A Detailed Analysis of the Impacts of Brexit on Various Businesses

This report examines the multifaceted impacts of Brexit on UK businesses. It begins with an introduction to Brexit and the context of the referendum. The report then delves into both the positive and negative effects of Brexit, including reduced business competition, security stability, and increased revenue, as well as slowed economic growth, loss of tenders and contracts, increased operating costs, and inflation. It explores how Brexit has influenced various sectors, such as small and medium-sized enterprises (SMEs) and the banking sector. The report also addresses the impact on employment rates and housing, and it concludes by summarizing the mixed impacts of Brexit, acknowledging the reasons behind the decision while highlighting the resulting challenges and opportunities for the UK economy. The report uses various sources like journals and articles to support its findings and analysis.

Running head: IMPACTS OF BREXIT ON BUSINESS
IMPACTS OF BREXIT ON BUSINESS
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IMPACTS OF BREXIT ON BUSINESS 2
Introduction
Brexit took place on 23rd June, 2016, where a referendum was conducted and the United
Kingdom chose to walk out from the European Union. The people opted and made decision that
the advantages of being a member of the integrated monetary organization do not outweigh the
charges of free movement of migration. Brexit, is a dub for Britain exit from the European
Union. After negotiations and in-house arguments, the European Union and the United Kingdom
unlocked the segment of the Article 50 Brexit process (Runciman et al., 2017). Initially there
were fears and warnings about the action from other member states; however, currently things
have resumed to normal and economic pointers have enhanced. To determine or understand the
current and future consequences, a few things have to be checked and looked up on in the long
run.
Positve Effects: Reduced Business Competition
To the United Kingdom, they will again make illegal the complimentary flow of people
from the European Union. In this case, it means the level of business competition has gone down
since the movement is regulated especially on the non UK citizens leaving only the locals to take
part and control a better section of the business. This is an indication that many businesses will
have less competition thus making them to make maximum profit especially by the small scale
retailers.
Security Stability
Similarly, several things triggers the people to vote for Brexit, but the main concern why
majority voted was the continuous increase of the refugees from the Middle East and were
considered as threats to peace stability (Block-Lieb, 2018). One of the major challenge and

IMPACTS OF BREXIT ON BUSINESS 3
among the main reason for voting Brexit was the continuous of insecurity that was increasing in
many occasions, for instance, the London marathon terror attack and some few outside the UK
such as France and Belgium. To curb the situation, Brexit was deemed fit to control the
movement of refugees who coming through other EU member states to the UK; therefore, Brexit
has stabilized the security for businesses by controlling such illegal movements.
Increased Revenue Volume
Since UK was a member state of the EU, there is a remittance that was being submitted
after every certain duration for subscription. However, given that they are now non-member, the
funds are being used for other purposes such as boosting the SMEs within to increase revenue.
Again the UK will be capable to tax devoid of the European Union principles.
Negative Effects: Slowed the growth
As reported by the Treasury Chief for UK, Chief Philip, the economic has gone down by
2.4 percent this year (2018) and it is being projected to go down further to 1.9% in 2019 (Polgár,
2016). Again, there is a possible trouncing of Britain’s tariff-free trade position in the midst of
other European members’ states. These tariffs enlarge the price tag of the exports, thus building
the British organizations higher-priced and a lesser amount of competitive. The rate of import is
increased thus increasing the price and reduces the living standard for the citizens. Besides, there
would be no longer being the support for corporations that apply it as an English language focal
point of admission to the EU economy. For this case, several offices are currently constructed to
create space for other departments that were in other member states. The United Kingdom as was
suggested would lose benefits of European Union state-of –the art technologies. The EU allowed
their members and grants environmental safety, research, and growth, and energy.

IMPACTS OF BREXIT ON BUSINESS 4
Loss of Tenders and Contracts
In addition, United Kingdom industries risk alongside losing control for the capability to
tender open contracts in any European Union country. For quite a long time, these have been
open bidders from any member state. Another sector that has significant is the banking sector
where experts will drop the capacity to work in other constituent states. Consequently, this would
elevate the rate of airfares, the mobile phone services as well as the internet. Brexit has effects of
younger employees. As projected, Germany is set to experience labor shortage of nearly 2
million workers by 2030, in my view; these jobs will not be readily available to the UK’s
workforce after the Brexit (Sierz, 2017).
Increased Cost of Operating a Business
The concerns about Brexit have not only been expressed by Britons only, but also the rest
with several interest especially financial interests with the Britain. The globes financial have
been unpredictable and irregular extremely over sometimes due to the concern of the Brexit. The
world finance fell since it was already projected that Brexit would have negative influence on the
economy from the first time it was announced. The taxation rate has gone up making it difficult
to run a business; the passing of the referendum was the turning the point of so many things in
terms of business, the United Kingdom from the beginning never adopted Euro and the financial
impacts will likely to be felt on the Britain’s side only but also other countries within the system
of the European Union.
Inflation
On the other hand, another notable effect is inflation that has risen as the pound’s sharp
plunge. It has reduced since the referendum of June 2016 regardless of the recent revival thus

IMPACTS OF BREXIT ON BUSINESS 5
making the imports more expensive. According to the estimates from the bank, it estimates that
consumer index will peak above 3% as well as the sharp reduction in migrant labor to Britain
after referendum. Other than inflation, the performance of the United Kingdom has worsen
outside, this is seen through the pounds which is becoming weaker; however, there is hope that a
solid business performance can counterbalance a recession in consumer spending. Nevertheless,
there has been an attempt to extend the trade in products beyond the boarder. Generally, the
United Kingdom deficit for products and services has remained unchanged. Another notable
effect is on employment rate, just after the referendum, unemployment rate fell from 4.4 to 4.3%.
Despite the change, wages remained unchanged an indication that the jobs market is still not
helping the employees’ bargaining power facilitate earnings increment (Whitman, 2016). In
matters concerning housing, the report from the Royal Institution of Chartered Surveyors
indicates that house price has gone up with healthy sales reported in other areas such Scotland
and Ireland.
In conclusion, Brexit is a cause that came with mixed impacts, both positive and
negative; however, the reason behind it was for the good of the UK itself and the citizen. The
urge to control the country’s economy and to be independent, the security threat that is created
through immigrants from other member states among other issues was very critical. In this
regard, it has done more good to UK than bad.

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List of References
Block-Lieb, S. (2018). Reaching to Restructure Across Borders (Without Overreaching), Even
After Brexit. American Bankruptcy Law Journal, 92(1), 1-51.
Brown, T. (2017). Trade future uncertain as Brexit looms. ICIS Chemical Business, (5469), 1.
Polgár, I. (2016). EUROSCEPTISIM, AN INCREASING PHENOMENON AMONG THE
MEMBER STATES. ROAD TO BREXIT. Romanian Review On Political Geography /
Revista Româna Geografie Politica, 8(2), 83-93.
Runciman, D., Gray, J., Mason, P., Lewis, H., Collins, P., & Pearce, N. (2017). After Brexit,
who will speak for liberal Britain?. New Statesman, 146(5360), 28-36.
Sierz, A. (2017). Dark Times British Theatre after Brexit. PAJ: A Journal Of Performance &
Art, 39(1), 3-11. doi:10.1162/PAJJ_a_00346
Whitman, R. G. (2016). Brexit or Bremain: what future for the UK's European diplomatic
strategy?. International Affairs, 92(3), 509-529. doi:10.1111/1468-2346.12607