How Brexit Impacted UK Business Developers?
18 August 2022
3 Mins Read
toc impalement
Brexit is a term that many of us are familiar with, but how much do you really know about it? Brexit has had a huge impact, both positive and negative, on the way that businesses operate and perform, and it has made it increasingly difficult for business developers to grow a company.
Difficulties with imports, workers, and a hefty number of new documents mean that trading has been made more challenging. Read on to find out more about how Brexit has impacted business developers in the UK.
If your finances are struggling due to issues within your small business, a payday loan can help in an emergency, and with easy applications and fast approvals, they can provide you with the funds to help.
A Brief Summary
Brexit is the term used to describe the UK withdrawing from Europe and on the 31st of January 2020, this withdrawal officially took place.
The UK and the EU reached an agreement on a post-Brexit trade deal meaning that the UK has its own VAT system, as well as customs borders that operate at various crossing points like Holyhead and Dover. Customs documentation is now required when other countries trade with the UK too.
There are a few positive impacts of Brexit, like fewer restrictions placed on UK companies by the EU, as well as creating an opportunity for growth by appealing to other expanding markets around the world, but it is no question that Brexit comes with a few downsides too, like disruption to the supply chain, a decrease in workers and depleting confidence in the UK. We’ll take a look at these issues in more detail below.
Supply Chain
The impact that Brexit has had on the supply chain will no doubt have made it more difficult for business developers over the last few years. To run a business successfully, you’re going to need access to the goods and services that are crucial to the smooth running, and growth of your business.
The implication of Brexit has meant that it is more difficult to ship products and orders from other countries, due to the documentation, taxing, and new VAT systems to navigate. This is slowing down imports from other countries and having a negative impact on growing businesses.
Workforce
Brexit has imposed a ban on freedom of movement between the UK and the EU, which is creating a short-term issue with workforces around the country.
Many smaller workplaces have often benefitted from skilled EU migrants due to their ability and low labor costs, however, Brexit means this is only possible on a points-based system that results in eligibility to work.
Put simply, getting rid of freedom of movement means that businesses are going to struggle to fill gaps within their workforce, meaning it will be harder for them to provide a good service, and to develop their business further.
What Types Of Businesses Are Affected?
Brexit will have an impact on all businesses one way or another, because of the effect it is having on the supply chain.
Smaller businesses like hospitality will struggle to get staff to work for them due to new laws on migrants, the automotive industry has already been seen to be struggling to get new cars to our country from overseas, as well as vital parts for manufacturing.
The food sector is also having issues due to gaps in supply. Generally, Brexit will affect businesses that rely on supplies from overseas – businesses cannot sell stock they don’t have.
What Is The Impact On Customers?
It’s not just businesses that Brexit can have an impact on, customers will be affected too. Even if your customer base is mainly within the UK, you are likely to still feel the pinch as the economy will not be able to grow.
Customers may also find that they are unable to get products and services that are imported from other countries. Brexit isn’t all bad though – it will allow companies to expand their customer base to emerging markets like Brazil, China, and India if there is a demand for their services there.
Read Also:
Related Articles
Comments Are Closed For This Article