A recent study by Novuna Business Finance reveals that over 80% of small businesses in the UK are looking to drive growth in 2025 by implementing new initiatives. Among the top priorities, 43% of businesses are focusing on boosting new sales, while 24% aim to reduce their fixed costs. Despite recent changes to National Insurance affecting hiring strategies, only a small percentage of businesses plan to prioritise senior hires or recruit young people for training and development.
This outlook shows a strong determination among small businesses to invest in growth, following a period of resilient performance. A notable 35% of small businesses reported growth over the last three months, marking the highest level in two years.
Regionally, London leads the charge, with 94% of small businesses in the capital focusing on future initiatives. The West Midlands and North East follow closely, with 83% of businesses in each region prioritising growth. These areas also anticipate strong growth during the final quarter of 2024.
Industries such as media and manufacturing are particularly optimistic, with 92% and 90% of businesses, respectively, focused on growth. Positive year-on-year trends were seen across various sectors, including construction, retail, and agriculture.
For 2025, many small businesses are concentrating on increasing their income by diversifying products and services, with one in five businesses pursuing new models to expand. Additionally, financial management is a key concern, with businesses seeking to control costs and build reserves.
Joanna Morris, Head of Insight at Novuna Business Finance, commented on the resilience of small businesses, noting that despite concerns around the Autumn Budget, many businesses are entering 2025 in a strong position. “The percentage of enterprises predicting growth has been at a two-year peak since July, and many are already prioritising growth projects for the year ahead,” she said.
These findings highlight the confidence and optimism among UK SMEs as they plan for sustained growth into 2025.
Duke Capital Limited (LON:DUKE), formerly Duke Royalty Limited, is a Guernsey-based provider of hybrid capital solutions for small and medium-sized enterprises (SME) business owners in the United Kingdom, Europe and North America, combining the features of both equity and debt.
