The fact is, Brexit has shook confidence and stability within many industries across the UK, and there’s no telling how it’s going to impact your business in the long-term. As a small business, you’re highly dependent on the health of the pound and general UK finances, as well as all the various industries that could be influenced by various import/export elements inherent to Brexit. We’re going to take a look at how the recent Brexit vote stands to influence that.
Brexit is always going to be a tumultuous and interesting shift in the world, and a fascinating time to live through. Regardless of personal politics, and how you as an individual voted, it’s important to take a look at the long term impact for many industries and businesses within the UK. Despite scaremongering, Brexit isn’t going to be as damaging as many would claim, quite the opposite, it could provide some spectacular and unforeseen benefits for smaller businesses. Here’s how Brexit could prove great for small businesses.
One of the initial and most visible elements of Brexit are the fall in value of the pound. For a lot of businesses, this could potentially prove problematic, and cause losses. However, for exporters of any kind, they can expect profits to grow and soar, as a direct result of Brexit.
Admittedly, this is an obvious and short-term benefit of Brexit to smaller businesses, but initial silver-linings are always a good thing. While some of the other benefits for smaller businesses make themselves clearer, for export focused businesses, its good times.
One of the key things to bear in mind with Brexit is making sure we get the best trade deals possible. With the EU being the UK’s main trading partner, if we get a bum deal in trade deal negotiations, that’s going to impact all businesses, and while the big boys at the top might weather it, the smaller business might struggle a little.
However, that’s a worst case scenario. With countries like Norway enjoying great trade deals across Europe and the world, it’s not out of the question that we could do the same, and secure deals that provide a boost in trade and profit for all businesses, small and big.
Another factor in the Brexit fallout is the new free movement and borders rules. With unskilled workers coming over and working in the UK short term, this could be challenged by potentially more stringent immigration and entry rules. On the flipside, new rules and regulations could attract more skilled, trained and experienced workers to the UK, boosting all manner of industries and businesses, especially if we utilise a point systems like Australia.
The fact remains that entrepreneurs and small business owners don’t tend to roll over and die in the face of adversity, by the very nature of what they are, they’re used to coping and turning the system to their advantage. If anyone is going to be absolutely fine with Brexit, it’s small businesses. That might seem like I’m going a bit negative about the whole thing, but really it’s too soon to tell. Brexit could prove damaging, but it could also usher in a period of profit for the UK that might not otherwise have occurred. It’s all down to the negotiations and what they secure for small businesses in the UK.