Impact of Brexit on Small Businesses in the EU: An Analysis

This assignment examines the multifaceted effects of Brexit on small businesses operating within the European Union. It begins with an executive summary and an introduction that sets the stage for the analysis. The report provides essential background information on the European Union and the United Kingdom's relationship, tracing the historical development of the EU. It delves into the origins and history of Brexit, outlining key debates surrounding the decision to leave the EU, including immigration, trade, and financial implications. The assignment explores the process of how the UK can leave the EU, and analyzes the impact on small businesses. The report provides a comprehensive overview of the topic, offering insights into the complexities of Brexit and its implications for businesses. References are included to support the arguments and research.

Introduction to Business Environment
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Introduction to Business Environment
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Introduction to Business Environment
Executive summary
This assignment is about the effects of Brexit on the small businesses in EU. Moreover the trade
among the different countries in EU, the reason why Britain wants to leave EU is mentioned
here. In this scenario of the project many assumptions have been done. Depending on these
assumptions it has also been stated that which of the other countries will follow Britain’s path.
The process of Brexit, effect of Brexit and the history of EU is also there in the assignment
scenario which helps to gain knowledge about different phase of Brexit and different phase of
the EU.
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Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
European Union and the UK........................................................................................................................5
What is the history of the EU?.................................................................................................................5
The relationship of UK and EU since 1973.............................................................................................8
Brexit...........................................................................................................................................................9
What is Brexit?........................................................................................................................................9
What is the origins/history of Brexit?......................................................................................................9
What is the debate about or around Brexit?...........................................................................................10
How can UK leave EU..........................................................................................................................11
References.............................................................................................................................................13
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Introduction
The impact of Brexit upon the small businesses in EU and UK are mainly dependent UK. It can
be said that all the businesses in EU are directly and indirectly dependent on the states of UK. It
is so because the companies of EU and UK have their main business fields in the state of UK
only. In the year of 2016 when UK decided to come out from EU the main problem were faced
by the small businesses. The large businesses have their different sites where they can make up
their business profits but the small business faced difficult situation as their span of the business
is only limited in the boundaries of UK and EU. So it is justified that the small business really
suffered when the effect of Brexit hit the entire EU market (An Analysis of Business Framework
in identifying Customer Driven Demand Discovery, 2015).
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European Union and the UK
The European Union which is known as EU is basically an economic and political partnership
that involves 28 European countries. The process was started since the time of World War 2 and
it had been seen that the two countries which trade together are not always likely to go to war
with each other. In this scenario it has grown to become a single market where the products and
the people can move around easily as if the member states belong to one country. It has only one
currency and that is Euro. This currency is used in 19 of the member countries. Its own
parliament and it have now set many rules including the environment and transportation. These
new rules and regulations include things like mobile charges also.
UK in this scenario is a crucial place through which all the businesses of EU are delivered. It
means the platform of the country plays a vital role in order to maintain the flow of all businesses
in the most effective way. It can be said that the country has many fields where the businesses
can be controlled. The exporting and the importing good are mainly passed through the states of
UK. London is a very popular city that is known for a perfect platform of the business (Carter,
2011).
What is the history of the EU?
The history of EU can be divided in various stages where the elaboration about European Union
can be described in the most effective way. The different stages are as follows,
The beginnings of cooperation (1945-59)
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In this stage of EU was all set to get rid of the wars those were going on among the different
countries of the continent. The Second World War affected the entire economic structure in the
worst way and in the later stages of 1950 the European coal and steel community began to unite
the countries economically and politically in order to secure the peace among the countries. The
six countries are, France, Italy, Belgium, Luxembourg, Germany and the Netherlands. The
stages of 1950s were dominated by some cold wars between the eastern and western region of
the continent (Franklin John, Senith and Jino Ramson, 2014). There was conflict between
Hungary and Soviet which was eventually ended in the later stages of the year 1956. In the year
of 1957 treaty Rome created the European Economic Community that can also be termed as the
Common market.
The period of economic growth (1960-69)
It is considered as the good period of economy and helped by the fact that the countries of
Europe stop changing custom duties when the trade among each other happened. The agreement
was also set to have a joint control over food production so that everybody in the countries has
enough to eat. The agricultural activities also took their parts in this time where the foods and
crops were started to be produced. In this scenario few riots took place in Paris and the riots were
done mainly by the student. This changed the whole scenario of the society and brought many
changes.
A growing community (1970-79)
England, Denmark and Ireland joined the European Union in the year 1973 on 1st January. That
was the time when the brutal war between Arab and Israel took its place. The war mainly
happened in the same year and in the month of October. This war created many energy crisis and
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economic problems in the countries of Europe. After 1974 the European regional policy starts to
transfer bulk amount of money in order to create jobs and infrastructures in the remote areas. The
influence of the European parliament was increased in this time and the citizen started to select
their members directly from their choices (Gamerschlag and Moeller, 2011). These all started in
the year of 1979.
The fall of Berlin Wall (1980-89)
The leader of the polish trade union and his followers become a famous name across the
countries of Europe in the year of 1980. In 1981 Greece joined EU as the 10th member and five
years later Spain and Portugal followed. The single European act was signed in the year 1986
and it was very effective from the economic and political point of view of EU. The main thing
happened in the year of 1989 when the Berlin wall was pulled down and the boundary between
the eastern and the western Germany was set opened after 28 years. This has played a huge role
and the access among the states of Germany began to flow and all the purposes in the countries
got affected (Jankowska, 2012). Most of the affections were in positive ways. Germany was
finally united in the year of 1990.
