Post-Brexit SMEs to benefit
About half of UK’s economy depends on Small and Medium Enterprises (SMEs). Thus, the sector is vital in impacting the country’s future. After Brexit, the factors to affect Post-Brexit SMEs will majorly revolve around immigration, trade policy, employment regulations and EU funding.
Trade policy affecting Post-Brexit SMEs
For the SMEs that trade in the EU, trade will go on even after Brexit. The new position of trading is going to be under World Trade Organisation rules (WTO). We can borrow a leaf from successful countries such as China. The country actively trades in the EU although it’s not a member. The other likely occurrence is that an EU-UK Free Trade Agreement will be reached. It is worth noting that the UK does not have to push for the FTA, traders from other countries will do so. In 2014, the UK-EU recorded a trade deficit of £78.5bn. This is enough to motivate EU exporters to pressure their governments for the deal to be signed.
The greatest bonus that UK’s Post-Brexit SMEs get is the freedom to negotiate its own FTA. Within the EU, negotiations are delayed by other countries due to varying interest. Britain has now been powered to make deals with other countries such as India and the US.
Regulation of Post-Brexit SMEs
The new Conservative party leader will be named on 9th of September. It is clear that she will be a woman, considering that only Mrs. May and Mrs. Leadsom are on the ballot box. Whoever takes over will come in with broader opportunities, free from key EU regulations. Her government will be able to amend or repeal EU business regulations such as employment and social regulations. This ability is vital. Why? All the legislation in the UK dealing with charities and business all come from the EU.
The EU has an extensive role in employment legislation like race, disability, working time and data protection. Whereas some of the regulations are important, the pro-Brexit government will actively involve businesses in updating them.
Businesses have in the past complained of difficulty following some EU regulations. All this is set to change after the first post-Brexit government takes over.
Immigration policy and effect on Post-Brexit SMEs
Skilled migrants have been of great benefit to the UK. No post-Brexit government will be ready to take this advantage away. However Britain stands to have a say firm control over immigration policies. Gone are the days when all that the government could do is implement some policy skewed towards EU citizens. Instead, the country will now use non-discriminatory immigration policies that provide room for assessing the immigrants.
The EU funding and Post-Brexit SMEs
Post-Brexit SMEs – The European Union has financed Small and Medium Enterprises in various ways. The funding can be through loans, grants and at times guarantees. The new government will be keen not to disadvantage the businesses in receipt of the funding. Businesses will likely get an active support from the British government. Furthermore the British peoples taxes will no longer be propping up poorer nations of Europe through their hard work.
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