Startups have predominantly been small businesses in Australia, and we often have a tendency to stay that way. For example, the average number of new employees brought in to startup companies is zero.
Times are changing, though, as Aussie startups are becoming much more globally-minded and looking towards international markets. One of the most refreshing aspects in all of this is the speed with which many of these startups are reacting to global events, such as the recent fallout surrounding Brexit.
The Impact Of Brexit
Following the United Kingdom’s decision to leave the European Union, domestic and international markets have been in turmoil. The UK has had its credit rating downgraded, industries are seeing a drop in profits and everyone seems to be feeling negative impacts from the result. From a global perspective, this means that fewer businesses are willing to expand into the UK.
Smart Moves By Start-Ups
The impact that Brexit has had on many startup businesses globally is apparent. The UK as a whole has become a lot less desirable as a place to expand your company. Australian startup web hosting company Hosting Australia have been quick to react to the implications brought about by Brexit, going so far as to rethink their proposed expansion into the UK.
Melbourne-based entrepreneur and founder of Hosting Australia, Jonathan Horne, was all geared up for bringing his business to the UK. However, in the wake of Brexit, he is seriously considering switching focus to an Asian expansion.
Horne said: ‘The Brexit definitely has an impact on us in that our expansion into the UK will probably take a back seat now until we assess the changing conditions’.
Tougher Business Following Brexit
Although Horne acknowledges the inherent risks of a UK expansion following Brexit, he is savvy enough to note the potential gains. He said: ‘The pros for us [in the UK] are that there’s a stronger Australian dollar which for us means that we can have more buying power for hardware that we need over there’.
For Horne, though, the uncertainty that Brexit brings is enough to deter his company from the windfall of a stronger dollar. Which is a smart move, considering the absolute uncertainty that the Brexit referendum has had on the UK as well as global markets.