The Brexit Debate – Considering the Impact on SMEs
June 6, 2016
Country / Territory
Related offices
Related content
Share
In the widespread panic that is enveloping our press, it is difficult to sift the wheat from the chaff when attempting an opinion of the implications of Brexit. Whilst I am not forming any such opinion, it may be useful to consider the implications of Britain leaving the EU, from the standpoint of an SME (Small Medium Enterprise).
Reviewing the daily press updates, it is difficult not to be caught up in the frenzy, as each side bangs their chest and attempts to scream louder than their adversary. Cutting through the noise is a tiring task, which begs the question – what should an SME owner, think?
As SMEs are familiarly aware, starting, and then growing a business from scratch, is an expensive task. Having a wider pool of resources has proven prosperous for SMEs, given that talent is one of the highest expenses a company endures. Leaving the EU would surely have an immediate effect on this resource pool, right? Well, whilst having an European resource pool is obviously a benefit to being part of the EU, should Britain leave, there is no guarantee that this would cease. After all, the implementation of the EU was to facilitate free movement of trade and goods. No-one can predict the outcome, from a financial, talent or resources perspective.
Given that a large percentage of tech engineers originate from countries outside of the European borders, one may argue that any restrictions to the European talent-pool may not cause that much upheaval, as SMEs largely source talent from a global, rather than European pool. In today’s millennial society, companies pride themselves on having a diverse multinational workforce, and this is likely to continue, Brexit or no Brexit. A further argument is for home grown talent to be nurtured, however, this should continue whether Britain leaves or stays.
From an immigration perspective, it is not clear whether a Brexit would lead to specific visa categories, or whether a visa-waiver regime would be implemented. Should Britain leave the EU, the policy changes would most likely take years to be implemented, meaning that the effect should not be immediate.
As most of the arguments are conjecture, the strategy for an SME is to consider the financial impact on trade and the growth of their business. Should Britain leave, the impact cannot be ignored, however, it may also afford Britain a new opportunity to renegotiate their international trade agreements and potential areas for growth. SMEs are entrepreneurial by nature, and should Brexit occur, they will find a way to turn the situation to their advantage. There is, therefore, no time like the present for SMEs to commence strategizing on the likely implications of a Brexit taking place.
