(This article was updated on 24/06/2020)
Set up a business in UK
In a historic referendum on June 23rd, 2016, Britain voted to leave the European Union, leaving the world astonished. Soon after, the pound fell to its lowest since 1985. Experts believed that after leaving the European Union, Britain would be a far less friendly place for entrepreneurs. While some experts believed that UK has always been favorable and has offered great options to entrepreneurs and Brexit won’t change this in any way. So what is the entire fuss about? The truth is that there are both winners and losers from Brexit. Let’s have a look at which businesses are more likely to be affected post Brexit.
The major losers from Brexit will be financial institutions that rely majorly on pass porting rights to carry out business into the single economic area created by integration of markets of all EU states. Leaving the EU isn’t particularly good news for those trying to sell London property. Winners include the fleet-footed smaller businesses that will be the backbone of the post-Brexit economy. For them, Brexit is likely to prove genuinely positive. An upwards movement is expected among businesses seeking financing, such as through the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS). This market finds itself in a “sweet spot”, in which businesses are seeking investors and investors are looking for growth opportunities. Indeed, a complex circle is in operation.
This is primarily because the quality of today’s investment is, in the absence of the avoidance schemes, very much higher. The result is that, for businesses seeking genuine risk capital, it is almost certainly a lot easier to raise money now than before. Another part of this complex circle is that growing businesses offer the opportunities to investors that will appear increasingly attractive in the post-Brexit climate. These are the types of firms that are well-placed to flourish after Brexit, for a number of reasons. One, they tend to operate in very specific areas of activity, quite often specializing in their niche. That gives some protection against any adverse effect that Brexit might have. Two, they are agile and able to adapt quickly, in contrast to corporate giants. Three, on a similar theme, smaller firms can transform themselves much more quickly than larger businesses, if the circumstances demand them to. If there are problems selling a type of product currently emerging from their workshop, they can start producing a different type without too much trouble as compared to any of the conglomerates.
The Government is also promoting innovation and entrepreneurship with great vigor. Smaller companies can easily exploit opportunities in niche marks and subsequently expand to larger markets. These businesses will be the lifeblood of UK in the new-age global market.
Smart Assistance for Smart Ambitions
As a team of immigration lawyers who have been in the legal immigration business for over a decade, Smart Move Immigration has established a reputation for efficient management for processing of visa applications and for providing expert visa-related advice. Here at Smart Move Immigration, we are dedicated to providing personalized services for entrepreneurs and innovators who are looking to migrate and assist them in achieving their dream to set up a business in the UK.