Well thanks to Theresa May we’ve at least got the confusing bit of what ‘Brexit’ actually means out of the way early on… well, maybe not quite.
On Thursday 23rd June the UK voted to leave the European Union, and in the past 7 months we’ve all heard that “Brexit means Brexit”, that we could have “soft Brexit” or “hard Brexit”, we’ve heard about “triggering Article 50” and “leaving the single market”.
“Brexit means Brexit,” does of course mean that Theresa May will take the UK out of the EU, but it her statement doesn’t expand on what the UK Leaving the EU actually means.
There is no doubt that the task of leaving the EU will be complex and will require lengthy negotiations. All we know for sure is that the process will have both positive and negative impacts on businesses in the UK, what those positives and negatives are still isn’t clear at this early stage.
Here’s what I think Brexit means for small businesses.
“First of all we haven’t ‘Brexited’ yet, but there are a few things that are impacting on small business from the vote to LEAVE.
Brexit can mean a lot of different things to different businesses as if you’re a small business that is predominately exporting outside the EU, Brexit will have benefited you in some ways. However if you are importing and using currencies such as the Dollar and Euro, you would have seen prices increase for your raw material overnight due to the sterling losing so much ground.
Brexit has bought an uncertainty to small businesses. The Closed Brothers Business Barometer, which surveyed 900 small businesses, revealed that 24% of businesses surveyed stating they have delayed an investment decision because of Brexit. In terms of looking to the future the survey showed that 44% of those surveyed believed they may lose business as a consequence. However 40% believed that this would not be the case.
Economies don’t just fall down overnight. Businesses who are trading in the EU will not have severed ties on the 24th June, however confidence has been affected but right now businesses are getting on with the day to day.”
What Brexit means to me and what impacts it will have on my business.
“The impacts Brexit is currently causing on my business is the cost of raw material as the sterling lost ground against the Dollar which meant raw material costs went up.
However Brexit is also opening the doors to trade with other countries.”
Impacts of Brexit on import and export.
In 2015 official statistics show the UK exported £133bn worth of goods to the rest of the European Union, almost half of our global goods exports. This included £10bn in food and drink, £16bn of
fuel and around £10bn of motor vehicles.
In the month of the referendum, the UK trade deficit in goods and services widened to £5.1bn after imports hit a new high. But latest figures show it narrowed to £2bn in October as exports rose by £2bn, lifted by machinery and transport orders, while imports decreased by £1.8bn, the Office for National Statistics said.
The ONS said there was “only limited evidence so far” that the fall in the pound’s value had led to a “marked increase in UK exports”.
For now we just have to wait and see what happens as the Brexit process continues. We must make the most of the circumstances that we are in, remember giving up is not an option just because change is occurring.
Follow me on: