Brexit's Impact: A Study of UK Small Business and Cafepod Limited

This research report delves into the multifaceted impact of Brexit on small businesses in the United Kingdom, with a specific focus on Cafepod Limited. The report begins with an introduction to Brexit, its origins, and the resulting changes in trade relations between the UK and the European Union. The research aims to identify the impacts of Brexit on UK small businesses, specifically analyzing Cafepod Limited as a case study. The literature review covers Brexit's background, positive and negative impacts, and related arguments. The methodology section outlines the research philosophy (interpretivism), approach (deductive), and data collection methods, including the use of secondary data and qualitative analysis. The findings section presents the identified problems and themes, supported by secondary research. The discussion analyzes the findings, and the conclusion summarizes the research's key takeaways, offering recommendations for small businesses navigating the post-Brexit landscape. The report concludes with a comprehensive list of references.

Impact of Brexit on
small business in the
UK

Table of Contents
TITLE:.............................................................................................................................................2
INTRODUCTION...........................................................................................................................2
AIMS AND OBJECTIVES.............................................................................................................2
Aim..............................................................................................................................................2
Objectives....................................................................................................................................2
Research questions.......................................................................................................................2
LITERATURE REVIEW................................................................................................................3
Brexit...........................................................................................................................................3
Positive impact on business of Cafepod Limited........................................................................3
Negative impacts on business of Cafepod Limited.....................................................................4
METHODOLGY.............................................................................................................................5
Research Philosophy....................................................................................................................5
Research Approach......................................................................................................................5
Data collection.............................................................................................................................5
Limitations of the project.............................................................................................................6
Problems Identified..........................................................................................................................6
Findings of the study after secondary research............................................................................6
Try to convert your findings in themes160..................................................................................7
Discussion on your findings........................................................................................................7
CONCLUSION AND RECOMMENDATIONS300......................................................................7
Conclusion...................................................................................................................................7
Recommendation.........................................................................................................................8
REFERENCES................................................................................................................................9
Books and Journal........................................................................................................................9

TITLE:
Impact of Brexit on small business in the UK
INTRODUCTION
Brexit is derived from “British exit” from European Union. A voting has been conducted in
which residents of UK voted to leave European Union (Arriola, Smith and van Tongeren, 2021).
This is an agreement between European Union and United Kingdom to break the trade relations
between them which are joined together in the year 1973. Brexit results in the end of free
movement between the European Union and United Kingdom. In order to remain in the UK the
European nationals need to make sure that they have required permissions from the UK
Government allowing them to remain in the country. It is the biggest step of UK Government
which effects everything the country United Kingdom. Cafepod Limited is a coffee company
which is involved in the independent business of craft coffee which was established in 2011. The
company was inspired by the London Coffee and establish their business in United Kingdom.
This Research report contains the meaning of Brexit and its impact on the small businesses like
Cafepod Limited. There are several methods which are used to conduct this research this
research also contains the methods which are used to conduct research. Further it contains
various problem identified and recommendations for the research which have been observed
during the research.
AIMS AND OBJECTIVES
Aim
The main aim of this research report “to identify the impact of Brexit on small business of UK. A
case study on Cafepod Limited.”
Objectives
 To understand the term Brexit
 To identify the impacts of Brexit on various businesses in UK
 To identify its impact on business of Cafepod Limited
Research questions
 What do you understand by the term Brexit?

