecided, there’s little argument that the EU Referendum has sparked heated discussion across the country and exposed major fault lines in how different sections of society view the UK’s role on the global stage.

For a decision whose repercussions will ripple down the decades and generations, few will look back on such a marathon campaign with any fondness, so fractitious and ill-tempered has been the tenor and tone of the debate.

But as we (mercifully) go to the polls today, Bdaily has canvassed the thoughts and opinions of business leaders across the capital to get their take on what could be a generation-defining decision.

Rich Wilson of data analytics firm Relative Insight

“You’d have to be bonkers to want Brexit! It’s difficult enough, particularly in London, having to compete with the banks and every other startup, why would we want to make that harder?

“Why would we want to decrease the pool? It would make hiring more time consuming and increase the cost of labour. I know quite a few startups that are increasingly concerned about the impact that Brexit would have on their existing team, including their founders. These are firms with people from around Europe who would have to leave the country in the event of the UK exiting Europe. In the worst case scenario we could see entire firms leaving.

“Boris Johnson’s previous support for the tech community seems quite at odds with his current position with Vote Leave. For someone who did a pretty good championing the startup sector he seems to have chosen career over consistency and ditched us all.”

Michael Kent of FinTech leading light Azimo

“The fledgling fintech industry is currently booming in the UK. As a sector, we’re just getting started and Brexit would stop that development in its tracks. It’s no secret that hundreds of UK fintech businesses, from payments and lending to insurance and asset management, enjoy the UK’s clear, forward-thinking regulatory regime.

“What people might not know is that nearly all of those companies also depend on the ability and legal right to “passport” those services to the rest of Europe. If we do leave the EU, it’s very likely that those rights will end and that will mean moving some, and in some cases all, operations to elsewhere in Europe.

“The Vote Leave campaign has done plenty of scaremongering, arguing that being part of Europe takes away the UK’s right to self-determination. They’re convinced by the notion that cutting off our ties to Brussels and shutting our borders will increase our freedom, but walking away in a misguided display of jingoism is not the answer.

“On the contrary, the right to live and work in another 27 countries, increase our free trade market ten-fold and partner with our neighbours in an institution formed to prevent another war gives us a far greater chance to defend both our national and individual freedoms.”

Mark Roy of data communications specialists REaD Group

“As chairman of a British SME operating solely in Britain, I don’t see why the EU should govern how I do business. It seems to me that the primary contribution of the EU is to load the level of red tape and administrative burden onto already hard pressed companies.

“Many of the ideas and principles are sound but the implementation and level of neuroses that accompanies them is, in my opinion, both costly and unnecessary.

“The whole principle around the EU is about working to the lowest common denominator – it assumes that one country has the same needs as another.

“Can we realistically conclude that the needs of Slovakia or Greece are akin to those of the UK? I would suggest not. The principles of the EU appear to serve largely to restrict the performance of the markets that are ahead of the rest in an effort to lift up the laggards.

“As a businessman focused on growth, this is completely counterproductive.”

Thomas Villeneuve of European startup WeRoom whose biggest market is London

“I hope Brits will vote to stay in the EU. As the CEO of a European startup, having access to Europe’s single market is better for our business. If Britain were to exit, it would cause us to change our strategy dramatically since our biggest markets are France and the UK.

“As for startups in the rest of Europe, they might have a harder time finding the investments and capital they need to grow. For many continental Europe startups looking to expand their activities to other countries, the UK can be a great place to start, thanks to the language, and dynamism of its market.

“Additionally, from a recruitment perspective, a lot of the workforce and talent that fuels flourishing businesses are non-UK citizens which means that if Britain left the EU, it could cause big issues with recruiting talent for startups like us in the UK.”

Martin Campbell of FinTech startup Ormsby Street

“The ‘leave’ campaign has been misrepresenting the role that Britain’s membership of the EU has had in contributing to the success of small businesses.

“As a fintech firm it has been very beneficial for us. As a member of the EU the UK has full access to the single market. Not only does this mean British firms have trading rights with no tariffs, it gives a voice when regulations are determined. This is particularly pertinent when it comes to cross-border access in financial services, which would not be granted should the UK cease to be a full member.

“There has been talk of an arrangement like Switzerland’s, but even if this were possible, this does not provide for cross-border access in financial services. This could have significant implications for the FS industry.”

“Furthermore, the movement of labour across the EU is vast, and one of the principal reasons why I hope the UK votes to stay part of the EU.

“There are many small businesses who rely on the availability of a workforce with diverse skills from across the EU to grow their businesses successfully in the UK. Ormsby Street now employs 12 people, three of whom are from other EU countries.

“Our ability to bring to the UK the skills and capacity in our workforce that we need to grow and innovate is key to ensuring the success of the British economy. Britain’s membership of the EU is important and should not be jeopardised.”

David Brown at technology company Ve Interactive

“From the perspective of a tech business in London I don’t think Britain leaving Europe is sensible in the slightest. In fact, I believe we should further increase our ties with Europe on a trade and economic basis.

“On a practical level, the differing rates of VAT from country to country are an administrative and potentially business damaging issue. Import taxes charged directly to consumers when they receive goods ordered online from a business in another European country is bad for the buyer and troublesome for the industry.

“Additionally, hidden cost in currency conversion by banks and credit cards at time of purchase further complicates matters. None of this bodes well for the online industry; not the businesses nor the consumers.

