On Friday 29th March, the United Kingdom will exit the European Union. This event is a certainty, irregardless of a deal or no deal scenario.
This uncertainty is harming all individuals inter-connected with UK, especially businesses who operate and trade with the British Isles.
In an interview conducted by CNBC, BlackRock CEO Larry Fink has been caught stating that this uncertainty is “annoying” to the private sector, and this is especially true with businesses that are looking to grow beyond their headquarters’ locality.
The psychological effect that Brexit is having on startups is currently being underestimated. When one sets out his/her entrepreneurial path towards success, events such as Brexit, hinder personal ambition and brings into the limelight questions of whether to grow and prosper into another country or not. Not all startups are emerging tech companies where one prioritises virtual reach to customers higher than physical reach, therefore direct investment into another country is the main route towards internationalisation.
To make the situation worse, the UK has always been a major force in the world. Being a G8 stalwart with one of the strongest currencies available globally, the Sterling Pound, the effects of Brexit’s aftermath, will be felt tremendously throughout the globe. With that being said, startups should not be discouraged to expand but rather encouraged to look beyond the availability of the UK.
There are more than 190 other countries for one to expand their business, therefore no business founder or CEO should keep him/herself with their vision locked on just the UK. Various other countries are competitive towards getting new business. For example, the Netherlands is known as an “innovation hub” with a high level of urbanisation. In Lithuania, it only takes three days for a company to be incorporated locally. For labour-heavy startups, India is the top destination for internationalisation. These are few examples where one can expand one’s company.
Despite all the preoccupancy and potential turmoil that Brexit might bring, startups should not be discouraged to expand globally. In reality, Brexit might help some to expand to places one has never envisioned for one’s company and personal entrepreneurial ambitions.