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Bosses throughout Ireland and NI appear split over the impact that a potential EU referendum may have on economic recovery in Great Britain, according to a new survey by Close Brothers Commercial Finance.

More than a third of SMEs are concerned that an EU referendum would challenge the economic recovery in the UK while 41% don’t believe it will have any impact.

Of those that are worried about its impact, a quarter of NI owners believe it will cause them to delay on investment decisions for their business, over two fifths claim it will cause uncertanity amongst inward investors and a further 29% in Ireland are concerned that it could raise doubts about their foreign customers continuing to work with them.

The findings come from the latest Close Brothers Business Barometer, a quarterly survey that canvasses the opinion of SME owners and senior management across the UK.

Head of Sales (asset finance) of Close Brothers Commercial Finance, Adrian Madden said: “There is evidence that there has been significant foreign investment flowing in to the UK as a direct result of our EU membership*. Last year, the UK’s foreign direct investment (FDI) stock was greater than any of our European neighbours.

“Ireland has a significant economic relationship with the UK, based on a complex web of commercial, institutional and transport connections. The UK is Ireland’s largest export recipient and in turn, Ireland is the fifth largest destination for UK exports**.

“As such, it is understandable that some firms are feeling anxious about the prospect and what impact it may have on their business, however, it is important to keep in mind that this potential referendum is still more than two years away. Until then we must continue to focus on strengthening our trade links and further encouraging the Irish export market both with regards to the UK and further afield.”

Mr Madden continued: “At present, Ireland and Britain trade over €1 billion worth of goods and services every week*** and we hope that that the prospect of a referendum on UK membership of the EU will not impact the ongoing economic relationship.

“The UKIT inward investment report showed record levels of job creation with 66,390 new jobs last year, the highest since 2001. In total 1,773 investment projects were set up by foreign businesses during the 2013 to 2014 financial year.

“These figures are significant and we hope that that the prospect of a referendum will not derail the progress we have made in recent years.”

*Grant Thornton, 2013

**IP Journal, 2014

***Department of Foreign Affairs and Trade, 2014

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