Effect of Brexit on Small Businesses

Brexit Accounting

It has been more than one year since Britain voted to leave the EU. Triggering of article 50 of the Lisbon Treaty has started a legal process of divorcing United Kingdom from Europe.

Clearly this has resulted in a great deal of uncertainty for all businesses. Small businesses find themselves in a state of limbo. As for any change, Brexit brings in potential opportunities as well as risks.

Since Brexit vote the Pound has fallen around 20% against both Euro and around 5% against US Dollar. While this has resulted in higher import prices for UK, it has generated more opportunities for Export Businesses in UK, making their products and services cheaper in Europe and USA.

As with any change, business owners need to critically assess the impact of these changes on their business model including their workforce, Purchasing, Sales and Operation. This process involves complete review of the business and identifying all risks and seeking out opportunities. At times like these, having a reliable business partner is key to ensure that this review is done effectively.

Your business partner should be able to advise on effective risk management of your business and putting in place risk mitigation measures as well as planning and executing an action plan to capture potential emerging opportunities.