MEP urges UK small businesses to speak up on benefits of EU membership

Labour Vice President of the Economic and Monetary Affairs committee in the European Parliament Arlene McCarthy (pictured) has called on small businesses to take a stronger stance on the benefits of EU membership.

McCarthy said: "With the Federation of Small Businesses launching their European election manifesto in the European Parliament this evening (12 February) it is time for small businesses to take a strong stance on membership of the EU."

"Of the 100,000 UK companies that export goods and services to other EU countries, 94,000 are SMEs. 99% of businesses in the EU are SMEs and, like UK small businesses, they are the lifeblood of our economy. Access to the EU's single market and 500 million consumers can provide a huge boost for a small businesses' trade."

According to McCarthy EU laws, such as the Small Business Act, have reduced the administrative burden of running a business for SMEs and micro-enterprises and reduced the amount of time it takes to set up a company in the EU.

Arlene added: "There are numerous examples of European laws that assist small businesses in maximizing the benefits of the single market and trading with consumers in other member states - from simplified EU customs procedures to speedier, low cost dispute resolution and when a small business is owed money, we have taken action on late payments by requiring invoices to be paid within 60 days unless expressly agreed otherwise.

"In January 2013 it was revealed that £36.5 billion is owed to UK small businesses - that's around £30,000 each. There is a clear need for a simpler, more accessible means of recovering cross-border debt, so why has the UK government chosen not to opt in to new legislation creating a European Account Preservation Order (EAPO) which would assist with the disclosure and freezing of debtors' assets?

“To make matters worse, a majority of member states are objecting to British businesses being able to use the EAPO instrument which will speed up and reduce the cost of debt recovery. The EU recognises that the recovery of debt is a fundamental issue for small businesses - it can be the difference between going under and staying afloat.  The UK disengaging with the EU is bad for small businesses."

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