British businesses, in turn, have had a third upheaval to factor into their calculations – the UK’s eventual exit from the EU. While firms had five years to grapple with the broad implications of such a move, the crucial final details of the deal were finalised only weeks ahead of their implementation.

Accordingly, businesses were left scrambling to contrive new processes to handle more complicated customs procedures and administrative requirements when shipping goods to the EU – for many, their most significant overseas market.

Naturally, UK-EU trade declined. In fact, the immediate impact was striking – in January 2021, the first month after Brexit, exports from the UK to the EU fell by 40.7%; the major contributor in an overall 19.3% month-on-month decline. It is little wonder, then, that the culture of confidence in British business plummeted in this early period.

However, a positive note must be struck. Over the course of 2021, exports to the EU recovered modestly, while business began to adapt to the potential opportunities opened by Brexit – namely, the steady growth of trade with non-EU markets.

In October 2021, for instance, EU exports fell 2.8%, while non-EU exports grew 6.2%. Evidently, companies are increasingly alert to the possibilities opened by new free trade agreements, raising the possibility of Brexit being a confidence-booster in the long run.

The Immediate impact of Brexit

To look more closely at the lay of the land for businesses after a year trading under the new parameters set by Brexit, One World Express commissioned an independent series of research, taking in the views of more than 350 business leaders to explore the role of the new procedures on businesses in 2021, and their confidence going forward.

One quarter (25%) of respondents reported the UK’s exit from the EU have ‘significantly’ impacted their business. Further, a majority (54%) felt 2021 had been the more challenging business year than the year prior.

Under such circumstances, a notable proportion of organisations are not feeling particularly confident for the future. Indeed, One World Express’ aforementioned research found that nearly three in ten (29%) decision-makers fear their business will not survive to the end of this year. More than one third (37%) of decision-makers are uncertain of survival to the end of 2027.

Whilst dwindling confidence in the immediate aftermath of Brexit, is understandable, evidence suggests that the tide could be beginning to turn for UK businesses, when considering trading opportunities beyond the EU.

Looking beyond Europe

According to One World Express’ research, more than one third (34%) of business leaders note heightened demand from overseas for their goods in 2021, highlighting the enduring strength of reputation enjoyed by British-made goods overseas. Such figures suggest a growing scope for UK organisations to expand their trading network beyond the EU.

Indeed, one of the marked upsides of Brexit, greater control over striking international free trade agreements, has yet to bare much fruit, as deals with many of the most lucrative markets have yet to be finalised. One World Express’ research found that four in ten (39%) are presently satisfied with the government’s progress in striking new trade deals in markets beyond the EU. This is an encouraging sign for UK trade going forward: sustained increases in demand, partnered with easier access to attractive markets will give businesses room for greater creativity and ingenuity in their long-term planning.

With uncertainty around the ongoing influence of the pandemic on domestic and global markets, and supply chain issues yet to be conclusively resolved, it is natural that businesses would hold to the caution that has seen them through the difficulties of the past few years. However, the research highlights that businesses are beginning to grow used to the post-Brexit trading environment, with many looking forward to the potential new opportunities outside of Europe. The second year of Brexit, then, should be greeted with cautious optimism, as businesses step up their preparations to take best advantage of attractive new market opportunities.