PROPERTIES, FINANCE & TECHNOLOGY NEWS AND BLOG
bot_img
16

The big question we all ask is: what next? Most forecasts of how Brexit will affect the economy are pessimistic. For the large enterprises, it is easier to put in place the necessary resources to find solutions to meet the challenges facing them. Issues such as weak growth, uneven wealth creation, and low productivity and employment upheavals to mention a few. Currently, the Law Firms and the Accounting Firms are extremely busy with helping their clients to address the impending changes. Some like Pinsent Masons have even gone as far as developing AI software to advise clients on Brexit issues. See Pinsent Masons Brexit Microsite.

Initially, soon after 23rd June, the uncertainties caused market rallies and a drop in pound value against a basket of currencies due to the general acceptance to the enormity of the task ahead for small, medium and big businesses. During the next two years, while the public is coming to terms with the unprecedented period of uncertainty, the management is beginning to look to hedge against the rapidly emerging risks. The larger organizations have already started the process to fully assess how they will be affected and how to limit potential impact to the business. Do have a look at Moore Stephens" law firm, that has created a Microsite to address some of the concerns and solutions for it.

We all accept that the EU is indeed the UK’s biggest INVESTMENT AND TRADEpartner and indicative estimates from the government suggest that 8% of the UK’s SMBs export to the EU. This is likely to mean that nearly 10% of SMBs, may be faced with a potential burden on extra taxes, as well as a hugely added bureaucracy to be expected as new trade deals are to be negotiated. The size of the problem is indeed dependent on softness or the hardness of Brexit.

Blog_image1

To recap on the terms used, the European Single Market, Internal Market or Common Market is a single market that guarantees the "four freedoms" or the four chapters within the European Union (EU ), and here are the 4 below and Brexit in one shape or another will bring changes to each of the following:
FREE MOVEMENT OF GOODS
FREEDOM OF MOVEMENT FOR WORKERS
RIGHT OF ESTABLISHMENT AND FREEDOM TO PROVIDE SERVICES
FREE MOVEMENT OF CAPITAL

While the majors and the fortune 500 have the resources to hedge against the negative impact to business and identify the opportunities, many SMBs may not have the budget or the time to be vigilant and prepare to embrace the changes as they unfold. In the days after the referendum, the SMBs who are exporting did see an improvement in their business due to better competitiveness. The improvements were a natural result of the initial fall in the pound. However, SMBs do need to spend some of the extra earnings to prepare for the repercussions. It is also important also to note that Brexit has not happened yet and the UK does not have any other examples to build a model and therefore, the uncertainties will continue to prolong trepidation.

The big picture

In the next few years, the global community is going to see the UK making a significant effort to reach out to them for trade deals. Currently, the government believes the two-year divorce period is sufficient to wrap up negotiations and ratify the new agreement. However, both from the UK and the Brussel and the rest of Europe perspective, once the UK triggers Article 50, the clock starts ticking down. In the absence of a comprehensive Brexit deal, by the end of the period, both sides will have things to lose.

Blog_image2

The view in Brussels is that the UK has more to lose than the EU from the breakdown of the talks. The view is not shared by the UK government, but the simple maths is rather simple that, almost 45% of British exports go to the continent while only 10% of EU exports are sold in Britain. IMHO Brussels will see less need to rush into a new arrangement with the UK, and in particular not until an agreement is found with regards to the amount that is owed by the UK to the EU after it leaves the bloc. This procedure is disputed by London and, in truth, parallel negotiations on the post-Brexit financial settlement and the future UK/EU relationship are very likely.

Boosting economic growth will depend heavily on addressing long-standing challenges

As we have seen for decades, in Brussels, "nothing is agreed until everything is agreed". Therefore, it is fair to say that the organizations will need proper consideration to limit the potential danger by a comprehensive risk analysis to businesses. It is also important to have a good understanding of the problems, and I have listed a few below that IMHO, should be in focus and are most important to SMBs to consider:

1. Freedom of movement risk is evident for UK staff that works for the organizations in Europe as well as the European staff who work for the organization in the UK. Probably the impact is going to be bigger for those that are heavily reliant on EU staff. These organizations may find it more challenging and costly to recruit sufficiently talented staff, and the cost of hiring may also increase. Finding talent will, therefore, be more difficult as most analysts believe Brexit will bring restrictions on migration from both EU as well as outside EU. This perception is already prompting changes in the attitudes of potential new hires. SMBs will re required to take a good look at their hiring practices and answer recruits’ concerns, including the pound sterling’s depreciation and its impact on wage demand.

