Brexit Dilemma: Will start-ups stay or go?
Updated 11:10, 18-Apr-2019
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Continued confusion over Brexit in the United Kingdom has frustrated many small and medium-sized start-up firms. They once saw the UK as their European gateway and a stepping stone to international markets. But with big questions now around costs and regulations, some are packing up for less risky locations to set up base. CGTN's Juliet Mann reports from London.
When a coffee lover met a scientist, they devised a zero-waste capsule to fit everyday machines - made in continental Europe, imported to the UK.
Now concern that Brexit will grind down their margins means Moving Beans is moving on.
DANIEL HARDEJ CO-FOUNDER, MOVING BEANS "We are now looking to Ireland or Germany as a place to headquarters the company so we have that certainty and comfort and keep the business alive. It would mean that we don't need to pay these WTO tariffs which would be in place if we end up with no deal. It would mean shipping is cheaper and we are connected with a big customer base as well."
As a world financial centre, with innovation-friendly regulatory regimes, London has been a magnet for many start-up firms.
But the London Chamber of Commerce says Brexit woes are spooking some investors.
COLIN STANBRIDGE LONDON CHAMBER OF COMMERCE AND INDUSTRY "We're seeing investors that would come in, maybe in property or retail or tech sector just thinking well I'm not going to do that now because who knows what the situation is going to be in a couple of months time or even a couple of weeks, so they are going to wait and see before they actually make that investment - it could be in staff, it could be in equipment, it could be in R&D."
In short, business plans are being rewritten particularly for the financial and medical technology sectors.
JULIET MANN LONDON "A big concern for start-ups in industries like Fintech and Medtech is regulation. That's why some have applied for licences and approvals elsewhere in the EU to safeguard their European operations and ambitions."
Fintech firm Soldo whose mobile app helps businesses manage their expenses says keeping operations solely in London is too risky for growth.
CARLO GUALANDRI FOUNDER & CEO, SOLDO "We've been working, planning and ultimately in the past year and a half executing basically a complete duplication of all the activities we had already developed and built as a regulated entity in the UK. So we created a second base of operations in Ireland with the end result that first of all, it's a duplication and secondly all the growth originally planned to happen in London will now happen in Dublin."
If there is one breed of business equipped to survive industry uncertainty and upheaval, it should be the nimble start-up.
But it might take a Brexit breakthrough to stop some entrepreneurs walking out the door.
Juliet Mann, CGTN, London.