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Posted: Tue 10th Nov 2026
11 min read
As the government heads into an EU summit later this month with what many commentators consider to be three draft agreements ready to sign, we take a look at what this might look like for small businesses.
We asked Enterprise Nation members what closer ties with Europe could mean for their businesses, and what they want politicians to consider as the debate returns.
Brexit is back in the headlines. Nearly a decade after the UK voted to leave the European Union, Prime Minister Andy Burnham has reopened the debate about what the country's future relationship with Europe should look like.
Speaking at the Labour Party conference in September, the PM said the current arrangement was "not good enough" and that the UK needed to consider its options.
While he said a new referendum would not be the right step immediately, he did not rule out the possibility of one appearing in a future Labour election manifesto.
The options under discussion range from maintaining the current relationship to closer trading arrangements, including a customs union, or potentially rejoining the EU. The government is expected to set out more about its approach around a forthcoming UK-EU summit next month.
Under discussion could be the cost of importing materials, the paperwork involved in exporting products, access to more customers, and the practicalities of managing international supply chains.
Ahead of the Budget, we asked members of the Enterprise Nation community what they experienced after Brexit, whether closer trading ties would make a difference and what they want to see from the government.
For Dave Willis, founder of hand-cooked crisp brand Salty Dog, the extra requirements introduced after Brexit made selling into Europe less attractive.
The business supplies pubs, delis and sandwich bars across Britain, with some exports to France, Italy and Spain. But when new restrictions and requirements came into effect, the additional work involved in exporting made it harder to justify focusing on European markets.
Dave said:
“I think that closer ties with the EU would certainly make exporting to Europe more attractive to Salty Dog. Export has never been a huge part of our business, so when the extra requirements and restrictions, for example, having to have an EU address on packaging, were introduced, we focused more on the UK market.
"If things went back to how they used to be we would be much more interested in pursuing more European business.”
For a business where exporting is not its main source of income, the additional administrative work can make the difference between pursuing an overseas opportunity and concentrating on the domestic market.
Dave's experience also highlights a potential benefit of reducing trade barriers. Closer ties would not necessarily mean that every business started exporting, but they could make European sales more attractive to companies that have stepped back from those markets.
For fragrance brand Urban Apothecary London, Brexit had a considerable impact on sales across Europe. Its experience illustrates how the effects can extend beyond customs declarations to product information, delivery times and the relationship between a business and its distributors.
Tajinder Banwait MBE, founder of Urban Apothecary London, said:
“Brexit had a considerable impact on our sales across the continent. Stock stalled at congested ports, freight charges climbed, and each country requested different paperwork, some asking for the composition of every product we shipped.
"Closer trading ties would mean faster deliveries, a single approach to compliance and labelling, plus lower costs. Our distributors could reorder with confidence, and European customers could shop with us more easily again.
“We’re looking forward to seeing the outcome of the Prime Minister’s conversations with the EU. After years of challenges for businesses and consumers alike, we would welcome the chance to share our fragrances across borders more freely.”
Tajinder's response points to several interconnected challenges for businesses selling physical products. Delays can affect stock availability, higher freight charges can squeeze margins, and different paperwork requirements can create additional work for small teams.
The consequences can also be felt by customers. If a business cannot deliver reliably or has to raise prices to cover extra costs, it may become harder to compete with suppliers based inside the EU.
Alongside these business experiences, we asked the wider Enterprise Nation community for their views.
We invited members to share whether they would support rejoining, prefer to remain outside the EU or were still undecided, and their replies showed a range of views, from those who believe Brexit has damaged their business to those who want a stronger case for any change before the public is asked to vote again.
Chartered marketer Jarek Solinski shared his experience of working for a company supplying Ireland from the UK. To maintain service levels after Brexit, the business held additional stock in Ireland, tying up working capital and increasing costs.
He compared this with the impact of tariffs in the US, arguing that businesses adapt to trade barriers but often end up picking up the bill, with costs ultimately passed on to customers.
Jarek's response to the community discussion was that politicians should make it easier to trade and reflect current business realities, rather than remain focused on political arguments from a decade ago. Markets, supply chains and customer needs change, and businesses need arrangements that allow them to respond.
