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A recent report by the FSB has found that 54% of entrepreneurs are concerned about how Brexit will affect the growth of their small business. Many believe that smaller companies will be the most negatively effected by Brexit, with Sir Richard Branson believing this to be due to their smaller cushion of cashflow to fall back on if costs rise.
If you are concerned about the growth of your company following Britain’s departure from the EU, find out how Brexit will affect small business below.
A lot of independent businesses rely on low-skilled workers to keep their company running; 29% of these stated that without jobseekers arriving from the EU they would be unable to meet their labour needs. Companies who recruit highly skilled staff from abroad stated that they would struggle to find job candidates with suitable skills to fill open job roles following Brexit. Brexit is already changing the UK job market, with searches from jobs in the UK made in the EU down by almost a fifth on Indeed.
Many industries who import products from overseas will be hit with higher costs as a result of Brexit. Currently, the food industry is preparing to face an increase in the costs of imported produce, a factor which could drive up the price of the end product. Although this could have a negative impact on industries such as restaurants, with inflated product costs, it could benefit UK farms as companies look to local suppliers to avoid inflated import costs.
When asked by the FSB, almost one third of independent business owners stated that they currently did business with or within the EU. 35% stated that they are concerned about how Brexit will affect their small business’ ability to continue to work in the EU in the future. Although nothing has yet been finalised, a new trade deal with the EU will be released post-Brexit. Currently, UK companies can provide services to the EU without any tariffs or quotas, however under the ongoing deal it’s possible that the EU members would impose higher tariffs.