This uncertainty extends into all areas of life, with research showing that the UK’s small businesses are evenly split on whether Britain should remain in the European Union.
According to a poll of more than 500 SMEs, 37% of them favoured a ‘Brexit’, whilst 38% said they preferred to stay in the single market.
However, perhaps somewhat worryingly, the research also revealed that one in four SME owners had not yet decided which way they would be voting, with many stating that they did not feel well informed about how a Brexit would affect them.
With the big day drawing closer, Love Energy Savings is aiming to educate small business owners across the country about how a decision either way could affect their day-to-day operations. Read on for both sides of the argument, and how to keep your business costs down whichever way the vote goes.
How a Brexit could affect your business costs
- Pound vs. the Euro
As the referendum draws closer, and with the outcome being no clearer, the value of the pound against the Euro has already started to decline. Despite this, there is no way to say exactly how a vote to leave the European Union would affect our currency long-term, although respected institutions such as the Bank of England have stated that the pound’s value could drop sharply and lead us back into a recession. On the other hand, a vote to remain in the EU could strengthen its value.
Alison Steed, founder of The Business Powerhouse, said:
“The uncertainty around whether the UK will vote to leave or remain in the EU is causing serious concerns for businesses who, quite frankly, are finding it hard to plan ahead. The impact of the uncertainty on the value of the pound is already being seen, but if we vote to remain in the EU then we could see the pound respond with a sharp strengthening against the Euro and US dollar again.
“Whether we vote to remain in the EU or not, and since no-one really knows that the outcome is going to be until June 23rd, it is best to simply control what you can control now. Whichever way the vote goes, taking these actions now will help stand your business in good stead for the future, whatever that may bring.”