 What are the impact of Brexit on several businesses in UK?
 What are the impacts of Brexit on the business of Cafepod Limited
LITERATURE REVIEW
Brexit
As per the view point of Riley, A. 2016, Brexit was officially started on 23rd June 2016 for
which a Brexit referendum has been passed (Benson, 2020). Although the pressure for such
referendum was growing from several years but it was passed on that day. There are several
reasons behind this referendum to be passed like Sovereignty immigration and monetary issues
in the Britain. Brexit is a process in which new trade deals a negotiated between European Union
and United Kingdom to leave for which a voting system has been adopted by UK. The
referendum was fast by 51.9 percent votes in favor of the Brexit which helps UK to take decision
to leave the European Union. In this process the UK renegotiate various things such as resident
permit trade regulations and many more. As referendum has been passed in the year 2016, it
takes four years to come into force and completely applied in the UK and European Union to
break their trade relations in January, 2020.
Positive impact on business of Cafepod Limited
As per the view point of Riley, A. 2016, Brexit have several benefits to the citizens and
residents of United Kingdom as well as European Union. This is the reason that Brad Pitt has
been voted by 51.9 % of the population and let the Brexit to be happened (Daly and Lawless,
2020). Cafepod Limited is a small sized organization of United Kingdom which have been
impacted from the Brexit in several ways. The positive impact of Brexit on the business of
Cafepod Limited are given below:
Freedom to create own trade deals: Before Brexit all the trade deal according to the rules and
regulations of European Union as per the agreement between European Union and United
Kingdom. Brexit provide freedom to the UK Government to create own trade deals the country.
This trade deals help small companies like Cafepod Limited to crack great deals with other
companies.
Regain Sovereignty: Sovereignty means Supreme Power or authority in a country. Before read
that European Union enjoyed all the Supreme Power and authority as per the agreement between

European Union and United Kingdom. But Brexit dismiss the agreement between the European
Union and United Kingdom which helps UK to regain their sovereignty in their country. Now all
the businesses have new environment with freedom to trade (De Lyon and Dhingra, 2020).
Origin of sovereignty in the country is also beneficial for the company Cafepod limited because
now they have a good option to trade in sovereign country.
Full control of the borders: With the trade agreement with European Union all the countries of
Europe have full access to the borders of United Kingdom which increase the immigration
people from different countries in Europe to the UK which creates a lot of problem food and
residence for people. Brexit provides full authority to the UK to control their borders which help
them to control immigrants in the country and have better facilities for the residents of the
country.
Negative impacts on business of Cafepod Limited
As per the view point of Riley, A. 2016, Brexit was passed taking in mind all the negative
aspects of the agreement between European Union and United Kingdom. But it has been
analyzed that there are several drawbacks which was faced by United Kingdom. Cafepod also
faces various drawbacks of the Brexit in their business (Gawlewicz and Sotkasiira, 2020). Some
of the drawbacks of Brexit which are faced by Cafepod limited are given below:
Loose negotiating power and free trade with other European countries: The agreement
between European Union and United Kingdom give the power of negotiation and free trade
between European countries to the UK. After Brexit, UK loses negotiating power and free trade
with European countries and realize that the country is greatly depend on the European countries
for trade. Cafepod Limited is also affected with the Brexit as they lose their negotiation power
over their suppliers and loose some of them as it is not allowed to trade with other European
countries.
Uncertainty of Brexit cause Volatility: Volatility means responsibility on a person to change
rapidly and unpredictably especially at the worst side (Giammetti, Russo and Gallegati, 2020). In
case of Brexit, it came with several uncertainty in the country UK which cause volatility in the
country. It affects the growth of United Kingdom all over the world. With losing of negotiation
power with other European countries the UK also lose negotiating power with many other
countries all over the world. It causes inflation rate in the country which is not good for the

