Seven in 10 Small Businesses defy Geo-Political Market Uncertainty and Press Ahead with Future Growth Projects

Seven in 10 small businesses (71%) are working on new initiatives to achieve business growth in the spring months - a rise on the previous 12-months - according to new research from Novuna Business Finance.

Following 2025 starting with a dip in the percentage of UK small businesses predicting growth, the latest findings suggest a solid resilience among business owners to move forward. These positive resolutions defy the challenging context – namely, the seismic geo-political uncertainty and the risk of the US imposing tariffs on the UK and EU markets in the coming weeks.   

The research, from a new Novuna Business Finance report, forms part of the decade-long Business Barometer tracking study, asked a representative sample of 1,315 small business owners if and what they were currently working on in order to try and achieve business growth in the next three months. 

Whilst small businesses in London drove the determined growth agenda, the upturn in small business owners investing in future growth projects was evident across seven UK regions - including The West Midlands, the North West, Humberside, Scotland and the South East. Further, nine industry sectors also saw an increase in the percentage of enterprises investing in new projects to deliver future growth. The most pronounced rises were in Media & Marketing, Leisure and Hospitality, Real Estate, Legal Services and Transport (see tables on page 2).

Percentage of small businesses working on projects to deliver growth in the next three months – by UK region

The most common projects that small businesses were working on to boost growth prospects over the spring months included: 

• Keeping fixed costs down 55%

• Improving cash flow 33%

• Being stricter getting paid on time 26%

• Expanding into new markets / overseas 23%

• Investing in new equipment 19%

• Reassessing finance/funding commitments 15%

Percentage of small businesses working on projects to deliver growth in the next three months – by industry sector

Joanna Morris, Head of Insight at Novuna Business Finance Comments: “Having reported a fall in the percentage of small businesses that predicted growth at the start of the year, it is positive that so many are investing in new projects to drive future growth over the spring and summer months. This is especially impressive given the international tensions that inevitably usher in a period of volatility and market uncertainty – and impact everyone’s supply chain.”

“At Novuna Business Finance, we are committed to helping established small businesses to work through challenging phases in the economic cycle. We provide flexible, tailored financial solutions to help established small businesses to plan for long-term growth and – in doing so – to realise their full potential.”

Novuna Business Finance provides business finance to SMEs and bigger corporations across the UK. This includes asset finance, stocking, block discounting and sustainable project finance provided through brokers, vendor organisations, manufacturers and direct to the business community.