SMEs are vital to the British economy, making up more than 99 percent of the private sector. However, the effects of Brexit on SMEs remains unclear. While there are still so many uncertainties surrounding Britain leaving the EU, there are a number of positives that it could have upon your business. Here are five potential pros Brexit could offer.
- More enterprise, more investment
Raising capital can often be difficult for SMEs, especially if the business in question is at a particularly early stage – recent research has found that almost 30 percent of UK SMEs find raising finance to be the biggest obstacle to setting up a new business. With the pound weakening, there may be a future wave of inward investment, creating more avenues for growth. Furthermore, there are fresh opportunities for enterprise and entrepreneurs. By being flexible, you can act quickly and effectively to adapt to market changes.
For further guidance, the SME Growth Service can provide tailored support to your business to ensure you’re successfully meeting your goals and achieving growth. This personalised guidance comes directly from established academics with considerable business expertise.
- Wider international opportunities
Britain’s access to the single market, and how and where we export goods and services in general, will largely depend on what happens on October 31. However, it may not be a cause for concern – one in four SMEs have already reported improved returns from exporting post-Brexit. Furthermore, recent research conducted by PayPal has revealed that SMEs saw international sales treble in recent months. Leaving the EU may provide you with the chance to expand into international markets, taking advantage of the undervalued pound to reach a new customer base.
- More opportunities to upskill and retain your talent
Another significant concern Brexit poses is that of employment, with 47 percent of highly-skilled EU citizens considering leaving the UK within the next five years. While a shortfall in skilled workers post-Brexit seems likely, there are positives to be gleaned. Your business can instead focus on upskilling its current staff, investing in and encouraging them to grow. This will not only ensure you retain your employees, but also help plug any skills gaps your company faces post-Brexit.
When it comes to ensuring your employees have the skills they need, your business could partner with Higher Level Skills Match (HLSM), which is supported by the European Social Fund. This collaboration will provide you with long-term training and development opportunities for your employees, as well as matching your needs to highly-skilled graduates.
- Access a wider talent pool
However, your business doesn’t have to focus solely on homegrown talent. Brexit would mean a liberation on EU migration, meaning there is more room to manoeuvre when it comes to attracting talent from across the globe. “Brexit could be beneficial in terms of accessing a wider staff pool,” says Neil Harris of EA Technology. “For example, it would be easier to recruit high calibre engineers from non-EU countries.”
- Fewer regulations
There are often mixed feelings concerning EU regulations, but many small businesses and entrepreneurs feel frustrated by such stringent rules. They can also impact profit – a recent survey cited 93 EU regulations that cost UK business over £30 billion. Leaving the EU could result in your business being able to enjoy new partnerships and trade opportunities with the rest of the world.
Want to ensure you’re prepared for business after Brexit? Visit BCU Advantage’s homepage to access a whole host of business services.