"This is a serious moment for the UK economy. The priority must be for politicians to get their house in order and form a functioning government, reassure the markets and protect our resilient economy," said Carolyn Fairbairn, director general of the CBI.
"For the next Government, the need and opportunity to deliver an open, competitive and fair post-Brexit economy that works for everyone across all our nations and regions has never been more important."
To do this, the CBI said the next government, whichever form it takes, should seek a Brexit deal that will result in an open and competitive economy.
"This can only be achieved if the next government doesn't put the brakes on business, remains open to the world and sets out a pro-enterprise vision," said Fairbairn.
The Institute of Directors echoed the sentiment and said the new government cannot take its eye off the ball on long-term issues such as infrastructure and the economy. "If the Conservatives govern as a minority, they must recognise that they have not earned a mandate to implement their manifesto in full," said Stephen Martin, director general of the Institute of Directors.
"Now is the time to move on from the rhetoric of the election campaign and focus on preparing for Brexit talks. The issues of access to EU markets and the need for skilled workers are still paramount, and Brussels will be keen to get negotiations underway soon."
'Worst possible result for business'
Law firm Clyde and Co was considerably less optimistic about the outcome and its ramifications for business.
"A hung parliament could be the worst possible result for business," said Robert Meakin, partner at law firm Clyde and Co. "With the economy already struggling with the uncertainty of Brexit, the last think we need is further confusion and delay in the government's investment strategy."
"The Article 50 clock is also ticking and business will be eager to ensure that there is a clear and consistent voice at the negotiating table, so as to minimise further damage to the economy. The sooner a viable government is in place, however it's composed, the better."
Delay Brexit negotiations
Concern over the weakened position of the UK going into the Brexit negotiations led some business leaders to call for a delay to the proceedings.
"It is important to go into the Brexit talks from a position of strength, focused on getting the best deal possible for trade and access to workers and skills," said Mike Cherry, chairman of FSB National.
"Negotiations should be led by a government and a Prime Minister that will be in place for the duration, and so we call for a delay to the scheduled start of negotiations rather than a rush to begin in 11 days' time.
"The need for a transition period now becomes even stronger, providing the time to get Brexit right."
Dr Adam Marshall, director of the British Chambers of Commerce, said: "No business would walk into a negotiation without clear objectives, an agreed starting position and a strong negotiating team. It is hard to see how Brexit negotiations could begin without answers on these important questions."
Europe's hand is strengthened
Aberdeen Asset Management's chief economist also raised a delay to Brexit proceedings as a possibility, but said it is unclear how this would work as there is no precedent.
"We could see a fair amount of volatility in the coming days and weeks unless Westminster's response to this surprise result is remarkably smooth, which is unlikely," said Lucy O'Carroll, chief economist at Aberdeen Asset Management.
"History tells us that hung parliaments are not durable, let alone with Brexit looming large.
"A request to pause the Brexit negotiations may be one possibility, but it's not clear how that would work as there's no precedent. Either way, this result looks to strengthen Europe's hand in the negotiations."
Michael van Dulken, analyst at Accendo Markets, said: "The result raises several question marks over the direction in which the UK is now headed, especially in terms of Brexit negotiations. The Conservative's under-performance on a Hard Brexit mandate saw huge swings for Labour and the Liberal Democrats in staunchly 'remain' voting areas.
"Negotiations are scheduled to begin June 19, however, the EU Budget Commissioner Oettinger has already said, 'No government, no negotiations'."
'Biggest challenge since the Second World War'
"Cool temperaments must prevail over hot heads in the coming days and weeks as the country charts a way forward in the biggest domestic and foreign policy challenges it has faced since the Second World War, in particular our new relationship with the EU," said Chris Cummings, chief of Investment Association.
"Once again, the British public has confounded experts and pundits to deliver a verdict that few predicted. The voice of business was conspicuously missing from this election. We stand ready to engage with the government, whatever its final composition, to continue to create growth, jobs and investment."
Not a disaster for the markets
The pound plummeted in reaction to the news as a fresh burst of uncertainty sent shockwaves through the market. But the FTSE rose more than 1pc on opening, indicating that the result could be welcomed by businesses.
"This is very different to the Brexit vote of last year," said Mark Dampier, head of investment research at Hargreaves Lansdown. "While the result is a surprise and may lead to another election later this year - market reaction has generally been subdued so far because the Tory government will remain in power but a hard Brexit now looks less likely."
Chris Saint, a currency analyst at the firm, said sterling is likely to remain volatile over the coming days, but that its initial decline will be tempered by the possibility of a soft Brexit and trade access to the single market.
Maxi Lami, chief executive of Oppenheimer Europe, echoed this: "With the result as tight as it could have possibly been and weeks, months or even years of uncertainty ahead, we can expect instability and volatility in the markets. Although the impact on the pound won't be as drastic as it was with Brexit, sterling is going to see plenty of uncertainty with very little upside."
Startups welcome a new, 'safe' Tory leader
Early stage investors BGF Ventures are optimistic about the result but called for a new Conservative leader who can lead softer Brexit negotiations.
"A new 'safe pair of hands' prime minister such as Philip Hammond might be less anti-immigrant on Brexit, which would be welcomed by startups needing international talent," said Harry Briggs, partner at BGF Ventures.
"Thankfully the UK has strong self-preservation instincts and I expect the Conservatives will make a swift and pragmatic change of leadership, and set out a fresh agenda to restore business confidence."
