Brexit and skill shortages: an empirical analysis of UK SMEs

Pattanapong Tiwasing

Economics and Business Letters, 2021, vol. 10, issue 1, 9-15

Abstract: This paper examines the perspectives of SMEs on Brexit and skill shortages using cross-sectional data of 2,969 SMEs from a UK Government’s Small Business survey for 2016. The logistic regression with clustered standard errors is applied to analyse the association between SMEs considering Brexit as a major business obstacle and the probability of SMEs identifying skill shortages in their businesses. The results show that firms with a shortage of managerial skills/expertise have a 6.5% higher probability to report that Brexit will affect their businesses, followed by difficulties in staff recruitment (4.5%) and shortage of skills within external labour markets (3.8%). Policy recommendations are provided. Â

Date: 2021
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