Short Literature Review: Brexit's Impact on UK Small Businesses

This literature review examines the multifaceted impact of Brexit on small businesses in the United Kingdom. The review begins with an introduction that outlines the context of Brexit and its relevance to businesses, followed by a literature review that explores the positive and negative effects of Brexit on UK small and medium-sized enterprises (SMEs). The main body analyzes various perspectives, including how Brexit affects trade, exports, imports, and access to markets. It discusses the challenges and opportunities that Brexit presents to small businesses, such as changes in trade regulations, access to skilled labor, and the overall economic climate. The review considers the effects on sales, customer base, and the potential for new trade deals. The conclusion synthesizes the key findings, emphasizing the complex and often contradictory effects of Brexit, summarizing the impact on productivity, profitability, and the overall business environment. The review highlights the need for businesses to adapt and strategize in response to the changing economic and political landscape, referencing various sources to support the arguments made.

Literature review about
Impact of Brexit on small
business in the UK

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LITERATURE REVIEW................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
In the world of business, there are varied types of factors accessible whether external or
internal that affect a small & large size companies. The current assignment will be based on
Brexit, which falls under list of political factors that impacts varied types of ventures in UK and
EU. The aim of this study it to explain the impact of Brexit upon small business in the United
Kingdom.
MAIN BODY
LITERATURE REVIEW
According to Saville, (2020), Brexit is one of those political factors that affect
interrelation between EU and UK. In term of withdrawal of United Kingdom from European
Union, this factor brings varied challenges for both of nations. It refers to decision in context of
withdrawal after voting to do so in 2016 referendum. It happens when majority of voters voted to
leave European Union. At the period when decision is taken, UK was the only nation that
formally to leave EU, after 47 years of being a key members state within bloc.
Hantzsche, Kara and Young, (2019) stated that Brexit as an external factor affect SMEs
in the UK in positive manner. For example, just because of this element, small companies gets
chance to explore more markets where they may earn more profit and achieve business aims and
objectives in effective manner. The modifications that this factor brings in regard to small
ventures may continue to evolve. As it offer opportunity to explore nearby markets where
potential customers are available and seek to purchase a quality product or service from trustable
firm with good price tag, because most the consumer prefer to purchase those items that are
under their budget. In simple term, Brexit represents an exciting and excellent new era in context
of British SMEs. It drives the attention and attempts of small ventures towards exploring new
and profitable market, where they may get better success and grow more than last few years or
months, which is quite necessary as it made ventures able to contribute in economic
development. Exploration of distance markets provides varied benefits to small size
organizations in term of enlarging their existence in UK market whether relate to grocery or
fashion.
Brexit may liberate small business to sign beneficial and important trade deals with more
dynamic and profitable markets outside European Union, which turns into unpredicted profits,

sales and revenues. Furthermore, along with above benefits, it may affect term of giving chance
to increase customer base. On the basis of above things, it can be said that Brexit put positive
impact on small companies that are operated their ventures in the UK, with limited but skilled
and talented employees, who are able to support in context of managing daily activities and
increasing satisfactory level of individual buyer. The impact of this factor may see via increasing
sales of small firms and their consumer basis. There are many markets available in the world of
corporate which still positing strong progress rates, which SMEs may consider in order to enter.
Sampson, (2017) argued that majority of small businesses in the UK see Brexit as a
benefit for them, because it helps to made exports cheaper than ever. It plays vital role in term of
limiting spending and immigration. Due to this factor, pound rates downs down and SMEs based
in United Kingdom take benefit of weaker pound in term of doing more ventures and starting
with EU. Although formers joint somewhat on managing paper work and cost included in
exporting products to a minimum post Brexit. Br-exit deal has failed to have any effect exchange
rate of pound since 1st January. Pound has held steady against United State Dollar and has
strengthened slowly against euro. It is quite much consistent with current expectations of market.
UK in modifying Europe, the impact of factor on economy is predicted to emerge tardily, but to
permanent. The economy in UK may shrink and its is likely to add additional pressure on pound
that has usually weakening in current years.
At this duration, Br-exit played vital role in undermining global investors trust in United
Kingdom as a beacon of trustworthiness and stability and thus in a prosperous further for British
economy as well as small companies. It is too likely to impact existing over time. It brings many
growth chances for SMEs which they may grab to expand ventures, increase sales, customer
base, productivity, profitability and to gain competitive edges. It helps to grab the attention of
potential international investors who are interested to invest in profitable projects or markets,
which in return provides a lot of advantages to them. After Brexit many nations make contract
with UK organizations, especially small ones, in order to conduct export and import practices. It
gives a new high to SMEs which is quite essential for them.
On the other hand, Sohns and Wójcik, (2020) stated that Brexit put a negative impact on
small ventures in the UK in terms of decreasing sales. Most SMEs consumers were European,
they were purchased daily use items whether groceries or other from small and nearby shops, but
due to Bre-exit, the sales of small companies were decreased. It destroys the whole market,

