[...]This culture clash between two very different models of capitalism is now most visible over the European question: many big PLCs are in favour of remaining part of the EU, often almost unconditionally; smaller firms and privately-owned, larger businesses are divided, just as mainstream UK opinion is split. YouGov spoke to top executives at 11 FTSE 100 organisations (such as BT, Whitbread, Diageo, HSBC and Centrica), three FTSE 250s and two privately owned companies. Only one of the top FTSE executives backed Brexit; interestingly, however, just five of the 11 companies have a public position on the matter. In stark contrast, one out of the two bosses at the privately owned firms (Sir Rocco Forte, the hotelier, as it turns out) backed Brexit. As to the 501 owners and managing directors of smaller firms also polled by YouGov, a small plurality of 47pc are in favour of staying, while 42pc want to leave, which was strikingly balanced.

Tech firms are an interesting outlier: even though they are entrepreneurial, often privately-held companies, almost all are against Brexit. They believe that leaving the EU would make it harder to hire foreign staff, which is a questionable assumption. But putting tech to one side, Britain’s small businesses and its Mittelstand – the backbone of the economy – are divided on EU membership. The biggest firms – which account for a vast chunk of GDP but don’t create many jobs in net terms – are far more pro-EU. There is no single “business” voice.

The debate is made more complicated by the fact that it is not always clear what being part of the EU actually means, at least to the public. Most respondents to surveys – including business people – conflate membership of the EU with the free movement of goods, services, capital and labour. When asked whether, if they had the choice, they would rather be part of some sort of free trade area (sometimes broadened to a single market) or full members of the EU, many – including business leaders – back the first option. But if the same people are asked whether they want to leave or remain, with no other option, they back the latter. The clear inference is that swathes of the business leaders who currently tell pollsters that they are pro-EU would actually rather belong to a trading arrangement instead. It’s a shame the referendum won’t come with a third option.

Full article on The Telegraph