5 Years Later: 5 Business Impacts of Brexit

Five years after the United Kingdom left the European Union, small businesses across the country are still feeling the effects. From increased paperwork to changes in staffing and supply chains, Brexit has reshaped how British companies operate.

Here, we explore five key impacts that small business owners should be aware of.

1. Exports

One of the biggest changes post-Brexit has been the introduction of new trade barriers. While the UK has a free trade agreement with the EU, businesses now face additional paperwork and customs checks when doing business with European customers and suppliers. For SMEs, this added cost and admin burden has complicated exporting.

Many firms have struggled to absorb the extra costs, leading some to reduce or even stop trading with the EU altogether. While new deals have been secured with countries like Australia and New Zealand, their benefits are limited compared to the losses from increased ‘friction’ with the EU.

2. Immigration

Pre-Brexit, UK businesses could easily hire workers from across the EU without visas. EU nationals now require a work visa, making it harder for companies in hospitality, construction and agriculture to find staff.

This means a smaller pool of potential employees and higher recruitment costs for small business owners. Many have had to offer higher wages to attract local workers, which has increased overall costs. Meanwhile, the decline in EU migration has been offset by an increase in non-EU immigration, particularly in healthcare and education.

3. Travel

Brexit has introduced new hurdles for business owners who frequently travel around Europe. UK passport holders can no longer use fast-track EU lanes at airports and are limited to 90-day stays in any 180-day period without a visa. From 2025, British travellers must apply for an ETIAS permit.

These changes have made business trips a headache for entrepreneurs who travel for meetings, trade shows and supplier visits. Airport delays and additional costs have become a major source of frustration.

4. Regulation

A key ‘promise’ associated with Brexit was the ability of the UK to make its own laws. While this has given the Government more control over some regulations, many EU rules remain. As the UK gradually moves away from EU standards, small businesses may face additional compliance challenges when trading across borders.

For example, product standards, data protection rules and food safety regulations will evolve differently in the UK, requiring companies to adapt quickly. Keeping up with these changes has become an additional burden for firms with limited resources.

5. Costs

One of the primary arguments for Brexit was the UK’s ability to redirect money previously sent to the EU. While the UK no longer contributes to the EU’s central budget, Government spending on business support has not necessarily increased. Many small business owners feel they have not felt the financial benefits they expected.

Funding schemes from EU structural funds have been replaced with domestic alternatives, but some companies have reported difficulties accessing them. Meanwhile, owners struggle with rising costs caused by inflation, supply chain issues and economic uncertainty.

Five Years On

Brexit remains a mixed bag for Britain’s small businesses five years later. While some companies have adapted, others still struggle with increased red tape and costs. However, the resilience of business owners has been commendable.

Going forward, they will be forced to explore new markets and take advantage of Government support at any opportunity. Whether Brexit’s long-term effects will be positive or negative is up for debate. However, there is potential for positive outcomes, and many remain optimistic about the future.

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