Impact of Brexit on Businesses

The decision of the United Kingdom government to exit the European Union, known as Brexit, has had a significant impact on businesses. Many companies are facing challenges and some are even considering leaving the UK. This article explores the consequences of Brexit on businesses and the decisions made by companies in response.

Understanding and
Leading Change

Decision of United Kingdom government on exiting European Union, known as Brexit is
one of the most debated issue in world at modern times. This decision have been impactful in
many ways. Firstly it is significantly impactful over many businesses in UK itself. UK is a
developed nation. Its economy accounts at 5th largest in the world. This credit goes to various
small to multinational enterprises operational in UK having different nature of businesses.
Therefore, many other countries in continent were dependant over these enterprises for supplies,
and similarly these enterprises were also dependant over these countries for revenue. European
Union create a friendly business environment among its member nations. And, Brexit have
ended this connection between UK and European nations members.
Impact of Brexit on Businesses
Aftermaths of this decision is seen very severe among businesses. Many companies, that
has huge reputations and consumer bases worldwide, renowned for their competencies are
running thinner and thinner. Also it is feared that many companies that have their investments in
UK and are working in collaboration with enterprises of UK, their operations would be debarred
by them and they will leave UK eventually. For example, Tech and automotive companies have
had their immense faith in UK economy since a very long time, but after Brexit, Tesla is building
up its next factory in Germany and Tech giant Sony is planing to shift headquarters to
Netherlands. It is to be noted that both Germany and Netherlands are EU member countries.
These exits are on account of much feared new tariff policies and Trade agreements of UK which
it will establish newly with bilateral partners, because after Brexit, country is not bound by
agreements of EU. However, big tycoons like Nissan and Fujitsu have decided to continue their
operations in UK. This decision of them is considered very strategic because any company who
retain its operation in UK will be provided efficient services from government for keeping them.
Drivers of strategic change in Business enterprises
Decisions that were taken by these companies are made on the basis of far reach and
extensive analysis and factors. These are not decisions made overnight but companies having
their stakes in Brexit started making synthesis of factors and predictions of its impact on their
operation ever since this idea was conceptualised. Some of drivers of their decisions could be:
Exports- In absence of trade deal and agreements, a country becomes subject to Most-favoured-
Nation-clause of WTO. Once EU is left by UK, agreements of trade in UK are independent of

EU. This was most feared by Tesla. As electric vehicles market for company is new, therefore
company is needed to maintain stable relations with its consumer markets worldwide.
Supply chain- Disruption of Supply chain was one of the most anticipated impact of Brexit. Flow
of goods and services together with new knowledges is disrupted between UK and EU members
the most. Countries like France and Germany are countries with rich technical knowledge. Sony
feared that if it continues operations in UK, many supportive tech products and talents would not
be freely moved and imparted.