2. SMBs productivity is another where they only have two years to improve their workforce productivity to mitigate pressures to increase wage. After Brexit, a reduction in immigration is more likely to make labor more expensive. Therefore to counter this, SMBs could do with more streamlined operations and better deployment of labour.

3. The forthcoming new trade barriers and the potential tariffs and nontariff with EU trading members that will increase costs and transit times. In two years time, there will be full implementation of the new barriers that could potentially protect some domestic companies from foreign competition, which may drive up prices and lower the quality of goods and services available. To counter these changes in regulations, the SMB would need to become more competitive and reduce their costs and increase productivity by pursuing innovations.

4. International trading strategies are the advice from the government to encourage SMBs to look for new global TRADING STRATEGIES beyond the European Union and to do their best to improve their business relationships outside the EU while managing the increased costs of trading with partners in the European Union. Companies can adjust by shifting their imports (including supply chains) and exports toward emerging and developed markets. The move to the emerging markets will no doubt increase higher risks associated with these markets. These are unknown territories, and therefore a much higher level of due diligence is required for assessing the quality of new partners or customers in the new found markets.

5. Depreciating Pound was the immediate outcome of the referendum, which was a little on the positive side for exporters in particular as well UK's tourism industry. Also, the devaluation created immediate opportunities for global investors interested in companies that sell globally, as well as right now, some bricks and mortar businesses that seem rather good value to buyers outside. These reductions will continue to create opportunities for businesses with balance sheets outside of the UK to invest in the country.

6. Hedging for the foreign exchange risks is another area of focus for SMBs. They do need to assess the financial impact of currency devaluation on current and future years budget and cash flow projections. The depreciation of Sterling will also be an ongoing issue for some sectors where the cost of goods, materials, and parts imported from overseas increase significantly. SMBs are required to watch the impact of lower pounds on the raw material they need to import from the outside UK. The potential extra costs incurred, may be absorbed by increases in productivity rather than an increase in selling prices.

7. Freedom of movement risk – where staff work for your business in Europe (no matter how long they have been there) and for European staff who work for you in the UK. SMBs will need to evaluate, what is the likely impact of forecasted changes the ‘four freedoms’? Businesses, which are heavily reliant on EU staff, may find it more challenging and costly to recruit sufficient and talented staff, and the cost of hiring may also increase. There is a rather short window of opportunity to educate the local staff to replace those that may have to leave.

Blog_image3

Brexit is a work in progress; changes are needed now
The problem is also significant for a None EU national that have been settled in the UK using it as a base and built a business to sell into EU. These SMBs cannot easily relocate to EU because the owners are not EU nationals or a UK citizens. However, for these businesses owners, there are some solutions like moving to friendly Cyprus or Malta and using the more relaxed legal frameworks there to establish an EU entity and associated EU passport to create a hybrid mix of EU and UK entity.

Profile of EU nationals are there in Britain?
The Office for National Statistics says 2.1 million EU citizens were employed in the UK in the first quarter of 2016 – 224,000 more than in the same period in 2015. Poles make up the biggest group - there are about 800,000 living here since the EU’s big eastward expansion in 2004. The next largest cohort is the Irish, with 385,000 citizens, followed by 300,000 Germans. EU citizens living and working in Britain legally were unable to vote in the referendum on Britain’s EU membership. Below is also a snapshot of British expats living in the European community.

It is fair to say that a significant proportion of them is SMBs that have products to sell to EU are not a lot different to the bigger enterprises like BMW, Nissan and Peugeot-Citroen buying Vauxhall-Opel car makers that are currently in the media focus. One solution that is the hardest to achieve is for them to relocate to European Community member countries. However, the simpler approach is to move HQs and part of the operation into Europe while keeping the core business in the UK until the dust settles.

