it’s too early to say but it will have implications in the sense that there will not be anyone in the european commission to stand up for british businesses when regulations are set; given that a lot of trade is intra european, this will make things more difficult for smaller businesses when they all of a sudden will have to throw their production around to be in line with regulations.
Uncertainty of this scale is troubling. The macro effects could be global — a recession in the UK working as a contagion first to the EU then to the US. That domino effect causes business and investors to be more conservative… not ideal for a startup (or any business or person who has a job)), unless you happen to be offering some artibtrage related to uncertainty.
The maddening thing about “leave” is that the risks are huge and the reward is… um, dunno, less likely chance that a non-white person wins the Great British Bake-off? For a scary parallel, see Trump, Donald J.
In the short-term, you obviously see a massive stock sell off and the GBP sink against the USD. Those things will rebound a bit as the shock wears off.
In the medium-term, you have huge uncertainty for the world to deal with for a couple years — including a potential effect on the US election (which would add TREMEMDOUS, YUGE uncertainty if that goes south).
In the long-term, the UK may become “France”. I don’t mean that to disparage the French at all (srsly, vive la france!), but more that this extremely influential country of the UK slowly breaks apart to “just” England… and because the EU is the larger economy on that side of the pond, things slowly migrate away. The English language will always be on England’s side… but the global influence could wane significantly.
Depends on the nature of business but global businesses will be impacted by the fall of the £. New taxes, regulations will come in to play which will likely be more business friendly. Higher cost of labour will also impact businesses in the long run. Although i think smaller businesses will be better off in the long run, more protected and higher levels of innovation. UK is still one of the best places in the world to run a business.
The main problem will be uncertainty. Some will undoubtedly profit from this new situation but the majority won’t. It’s too early to say how exactly things will turn out but I seriously doubt that the majority of startups in the UK will be better off.
The trust in the financial markets is also uneasy, which will lead to a lower value of the pound sterling, in turn good for export businesses, but businesses that import products will feel that and so will the end consumer. Right now, it’s business as usual, but it’s with an uneasy look towards the future.
I’ve no idea how to do that, I’m a small 1 man business I’ve no experience of dealing with wildly fluctuating currencies, normally there’d be small changes which usually balanced out but this is different. If the pound doesn’t improve it will certainly mean I can no longer sell to the UK.
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