Could a no-deal Brexit be a good thing for some UK SMEs? Luke Davis, CEO of IW Capital, discusses how UK SMEs could help pull the UK out of a recession post-Brexit.
Throughout the year, as well as coping with a global pandemic, businesses throughout the UK have been filled with dread and worry about the outcome of Brexit and the effect it will have on our nation's trade. As a no-deal Brexit looms over us, many are struggling to find any positives in the situation. But, could this be the time for British entrepreneurs to capitalise?
With a no-deal now looking likely, the UK will be forced to pay tariffs on imported goods, increasing prices and potentially making UK-based suppliers more competitive. Clothing, food and other goods that were once imported from the EU could now be sourced from within the UK, which is welcome news for our nation’s businesses who manufacture and sell these goods, as they can now take advantage of the situation.
Despite the current climate, throughout the year UK SMEs have shown resilience and have adapted quickly to the pandemic and the changes it has ushered in, with a 12% increase in new businesses starting up during 2020. For these businesses, a no-deal Brexit will represent another opportunity to adapt and grow. In addition to this, the number of online job advertisements has reached 1.4million for the first time this year, further highlighting business growth across the country.
CEO of IW Capital, Luke Davis:
“Each period of disruption offers opportunity for companies to adapt quickly to the changing times and although there has been a lot of worry and negativity surrounding a no-deal Brexit, it would be unwise to believe that there will not be any benefits to come out of it, especially for businesses and industries here in the UK.
“Increased tariffs on EU commodities and exports could make British businesses more competitive and our investor base is keener than ever to support growing British business. Each problem that arises from no-deal will require a solution, and most of these are provided by new and innovative companies that have capitalised on a change in circumstance. A great example of this is Biotech and the way the industry adapted to the pandemic.
“Making growth investment more easily available to small businesses that are looking to grow should be a priority. The last time that the Government-backed EIS was extended, it resulted in a significant jump in private investment into small businesses. Replicating this effect with new, or increased, incentives would provide a much-needed boost to a section of the economy that is most in need, and so we hope this will be addressed in the near future.”