The problem is much bigger for a None EU national that have been settled in the UK using it as a base and built a business to sell into EU. These SMBs cannot easily relocate to EU because the owners are not EU nationals or a UK citizens. However, for these businesses owners, there are some solutions, like moving to friendly Cyprus or Malta and using the more relaxed legal frameworks there to establish an EU entity and associated EU passport to create a hybrid mix of EU and UK entity.

Blog_image4

What does leaving the EU mean for expats?
One of the most popular topics for queries has been, how expats and people who own property in EU countries might be affected. In the immediate aftermath of triggering of Article 50 edges? Here are a few things we know;
Just over 4.5 million Britons live abroad, with approximately 1.3 million of them in Europe, according to the United Nations with the top destinations for British expats in the European Union are Spain (host to around 319,000), Ireland (249,000) and France (171,000).

Blog_image5

It is extremely unlikely for the expats that just live, work for employers or have retired to be deported by EU members. However, those that run businesses may find it a little harder to continue. In summary, SMBs do need sufficient funding at their disposal to acquire an EU residency. Therefore, they do need to look at all solutions available to them very carefully. The funding requirement for some of these solutions seems high at around 2-4 million GBP. However, careful planning can reduce these costs to a fraction but still is too high for a majority of SMBs.

About me and how I can help;
Please do check out my profile at Linkedin and here are some of the operations I manage and how I can assist you with some solutions;

Salaro.com >> Salar is my Web Development business, and we can help organizations that could do with building a new multilanguage web presence to improve your reach to your customers in European Community. The solutions we provide helps to market your products in the local languages, and this can sometimes bring more sales. We can do this either with one microsite per language or re-engineering your existing site to reach out to some of the major European customers. Below are some of the benefits;

Improving communication; The primary goal of a multilingual site is to enhance communication organization behind the site and its visitors. This is especially relevant when the target groups of a website do not know English very well.

Reaching a wider audience; Improving the benefits of organization's products and services, that are normally rather difficult to find by the non-English speaking audience.

Blog_image6

Finity Asset Ltd >> Can help if you are in the Natural Resources business that requires presence in Europe and may need help with financing or finding a Joint Venture partner. In particular, if you have Mining, Oil and Gas projects that are required to operate within the European Community. In the post-Brexit era, and the need to shift focus to the emerging markets will no doubt increase. Naturally, there will be higher risks associated with operating in these markets. These are unknown territories, and therefore a much higher level of due diligence will be required for assessing the quality of new partners or customers in the new found markets.

Legends Development >>Is the consultancy and marketing side of my business that with the help of my partners can provide you with EU residency in Cyprus, Portugal or Malta using our Fast Track EU Passport Solution. The Cyprus solution allows you to live, work, study anywhere in EU with a €2 Million Property Investment. We will help to obtain approval for you within 3 Months before the funds are used to complete the property purchase. A similar solution is also available in Portugal that provides Residency to Non-EU investors to obtains residency status in Portugal. This is achieved by investing a minimum of €500,000 in one or more properties in Portugal. It is called "The Golden Residency Permit" that lasts for five years and will permit the investor and the family regrouping (spouse and children under 18). The Investor may also gain access to a permanent residency permit, as well as a Portuguese citizenship by the current legal provisions.

Please do contact me directly here in Linkedin to hear more about some of the above solutions, or reach me on +44 7955 904000 includes; WhatsApp, Skype: "Salaro" and email me at Salar (at) Salaro . com

