April 29, 2017
On 23rd June 2016, the result of the UK referendum did more than raise a few eyebrows and has divided opinions throughout the United Kingdom. Over 9 months on article 50 was finally triggered on 29th March 2017. Vansdirect investigates the impact that Brexit could have on SMEs and how your business could be affected as Britain prepares to leave the European Union.
Several EU rules are considered a burden for SMEs, they can cause unnecessary bureaucracy, which can not only hinder business innovation and growth, but is also incredibly time consuming. Departing the EU may mean that some of these regulations are relaxed by the British government, in conjunction this may also relax barriers to innovation and growth for SMEs.
While this may not be seen as a positive for staff within SMEs, managers and owners of SMEs may be relatively satisfied with not having to partake in the EU directive which controls annual leave, working hour and parental leave. Not participating in these directives may mean greater productivity for SMEs.
Contribution from the UK to the EU budget costs approximately £140 per person, hence departing the EU may mean decreases in tax which would definitely benefit SMEs and other businesses alike. A decrease in tax may increase profits and enable growth of an SME which may not have previously been possible.
Departing the EU could possibly lead to improved trade agreements with countries that are not in the EU. While previously a possible barrier to exporting to non EU countries, this potential barrier may be removed and trade agreements with many possible more dynamic non EU markets could improve. Some markets outside of the EU are posting strong growth rates, agreements to take advantage of trade with these thriving markets can more than compromise for any subsequent damage to EU trade.
Many may believe that exiting the EU will reduce the attraction of skilled labour to the EU, this may not be the case. With EU migration to be limited as a result of Brexit, it may allow the government more flexibility in attracting skilled labour from beyond the EU and allow access to a far wider reaching staff pool.
How is this a positive to SMEs I hear you ask? SME exports have been increasing since the decision about Brexit, the lower value of the pound has made UK goods and services more competitive. As members of the European Free Trade Association; other countries within the agreement still also enjoy the benefits of the EU’s internal market, what is to stop this also applying for the UK following Brexit? As the UK leaves the internal market, an arrangement must uphold the present convenience of trade with the EU and not be followed by any further financial burdens.
Finances within the EU have not been particularly flourishing within the past few years. Following Brexit are we just leaving a ship that is sinking anyway? In leaving the debt of the EU behind, SMEs may be able to grow further as a result of this.
With Brexit set to lead to further opportunities for SMEs, why not take advantage of this growth by investing in a van for your business today? Vansdirect has a number of fantastic Van offers that will be a significant asset to your SME. Call NOW on 0845 021 0444 or enquire online and we’ll get back to you ASAP.