Europe without frontiers (1990-99)
The collapse of the communism among the countries of Europe becomes closer neighborhood
(Koch, 2012). Countries like Finland, Austria and Sweden came into the part of EU and the
countries started to act together when it comes to the point of security and defense matters.
The further expansion (2000-09)
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The further expansions actually tell about those places where the expansions were not made till
now. The economic growth and the acts were added in the past. But in the year of 2001 when US
got attacked by terrorists the economy and the political situation of the country got so much
affected. Later stages in the year of 2004 EU added 10 more countries in the Union. It happened
just after the conflict between the eastern and the Western Europe got solved. Bulgaria and
Romania joined EU in 2007. Slowly but steadily Europe has gained to know about the process of
work. The modern institutions of Europe started to give lessons about the new adopted
techniques which helped the continent to reach another level of success.
Challenging decade (2010-today)
This decade is the most challenging decade among them all as it is faci8ng Brexit. UK has been a
key and main country in terms of trades, businesses, cultures everything. But when the news of
Brexit it the market of EU it was hard to believe that the small business will get survived.
The relationship of UK and EU since 1973
The relationship between EU and UK started to take its place after the world war but somehow
the relationship was not able to establish. In this scenario there are different stages of the
relationship which are mentioned below,
 Joining or not: It means after the World War when the other countries of Europe were
under the surveillance of EU, UK was not sure whether to come in relationship with EU
or not.
 UK became the part of the common market in the year of 1973. The time started from
1970 but in the year of 1973 finally it happened when every single aspect of them got
related to each other. It means that UK came under the rules and regulations of EU.
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All the trades and the businesses were being controlled by UK mainly and the main profits also
come from UK. It is so because the platform of UK is appropriate to continue the business. It can
be said that the relationship between EU and UK mainly depends upon the businesses and
exporting and importing goods of the business. These things are mainly controlled by UK and
the economy also gets controlled by this country so the relationship between UK and EU is very
strong from the business point of view (Lakhani, 2008).
Brexit
Brexit refers to the exit of UK from the Unions of Europe that took its place in the year of 2016
on 23rd June. Everyone got surprised when British found fall to its lowest level against dollar in
the last 30 years.
What is Brexit?
Brexit refers to the exit of UK from the Unions of Europe that took its place in the year of 2016
on 23rd June. Everyone got surprised when British found fall to its lowest level against dollar in
the last 30 years. The prime minister of UK David Cameron tried to retain the country in EU but
it did not happen and he resigned (McDonald and Dunbar, 2013). Later on Theresa May, the
home secretary of the country replaced Cameron as leader of the conservative party a couple of
days earlier and then selected him as the prime minister of the country.
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What is the origins/history of Brexit?
The way toward leaving the EU formally started on March 29, 2017, when May activated Article
50 of the Lisbon Treaty. The UK has two years from that date to arrange another association with
the EU. Questions have twirled around the procedure, to a limited extent since Britain's
constitution is unwritten and to a limited extent on the grounds that no nation has left the EU
utilizing Article 50 proceeding.
What is the debate about or around Brexit?
There are many debates about Brexit. They are as follows,
 Immigration: Britain cannot control immigration until and unless it leaves the European
Union. The citizen of EU gets the right to live here because of the freedom of movement.
The migration crisis will not be solved by leaving but it brings it to the doorsteps of
Britain because the border will be moved from Calais in France to Dover in UK.
 Trade: The links of Britain with the EU are holding back the focus on its emerging
markets. There is no trade among the countries of India or China. It can be said that if
Brexit happens then it would allow UK to diversify its international skills.
 Law: The laws are mainly made depending on the rules and the regulations of EU. If UK
leaves the EU then the courts of UK must become sovereign again.
 Finance: The talks of capital flight make no sense. London will be remained as the
leading financial center outside the region of EU and the banks will still want to make
their headquarters in UK due to minimum tax rates.
Other countries that want to follow UK in leaving the EU? Other examples out there
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Other countries like Netherlands, France, Italy and Austria can be predicted to leave EU. It can
be described in following ways,
Nexit: According to the point of view of the country, they have been supporting and trading with
UK for the last 40 years. The Prime Minister of the country, Mark Rutte dismissed the idea that
Netherlands will never leave EU. He has asked his European associates to work towards a
settlement with Britain that needs dependability and "mirrors the well disposed collaboration of
the most recent 40 years".
Fexit: The president of France believes to be in the unions of Europe. According to him that
Brexit is deeply regrettable for the UK and Europe. His favor is to be in the region of the EU.
Except these two there are countries like Italy, Germany, Sweden, and Denmark those can follow
the trail of Britain. But the fact is not that much strong as Britain so these are the topics that can
be considered as controversies. So these are just the predictions not as much surely as UK or
Britain. Many of the countries have presidents or prime ministers who are against leaving the EU
or some of them are in favor of leaving EU.
How can UK leave EU
The article sometimes can be called as the Article 50 of the Treaty of Lisbon. Article 50 of the
treaty on European Union says,
1. Any of the member state can withdraw from the union according to the constitutional
requirements
2. A member state which has the intension to withdraw shall have to notify the European
Council about its intention. The council will come to a neutral point where the state will
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be given a set of rules. This set of rules must be maintained for its future relationship with
the union (Soni, 2013).
3. The treaties shall cease to apply to the state in question from the date of join into force of
withdrawal agreement two years after the notification referred to in paragraph 2, unless
the European Council in agreement with the member state concerned and decides to
extend this period.
These are the possible ways by which UK may leave EU and the rules and regulations must
be maintained.
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