Two years after the start of trading, firms are "banging their head against the wall", according to a new report.
Businesses are still struggling with EU trading arrangements and more red tape, according to the British Chambers of Commerce.
According to a report from the Centre for European Reform, there may have been a reduction in UK trade as a result of the decision to leave the EU.
The government said that Britain's exit from the EU opens new opportunities.
Goods and services can continue to flow between the UK and EU without tariffs after the UK leaves the EU.
A total of 1,168 businesses were questioned by the British Chambers of Commerce.
More than half of these firms are struggling with the new rules which means they have to deal with new processes.
The retailer said leaving the EU made them uncompetitive. If the retailer hadn't built a base in the EU, it would lose its EU trade.
"This has cost our business a lot of money which could have been invested in the UK had it not been for the decision to leave the European Union," the retailer said.
Even imported parts to fix machines has been a nightmare according to a manufacturer.
It said that the biggest ever impose of bureaucracy on business was by the UK's exit from the European Union.
The British Chambers of Commerce wants the government to have an honest dialogue about how we can improve our trading relationship with the EU as businesses face the prospect of a likely recession.
The recommendations include reaching a quick agreement on the future of the Northern Ireland Protocol, which governs trading in Ireland.
Some economists say political uncertainty has deterred investment in the UK.
The Centre for European Reform said that changes to the UK's relationship with the EU may have reduced UK trade by as much as 7% this summer.
The Office for Budget Responsibility says there will be a 4% hit to productivity.
In March, the OBR predicted that imports and exports would be 15% lower in the long run, and that new trade deals with the rest of the world wouldn't make a big difference to trade volumes.
Pandemics around the world, a cost of living crisis and a change in trading arrangements with the EU have all hit businesses that trade across the UK's borders. It has been difficult to understand the impact of the UK's decision to leave the EU.
The extra paperwork and checks are posing a problem for some companies.
The range of goods being sent to the EU has shrunk, suggesting that the extra red tape may have deterred some smaller companies from exporting altogether.
The cost of food from the EU has gone up more quickly than from other places.
Economists don't agree on the economic effects of Britain leaving the European Union.
Overall economic gains from leaving the EU have not yet been realised by the UK.
According to John Springfield, deputy director of the Centre for European Reform, if the UK had voted to remain, the economy would have been larger.
He said that the government had to raise taxes to find more money to fund public services.
The cost of living crisis caused by the war in Ukraine has made it difficult to assess the impact of a vote to leave the EU.
The government said that the deal was the largest zero tariffs, zero quota free trade deal in history.
The deal will open new opportunities for UK businesses.
Recent data shows that UK trade to both EU and non-EU countries is above pre- Covid levels.
The government provided practical support to exporters.
In the past two years, we have removed 400 trade barriers across 70 countries, removed tariffs on £30 billion worth of goods and cut business costs due to retained EU law.
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