Well it has happened, on 23rd June 2016 the United Kingdom voted to leave the European Union. Whether we leave or not remains to be seen, however in the likely event that the government does proceed, it will affect many, including small businesses.
There are many potential pros and cons of Brexit for businesses of all sizes, however some of the main things that have been widely discussed that would affect small local businesses are as follows:
- There is a potential loss of EU funding, including EU farming subsidies.
- The cost of loans may increase due to increased pressure on British banks.
- It may be more difficult to secure finance due to banks being less willing to take risks whilst the outcome of the Brexit vote remains uncertain.
- Small businesses who depend on larger businesses for sales / supplies may lose out due to the loss of big businesses to the Single Market.
- There should be no immediate effect for those with European national employees.
- Employment law may be affected, however changes in law would likely be slow. This could be to benefit employers and / or employees going forward.
- The value of the pound has already drastically dropped, this will inevitably negatively impact the cost of supplies from outside the UK such a fuel.
- For those small businesses that export, the drop in the value of the pound will of course be a good thing.
There will be further developments over the coming months and with the selection of a new prime minister and commencement of negotiations with the EU therefore keep an eye out for news and of course our blog. It’s important to understand how any changes will affect your business.