Brexit Is What Entrepreneurs Feared

It was indeed a dark day for all the entrepreneurs and startups in Britain. As the news of Britain leaving EU poured in, mobiles started ringing incessantly. No one could make any sense as to why such a thing had happened.

In a poll, about 90% of the entrepreneurs in UK didn’t want the Brexit referendum to go this way. Now that the worst fears have come true, they don’t know yet how to react. Some are even calling it the biggest foreign policy mistake of modern times.

The Chaos

Soon after the Brexit referendum came in, markets plummeted to an all-time low. British pound has now taken a severe hit, reaching a 31-year low. Still reeling under the shock, the entrepreneurs have no time to grieve. Rather they need to get on top of the situation and find out ways to avoid getting thrown under the bus.

Brexit’s Ramifications for Startups

• Now in the new economic environment that doesn’t look as friendly as before, the businesses stand a possibility of losing duty-free access to other European markets. This might result in them losing valuable business.
• Startups might also lose out on the opportunity to find a place in European accelerator programs. What’s more, they will lose access to European venture capital.
• French entrepreneurs now think that they are going to face problems of capital shortage. They also think that the cost of doing business with Britain-based businesses might go up due to legal fees.

Despite all this, the startups cannot lose hope because the very motivation behind starting a startup comes from resilience, drive to overcome roadblocks and ability to stand strong in the face of adversities.

Takeaways:-

• Britain has left EU after Brexit referendum.
• Startups stand to lose venture capital from other European sources.
• Britain’s businesses might lose duty-free access to European markets.