He also said that, for many small businesses, the biggest issue is the extra complexity, uncertainty and cost created by trade barriers. He would be comfortable with another referendum if that was what it took to address the issue.
His experience highlights how the impact of Brexit can extend beyond businesses that export directly to the EU. Companies may also face higher costs when they supply other businesses, maintain stock overseas or adapt their operations to keep customers served.
Caitriona Robson Smith, co-founder of Your Man with a Van franchise, focused on the uncertainty and legislative complexity that businesses face, rather than taking a simple position on whether the UK should be inside or outside the EU.
Responding to the question of whether the public should have another say on the UK's relationship with Europe, she said:
“Whether we do or don't, in or out, it's the uncertainty and reality of the mess with legislation that is the problem for businesses.”
She pointed out that small businesses need to make decisions about pricing, suppliers, staffing and investment, often months or years ahead. If the rules governing their markets are unclear or keep changing, planning becomes more difficult.
Enterprise Nation member Adrian Smith took a strongly critical view of Brexit in his response to the community discussion. He said his business had lost a lot of money through lost contracts, while some clients stopped selling to the EU and others ceased trading.
He also challenged the arguments originally made in favour of Brexit, saying he believed the business case was not there and that new trade deals had added virtually nothing.
Adrian's comments represent one of the strongest positions in the discussion. His experience also illustrates how a business can be affected by Brexit without necessarily exporting goods itself. If its clients sell into Europe, or depend on customers and suppliers who do, changes to trading arrangements can have consequences throughout the supply chain.
Business mentor and Enterprise Nation adviser Ian Caldwell was more sceptical about rejoining the EU. He argued that the EU has changed since the 2016 referendum and pointed to economic challenges in major European economies, including France, Germany and Italy.
He contrasted their performance with the UK's growth, while acknowledging that UK growth has not been especially strong.
For Ian, rejoining would be an investment with a cost as well as potential benefits. He argued that any decision should be supported by a strong business and security case, and that the public should understand the implications before being asked to vote in another referendum.
He was also critical of the politicians who campaigned for the UK to remain in the EU in 2016.
Ian's response is a reminder that members do not all see closer EU ties as an obvious solution. While some want barriers to trade reduced, others want a detailed assessment of the costs, benefits and alternatives before supporting a change.
IP expert Clive Bonny linked the debate about Brexit to wider changes in international trade, including tariffs and the UK's relationships with other markets.
He said:
“UK trade with USA is declining due to tariffs. Canada is joining EU and has the highest growth in G7. UK has lost over £150 billion due to leaving EU.”
The figures and comparisons are his own assessment, but his wider point raises a question for policymakers: How should the UK balance trade relationships around the world with the benefits of reducing barriers to trade with nearby markets?
For small businesses, the answer will depend on where their customers are, what they sell and the costs involved in reaching different markets. A business exporting services may face different barriers from one shipping food, drink, cosmetics or other physical products.
Business mentor Ian Hunter, who has lived in the EU for many years, said he had always considered leaving the bloc a mistake. He described Brexit as walking away from the UK's closest and largest business partner.
He acknowledged that the EU is imperfect, but argued that remaining part of it would allow the UK to have a say in decisions that affect its relationship with European markets.
He says the question is not only how easy it is to trade under a particular arrangement, but also how much influence the UK has over the rules that govern its relationship with Europe.
For businesses, that can matter when rules on products, standards and market access affect whether a company can sell into a market and what it must do to comply.
Mads Nybo Jorgensen, an Enterprise Nation adviser who is a Danish citizen and has lived in the UK for longer than in his native country, shared a perspective shaped by experience of both the UK and the EU.
He acknowledged that the EU is far from perfect, but argued that shared standards and policies provide a framework for safety and quality. In his view, the UK sitting outside that framework has damaged UK businesses, jobs and wider prosperity.
Mads also highlighted the UK's position as a services-led economy, arguing that leaving the EU made access to its largest market more difficult while complicating the import and export of food, manufactured goods and other products.
He linked some of the public frustration associated with Brexit to the way successive governments handled immigration, public services and housing. He argued that addressing shortages in these areas could also create business opportunities across the UK.