development of the country. In case of Cafepod Limited, the company also face this uncertainty
of Brexit which cause volatility in their business too.
Increased cost of raw material: As trade has been affected by the agreement of Brexit it
increase the cost of raw materials of all the businesses which are traded from other countries of
Europe. This increase in cost of raw material ultimate we showed in the increase in cost of
finished products in the country (Hong and Park, 2020). Apart from this increase cost of raw
material UK also faces problem of labor as measure of the labors in the country are the
immigrants of other European countries with also increase the cost of reduction in the country
which raises inflation rate after implementation of Brexit in United Kingdom. It has also
impacted the business of Cafepod Limited as increase of raw material in the business increases
their cost of production and affects their profitability in the business.
METHODOLGY
Research Philosophy
Research philosophy refers to the belief on which the resources based. Generally the
result is based on two types of philosophy that are ontology and epistemology and are classified
into two types of philosophies that is positivism interpretivism (Ma, 2020). In order to complete
this research the researcher used interpretivism approach which helps to collect reliable and
accurate data for the research.
Research Approach
Research approaches that part of research methodology which is essential to propose the
research in a particular manner. There are two approaches which are used weather in search to
make the use of the data and that are inductive as well as deductive approach. This research is
based on deductive approach as it uses statistical as well as scientific data and as a reliable
source in the research methodology.
Data collection
Data Collection refers to the collection of data from various sources in order to complete
the research in effective manner (Mărginean, Orăștean and Sava, 2020). There are two methods
which are used by the researcher to achieve the aims and objectives of this project that are
qualitative and quantitative method of Data Collection. The method which has been collected by

the researcher is completely depends on the source from which the data is collected and there are
two sources of Data Collection that are primary source as well as secondary source of data. Both
the sources and methods of data collection are explained below:
Primary or secondary data: Primary source of data that source which are collected with the
help of service and interviews are in the form of raw data whereas secondary sources are those
sources in which data is collected from already collected data in the primary Research and are
present in the form of articles journals and books (Ortiz Valverde and Latorre, 2020). For the
purpose of this research secondary sources are used for the collection of data.
Qualitative or quantitative: The qualitative method of Data Collection is used when research is
based on the theoretical aspects various sources books and journals. In case of qualitative method
of Data Collection the data is presented in the form of literature review to present reliable
arguments and fat for the research. Whereas in case of quantitative method of Data Collection
the data is collected from various surveys and interviews and is based on numerical content and
statistical data. This data can be compare and Rectifier as it does not contain any theoretical
aspect. For the purpose of this report qualitative method of Data Collection has been used to
collect the quality data for the research (Sredanovic, 2020).
Limitations of the project
The research has been conducted with full information and data collected from various sources
but still the scope of this research is limited to the sources which are used for the purpose of this
research. There are various sources which are available for the purpose of Data Collection on the
topic but the score is limited to those articles and role and books which are used as sources in
order to collect the required data for this purpose.
Problems Identified
Findings of the study after secondary research
All the findings of the study helps to identify that second research is sometimes the best way to
conduct a study because it provides qualitative data for the study. This qualitative data will help
the researcher to have great outcomes for the research and complete the research in effective
manner for stock research includes various sources such as newspapers journals articles and
many more which are previously researched by great researchers on various Grounds and proper

efficiency. It provides reliable facts and data to the researcher to reach at a specific outcome for
the research.
Try to convert your findings in themes160
The finding to identify the consequences of Brexit especially on the small businesses of
United Kingdom. The scrutiny based techniques which are used by the researcher uses several
features such as topical transition keyboard connectors and metaphors are used to identify the
theme. Searching through text is a team which is used by the researcher to find out the outcomes
of the research.
Discussion on your findings
It has been found out that it Brexit was a great step which was taken by both the parties
that are United Kingdom and European Union which effects trade and other factors of both the
country full stop it has been found out that Brexit has both types off impacts on small businesses
of United Kingdom. Brexit was the real long process that was ended on 31st December 2020 and
which United Kingdom withdraw from European Union and their agreement official came to an
end. In the voting system in United Kingdom 17.4 Million boats are in favor of Living the
European Union on the other hand 16.1 million voted to remain in the European Union
(Sultonov, 2020). It has also been find out that constraints on the immigration of labor force of
UK potentially hurt them in terms of their earnings.
CONCLUSION AND RECOMMENDATIONS300
Conclusion
Above discussion helps to conclude that Brexit agreement European countries and United
Kingdom is a great step by both the parties which affects the business of both the countries. It is
essential for each and every organization to make their business strategies by taking in mind the
negative impacts and positive impacts of Brexit on the country. It's not like brexit have only
negative impact it provides some positive impact to the small businesses and the country also
such as it provide freedom to create on trade deal and helps to regain sovereignty in the country
full stop it provide full control over the borders of the country and control immigrants in United
Kingdom. Apart from all the positive impacts, the Brexit also have some negative impact on the
business of Cafepod Limited such as they lose negotiation power and free trade with other

