SME business owners need skills to adapt to Brexit
A new report by Dr Oliver Mallett at the University of Stirling, which looked at how regulations affect small and medium-sized businesses (SMEs), has called on policymakers to help prepare them for Brexit by providing them with the skills to adapt to changes.
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A new report has called on policymakers to help small and medium-sized businesses (SMEs) prepare for Brexit by providing them with the skills to adapt to changes.
Research led by Dr Oliver Mallett, Associate Professor in Work and Employment at the University of Stirling, looked at how regulations affect SMEs.
The report identifies that stability is important for many SMEs, highlighting the need for reliability and continuity of regulation.
However, it says Brexit has created the possibility of significant turmoil and, despite government reassurances, owner-managers and entrepreneurs are likely to need support to reduce uncertainty and ensure confidence in their regulatory compliance.
"Post-Brexit, the perceived potential for widespread regulatory change, uncertainty and instability is likely to undermine confidence amongst SME owner-managers," said Dr Mallett.
"As the UK government and others seek to develop a 'better regulation' agenda, it is vital to consider the full range of effects regulations can have on SMEs, including the beneficial effects."
Associate Professor in Work and Employment
Post-Brexit, the perceived potential for widespread regulatory change, uncertainty and instability is likely to undermine confidence amongst SME owner-managers.
He said monitoring, negotiating, and adapting to changes, were all vital skills that went beyond regulation, and that regulatory compliance had been found to improve management practices within SMEs.
“Better regulation for SMEs may therefore not reside in the quantity of regulation, or how it is written, but how it is taken up in the processes involved in its effects,” he said. “In this way, regulations, and how businesses are supported to engage with regulation, can be made better and linked to wider agendas, such as improving productivity.”
The report, which was co-written by Dr Robert Wapshott and Professor Tim Vorley from the University of Sheffield, found that regulation can have a range of positive benefits, including maintaining competitive markets and protecting SMEs from unfair competition; encouraging improved practices, such as in managing conflict in the employment relationship; and indirectly developing management competence through the creation of formal and equitable policies and practices.
The research, developed out of a funded project for the UK Department for Business, Energy and Industrial Strategy, was published by the International Journal of Management Reviews.
Background information
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