What Boris’ win could mean for Small Businesses in the UK

Just a few hours since the final numbers came in and prime minister Boris Johnson secured his seat in Number 10. Of course, within all the noise, whether positive or negative a lot of thought has been given to Brexit and what our prime ministers' decision could mean for small businesses and startups across the UK.

The previous unpredictability of the Brexit vote and today's election results has meant that a lot of business owners just don't have a handle on what to expect or plan for. Now, as our country comes to terms with the election, whatever Brexit looks like in months to come, it will have an impact on small businesses.

Whilst it is difficult to specify what Brexit will mean for all businesses, and how to prepare, I have spoken with a few key players to hear their thoughts.

Andrew Boyle, CEO at LGB & Co said: “The dysfunction of our political system has been a greater concern for many growth companies than particular policies of the parties towards the economy or Europe because parliamentary manoeuvres have repeatedly deferred business and investment decision-making.

“More significant that the size of the government’s majority is the change in the composition of parliament. We can hope that it will be less of a distraction and that management teams can focus on business development and strategic initiatives. We can expect an upturn in fundraising and M&A transactions in the next six months.”

As we look ahead and focus on building the strategies we need navigate this new terrain Rupert Morrison, CEO, OrgVue added: “Every business can and should be preparing to adapt their strategy to respond to whatever comes next, but most are wildly unprepared to do so. Just 1 in 4 businesses think they could easily update the way their organisation is structured and operates, while only 38% can say how quickly they could reorganise their workforce should internal or external pressures demand.

“Any business should be deeply concerned by these figures and no company can afford to sit back and wait for change to be forced upon them. Smart leaders are already examining the political and economic fallout and its impact on their operating model and workforce strategy in readiness."

Although some small business owners are unsure of what move to make and when, the manifesto is a great place to start. It will certainly help to clear up confusion in a few places. Mark Farrar, Chief Executive of AAT added: “With the canvassing, polling and counting now behind us, it’s time for the work to restart again. We can but hope that the Conservative Party will now deliver on its pre-election manifesto, for the benefit of workers, students and small businesses throughout our nation.”

“As part of a new £3 billion National Skills Fund, the Conservative manifesto announced a positive step in its “Right to Retrain” programme. Many working adults – especially those wishing to start their own business – will require new skills at various stages in their career, not least in order to keep up with the pace of technological change. We hope that funding for the programme reflects the requirements of a diverse and flexible workforce, and that it works for the benefit of both public and private sectors.

“Boris Johnson’s party has also promised to ‘review and reform’ Entrepreneurs’ Relief. The relief in its current form is expensive and misguided, and does not meet its policy objectives in attracting and growing new businesses – it is mostly utilised by business owners to do nothing more than sell-up rather than invest. We hope that Boris Johnson will prioritise reform in this area, as well as urgently carrying out a fundamental review of business rates.”

Barbara Jamieson, founder of Protect Your Empire also spoke about the benefits of a Boris win for small businesses.

“The Conservatives win is a very positive step for small businesses and start-ups. Based on their manifesto, there will be no increase in corporation tax, income tax, VAT or national insurance, and the Conservatives have promised to review entrepreneurs’ relief (rather than abolish it, as proposed by other parties this election).

“We also now have greater certainty as to the future for small businesses. The election and Brexit have both been causing massive uncertainty for small businesses, which has caused them to significantly reduce business activity. We now have clarity on who will be running the country, what their policies will be, and their approach to Brexit. There still remains the issue that the Conservatives are intent on pushing through Brexit quickly, and that they may do so without a deal, or even as a ‘hard Brexit’. While this is not ideal, there is still more certainty for small businesses at least knowing that Brexit will happen sooner rather than later.”

Regardless of what happens, the biggest emphasis seems to be on preparation and the delivery of a manifesto promised to business owners by our prime minister Boris Johnson. Small businesses will continue to add value to our economy, so should not be overlooked, whether we leave with a deal or not.