European countries and cost of raw materials have been increased all over the country. The
uncertainty which is connected with Brexit causes volatility all over the country.
Recommendation
From the above discussion it has been recommended to the company Cafepod limited to
analyze the external environment of the business in efficient manner so that they can grab the
opportunities which are available in the market and themselves from risk which are associated
with the Brexit and have a great impact on their business. To save themselves from the impacts
of Brexit the company can find the suppliers in the UK itself and the other countries who deals in
great products at reasonable prices and have good negotiation power with them so that they can
achieve good profits in the market. Further, to deal with uncertainty of exit the company can
prepare themselves by having a proper strategy to deal with the uncertainty which can arose in
the course of business of chapter Pol Limited. Increasing connection with the suppliers either in
UK or other countries which are not European countries will help to cope up with the increase
cost of raw material in the business and increased and negotiation power also with their
suppliers.

REFERENCES
Books and Journal
Arriola, C., Smith, D. and van Tongeren, F., 2021. Forgone Benefits of Economic Integration:
Effects of Brexit on Ireland. In Policy Analysis And Modeling Of The Global Economy:
A Festschrift Celebrating Thomas Hertel (pp. 339-367).
Benson, M., 2020. Brexit and the classed politics of bordering: the British in France and
European belongings. Sociology, 54(3), pp.501-517.
Daly, L. and Lawless, M., 2020. Examination of the sectoral overlap of COVID-19 and Brexit
shocks. ESRI.
Egan, M., 2020. Brexit and the single market. In The European Union after Brexit.
Manchester University Press.
De Lyon, J. and Dhingra, S., 2020. Covid-19 and Brexit: Real-time updates on business
performance in the United Kingdom. Centre for Economic Performance, London School
of Economics and Political Science.
Gawlewicz, A. and Sotkasiira, T., 2020. Revisiting geographies of temporalities: The
significance of time in migrant responses to Brexit. Population, Space and Place, 26(1),
p.e2275.
Giammetti, R., Russo, A. and Gallegati, M., 2020. Key sectors in input–output production
networks: An application to Brexit. The World Economy, 43(4), pp.840-870.
Hong, P. and Park, Y.W., 2020. BREXIT: Case of Japanese Firms. In Rising Asia and American
Hegemony (pp. 167-175). Springer, Singapore.
Ma, J.R., 2020, December. Deglobalization and debt pricing: A Difference-in-Difference
Regression-Based Analysis of Brexit's Influence on British Corporate Bond Performance.
In 2020 16th Dahe Fortune China Forum and Chinese High-educational Management
Annual Academic Conference (DFHMC) (pp. 138-145). IEEE.
Mărginean, S.C., Orăștean, R. and Sava, R., 2020. The road to the economics of Brexit: a new
direction in economic research. Journal of Business Economics and Management, 21(6),
pp.1665-1682.
Ortiz Valverde, G. and Latorre, M.C., 2020. A computable general equilibrium analysis of
Brexit: Barriers to trade and immigration restrictions. The World Economy, 43(3),
pp.705-728.
Sredanovic, D., 2020. The tactics and strategies of naturalisation: UK and EU27 citizens in the
context of Brexit. Journal of Ethnic and Migration Studies, pp.1-18.
Sultonov, M., 2020. The Impacts of International Political and Economic Events on Japanese
Financial Markets. International Journal of Financial Studies, 8(3), p.43.