UK small business growth plans 2026 have reached their highest level in five years, according to new research released in January.
Data from Novuna Business Finance shows that 84 percent of small business owners are starting 2026 with plans to invest in new growth initiatives. The aim is to make their enterprises stronger in the year ahead.
The figure marks a steady rise over time. In 2022, 77 percent of small businesses prioritised growth. This increased to 79 percent in 2023, 81 percent in 2024 and remained at that level in 2025 before rising again this year.
The findings follow a difficult trading period. During 2025, the proportion of small business owners predicting growth fell for four consecutive quarters, reaching 25 percent.
Despite that backdrop, the data suggests a more resilient mood as the New Year begins. UK small business growth plans 2026 appear to reflect a renewed focus on strengthening operations rather than short-term forecasts.
The research is based on a nationally representative survey of 1,000 small business owners. Regional differences are clear.
London leads the way, with 90 percent of small businesses planning to invest in new growth initiatives for 2026. The East Midlands follows closely at 89 percent. The North West stands at 84 percent.
Sector trends show a similar pattern. Manufacturing is the industry most likely to be working on UK small business growth plans 2026, with 94 percent of firms prioritising new initiatives. This is up from 90 percent last year.
Across the ten sectors surveyed, most recorded year-on-year increases. Retail and finance remained unchanged at 79 percent and 84 percent respectively.
Media was the only sector to record a decline, falling from 92 percent to 84 percent.
Other sectors showed notable rises. Property and real estate, transport and distribution, legal services and medical services all reported increased focus on growth. Education also rose to 77 percent.
Looking at priorities within UK small business growth plans 2026, increasing new business income remains the most common focus. This was cited by 46 percent of respondents, up from 43 percent a year earlier.
Cost control is also rising sharply. The proportion prioritising the reduction of fixed costs increased from 24 percent to 40 percent.
More businesses are focusing on resilience. Building financial reserves rose from 23 percent to 31 percent. Diversification into new products and services increased from 20 percent to 25 percent.
Operational efficiency is gaining attention. Reviewing back-office operations rose from 12 percent to 20 percent.
Contingency planning is also more prominent. Seventeen percent of businesses are prioritising plans for prolonged market uncertainty, up from 12 percent last year.
Jo Morris, Head of Insight at Novuna Business Finance, said: “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.”
Overall, the data highlights the scale of UK small business growth plans 2026. Across regions and sectors, firms are entering the year focused on rebuilding strength and stability.