“In my view, innovation is far more prevalent in Europe than the US, but the capital is in the US and it is time this balance was addressed.

“A single currency, a united marketplace and consolidated financial markets across Europe would allow the UK to stand shoulder-to-shoulder with the US and would drive a seismic shift in the tech industry.

“Politically and socially, I think it is still a personal view. The beauty of each country’s individualism is the charm of Europe, so the more each country can remain independent the better. But these issues should be separated from the desperately needed closer economic and trade ties facilitated by a united Europe.”

Simon Wright, Managing Director at design firm Greenwich Design

“As a small to medium sized business owner based in London, working mainly with global organisations, I’m very interested to find out how brexit will affect us and whether I should be panicking. However I’ve found that rather unhelpfully there’s a distinct lack of guidance for business owners on the subject.

“I thought maybe it was just me, but then I heard a discussion on Radio 4’s ‘The Today’ programme agreeing that, although brexit has been given a great deal of political airtime, the government hasn’t really tried to explain the effect it will have on businesses.

“For us, the issue is more about how a departure from the EU will affect our clients. My gut feel is that not much would change in the short term - however if the majority of our clients were Europe-based I think I would be slightly more worried.

“From a personal point of view, it feels like brexit would be a brave and exciting decision. Maybe slightly empowering - the way the Scots felt with the Yes/No vote. A way to invigorate British industry - particularly in the world of design - and continue the success we’ve seen in recent years. But it could backfire.”

Hayden Wood and Amit Gudka at energy startup Bulb

“As a technology led start-up, there are three reasons we think Britain should vote to remain in the EU.

“First, people. Being part of the EU means we have direct access to European talent. We work with a number of amazingly talented software engineers and technology specialists from Amsterdam to Wroclaw. Leaving the EU could mean living and working in the UK becomes a nightmare for them and our business would take a massive hit.

“Second, support for renewable energy. The EU leads the world in carbon reduction and European nations working together played a vital part in achieving the Paris agreement last year. Bulb directly benefits from cooperation like this within the EU, and it exposes the UK to innovative new technology and investment opportunities for renewable industries.

“Finally, uncertainty. We just don’t know what impact leaving would have. For us, hiring fantastic people and supplying energy brings big responsibilities we don’t take lightly: our lovely team have families to support and we’re committed to keeping costs for our members as low as we can.

“The startup community will inevitably find the uncertainty destabilising. We believe the job loss, anxiety and economic damage caused by this outweighs the potential benefits of leaving. While it’s far from perfect, the EU provides the most solid foundation for Bulb and businesses like it to succeed.”

Luke Davis at IW Capital

“In the lead-up to the EU Referendum, both the ‘Remain’ and ‘Leave’ campaigns have been guilty of scaremongering British businesses. The unbalanced presentation of ‘facts’ has left SMEs confused, which is clearly having a negative impact on business – earlier this month a poll found that UK business confidence is now at a four-year low.

“As somebody who specialises in alternative investment into British SMEs, the impact that leaving the EU could have on available funding options is a pertinent point to consider.

“Equity crowdfunding and state-aid programmes such as the Enterprise Investment Scheme (EIS) have proven to be vital sources of finance for the UK’s thriving community of SMEs, which make up 99% of our private sector. Despite this, the EU’s decision to cap the amount of funding that UK companies can raise through equity schemes is a concern.

“Last year, for instance, the UK had to limit the amount of funding a company could receive through the EIS to £12 million (or £20 million for knowledge intensive companies).

“If further regulatory measures of this nature were instated to align with EU legislation, then there is the danger of restricting the amount of growth capital available to Britain’s scaling businesses.

“That being said, the benefits from EU membership cannot be overshadowed. SMEs have access to funding through the European Investment Bank, which in 2014 lent a record €7 billion to UK companies.

“So Brexit would essentially remove an important source of SME funding, but in return the UK would gain greater regulatory control over its alternative finance sector.

“Regardless of the outcome, in the weeks following 23 June, the Government must act quickly to assure small businesses about long-term economic prospects and the longevity of alternative investment options.”

Mayank Shah at MSDUK which promotes and connects ethnic minority businesses

“I am an economic migrant born and brought up in India. I came to the UK in 2000 to study and later started doctoral research on supplier diversity and inclusive procurement.

“As I was doing my research, I observed an urgent need for a platform to connect large private sector firms and ethnic minority businesses (EMBs) to allow them to meet, interact, learn and access business opportunities within corporate procurement.

“Over the past ten years I have worked closely with thousands of EMBs, and I understand the landscape very well. I study the latest research very closely, and my organisation MSDUK has produced research of its own.

“What strikes me consistently is the disproportionately positive economic impact of EMBs to regenerate communities, create jobs and inspire enterprise.

“Based on my experience I do believe that managed immigration is a net gain for the UK, and whichever way the referendum goes my ambition is to see EMBs thriving for the benefit of the UK business community and larger economy.”

Daniel Keen at the London office of Meridian Business Support

“In London the skill shortages are serious with demand outstripping supply on a daily basis. The labour supply from British workers and EU workers combined is critical to the success of the construction sector.

“Imagine the impact of us losing many of our excellent Eastern European candidates. There would then be even more demand for our home-grown talent – that’s all very well, but we don’t have enough labour – either skilled or unskilled.”

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