Brexit Deal Rejected: How Could Vote Affect Small Business and Investors?

Brexit's Deal Rejection: How Could Vote Affect Small Business and Investors?
Brexit Deal Rejected: How Could Vote Affect Small Business and Investors?

The British Parliament rejected May’s Brexit deal on a meaningful vote on Tuesday 13, by a large margin: 149 votes. The uncertainty reigns again ahead of a new free vote called for Wednesday 14 where MPs will be asked if they rule out a no-deal hard Brexit or, on the contrary, an extension of Article 50. Comments about May’s deal rejection have risen showing concerns just 16 days ahead of Brexit.

Here are some of them:

Mark Browridge, Director General of the Enterprise Investment Scheme Association, comments on the vote:

“It’s madness. What SMEs want is certainty. Uncertainty breeds fear and that’s what we will see more of with the agreement not passing the commons. How can any business plan with political backdrop we are currently experiencing? We will now almost certainly see a slow-down in the economy that could have been easily avoided.

If the markets and the economy know what the issues are, they react and solutions are put in place to counter them but with the current Brexit calamity all bets are off. We are entering uncharted waters and anyone who tells you they know how this will play it is lying. 

Small businesses have a fantastic opportunity to take advantage of the changes that Brexit will bring, due to the fact that they are small, nimble and highly adaptable.”

Luke Davis, CEO and Founder of IW Capital, discusses the impact of the outcome on investment:

“Over the last year or so, we have seen a concerted effort to get on with business, regardless of Brexit and the eventual outcome. At IW Capital, we have experienced record deal flow and buoyant investor confidence. What Brexit ends up looking like will not affect the fantastic range of innovative, growing SMEs we work with that are likely to drive our private sector forward. However, certainty in what will happen with Brexit is more than likely to increase the sentiment to push on with business. As entrepreneurs and investors look to capitalise on new opportunities that are bound to exist after Brexit.”

Jenny Tooth OBE, CEO of the UK Business Angels Association, shared her views on what the vote could mean for regional businesses:

“After two years of negotiations regional businesses were hoping for a deal to finally be reached so that they can begin to plan for life post-EU. Funding for SMEs in the regions has been somewhat forgotten about recently. The potential loss of investment from the continent including the European Regional Development Fund, Horizon 2020 and the Jeremie fund could create a huge investment gap in UK. This is concerning not only for the loss of EU money, but the risk that Government support for finance to replace this EU funding may take time to have an impact on the ground. This will subsequently impact regional SMEs more than larger businesses that can take the hit, or areas such as London or the Golden Triangle which receive the majority of domestic investment.”