With the possibility of a Brexit deal being reach very soon, the UK business community is split on what the future might hold for their companies. While some are concerned about the lack of growth Brexit could cause for UK businesses, others are looking forward to leaving the EU and seeing new opportunities available to them. Still, the uncertainty of a Brexit deal is on everyone’s mind and this has caused a lot of misunderstanding about what Brexit can mean for today’s businesses.
Why is there so much disparity over Brexit? It all comes down to the size of your business. Large scale businesses like the ability of conducting more cross border business and want the free movement of labour and standardised trading environment that the EU offers. Smaller businesses want fewer outside regulations so they can grow their businesses so they can compete with larger businesses.
While each side has their own arguments and each side believes that they are right, we should take an objective look at some pros and cons of the Brexit effect on UK businesses.
Fewer regulations- the EU has created a wide range of regulations that many feel are ridiculous at best. These regulations make it more difficult for SME’s to profit as they are constantly trying to keep up with the latest regulatory obstacles.
More opportunities in more thriving markets- with EU tax regulations making it difficult for businesses to trade outside of the EU, Brexit would enable the UK government to sign new trade deals with whomever they wish without double tax treaties.
The EU is financially unstable- with the EU being debt-ridden and not reaching it Eurozone GDP goals, the financial instability becomes everyone’s problem and that is something that many in the UK don’t want to be a part of.
Uncertainty- there will always be uncertainty surrounding Brexit and this is what has kept a deal from being reached yet. Is Brexit good for British businesses or will it hurt them, causing an economic slowdown?
Cross-border commerce would be more difficult- while cross border commerce is still possible with Brexit, it could prove to be an administrative nightmare for some businesses. This could be enough of a burden that many businesses would leave the UK just to save time when trying to acquire assets in the EU.
Increased Cross-border costs- businesses exporting products to the EU will face new EU tariffs. Even businesses that don’t export to the EU could feel the result of new import tariffs which could push investors away from the UK.
With the possibility of a Brexit deal being reached soon, we can only wait and see what it will mean for British businesses and how the new deal with affect the UK as a whole.
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