Brexit, the United Kingdom’s withdrawal from the European Union, has had a number of negative impacts on small businesses in the UK. Some of the ways in which Brexit may be detrimental to small businesses include:
Increased costs: Many small businesses rely on imported goods and materials, and the introduction of tariffs and other trade barriers as a result of Brexit could increase the cost of these inputs, leading to higher prices for consumers and reduced profitability for businesses.
Reduced access to the EU market: Prior to Brexit, small businesses in the UK had access to a market of over 500 million people through the EU’s single market. Withdrawing from the EU has resulted in the introduction of tariffs and other trade barriers that make it more difficult for UK businesses to access this market.
Increased bureaucracy: The introduction of new customs procedures and other regulatory requirements as a result of Brexit has added to the bureaucracy faced by small businesses, increasing the time and cost of doing business.
Reduced access to talent: The UK’s membership in the EU allowed small businesses to easily hire workers from other member states. The ending of free movement of people as a result of Brexit has made it more difficult for small businesses to access the talent they need.
Economic uncertainty: The uncertainty surrounding the UK’s withdrawal from the EU has created a climate of economic uncertainty, which can discourage investment and make it harder for small businesses to plan for the future.