How Brexit Will Affect Businesses in the UK

This research paper examines the impact of Brexit on businesses in the UK, focusing on the effects on immigrants and different business sectors. The research is conducted through qualitative methodology using secondary data. The paper highlights limitations and provides recommendations based on a literature review.

HOW BREXIT WILL
AFFECT BUSINESSES IN
THE UK

TABLE OF CONTENTS
ABSTRACT....................................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Methodology................................................................................................................................3
Literature Review........................................................................................................................4
Limitation....................................................................................................................................6
CONCLUSION AND RECOMMENDATION..............................................................................7
REFERENCES................................................................................................................................9

ABSTRACT
The Brexit is that significant event that has affected the economies of both the nation's
consecutively. The research paper has been conducted on the collection of data through
secondary sources where the different aspects of the Brexit on the economy had been evaluated
and conclusions and recommendations have been made accordingly.
INTRODUCTION
Brexit is the most significant change that has occurred in the Europe where the impact on
different social and economic aspects is the most anticipated thing after such Brexit (Clarke and
et.al., 2017). In the current research, the impact of the Brexit on two major aspects i.e. on the
immigrants and on the different business sectors having their operations in both Britain and EU
is identified and analyzed. The research has been completed through the qualitative research
methodology where all the data that has been collected is secondary data. The research will
highlight the major limitations and then provide appropriate recommendations in the last on the
basis of research conducted through literature review.
MAIN BODY
Methodology
In order to conduct the research on the formulate topic i.e. the impact of Brexit, the
research has been undertaken in a qualitative manner. Research methodology signifies the
different this that researchers can use in order to complete the research in a relevant manner an
generate meaningful results (Colantone and Stanig, 2018). Following are the major research tools
that the researcher has employed in order to complete the present research:
Research Philosophy: Philosophy signifies the belief that the researcher uses as a base in order
to complete the research. There are two broad categories of research philosophy that can be used
I.e. interpretivism philosophy and positivism philosophy. Under interpretivism, the research
undertaken is qualitative in nature where the collected information is used to test the general
theories and beliefs that exist. Contrarily, the positivism philosophy is used to facilitate
quantitative research where the general theories are tested as hypothesis by using numerical data
and figures (Sampson, 2017). In the current research, the scholar has implemented the
interpretivism approach where the impact of Brexit has been evaluated on the different business
sectors in UK by collection of theoretical facts an d figures.
3

Data Collection: Data collection is the process through which the relevant data that will help in
the successful conducting of the research are identified and gathered. The data collection
technique invokes two major sources i.e. prary source of data collection and secondary source of
data collection. In the primary source the original.or first hand data is ecged using questionnaire,
survey or observational method etc. The secondary data on the other hand is mainly collected
through the already published journals, articles, case studies and other relevant literature that has
been researched and published by others (Fletcher, 2017). In the current study, the author has
selected only secondary source of data action where the relevant literature that has been
published on the impact after Brexit on the economy of UK have been selected.
Data Analysis: Data analysis is another critical tool of research methodology where the different
tools are used to analyze and interpret the data that has been collected. In order to analyze
primary data, quantitative or qualitative research tools such as thematic data analysis fir
qualitative and SPSS, MS excel etc. tools fir quantitative data can be used (Kumar, 2019).
However, in the present research only secondary data analysis tools have been used where the
different articles will be identified and analyzed to draw relevant conclusions that will help in
mapping the effect of Brexit that has affected different industries and the different sectors
operating in UK's economy.
Ethical Consideration: Ethical consideration aspect helps in ensuring that the research that has
been undertaken is done in compliance with all the ethics that a researcher is expected to follow
(Virdee and McGeever, 2018). In the current research, the researcher will attach a declaration
form that affirms that the entire research that had been completed is the original work of the
research and additionally, the research will also give appropriate credit to the authors whose
references has been used in order to fulfill the core purpose of conducting this research.
Literature Review
Literature review technique helps in the collection and synthesis of all the relevant
literature that has already been published and then adequate conclusion are drawn from the data
thus collected. For the present research this can be done in following context by formulation and
of different themes:
Impact on immigrants
As per the research paper published by Fetzer (2019), the immigrants will be the most
affect segment of public because prior to Brexit, there were many immigrants who were enjoying
4

the rights that were given to them under the collective UK. The authors have highlighted that
additionally, those UK residents that are working in other countries or economies and were
enjoying prior to the Brexit. Now, after the Brexit has occurred, the situation has become
ambiguous where the situation is no longer clear fir the immigrants. The immigrants have been
promised that they would be given an option where they cab freely move between EU and the
non EU part so that the movers get adequate time to shift all the activities. This is one of the
positive aspect where the adequate time that will be given can help in resorting to the necessary
mechanisms that can assist in overall improvement in the situation of such immigrants. The
authors further state that collectively the position of the immigrants will improve as they will be
able to work in the different economies without any problem and the impact on their businesses
can also be profitable where they can utilize the benefits which otherwise would have been more
costlier.
However, in contradiction to the point above, the authors Evans and Menon (2017), have
criticized that immigration cannot help in the increase in profitability situation of the immigrants
post Brexit. The benefits that are available to the immigrants will be immediately stopped after a
particular time period passes away. Further it is stated that situations can be worse for unskilled
immigrants because skilled migrants might be retained at better packages and opportunities.
Daily wage laborers and unskilled laborers will be the most negatively impacted immigrant class
where the number for unemployed and unskilled people in the economy can ride significantly.
The employers whose businesses are depended on these immigrant employees will also face
severe losses. Overall, the limited time period is not enough to wind up the entire business
activities that hate being conducted since a lifetime and the businesses are expected to suffer
heavy losses and economic slowdown due to the Brexit.
Impact on business sectors
The authors, Becker, Fetzer and Novy (2017), in their research paper have argued that the
different industries are bound to get affected by the expected Brexit. The taxation differences and
the change in subsidies, government benefits, regulations etc. can hit the economy in different
ways where the sectors that were earlier profitable outside of UK might not be able to generate
adequate returns in EU. However the authors have proposed that the changes despite being
significant would be the best way of giving a new base to the business that are already
established successfully. Additionally, as the authors have elucidated, it is also expected that
5