On the question of rejoining, Mads acknowledged that it may never happen, but said he would like the UK to consider how it could make doing business easier and develop a more constructive relationship with Europe. He added:
A closer relationship with the EU has to add jobs, wealth and prosperity to all citizens in the UK.
He also pointed to the role small businesses can play in their local communities through job creation and the work they do.
Mads's response brings the discussion back to the potential economic outcomes of any future relationship. For him, the priority is not simply whether the UK rejoins the EU, but whether its relationship with Europe can support jobs, wealth and prosperity across the country.
Customs declarations, safety requirements and other border formalities can create work for businesses exporting goods. Smaller firms may not have dedicated export or compliance teams, so even routine paperwork can take time away from other activities.
Reducing unnecessary duplication and making processes easier to understand could help businesses manage exports more efficiently. Digital systems and clearer guidance could also make it easier for first-time exporters to understand what is required.
As Tajinder's experience illustrates, businesses can face additional work when they have to meet different requirements across markets. Product composition, labelling and compliance information can all affect how easily a company can sell overseas.
Greater alignment or mutual recognition in relevant areas could reduce duplication, where agreed by both sides. This could be particularly relevant to businesses selling products such as food, drink, cosmetics and other consumer goods.
Delays at borders can have knock-on effects for businesses and their customers. Products may arrive late, stock may be unavailable and companies may have to hold additional inventory to protect against disruption.
For a small business, holding more stock can tie up cash that might otherwise be used to invest in the company. More predictable deliveries could help businesses manage inventory, plan production, and give customers clearer expectations.
Paperwork, freight, compliance and extra stock can all add to the cost of selling abroad. Businesses may absorb those costs, accept lower margins or increase prices.
Reducing some of the additional requirements involved in trading with the EU could help businesses that currently find European exports too expensive or complicated to pursue. It could also help businesses that have continued exporting but are struggling with the extra costs.
For Salty Dog, the extra requirements meant focusing more on the UK market rather than pursuing more European business. For Urban Apothecary London, delays, paperwork and costs affected sales across the continent.
Their experiences show that barriers can affect more than the process of shipping a product. They can influence whether a business chooses to enter a market, how much it sells there and whether its distributors can order with confidence.
The debate about the UK's future relationship with Europe is taking place alongside work on specific areas of trade.
The UK and EU have discussed an agreement on sanitary and phytosanitary (SPS) measures, which cover areas including animal and plant health and food safety. The government's published explanation of the proposed agreement sets out the intention to reduce certain checks and certification requirements for covered goods.
The government has highlighted the potential to remove some export health certificates, which can cost businesses up to £200 per consignment, and plant health certificates, which can cost around £25 each. The details and implementation of any agreement will determine which businesses and products benefit.
For small food and drink producers, agricultural businesses and exporters of relevant products, changes in this area could make a tangible difference. But an SPS agreement would address particular requirements, rather than remove every trade barrier between the UK and EU.
Across the responses, members highlighted different experiences and views, but several practical issues emerged.
Make the costs and benefits clear. Businesses need to understand how any proposed change would affect paperwork, product requirements, delivery times and costs.
Give businesses clear guidance. If requirements change, small businesses need accessible information about what they must do, when they must do it and where they can get help.
Reduce unnecessary complexity. Where agreements can remove duplicated requirements or simplify processes, the government should consider how those changes could help smaller firms.
Recognise that businesses have different needs. A business that exports food products faces different challenges from one selling services or supplying other businesses.
Be honest about the trade-offs. As Ian Caldwell's response illustrates, not every business owner sees closer ties or rejoining as an obvious solution. Any proposed change should be assessed on its merits, with costs, benefits and alternatives explained clearly.
The government's discussions about the UK's relationship with the EU do not mean that a referendum or a decision to rejoin is imminent. The options under consideration would involve different choices, negotiations and potential consequences.
As the debate continues, small businesses need clear information about the options and a meaningful focus on the everyday realities of trading. Whatever direction the UK takes, making it easier for businesses to understand the rules, plan and reach their customers should remain a priority.
