How Brexit Affects UK Businesses: Financial, Employment, Investment

This report examines the multifaceted impact of Brexit on UK businesses, analyzing the financial uncertainties, employment changes, and investment implications. It highlights the challenges faced by small and medium enterprises (SMEs) due to financial volatility, reduced foreign investment, and potential loss of access to the EU single market. The report discusses the impact on employment, particularly the shortage of skilled workers, and the economic consequences, including the decline in the British pound and increased costs for businesses. It concludes that Brexit has largely negative effects on the UK economy and businesses, emphasizing the need for adaptation and strategic planning. The report references various sources to support its findings and provides a comprehensive overview of the complex issues surrounding Brexit's impact on the UK business landscape.

HOW WILL UK BUSINESS BE
AFFECTED AFTER BREXIT?

How will UK business be affected after Brexit?
The Brexit has many impact on the small, medium and large business of the UK in
different ways through which the business and the companies have tor suffer in long run,. The
survey collects the data on how the companies are affecting because of the Brexit and on variable
such as the sales price, sales, investment, employment(Ziv and et.al., 2018). The major
proportion of the survey population has anticipated that because of the Brexit they eventually
lead to reduction in sales and increasing costs which is the great loss for the company as they are
not able to earn enough amount of profit due to low sales and will ultimately bring many
companies to heavy downfall in the entire market share.
The impact of the Brexit on the European union will result in the economic and social
change to the union but also the longer term political and institutional shifts. After the
announcement of Brexit it stated with the sharp jump in uncertainty as and after the UK has
voted to leave the European union in 2016 June, Brexit movement became more unstable and the
effect of this will expand across the nation(McGrattan and Waddle, 2017). This create the major
uncertainties regarding the British politics but is also clear that exit from the European union is
also creating the possibility of major economic and financial fluctuations and difficulties. UK
economy has been approx 1.5% smaller than it will have been without the Brexit
voter( SDhingra, S and et.al., 2016). Te result of Brexit in uncertainty will have large impact in
small and medium enterprises which can have devastating effects for the large population.
There are many effects which can be explained as follows;
Financial uncertainties-
The biggest problem because of the Brexit movement is the financial uncertainty . This
is problematic for all the business of British. the small and medium sized business especially
less likely to experience the economic growth(Kierzenkowski and et.al., 2016.). A shortage of
money will lead to fall in the demand for UK goods is fall in investment which can lead to fewer
chance for innovation After the Brexit the British pound fall to the lowest level in the last any
years that us $1.2273= £1.
The bank of the England believing that inflation will raise up to 2% in early 2017 and 3 % at end
of the same year. this indicates the rise in price in almost every products which includes food,

automotive industry, petroleum products, tobacco and alcohol,manufactured products, transport
and equipment, etc.McGrattan and Waddle, 2017
it is also predicted that UK will experience a heavy loss of at least £4.5 billion a year if they
leave the EU without negotiating with a new trade agreements wit the EU(Kiefel and et.al.,
2018). This brings the major hots on export business in UK as their costs will increase with the
increased tariffs which resulting UK business being less competitive inn the markets of EU and
globally.
Losing access to single market
EU decides to change the policies after the Brexit which could mean that the UK will
lose its access to the single market.
Impact on employment and labour
As since UK voted to leave the EU the number of the migrators looking for the jobs
outside the UK have spiked up. There are any European immigrants who are working in the UK
in different industries such as engineering, construction, IT where there is heavy shortage of
skilled workers in the UK than European immigrants are filling the void by bringing to the vital
skills(Hall and Wójcik,2018). EU immigrators also contribute to the industry of the health sector
in terms of the employment and if these EU workers leave by the UK than there will be large
gap between the demand for skilled workers and their supply. Which direct affects the ability to
recruit the international talent to be at stake.
Possible reduction of foreign investment
Leaving the EU would definitely have negative impact on FDI inflows in UK and which
is likely to decreased by the 22%. The UK being a part of the single market is capable of
attracting many foreign investors as they not have to face the high cost barriers from tariffs and
can easily export to other EU countries but this will be case if the UK decides to leave the EU
and the single market agreement as uncertainty og future trade relations between the UK and EU
can lead dampen FDI into the UK(Golding and Waring, 2018).
The uncertainty of UK market also resulting in suffering by the small and medium
enterprises when it is about seeking the business financing .a volatility may make the lenders
nervous which brings the more difficulty for small business funding. Brexit will impact the UK
as UK will no longer to recognise institutions that oversee areas is no longer will be part of the

EU free trade area. As import and export of the goods and services to and from the Eu counties
includes Associated VAT payments , custom and excise duties which is comparatively high.
Economic impact
McGrattan and Waddle, 2017 As trade impact of Brexit on the UK is likely to be negative and its
impact on the EU is expected to be negative but small compared to UK(Franks, 2016). The
negative impact on the business of UK especially in small and medium sized enterprise not much
on large organisation as small business needs to arrange for the skilled workers and for arranging
them it involve the higher cost which is not affordable by them and because of this they might
suffer heavy loss(Hall and Wójcik,2018).
Hence, it can be concluded that the majority proportion of Brexit impact is negative on the
economy of UK and UK business.

REFERENCES
Books and Journals
Dhingra, S and et.al., 2016. The impact of Brexit on foreign investment in the UK. BREXIT
2016. 24. p.2.
Franks, J.R., 2016. Some implications of Brexit for UK agricultural environmental
policy. Centre for Rural Economy.
Golding, B.T. and Waring, M.J., 2018. The consequences of ‘Brexit’for drug discovery and
development, and the regulatory implications.
Hall, S. and Wójcik, D., 2018. ‘Ground Zero’of Brexit: London as an international financial
centre. Geoforum.
Kiefel, M and et.al., 2018. Understanding Brexit: impacts at a local level: Pendle case study.
Kierzenkowski, R and et.al., 2016. The economic consequences of Brexit.
McGrattan, E.R. and Waddle, A., 2017. The impact of Brexit on foreign investment and
production (No. w23217). National Bureau of Economic Research.
Ziv, G and et.al., 2018. The potential impact of Brexit on the energy, water and food nexus in
the UK: A fuzzy cognitive mapping approach. Applied Energy. 210. pp.487-498.
Online
Impact of Brexit on Businesses in the UK. 2019[Online]. Available through
<https://www.market-inspector.co.uk/blog/2016/10/impact-of-brexit-on-businesses-in-the-uk>.