A long running claim from Brexiteers has been that the EU favoured big business over emerging SME’s. Try telling that to the mobile phone giants, card companies and big tech, all of home were slapped down by Brussels and forced to change their ways.
But the claim that Brexit will somehow help UK SME’s is looking increasing thin, it is big business that can afford the costs of Brexit. It is exactly the small and medium sized ones that cannot afford the new red tape, transport price rises and VAT, when they trade with the EU. The latest of many warnings has been from the fashion industry, deeply worried about the trade deal that the UK agreed with the EU and what it means for its viability.
Strangely enough if such concerns were part of Project Fear, you would have expected them to stop by now as industry after industry realised it had been misled by its own remainiac leadership and instead found itself in the sunlight uplands of Brexit. I wonder why that hasn’t happened?
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Morning Jonty! It's a new day and same old Jonty.
When you set out as a SME business you set it up and once it is ticking over with customers the profits start to roll in (hopefully). You drop the bits of the business that aren't as profitable to focus on the better prospects to improve quantities & margins, that is capitalism. For the most part in a low risk business that is money for old rope. But when a government strategic redirection changes the marketplace it will open some doors and close others. Most competent entrepreneurs will recognise the changes and adjust the business model and go out there seeking new markets and opportunities. Now owning that risk is part of the profit and loss model. Some businesses will change and some will fail but that is why the reward aspect compensates the risk element. I can put my €1 in a European bank and receive a negative interest rate haircut and they will force me to accept that because they are trying to phase out the paper and coin concept of money. I can invest that €1 in a business and wait to see if I earn enough to pay myself a dividend. Risk is there for those who want to own it. Reward is there for those that can meet a need at a price that gives them sufficient excess income over cost.