Doing business in the United Kingdom: the most important strengths and weaknesses

It has been four years since the United Kingdom left the European Union. This has - so far - not achieved what many British people had hoped. No longer following Brussels' lead was supposed to be good for the economy. But there is not much to show for the departure yet. 60% of British people would prefer to return to the EU. According to the IMF, the United Kingdom's economy will grow the least of all the G-20 countries in the coming years.

Since leaving the EU, there is no longer free movement of people and goods. Now trade is conducted as prior to joining the EU: with import tariffs and customs controls. If you want to work in the UK, you (usually) need a visa.

The outcome of Brexit has been disappointing so far. But you can also look at it differently. Critics predicted that the British economy would collapse. That certainly did not happen. The British economy is reasonably in line with the economy of continental Europe. According to the Office for National Statistics (ONS), growth in the UK economy was +0.4% in 2023. That's not much, but it is higher than, for example, Germany, which fell into a recession.

Brexit has mainly led to a lot of uncertainty among companies and investors. This is reflected in both private consumption and business investments. These fell sharply in 2023. It is mainly foreign trade that keeps the British economy afloat and that in itself is remarkable after the departure from the EU (which resulted in barriers to trade with Europe).

If you want to do business with a Brit, take your time. Contract negotiations never move quickly. They want to get used to you and your company before they start working with you. If you move too fast and push too much, they shrink back. Give them space and don't push. No matter how good you think your own product is, hold back. The more you say about yourself, your services or products, the more the British distance themselves.

You could call the desired interaction with British business partners 'excessively polite'. Don't hesitate to say 'thank you', 'I'm sorry' and 'please' frequently. Small talk about the weather or football is always good to break the ice. Be sure to go to the pub after work. But don't start talking about very political topics or personal matters. Keep things more neutral. If a joke is made, laugh politely but not too exuberantly.

Personal contact plays an important role when doing business with the British, but keep an appropriate distance. Private affairs and business remain separate, especially in the workplace. The British businessman is very punctual and expects the same from his guest. Any delay must be reported immediately. In addition, British people also attach great importance to manners. Have you had an appointment with someone? Don't forget to thank that person afterwards for their time, even if it was just for a short introduction.

Don't be too direct. That is considered rude and disrespectful. Keep criticism to yourself. They may be a bit less formal and reserved once a contract has been concluded, but even then they are unlikely to speak entirely frankly.

It helps if you speak English well. If your language is unclear, they are unlikely to point it out. They are too polite to say they don't understand you. They often won't say what they're thinking outright. The British are very good at ambiguity. It may be the case that you understand what your business partner is saying perfectly well, but that he or she means something different than you think. Someone who thinks something is 'not bad' may just be fine with it, but may also be extremely enthusiastic. If they say 'Oh, that's interesting' they may well find something ridiculous.