The Implications of Brexit for Small Businesses in the UK

Abstract

Chapter Contribution

The purpose of this chapter is to analyse the theoretical work conducted in the fields of management of small businesses in the UK and control measures taken by them to cope with challenges that emerged due to complexities of the present uncertain environment. Brexit is one such event which brought in drastic changes in the undertaking of business and the management of small enterprises. The study upon which this chapter is based identifies knowledge in terms of economics, political events and human resource management (HRM), considering the impact and consequences of Brexit on small businesses. Much of the content developed will help establish a strong link as to what happened after the withdrawal of the UK from the European Union.

A structured work was applied to synthesise the theoretical understanding. A search of the existing literature was done to select the databases and keywords of the primary search. Then, a backward search was implemented to examine the references of the selected papers, and finally, a forward search examined the citations of the selected papers. The selected papers were then classified according to their content. A thorough search of the existing literature was done in Scopus, and Google Scholar using a combination of keywords such as Brexit, UK and EU, consequences and drawbacks of Brexit, and small businesses in the UK.

The findings of this study show that small businesses started opting for newer and innovative technologies to facilitate the generation of more revenues. Aspects of E-commerce, however, turned out to be the foundation of developing industrial organisations, bringing more adequate capabilities to effectively facilitate activities such as strategic planning. Whilst governments frequently fund non-profit organisations, increased concerted support for more able and growth-capable small businesses which make significant economic and social contribution would seem appropriate in the current Brexit change climate.

The small businesses sector will need to undertake a cohesive input to government decision-making since a key pre-requisite will be the maintaining of balance between survival, maintenance of existing business, as well as the availability of semi-skilled and unskilled workers and other vital underpinning resources. Moreover, this underlying study has limitations in terms of practice orientation since it is theoretical and sectional in approach, providing a static picture of the Brexit event and its impacts on small businesses in the UK.

Thus, this chapter offers researchers a broader and more comprehensive view of the impact and consequences of Brexit on UK small businesses. Educators, researchers and practitioners will benefit. Scholars in years to come will retrospectively address whether independence from the EU has nudged or nurtured small business development of appropriate entrepreneurial skills and new technology to enable adaptation to and co-creation of the change which Brexit has triggered.

Citation

Sindakis, S. and Aggarwal, S. (2022), "The Implications of Brexit for Small Businesses in the UK", Biginas, K., Sindakis, S., Koumproglou, A., Sarantinos, V. and Wyer, P. (Ed.) Small Business Management and Control of the Uncertain External Environment (Advanced Strategies in Entrepreneurship, Education and Ecology), Emerald Publishing Limited, Leeds, pp. 179-196. https://doi.org/10.1108/978-1-83909-624-220211011