Brexit. The term everyone is talking about and what it will mean for businesses world over. SMEs are likely to be especially vulnerable due to their smaller scale. With this in mind, what should they be doing?

Confusion is rampant regarding all areas of Brexit, especially since no country has left the EU in the same way before. Greenland and Algeria in the past both left the EU but under very different circumstances and having had less direct involvement with the EU, so they provide a poor example for people to use to create predications. That leaves people, and businesses, largely on their own to try and guess what is next for the UK.

Various groups like the Boston Consulting Group (BCG) fear that SMEs will be most vulnerable in the changes to come, not just those in the UK though, SMEs all over Europe are at risk. So why is it that SMEs are so at risk?

European business travel for UK citizens poses a simple but interesting question as employers will have to ensure basic health cover for their employees in the absence of the EHIC system. Not a major ask for most companies, but it highlights all the minutiae that businesses will need to address.

Data exchange is the topical area under scrutiny where we will see changes with advent of GDPR in 2018 from the EU. People are already bracing for changes to be made, but could there be even more issues when we leave the EU? Will we keep similar policies meaning data can still be transferred between the UK and EU easily or will changes that require extra effort and understanding be required? Potentially a doubling up of administration and policy review for businesses.

Shockingly 55% of SMEs BCG surveyed had no plan in place for when Brexit takes place. No wonder SMEs are at risk when they are not actively making plans and beginning to process what Brexit could mean for them. Is this short-sightedness a display or overconfidence, wanting to ignore what could be the end for them, or simply not knowing how to prepare for something so unpredictable and unprecedented?

A current TAaaS project, sourcing for a European Sales Manager based on the continent (for a UK employer) has highlighted concerns from EU candidates about the positioning of the role and the employer’s strength of presence in the EU post Brexit. On simple investigation, asking each individual on their opinion, there was a 100% view that UK businesses with a sales channel in the EU should set up a sales trading entity in a continental EU country.

So, looking at all this information what should SMEs be doing? While everything is uncertain looking to the future and planning as much as possible is a must. For many companies starting a subsidiary company abroad is a dauting prospect, especially bearing in mind the vast array of differing taxation regimes across countries in the EU. However, with some research and many EU embassies very willing to help there are some easily identifiable countries in the EU, especially eastern Europe worth investing in as a base for sales operations.  

I’d be interested in individual’s experiences and viewpoints at this stage of the Brexit process, please get in touch with me at This email address is being protected from spambots. You need JavaScript enabled to view it..