Essay
unit 3 Enterprise in the Business World assignment 2
- Institution
- PEARSON (PEARSON)
i got distinction in this assignment.
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In this assignment i am going to explain how businesses get affected by national andlocal factors in the UK.
National factors which are going to get affected are political issues, the support a
business gets from the government, taxation, and the economy.
Political issues
Brexit is going to lead to have some positive impacts and also some negative.
Negative
The British Pound’s rate used to be one of the highest since 1985 but after so many
years it has gone down a lot, this is bad for the UK’s businesses because they will
have to pay more money than they used pay before.This is bad for the UK’s
businesses as they will have to pay more when they do purchases in other countries
and they will receive less money from other countries due to it’s low rate.
Brexit will cause issues for brand names and design as because right holders will
need to apply for seperate UK trademark and designs as the EU rights, once the UK
has exited the EU, the coverage of existing rights will change. This is bad for the
businesses because they will have to spend more money to make their own
trademarks.
After Brexit the import and export of goods and services to and from EU countries,
including associated VAT payment and custom and excise duty, this is bad for the
UK’s businesses as they might have problems to supply products from european
companies or they might have to pay to send their products in european countries.
Brexit is going to cause problems to transfer personal data for free between the UK
and EU, for example if there is a material partition between the UK’s data protection
law and the GDPR once it is introduced, businesses that have services in both EU
and UK will have issues for different data protection regimes concurrently.
Brexit will also cause problems for state aid, including grants and block exemption
which will make hard for the government to pay.
The current political party,Conservatives, is good for businesses as because they
will make sure that 33% of central government purchases will come from small
businesses.
Positive
Brexit can lead the UK to have more opportunities in more vibrant markets for
example China, India .
Taxes will reduce which is good for the UK’s businesses as it will increase the
income of it.
, Immigration will reduce in the UK and this is good for our businesses because fewer
people will be coming in the UK which means it will be less competition for jobs
among those who have remained therefore they will have higher wages than before.
Leaving the EU the UK will be able to independently access the international trade
deals, this will lead to have an opportunity to negotiate for new deals and a chance
to move goods freely, therefore
There will be more opportunities for companies as because British companies would
not have to have follow the strict laws set by EU,
The UK will have better employment as the wages will increase and also because of
job creation. Exit from the EU will lead to reduced amount of regulation in the
workplace environment, therefore this encourages talent pools from neighboring
countries.
The government support
The government is trying to support the businesses but not as much as they should
be as they are helping businesses only where they have profit too.
If more jobs will be available the government will receive more money from the tariffs
and they will have to pay out very less themselves and this is not good for the
business as they will have to pay out more, the employees will get their wages down
this is also bad for the business because they will have to dismiss some of their
employees or some will leave it by themselves and the remaining ones will be asked
to work on low wages therefore they will have to work more and the employees will
have to pay more taxes.
However the government is also trying to a bit support businesses without thinking of
their profit.
The government want to help start up businesses by saving money on premises and
rates, this will lead to businesses to invest more into the businesses therefore this
will allow the businesses to grow more and will also speed up their growth.
The government wants a growing economy so this also the reason why the
government wants to help start up and small businesses so in the future they could
get expanded so they become large businesses which is again good for the
government as large businesses have more workers therefore the government will
receive more amount of money from taxes and have to pay less from their money.
The government provides support to businesses by national loan guarantee scheme.
Taxation
There are different types of taxes that businesses has to pay, the first one is income
tax which is where employees have to pay as they are earning., The tax rate could
get increased as the income increases,this allows recovery of costs of business
assets.
The second one is national insurance which is a tax system in the UK which is paid
by workers and employers for sponsoring state benefits.
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