What could a Potential Brexit Mean for Small Businesses in the UK

Can Brexit negatively affect small businesses in the UK? This is a question we are going to answer on this article, because we have realized that it’s a very important subject for lots of people in the United Kingdom. The UK leaving the European Union sounds like an apocalypse, but is it really the case? On this short yet concise blog post we are going to discuss all the fact and see how it can affect small businesses in the UK.

The Pound:

Experts agree that leaving the EU would cause a considerable fall in the value of the pound, and we all know that this cannot be a good thing. And this happens because investors react in a bad way to uncertainty, and leaving the European Union would be a situation which would generate lots of uncertainty. There’s no doubt about it.

The Contrary:

To the contrary to what some people think, leaving the EU would bring excellent benefits to the UK, according to what some experts affirm. They say that businesses in the UK would have a good time, because they would be able to escape the regulations and rules from the EU. But this statement can be discussed and even debunked according to what Brexit detractors affirm, because there’s no evidence of this.

Brexit supports affirm that the fall in value of the pound would make firms and businesses in the UK more competitive abroad, but this statement can be largely debated. Because any gain in competitiveness would be limited by huge trade barriers.

Spending Power – A Problem:

There’s also another problem linked to the Brexit. And is that, according to what some experts say, leaving the EU would have a negative impact in spending power. This reduction in spending power would affect negatively all sort of small businesses, including B2C companies in the UK.

Experts calculate the drop in £4,000, and this is a very big number in fact. This drop would be a disaster for many small businesses. And this is something Brexit supports have not been able to answer properly.

And this effect in the spending power is a subject that requires a proper discussion, something that has not happened so far now.

The Fear:

In fact there are many entities, like the Bank of England that state that a Brexit would make UK poorer, and this would affect lots of small businesses all over the United Kingdom. While Brexit supports state that this would give the UK more freedom, and therefore would make them richer over time.

But as we have seen, a gain in competitiveness would be hit by new trade barriers. In fact, this is a topic that requires a more insightful discussion, because it’s a huge change that can either make us richer or poorer.


We just have to wait for the referendum. In the meanwhile, it’s important to organize more debates in order to inform population on what the best option is.