The Forum of Private Business (FPB) has warned the government that its decision to impose a migration cap on people entering the UK from outside the EU could force entrepreneurs to leave the country.
Spokesman Chris Gorman claimed that some companies are likely to consider a switch abroad if they find they cannot hire employees with the necessary skills and suggested specialised industries are most at risk.
"Businesses need to be able to quickly and efficiently find the staff they need. If they can't do that, it is certainly going to hinder their growth," he explained. "It might even make them consider moving overseas."
Mr Gorman added that small to medium-sized enterprises could find themselves at a particular disadvantage, as larger firms will have the option of transferring employees from foreign operations if necessary.
Last week, home secretary Theresa May said in a speech to right-wing thinktank Policy Exchange that the coalition intends to cut net migration to a yearly total of "tens of thousands".
Posted by Ross George