A majority of small and medium business owners want Britain to exit the European Union because they believe it is hindering them, a poll has suggested.
Some 41% of the 601 SME bosses asked believed that the EU was a hindrance – over twice as many the 20% who said it helps them.

Much of the debate surrounding the referendum, which is set to take place before the end of 2017, has focused on the economic impact exit would have.

Pro-EU campaigners insist it would be a disaster for British businesses to come out of the single market and have warned of the ramifications for UK jobs.

The poll was carried out for Business for Britain - an organisation which said it “exists to give a voice to the large, but often silent, majority among Britain’s business community who want to see fundamental changes made to the terms of our EU membership”.

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The findings of the poll were:

• 84% said that the UK should be in charge of employment law;
• 81% said that the UK should be in charge of working qualifications;
• 79% said that the UK should be in charge of health and safety legislation.
• 54% would like either like the EU to be a less integrated free trade area or would want complete withdrawal from the EU.
• Just 26% would like to see a more integrated EU or a European government.
• 69% believe that the UK can trade and cooperate with Europe without giving away permanent control over its economy.
• 70% believe that the Prime Minister must negotiate a new Treaty in order to secure a ‘meaningful change’ in the UK’s relationship with the EU, with the largest support (76%) coming from those who have 10-49 employees.
• 74% believe that the British Government should handle negotiations of trade agreements.
• Only 22% said that the EU should handle international trade agreements.

The poll was commissioned by Shore Capital, whose chief executive Howard Shore said: “If I had to establish my business in today’s regulatory environment, with so much interference from the EU in the way businesses operate, I’m not sure it would have been possible.

“We commissioned this research so that millions of hard working entrepreneurs across the United Kingdom had a voice in this once-in-a-generation debate. Only with successful wealth creators can we grow, employ more people and pay for the public services we all deserve.”

Business for Britain said it was “independent and non-partisan, involving people from all parties and no party”.

Matthew Elliott, its chief executive said: "Business opinion is divided over Britain's relationship with the EU, yet a majority of SMEs - the lifeblood of the economy - want to see powers flowing back to Britain. It is particularly damning that by two to one SMEs think the EU is hindering them, not helping them, and this shows why Britain must take back control of how it trades in a dynamic, globalised economy.”

Of those surveyed 5% (29) were members of the Confederation of British Industry; 27% (163) were members of the Federation of Small Businesses; 11% (67) were members of the Institute of Directors; and 21% (128) were members of their local Chamber of Commerce. More than half, 51% (308) were not members of any of these organisations.