As UK small businesses gear up for a new year of trading, research from Novuna Business Finance reveals a five-year peak in the percentage of small business owners (84%) that are starting 2026 with plans to invest in new growth initiatives – in order to make their enterprises stronger for the year ahead
Percentage of small businesses starting the New Year prioritising new growth initiatives to make their business stronger for the year ahead (results over time)
| 2022 | 2023 | 2024 | 2025 | 2026 |
| 77% | 79% | 81% | 81% | 84% |
Following a challenging trading period during 2025, when the percentage of small business owners predicting growth fell over four consecutive quarters to 25%, the Novuna Business Finance data suggests UK small businesses are starting the New Year in a resilient mood.
Ahead of the New Year starting, Novuna Business Finance asked a nationally representative sample of 1,000 small business owners what growth initiatives, if any, they were prioritising to make their enterprises stronger for the year ahead. Across the UK, small businesses in London emerged as those most likely to be starting 2026 with plans to invest in new growth initiatives (90%) – followed by small businesses in the East Midlands (89%) and the North West (84%).
Manufacturing is the UK industry sector where small businesses are most likely to be starting 2026 with plans to invest in new growth initiatives (94%). Across 10 industry sectors surveyed, there are year-on-year rises in the percentage of enterprises working on new growth plans for 2026 – with the retail and finance sectors unchanged on this time last year (79% and 84% respectively) and media, the only sector recording a year-on-year dip (down from 92% to 84%).
Sectors recording a year-on-year rise in the percentage of small businesses starting the New Year prioritising new growth initiatives to make their business stronger for the year ahead
| 2025 | 2026 | |
| Manufacturing | 90% | 94% |
| IT & telecoms | 87% | 89% |
| Property & real estate | 72% | 85% |
| Agriculture | 79% | 84% |
| Hospitality & leisure | 83% | 84% |
| Transport & distribution | 70% | 83% |
| Construction | 79% | 82% |
| Legal services | 67% | 82% |
| Medical services | 75% | 82% |
| Education | 73% | 77% |
Looking at the specific initiatives that small businesses are focusing on to make their enterprises stronger for the year ahead, increasing new business income remained the top priority (46%, up slightly on 43% a year ago). Beyond this, the Novuna Business Finance data reveals there were big year-on-year rises in other areas:
- The percentage of small businesses prioritising the need to reduce fixed costs is up significantly on this time last year (up from 24% to 40%).
- There is also an increase in the percentage of business owners prioritising the need to build up financial reserves for the year ahead (up from 23% to 31%).
- A quarter of enterprises (25%) are placing greater emphasis on the need to diversify their business for 2026, in terms of new products and services – up from 20% a year ago.
- Reviewing and looking for efficiencies in back-office operations is up from 12% to 20% for the year ahead.
- More businesses are starting 2026 prioritising the need to have more contingency plans in the event of prolonged market uncertainty (17%, rising from 12% this time last year).
Jo Morris, Head of Insight at Novuna Business Finance comments: “As we all prepare to start a New Year, our data paints a picture of determination and resilience from UK small business owners. Last year was, for many, a low-point – with small business growth forecasts hitting a record low and many concerned about external factors, such as US tariffs and fears of tax rises in the Autumn Budget. Despite all this, more than eight in 10 small business owners are going into 2026 determined to find new ways to make their enterprises stronger and more resilient. We last saw this during the pandemic era and the determination of small business owners then to flex and adapt played out in a bounce-back of sector confidence in 2022. After an economically challenging 2025, the sheer scale of businesses prioritising plans to build strength into their enterprises for the year ahead will hopefully result in a much-needed upturn in positive growth outlook from the small business community in the early months of 2026.”
