More than eight in ten (81%) UK small businesses are focusing on new initiatives to boost growth in 2025, according to the latest business outlook study by Novuna Business Finance.
Key areas of focus include increasing new business sales (43%) and reducing fixed costs (24%). However, recent changes to employers’ National Insurance could significantly influence hiring strategies, with only 7% of small businesses prioritising senior hires for 2025 and 9% planning to recruit young people for training and development.
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The findings highlight a strong resolve among small businesses to invest in development following resilient growth forecasts for the current quarter. Nationally, 35% of small businesses reported growth over the past three months—a two-year high.
Regional and sector-specific trends
London leads regional growth planning, with 94% of small businesses prioritising future initiatives, followed by the West Midlands (83%) and the North East (83%). These regions also reported strong growth outlooks for the final quarter of 2024.
By sector, businesses in media (92%) and manufacturing (90%) are the most likely to prioritise growth initiatives. Year-on-year increases were also observed across manufacturing, construction, retail, media, and agriculture.
Strategic priorities for 2025
More than two in five small businesses nationally are focused on increasing new business income for 2025. For one in five, this involves diversifying their business models and developing new products or services. Financial prudence also features prominently, with businesses aiming to tackle fixed costs and build financial reserves.
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By GlobalDataCommentary on resilience and growth
Joanna Morris, Head of Insight at Novuna Business Finance, noted that small businesses end 2024 in a strong position despite concerns around the Autumn Budget. “The percentage of enterprises predicting growth has been at a two-year peak since July, and a significant proportion are already prioritising growth projects for the year ahead. At Novuna Business Finance, we are committed to helping businesses realise their potential and build on the resurgent confidence seen this year,” she said.
The findings underscore optimism among small businesses as they position themselves for sustained growth into 2025.
Economic uncertainty on rise for UK SMEs following Autumn Budget
