So how will Brexit affect

Small Businesses?

Sole traders

It is predicted that sole traders are likely to be less affected than larger businesses because they tend to have less dealings with importing and exporting of goods or services.


The main impact that sole trader businesses are likely to face in the aftermath of Brexit, is a lack of confidence in the economy reducing consumer spending.


This is likely to be a short-term effect, and once that confidence returns to households in the UK, sole trader businesses could see a return to pre-Brexit levels.

SMEs

According to experts, the single market means access to 500 million potential customers, more than 26 million businesses and is worth more than €11 trillion (£9.5 trillion).


With nearly a quarter of small businesses exporting, mainly to the single market, losing access to it would undeniably have a huge impact on the UK economy. However, as long as Britain is still a member of the EU, it will retain its uncontestable access to the single market.


So until March 29th 2019 at least, there is no impact on the ability to trade with the single market, but small businesses who rely on this must consider the implications of losing access, work out contingency plans, and think about what direction their business can take to avoid a financial impact in the coming years.