UK SME’s Optimistic About Improvement in UK Economy Post Brexit Day
Nearly three years of perturbed political matters and diverse opinions across the UK have finally come to an end with the UK leaving the European Union after a long association of 47 years. Consequently, Brexit day is sure to generate mixed responses from large and small-medium enterprises (SME’s) in the UK.
Based on a market research consultancy firm, Censuswide, nearly one third of SME’s aim to invest more funds in the technology sector despite the period of economic uncertainty. As stated by Tim Maloney, a partner at international law firm Dorsey & Whitney and head of the London office, “Brexit is unique in its scope and complexity. It affects businesses across all sectors. No two businesses face precisely the same challenges; everything depends on the nature and footprint of their operations, suppliers and customers.”
A survey done by S & P Global about the early 2019 earnings calls listed some ways the US companies have planned to deal with the changes likely post Brexit day. For instance, one snack food firm has rented more logistical equipment and boosting inventory. Likewise, a lab equipment producer has shifted production out of the UK over time.
As per the Harward Business Review, post Brexit day, the UK’s SME’s could lose revenue as new custom regulations lead to delayed shipping. Rewriting of contracts and intellectual property protections can be reassured. For the SME’s working in this arena, this will lead to some sort of inconvenience. With the plunge in British pounds, company’s importing goods from the UK are likely to benefit.
Post departing from the European Union, almost 32 percent of SME’s will raise technology budget by 10 percent in initial three months. Nearly, 28 percent SME’s are expecting a revenue bounce and 37 percent wish for a powerful UK economy. An even higher percentage can be found in other regions. Almost 50 percent business owners from West Midlands, 45 percent from North West of England and 42 percent from the North East of England agree to this.
Considering the benefits of a majority government post Brexit day, almost 41 percent of business leaders are confident about the growth opportunities, specially business owners from the North East.
From an investor point of view, the access to European markets post Brexit day must be uninterrupted. According to Chris Chummings of the Investment Association, “the UK government and EU need to ensure that our industry can continue to seamlessly manage savers” money across Europe.
For marking the celebrations of Brexit day, Brussels bid adieu to the European Union officially at 11 pm yesterday. Lining the square outside Parliament and the Mall leading to Buckingham Palace, several British flags were seen fluttering across the street. A light show was staged outside Johnson’s official residence in Downing Street adding to the celebrations.
The mixed responses of Brexit day make it even difficult to assess the long term impact of Brexit on the SME’s in the UK. If we believe the statements of CEO of Leonne International, “We can expect 2020 to be a great year for many SME’s.
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