The Advantages of Starting Your Business in the EU
The European Union is a group of 28 countries with a total population of no fewer than 500 million people. These numbers are good for anyone looking to start a new business, but what benefits remain once the Brexit deal is finalised and the United Kingdom leaves? Let’s look at the implications below.
A Large Market with Economic Incentives
The EU isn’t as big as China or Asia in general, but that doesn’t mean it cannot help your business flourish. For one, each and every member of the UN can benefit from the free trade rule. You can offer your goods and services to other member countries of the EU without having to pay additional taxes.
This keeps the prices of goods and services at their most affordable. After all, there’s no reason for business owners to increase them — they don’t have to compensate for shoddy tax rules. And it’s not just about luxury goods. This tax-free trade helps more people get basic necessities like food and water.
Whether you’re in France, Italy, or Romania, you only need to use one type of currency. You no longer have to find a currency exchange service when you open a business in other member nations. This gives you and your customers more time to negotiate and transact with each other.
Hiring Opportunities in the EU
As your business grows and you’re looking to expand, you’d have to look for more people to hire. Thanks to open borders between countries, it’s easy to travel from one country to the next. You don’t have to worry about finding new employees — or taking your workforce from Slovenia to Estonia.
Hiring people from different countries will do your business great. For one, this can eliminate the problem of language barriers. There is no official language in the EU, so it helps if you have someone who can understand a particular language. Moreover, your business can better understand and respect the culture of each nation.
Peace and Competition
Free movement in the EU and the removal of additional taxes in trade helps keep everyone afloat. If there are any social or economic issues, the countries know that there are strategies designed to address them. If there is peace in the region, one can focus on their business and achieve economic prosperity.
In particular, the laws in the EU are part of the national laws. Thus, you won’t always have to study about different economic laws. How a business is run in one country may have more than one or two similarities with another. Still, it’s worth noting that some laws for EU companies are less of a mandatory and more of a suggestion.
Furthermore, the fact that the EU is one of the largest markets in the world is a good reason to improve business. This leads to healthy competition between businesses, which is good for consumers and companies. The former can expect better goods and services while the latter can gain more clients. Monopolies cannot just rise up when the EU encourages competition.
Of course, businesses are also shifting to the digital sphere. If you can build a big presence online, you can capture more of the EU market without having to open up remote offices. The union does have a looming plan to tackle copyright issues that may affect Internet access for everyone. Thankfully, you can always just get a VPN in Europe to continue browsing whatever you want online.
An Easy Setup for Your Business
One problem business owners often deal with is red tape — forcing them to deal with so many documents and rules that aren’t all that helpful. The EU does away with this by ensuring that the criteria for safety and technical standards are more or less the same across member countries.
In fact, the union has several laws made to help small and medium-sized businesses succeed in the region. Here, it’s not that difficult to seek funding for your startup. Likewise, there are laws for ensuring that businesses, employees, and shareholders alike receive a good deal of protection.
The Implications of Brexit
Once the United Kingdom leaves, the EU will have one fewer country to conduct free trade with. The UK is a rich and powerful country. Once it’s out of the union, your business in the EU may lose a good number of customers. You could transact with them, but you’d have to pay taxes and deal with borders.
There are still other markets to tap, but you’d have to do better business. Plus, Brexit may spell other changes in the future for the EU. If more politics come into play, it may get hard for people to focus on business — they’d instead have to deal with social tensions that may inhibit economic growth.
Brexit is a big deal for everyone, especially if you’re starting a new business in the EU. What you need to do is reframe your business strategy. If you think that the UK is too big a market to ignore, you have to understand that transactions there are going to be a different deal.