Can UK Startups Benefit From Brexit?

Many people are still recovering from the shock of the UK deciding to leave the EU, including a number of large organisations, as well as a huge number of entrepreneurs.

Several entrepreneurs have spoken out since the UK made its decision to leave, expressing their displeasure and calling it a “disaster” and a “blow to micro-business” amongst many other negatives.

However, despite many labelling Brexit as a “backwards move”, others are actually seeing Brexit as a positive one and are operating under the belief that it will provide numerous opportunities for the UK’s businesses.

So what benefits could Brexit possibly have to the UK economy?

1. More control

One of the biggest reasons for many people voting to leave the EU is for the UK to regain control. With more control, many argue that UK businesses will be better able to thrive. People voting in favour of Brexit wanted to see less Red Tape, and leaving the EU is likely to give the UK exactly that. This, business people hope, will allow companies in the UK more space to grow and scale up.

2. More tourists will come to the UK

With the pound collapsing, lots of people are concerned about the resulting effect on trade; however, for any UK business that relies on tourism, the collapse of the pound might well hold many positives, especially for the hospitality sector.

With the pound weakening, it means tourists can get more sterling for their own currency. This means the UK could now be an even more popular destination for tourists. Add to this the fact that it is likely to become more expensive for UK citizens to travel abroad, holidaying at home is likely to now be certainty for many Brits, which will also increase the tourism industry.

3. Opening up of the UK to a global workforce

Many are concerned that a Brexit would have a negative effect on the staffing situation in the UK. However, others argue that instead of relying on talent from the EU, the UK can now start encouraging talent from countries far and wide, instead of just Europe.

If the UK decides to operate a points-based entry system, as seen in Australia, it could even mean the UK starts to see a higher calibre of workers migrating to the UK.

4. Investment in property

Although no one can say how much of an impact Brexit will have on the property market yet, it has been estimated that property entrepreneurs might well be in for a treat. With the pound’s value decimating, property in Britain just got a lot cheaper; therefore overseas demand for property is very likely to increase.

5. Trade exports

Although Brexit, and the resulting drop in the pound, could see businesses that reply on importing seriously affected, those that export are feeling positive. Head of the dealing desk at UKForex, Alex Edwards commented on the situation stating: “Exporters could stand to make serious gains from the pound’s performance. Many of them are busily locking in forward contracts at this morning’s rate.”