which is not bearable and beneficial for local people as well as small companies entrepreneurs. It
put negative effect small size firms in varied manners, for example, due to this factor many small
business were shut down as they are unable to sell products that has been grown just because of
European consumers as they buy products more daily.
In the view of Milne-Ives and et.al., (2020), Brexit change everything from trading to
supply chain management. The coming renegotiation with EU means that regulatory structure of
UK exports and trade were change, which negatively impact small ventures in term of making
export activities more difficult for them. Due to EU exit from UK, exporting process goes more
complex for small firm as they face varied hurdles in context of selling and outsourcing items. It
affects negatively upon their management activities and practices as well as operational
efficiencies. Smaller companies due to this force may need the easiest possible approval to EU
single market, as European Union membership is essential for supply chain networks and
recruitment reasons. It can be said that, nature of small companies further access were remains
unclear.
According to Hosoe, (2018) Brexit impact negatively on small companies in term of
losing skilled and talented applicants who are an important part of EU. In most of the SMEs,
those applicants were performed who are European, they contribute to increase the productivity
and profitability of organization by performing much harder than ever daily. When UK
withdrawal from EU, most of the Europeans lose their jobs and go back to home town. It may
put a lot of pressure on small companies to find new and knowledgeable workers for themselves
who may support during this complex situation and help to overcome the negative impacts of
Brexit. The entire process consumes a lot of time and requires hard work to find appropriate
people that are capable to work productively and efficiently just like earlier European employees
were do. Modifications to immigration regulations were basically important reasons for
individual voting leave and majority of them are considering to government to more hardly
control immigration. However, it is one of the challenging situation for small size companies.
All most each small venture rely on European Union talented and experienced migrant workers.
When these employees go back of EU it drives the attention of management and increasing
pressure upon administration to find out the productive and effective workforce.
Davies and Studnicka, (2018) contradict that as member of European Unions, small
companies in the UK get benefits from member of free trade contracts with non EU nations, but

when they left EU, it is mostly UK may be forces to renegotiation small branches and most likely
on less favourable terms as a smaller individual trade members. It makes global trade process
become complex or harder for them, which directly impact sales and success factors. Not only
this, Brexit create more challenges for small organizations which requires a lot of attempts and
money to handle that is not possible for individual company as they are not much strong. It
brings uncertainty in corporate work which also impact small enterprises along with big in
negative term.
CONCLUSION
By summing up above discussion, it has been concluded that Brexit has affected small
size business in the UK the most. It has decreased the productivity and profitability of varied
companies, which define its negative impact on the world of corporate. Furthermore, from above
analysis, it has been summarized that along with negative, Brexit has impacted positively in
context of small companies in term of making them Independent and giving chance to trade
individually.

REFERENCES
Books and journals
Davies, R.B. and Studnicka, Z., 2018. The heterogeneous impact of Brexit: Early indications
from the FTSE. European Economic Review. 110. pp.1-17.
Hantzsche, A., Kara, A. and Young, G., 2019. The economic effects of the UK government's
proposed Brexit deal. The World Economy. 42(1). pp.5-20.
Hosoe, N., 2018. Impact of border barriers, returning migrants, and trade diversion in Brexit:
Firm exit and loss of variety. Economic Modelling. 69. pp.193-204.
Milne-Ives, M. and et.al., 2020. The Impact of Brexit on the Pharmaceutical Supply Chain of the
United Kingdom: Scoping Review Protocol. JMIR Research Protocols. 9(9).
p.e17684.
Sampson, T., 2017. Brexit: the economics of international disintegration. Journal of Economic
perspectives. 31(4). pp.163-84.
Saville, C.W., 2020. Mental health consequences of minority political positions: The case of
brexit. Social Science & Medicine. 258. p.113016.
Sohns, F. and Wójcik, D., 2020. The impact of Brexit on London’s entrepreneurial ecosystem:
The case of the FinTech industry. Environment and Planning A: Economy and Space.
52(8). pp.1539-1559.
Online
How will Brexit affect small to medium sized businesses?. 2020. [ONLINE]. Available through:
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