You may think that the US election has nothing to do with you, sitting all the way over here on the other side of the pond. Unfortunately, you’d be wrong in that assumption. In fact, the monumental event set for the USA this year can have knock-on effects around the world.
There are a few ways that the race for the next presidency can affect SMEs in the UK, and it’s important that you’re ready for any changes that may occur.
US Election a Huge Event in the UK
In the internet age, the US election has become one of the biggest events on the planet. That’s thanks to all the easily accessible news, especially on social media. Interest in the presidential race is reflected in the betting markets, with the next American president betting odds at 10/11 for both Donald Trump and Kamala Harris at the time of writing.
Anyone looking to get involved should check out some politics betting tips first, as there are loads of differing opinions about who might prevail. It’s a good idea to brush up on the various candidates, along with their respective parties and what they stand for. Of course, business owners will be most interested in how the outcome of the vote on the other side of the Atlantic could impact their operations.
Potential Exchange Rate Volatility
In terms of immediate impact on SMEs in the UK, the US election could trigger some exchange rate volatility. Indeed, the time around the election often leads to fluctuations in currency values. Therefore, if you do business with companies using the US dollar, you may have to consider potential changes in its value against the pound.
If your business operates in cryptocurrency, the election can often lead to massive upsurges in price. That’s because Bitcoin is now considered by some investors as a safe-haven asset, and something that’s good to hold if the dollar is depreciating. Indeed, some say that it’s a good time to invest in Bitcoin, as projections for the current market are looking strongly bullish.
Networking and Collaboration Opportunities
It’s always a good idea to wait and see what new trade policies or incentives a new US administration could put into place. When a president gets elected, they want to ensure that the country thrives. This means supporting SMEs and encouraging investment in them. It may also lead to partnerships and collaborations with UK companies.
UK SMEs should be ready to proactively seek out networking opportunities that may come about after the election. Regardless of which party wins, there could be ways for businesses to benefit. There’s even a chance for UK SMEs to form partnerships with US companies that have access to government funding.
The US election has become so much more than just a vote for a new president; it has far-reaching effects, even in the UK. UK business owners should be ready for the monumental event, as it could mean changes to the way SMEs have to operate. Of course, it’s also likely to bring about new opportunities.