London businesses face considerable financial challenges this year. The economic climate remains volatile, and small, medium and large London businesses will find many issues they need to deal with constructively in order to have a successful 2017. Here are a few of the business challenges faced by London companies, and why they are important.
- Uncertainty Over Brexit
There is sure to be years of uncertainty over the Brexit deal, which is still being hammered out and looks like a resolution will be far into the future. This will create uncertainty in the markets, which will in turn harm some businesses’ finances over the long and short term. While many businesses will be nervously waiting developments, some will embrace change and take advantage of the uncertainty. There are some benefits to this political turmoil, although many businesses will not feel them.
- Trade Protectionism
If there is, as seems to be happening in the US, a backlash against globalisation and free trade, this could hurt London businesses. Again, it is uncertain the path this will take, and whether it will ultimately make a big impact on companies. But London companies could lose ground to American companies if the US makes planned corporate tax cuts and deregulates industries.
- Robots and Artificial Intelligence
London businesses must adapt and change to the changing times – and that includes adapting to the increasing mechanisation of business and industry. Some industries will find themselves obsolete with the rising power of artificial intelligence.
- Cyber Crime
A whole lot of London firms, even the largest ones, are unprepared for the impact of cybercrime like hacking, according to accountants in central London other business experts. Companies risk losing customers, money, and reputation if they do not take sufficient steps to protect against cyber criminals. Unfortunately with the fast-moving nature of technology, it is not always easy to keep up with the bad guys.
- A Mobile and Freelance Workforce
Businesses in London are dealing with the challenge of workers who want to work flexibly, often from home, in order to cut the costs of travel and commuting. Offices may find themselves half empty, with the potential to waste money on real estate costs. Businesses are also finding issues with workers’ loyalty to the company and how that may mean that people move onto new work quickly, without finishing projects and without any thought to the needs of the business as a whole.
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