Now that all the uproar around the Brexit vote has died down, let’s take a step back and take a look at how it will impact the start-ups in Great Britain.
There will definitely be noticeable changes in the landscape post the vote to leave EU and many start-up founders are justifiably concerned. The instability of the British pound and the vast pool of skilled workers from the EU becoming inaccessible are palpable hazards. But the biggest source of their anxiety is the potential decline in investment and funding. The uncertainty around funding might deter venture capitalists from planning future funds in the UK if a better alternative exists elsewhere.
The new terms for agreements, tariffs and legal paperwork of doing business with EU countries are still unclear and this leaves the founders in a dilemma for their future projects. The government has lowered corporation tax and business rates, but we cannot be certain these will be enough to buffer the instability.
It isn’t all bad news though.
The UK currently is a net contributor to the EU, so it could be argued that once we leave we’ll have more money to spend on our own home grown funding initiatives. The government will shift focus on supporting the UK start-ups. It will certainly renew its efforts to create trade deals with the rest of the world. A lot of non EU countries will find it easier to trade with the UK without the many rules that come with an EU membership.
One of the main arguments of the ‘vote leave’ campaigners was to regain control of the business and financial market. Many argue that more control will allow the UK start-ups to thrive and upscale in the absence of EU red tape.
In summary, the impact of Brexit on start-ups will ultimately depend on how the UK reshapes its regulatory landscape. UK now has the opportunity to enhance its immigration and capital laws to encourage, and maintain, a vibrant start-up scene.
So the Brexit vote will mean a lot of adjustments, but it isn’t the end of the world. With qualified and experienced support, it may actually be profitable to start-ups. Avid accountants can help small businesses and start-ups in Glasgow to sail through this period of uncertainty with their expertise. And with this help, agile UK start-ups can quickly pivot to fill gaps, and perhaps provide cheaper solutions to companies facing issues arising from Brexit.