Once again, studies have shown how important it is to embrace technology; particularly within the realms of business. As the UK edges ever closer to the Brexit deadline next year, priorities shift towards maintaining that competitive edge over rivals. The boldest way to sustain it is through innovation. Business owners should strive to include the newest technology, talent, and products within their business, and should input the right safeguards to protect these from Brexit fallout.
Depending on the sector, these technological advancements can be as small as a new telephone for the secretary, or as large as a whole new tech department. As a result, technologically-focused firms have found their feet within the economy, where their bold inventions have resonated with consumers and employees who are concerned for the post-Brexit landscape. Tech firms themselves have illustrated a fearless appraisal of Brexit, with a recent study from PwC revealing how large numbers of firms have already broached the subject with government. A further 41 per cent admitted to feeling positive about Brexit, and a large majority of tech firms have illustrated their agility and already started preparations.
Whether you are a tech firm or not, the rigidity of some traditional concepts is hindering Brexit preparations. The high business costs of operating on the high street have hurt many businesses, leaving some startups to prefer e-commerce to brick and mortar. This flexibility highlights the contrast with traditional firms, who could see their rent and business rates increase further after Brexit. At the Credit Protection Association, our debt recovery services free up cash flow which has allowed our Members to reconsider concepts and brace for the inevitable impact caused by Brexit.
Nearly half of tech companies are preparing for a so-called withdrawal only deal, meaning an orderly exit from the EU with an agreed exit transition.
Around 32 per cent are instead preparing to face no deal, followed by 30 per cent for a so-called limited future deal. Only 7 per cent of companies isn’t planning at all for Brexit.
While the majority of respondents are still in the planning stage or have only started preparations, 27 per cent have completed tasks like changing warehousing arrangements, exploring alternative operating models and applying for the appropriate authorisation or VAT relief.
“Technology companies are used to facing disruption and are arguably more agile than most and less affected by new barriers to physical trade, so it may come as no surprise that they feel more positive than other industries about their Brexit preparedness,” said Jass Sarai, Pwc’s UK technology industry leader.
“As most industries continue their journey to become tech-enabled, demand remains high for core technology products and services. Companies in the sector also tend to have more of a global view as they strive for rapid growth.”