Small business exporters report ongoing post-Brexit challenges but continue to prioritise overseas growth

• Businesses still reporting challenges and concerns post-Brexit
• Six in ten of SMEs who already export are continuing to prioritise exporting to outside the UK
• US leads as the top market of interest for exporters

Research from DHL Express following a 2021 study reveals mixed perspectives among small and medium sized British exporters for the remainder of the year, with one third of those who export or plan to (33%) feeling the outlook for their business is more positive for 2022, with the remaining disagreeing (30%) or undecided (37%).

Reflecting on the time since the UK’s exit from the EU, businesses we surveyed report ongoing challenges and concerns since the departure, including volume of paperwork (45%) and complexity of regulations (50%). Despite the challenges, 60% of those who already export from the UK or plan to in the future agree that exporting goods outside the UK will continue to be a priority for their business in the future. This represents an increase from 51% of businesses surveyed one year ago.

More than a third (34%) of exporters or businesses planning to export state that the US is the market of most interest or likely to be most beneficial for their business if the government was to secure a new or enhanced trade deal.

The research is a follow-up to a study conducted one year ago and looks to explore the challenges facing small businesses across the UK. Nearly three quarters of SMEs who export or plan to export in the future (72%) agree that Brexit has increased their costs of doing business, with over a third (38%) who already export or plan to, remaining concerned about a lack of awareness among consumers and customers about the additional import costs payable. Despite this, only a quarter of the SMEs surveyed (28%) have proactively alerted customers to the potential customs, VAT charges and shipping costs.

Ian Wilson, Chief Executive at DHL Express UK said: “It’s been just over eighteen months since the UK’s exit from the European Union, and this latest piece of research makes clear that businesses are still facing a number of challenges and are in need of support to help them navigate the changes.

Nonetheless, it’s encouraging that small and medium businesses are still continuing to prioritise exporting outside the UK, which shows a great deal of resilience through what has been a difficult time. As we look ahead to the rest of 2022 and the years to come, we hope to see more trade deals that smooth the path for global growth, and we’ll continue to support the small business community to help them thrive in a post-Brexit world”.

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2022 Study:

All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1005 senior decision makers from small to medium sized businesses. Of this, 277 were exporters, currently exporting outside of the UK or planning to in the future. Fieldwork was undertaken between 20th – 26th June 2022.  The survey was carried out online. The figures have been weighted and are representative of British business size.

2021 Study:

All figures, unless otherwise stated, are from YouGov Plc.  Total sample size was 1013 senior decision makers from small to medium sized businesses. Of this, 271 were exporters, currently exporting outside of the UK or planning to in the future. Fieldwork was undertaken between 10th – 17th June 2021.  The survey was carried out online. The figures have been weighted and are representative of British business size.

About DHL

DHL is the leading global brand in the logistics industry. Our DHL divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfilment solutions, international express, road, air and ocean transport to industrial supply chain management. With about 380,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global sustainable trade flows. With specialised solutions for growth markets and industries including technology, life sciences and healthcare, engineering, manufacturing & energy, auto-mobility and retail, DHL is decisively positioned as “The logistics company for the world”.

DHL is part of Deutsche Post DHL Group. The Group generated revenues of more than 81 billion euros in 2021. With sustainable business practices and a commitment to society and the environment, the Group makes a positive contribution to the world. Deutsche Post DHL Group aims to achieve zero-emissions logistics by 2050.