As Welsh small businesses gear up for a new year of trading, research from Novuna Business Finance reveals a five-year peak in the percentage of Welsh small business owners (79%) 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 Welsh 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 |
| 65% | 70% | 74% | 76% | 79% |
Following a challenging trading period during 2025, with the percentage of Welsh small business owners predicting growth at the end of 2025 falling to 26%, the Novuna Business Finance data suggests Welsh small businesses are starting the New Year in a resilient mood.
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 top five specific initiatives that Welsh small businesses are focusing on to make their enterprises stronger for the year ahead the key initiatives included:
- Reducing fixed costs (57%)
- Diversifying the business, offering new service lines/ products (21%)
- Reviewing and looking for efficiencies in back-office operations (21%)
- Building up financial reserves (19%)
- Having more contingency plans in the event of prolonged market uncertainty (18%)
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 Welsh 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, around than eight in 10 Welsh 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.”