Post Rating

Comments

Libra88
# Libra88
Wednesday, December 19, 2018 10:06 AM
Education is the main agent of change near maintainable growth, increasing people capacity to maintain their dreams for assignmentgeek com au into reality. Education not only provides scientific and technical skills, it also provides the motivation, and social support for following and applying them.
Robinjack
# Robinjack
Wednesday, February 13, 2019 1:46 PM
I might want to thank you for the endeavors you have made in composing this article. I am trusting the same best work from you later on too. Much appreciated... backlinks freelancer
Robinjack
# Robinjack
Thursday, February 14, 2019 11:48 AM
An example of this is Atypical Mole Syndrome. This syndrome brings about a tendency inside the physique to kind an abnormal amount of moles on our skin. This is some thing that we could have obtained from our parents or our grandparents and we’ve no manage over regardless of whether we obtain it or not. 오션파라다이스
Robinjack
# Robinjack
Thursday, February 21, 2019 3:32 PM
what i can say is that abortion is a sin and it should be deemed illegal by all means` mcsa windows 10
amelia
# amelia
Saturday, February 23, 2019 5:47 PM
Die Online Druckerei bayerprint.de erstellt hochwertige Drucksachen, wie Flyer, Broschüren, Präsentationsmappen, Banner und mehr extrem gut und extrem günstig. Visitenkarten drucken lassen
Robinjack
# Robinjack
Sunday, February 24, 2019 9:54 AM
Wow! that guide has been awfully practical thanks alot : ). “Ignorant men don’t know what good they hold in their hands until they’ve flung it away.” by Sophocles.. 베트맨토토
Robinjack
# Robinjack
Monday, February 25, 2019 8:34 AM
Some really choice posts on this web site , saved to favorites . 먹튀 사이트
chalsea
# chalsea
Monday, February 25, 2019 8:51 PM
I am trusting the same best exertion from you later on also. Indeed your exploratory writing abilities has propelled me. pre wedding photographer
amelia
# amelia
Wednesday, February 27, 2019 12:34 PM
I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often. elawoman.com
chalsea
# chalsea
Thursday, February 28, 2019 11:26 AM
This is an extraordinary post. I like this topic.This site has heaps of advantage.I discovered numerous fascinating things from this site. It helps me in numerous ways.Thanks for posting this once more. vancouver sofa stores
amelia
# amelia
Friday, March 1, 2019 8:44 PM
Much thanks to you for exceptionally usefull data.. how to get into our sainsburys
AsharSeo
# AsharSeo
Monday, March 4, 2019 7:36 AM
This website post is excellent, probably because of how well the subject was developped. I like some of the comments too though I would prefer we all stay on the suject in order add value to the subject! seo google
Robinjack
# Robinjack
Thursday, March 7, 2019 2:48 PM
i would really love to play card games, it is also a very addictive game~ Panama Real Estate Sales, Rentals, Property Management and Office Space
chalsea
# chalsea
Saturday, March 9, 2019 3:03 PM
I was taking a gander at some of your posts on this site and I imagine this site is truly informational! Keep setting up.. Refrigerator Repair service in Rancho Santa Margarita
amelia
# amelia
Sunday, March 10, 2019 3:43 PM
I really appreciate this wonderful post that you have provided for us. I assure this would be beneficial for most of the people. nikken.com
amelia
# amelia
Tuesday, March 12, 2019 8:03 PM
This was a truly extraordinary challenge and ideally I can go to the following one. It was alot of fun and I truly had a ball.. 일본서버
AsharSeo
# AsharSeo
Wednesday, March 13, 2019 6:34 AM
you got to work hard to earn lots of money because it is not very easy to earn:: Easter Songs
AsharSeo
# AsharSeo
Wednesday, March 13, 2019 6:35 AM
This is such an extraordinary asset, to the point that you are giving and you give it away for nothing. I cherish seeing sites that comprehend the benefit of giving a quality asset to free. It is the old what circumvents comes around schedule. when is good friday
Robinjack
# Robinjack
Thursday, March 14, 2019 5:34 PM
Hi, I have scanned the greater part of your posts. This post is presumably where I got the most valuable data for my exploration. A debt of gratitude is in order for posting, possibly we can see more on this. Are you mindful of some other sites on this subject. voyance-amour-eternel.com
ch
# ch
Saturday, March 16, 2019 11:29 AM
You are very brave focuses in this article. I would have never thought to be any of these on the off chance that I didn't go over this. Much appreciated!. wedding love letters