there will be a balanced situation where the impact will overall be positive because both the
parties are concerned about the fact that there economy must not get slowed down due to the
Brexit effect. Therefore, measures will be developed accordingly where the benefits that are
given to the different sectors whether it is high or low performing business will be tried to be
compensated in against for the losses that they will incur due to trade restrictions that are bound
to be implemented. The authors have therefore concluded that the situation will not worsen for
the different business enterprises because of the balanced approach that will be adopted.
Contrary to the above point, another research paper published by Kierzenkowski and
et.al., (2016), states that there are a series of negative consequences that are most likely to arise
for businesses irrespective of the fact that whether they are successful or not. The first point that
authors have highlighted is that the trade restrictions that will be imposed between Britain and
EU will definitely affect the supply chain of the companies thus increasing their cost of
manufacturing automatically. Further, the imposition of different duties right from the custom
tax to the Car etc. on imported or exported goods is an additional aspect of the effect that Brexit
can have on businesses. Not only this, but the dealt that will be caused in the delivery of the raw
material will be a significant contributor in the increased production and net losses that will be
incurred due to slower manufacturing process. Therefore, the situation appears to be gloomy as
per the authors where they have emphasized that the economic slowdown is bound to arise which
can affect the business operating across both the nation's will get affected seriously.
Limitation
 Qualitative method is used for gathering data which gives limited information. It is
basically dependent on the participant answering which is considered into limitation
(James and Quaglia, 2017).
 Brexit interruption in the business operation is new phenomena which happens in 2019 so
limited resources are valuable for collecting information, so doesn’t get sufficient
information which can lead effectiveness in the research.
 Fewer published articles and journals are available which retains information about
Brexit so that is not inefficient for the research (Jennings and Lodge, 2018).
 It is lengthy research topic which requires more time along with high availability of
resources that can use to interpret impact of Brexit on the business operations effectively.
6

CONCLUSION AND RECOMMENDATION
The brief study of the report provided understanding about Brexit like how they changed
in policies which directly gave negative impact on business performance. The report has been
concluded different methods of data collection which used for the research. It explained different
strategies like cost management, market segmentation etc. which used by tourism industries to
operated in tourism market but affected by Brexit. The limitation of the research which could be
led effectiveness in the research if researcher or employer adopted has been summarized in
report.
Recommendation:
 Quantitative method can use for gathering high quality information because it has various
tools like SPSS method. It is good method which helps to collect accurate data without
human errors. The method gives information into mathematical figure which is easy to
interpret into result. So, quantitative method should use for collecting information about
research topic.
 Travel and tourism industry is highly affected due to new immigration restriction. So
organization can adapt immigration policies which helps to comply with new laws which
is implemented by organization. In addition, it attracts new customers as well to buy it’s
tourism services for improving travelling experience. So, organization should follows
immigration policy within company.
 The employees who employ in different countries loses their rights and health care
benefits which productivity of employee reduces at workplace. Then organization can
offer outsourcing and other privilege facilities to those employees who offers their
service outside of the UK. It will maintain staff wellbeing at the workplace and leads high
turnover of them at workplace. thus, company can easy to overcome Brexit impact on the
business and raises goodwill of company in the tourism market.
 Gas and electricity prices increase and shortage of energy suppliers in the UK market
causes gets negative impact on the tourism industry. Organization can adapt sustainable
gas product strategy or solar energy which can support tourism industry to operate its
business legally and builds trust of customer on services. In addition, it reduces
environmental issues which occurs due to carbon emission. To retain energy suppliers
can offer health insurance and compensation policy which maintains their wellbeing with
7

company. So, tourism industries should adapt these strategies to overcome current
situation.
 Change management strategy should adapt tourism industries because they help up to
date about new rules and regulation and restructure policies time to time so that can
comply with government norms and in return achieve high profitability in business
operations.
8

REFERENCES
Books and Journals
Becker, S.O., Fetzer, T. and Novy, D., 2017. Who voted for Brexit? A comprehensive district-
level analysis. Economic Policy. 32(92). pp.601-650.
Clarke, H.D., and et.al., 2017. Brexit. Cambridge University Press.
Colantone, I. and Stanig, P., 2018. Global competition and Brexit. American political science
review. 112(2). pp.201-218.
Evans, G. and Menon, A., 2017. Brexit and British politics. John Wiley & Sons.
Fetzer, T., 2019. Did austerity cause Brexit?. American Economic Review. 109(11). pp.3849-86.
Fletcher, A.J., 2017. Applying critical realism in qualitative research: methodology meets
method. International journal of social research methodology. 20(2). pp.181-194.
James, S. and Quaglia, L., 2017. Brexit and the Limits of Financial Power in the UK (No. 129).
GEG Working Paper.
Jennings, W. and Lodge, M., 2018. Powerless to resist: Canute, Brexit and the tides of political
pressure. LSE Brexit.
Kierzenkowski, R., and et.al., 2016. The economic consequences of Brexit.
Kumar, R., 2019. Research methodology: A step-by-step guide for beginners. Sage Publications
Limited.
Sampson, T., 2017. Brexit: the economics of international disintegration. Journal of Economic
perspectives. 31(4). pp.163-84.
Virdee, S. and McGeever, B., 2018. Racism, crisis, brexit. Ethnic and racial studies. 41(10).
pp.1802-1819.
9

10