With Brexit looming closer, will it be the small UK businesses who will be worst affected?
The UK is scheduled to leave the EU at 11 pm on Friday 29th March 2019 following a referendum vote on 23rd June 2016 when the majority of voters decided in favour of Brexit.
What does Brexit mean for SME’s?
Following research, undertaken by the University of St Andrews that involved 10,00 firms, the key findings highlight the uncertainty UK companies are feeling about Brexit and the potential impact this will have on their business.
For the UK economy, SME’s are thought to be the most significant factor in boosting productivity and growth and will potentially be the ones most negatively affected by the UK leaving the EU.
Furthermore, those relying on exporting goods and service, who operate in a hi-tech market and service related companies are likely to feel this more.
Ground-breaking, innovative small businesses are particularly concerned and feel wary about the introduction of new rules outlining how the UK does business following Brexit.
Where will small businesses feel it most?
Brexit is likely to impact SME’s in a variety of ways including:
- Less investment product development
- Reduced growth
- Lower levels of capital investment
Certainty in business is a critical factor for growth and investment. Small businesses are currently looking for this certainty and an agreement with the EU on an implementation will hopefully help. As talks continue with the EU on our trade approach and future relationship, this research serves to highlight how important SME’s are to the success of our future economy.
Thankfully UK growth forecasts are looking rosier than previously predicted which will help, led by the North West of England outperforming previous predictions and the global economy performing better too.
What are the next steps?
Talks are now moving on to future relations between the UK and EU as well as a plan for a two-year “transition” period to smooth the way after Brexit has taken place.
The Forum has produced a useful breakdown of key dates leading up to Brexit which can be broken down month by month.
The Forum can help and support you through Brexit with information on next steps being provided here.
A full summary of Brexit and all you need to know about the UK leaving the EU is available here.