Whilst by the time you read this the EU referendum would have been and gone, whether you voted in or out is irrelevant to the impact that the big vote has had on small businesses in the months and weeks running up to the 23rd June. There has been plenty of scaremongering from both the Remain and Leave campaigns, claims that have affected all in society but what could a British exit, or ‘Brexit’ as it has become known, mean for small businesses not just in the North East of England but the rest of the UK?
As a specialist in business accounts support and management, our accountants make it their business to analyse and evaluate the market trends that affect their clients the most. Here we focus on what impact leaving the European Union could have on organisations across all industries.
A step back for British business?
Small companies serving all industry sectors have been the lifeblood of the British economy for as long as we can remember, and while many may have struggled during the financial crisis, there is no doubt that they have bounced back in recent years.
The buzzword of many debates between Remain and Leave campaign representatives has certainly been ‘trade’, and this is indeed the key to economic success for any country. A Brexit would mean individual negotiation for each trade agreement that the UK has with the EU and other countries, which could effectively go either way to become a profitable move or an unfavourable one. Experts in favour of leaving have said that they will aim to secure a ‘presumption of continuity’ so that trade could continue and the revised deals struck help businesses of all sizes grow efficiently.
Would a Brexit affect how businesses are financed?
Finance is always a hot topic for small to medium sized businesses and one of the questions posed by many small business owners is whether the funds and investment needed would be restricted or made more accessible if we were to leave the EU.
As you can imagine, like every topic associated with the impact of the EU referendum, there are arguments both for and against how leaving will affect this vital part of business. Many financial experts have said that leaving the EU would indeed limit the finance available to SMEs and as the EU has funding programmes to help businesses of this size succeed, this would no longer be available to the UK should the vote garner a leave result.
For further market insights or to discover more about our cost effective accounting services for small businesses and sole traders, please contact us today on 0191 251 7599.