ch
# ch
Sunday, March 17, 2019 11:19 AM
Positive site, where did u concoct the data on this posting? I'm satisfied I found it however, sick be inquiring soon to discover what extra posts you incorporate. 여유증 수술
Elawoman
Saturday, March 30, 2019 10:35 AM
This is truly a great read for me. I have bookmarked it and I am looking forward to reading new articles. Keep up the good work!.
ch
# ch
Saturday, March 30, 2019 4:21 PM
Is it alright to post some portion of this on my site essentially present a hyperlink on this site page? voyance gratuite telephone
Robinjack
# Robinjack
Thursday, April 18, 2019 2:39 PM
It?¦s really a great and useful piece of info. I?¦m happy that you simply shared this useful information with us. Please stay us informed like this. Thanks for sharing. 바다이야기 게임소스
Robinjack
# Robinjack
Tuesday, April 23, 2019 2:36 PM
There is noticeably a bundle comprehend this. I suppose you made specific nice points in functions also. 먹튀검증 먹물
Robinjack
# Robinjack
Wednesday, April 24, 2019 10:06 AM
A very very interesting article! I’ll try to track that continues here! Thank you. 야마토 먹튀사이트
Robinjack
# Robinjack
Saturday, April 27, 2019 10:55 AM
too much vitamin-a can also cause osteoporosis but aging is the number cause of it“ Psychedelic Mushrooms for Sale
Robinjack
# Robinjack
Sunday, April 28, 2019 11:54 AM
It’s hard to find knowledgeable people on this topic, but you could be seen as do you know what you are referring to! Thanks cubs dating App
Robinjack
# Robinjack
Tuesday, April 30, 2019 12:42 PM
It’s nearly impossible to find knowledgeable individuals within this topic, and you be understood as guess what happens you’re speaking about! Thanks tax audits
Robinjack
# Robinjack
Thursday, May 2, 2019 12:42 PM
This movie is to Star Wars as Star Wars is to Star Trek. industrial paint systems
Robinjack
# Robinjack
Friday, May 3, 2019 11:02 AM
I’d must talk with you here. Which isn’t something I do! I quite like reading an article that may make people think. Also, appreciate your permitting me to comment! free ebook pdf
Robinjack
# Robinjack
Saturday, May 18, 2019 10:53 AM
I happen to be writing to make you know of the terrific discovery our princess experienced going through your web page. She picked up many things, not to mention what it’s like to possess an awesome giving character to make the mediocre ones very easily fully grasp a number of hard to do matters. You really did more than our expected results. Thank you for producing those precious, healthy, edifying and as well as fun tips about this topic to Jane. https://www.play.fm/michaelspence231
Robinjack
# Robinjack
Saturday, May 18, 2019 10:53 AM
I have a comparable thermometer which was my token for my very journey towards US. I didn’t completely that we have to place it in direction of the chicken despite its cooking till I noticed it being used in a movie. https://www.snupps.com/Buthes123
Robinjack
# Robinjack
Saturday, May 18, 2019 10:53 AM
I wanted to draft you this tiny remark to help give many thanks once again considering the beautiful methods you’ve documented on this website. It’s simply wonderfully open-handed with you to deliver unreservedly just what most people might have marketed as an electronic book to earn some dough for their own end, mostly considering the fact that you could have tried it if you considered necessary. These smart ideas also worked as a good way to be certain that other people online have a similar interest really like my personal own to know the truth way more on the subject of this condition. I am certain there are a lot more pleasurable times ahead for folks who start reading your site. https://slashdot.org/submission/9677574/adjustable-beds-tucson
Robinjack
# Robinjack
Saturday, May 18, 2019 10:53 AM
I tried to publish a comment earlier, yet it has not shown up. I assume your spam filter may possibly be broken? https://tapas.io/shaphy60
Elawoman
Thursday, May 30, 2019 10:48 AM
What a nice article you posted here. Really nice content and your writing style really great.I really love this post. I would like to appreciate your effort what have done. Thanks for posting this informative blog. Elawoman
ivf pgd in thailand
Thursday, May 30, 2019 10:58 AM
Wow! Such an amazing and helpful post this is. I really really love it. It’s so good and so awesome. I am just amazed. I hope that you continue to do your work like this in the future also.

Post Comment

Name (required)

Email (required)

Website