The Impact of Brexit on Businesses & UK Economy

The Impact of Brexit on Businesses & UK Economy

Every industry is going to be impacted by Brexit at some point, purely due to economic fluctuations. From reduced investment to manpower issues and skilled worker shortages, it’s safe to say that the impact of Brexit on small businesses is huge. That being said, Brexit opportunities are not to be overlooked, especially when you look at smaller companies that operate in certain sectors.

If you want to find out more about Brexit business, or how it could affect you then take a look below.

How Brexit Affects Businesses?

Every organisation faces their own challenges when it comes to leaving the EU. One of the main issues may be increased costs that happen as a result of delays in the supply chain. Companies are finding it harder to source the goods that they need from the EU, not to mention that there are additional customs and border tariff implications.

Another issue may be with the EU workforce. British employment law derives from European law, and some areas are UK provisions. To compound this issue, a lot of workers in the UK come from the EU. If you look at the Brexit facts, you will see that it is now harder for them to do so, which has resulted in a skills shortage. Right now, there are 330,000 fewer workers in the UK.

Brexit Investments

It is also important to consider Brexit investments. How much companies are able to spend on tech, training and even equipment is largely dictated by the relationship that the UK has with the EU. Investment has stalled and businesses remain wary of the upcoming Brexit small business impacts. Some have suggested that the mere cost of Brexit red tape could deter people from investing in the UK but, that being said, there is no evidence to suggest that this could be the case.

Advantages & Disadvantages of Leaving the EU

There are advantages and disadvantages of leaving the EU. We have covered a lot of the disadvantages, so now it’s time to move on to the advantages.

One bonus is that being a member of the EU limits Britain when it comes to international influence. Britain also now has control over rules and laws, as well as seeing domestic security improve. Border control can now be more stringent, and the country now doesn’t have to pledge billions in EU membership fees every year.

It’s possible that Brexit is going to have a positive impact on the job market as well, as selective immigration could mean that higher-skilled jobs become available to those who have the right qualifications and experience. Even though a shortage has occurred, it’s possible that this could only be over the short-term, and that things could change for the better as time goes on.

Taking note of changes such as this is imperative if you run a small business. If you need more business advice or information, take a look at the Chamber of Business for more articles that can help your business grow.