More than eight in ten (81%) small businesses in the UK are focusing on new growth initiatives for 2025, according to Novuna Business Finance’s quarterly Business Barometer study.
Increasing new business sales and reducing fixed costs are the areas of focus for business owners.
The study reveals that 43% of small businesses aim to boost sales, while 24% are looking to cut fixed costs.
However, recent changes to employers’ National Insurance are projected to affect hiring plans for 2025.
Only 7% of small businesses are prioritising senior hires, while 9% plan to hire and train young people.
The willingness to invest in business development for 2025 follows resilient growth forecasts for the current quarter.
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By GlobalData
Nationally, 35% of small businesses are experiencing quarterly growth, marking a two-year high in growth forecasts since July 2024.
Regionally, growth planning for 2025 is led by London, the West Midlands, and the North East, where 94%, 83%, and 83% of small businesses, respectively, are investing in future growth projects.
These regions have seen an upturn in growth forecasts this quarter.
By industry, small businesses in the media (92%) and manufacturing (90%) sectors are prioritising new growth initiatives for 2025.
The Novuna study indicates year-on-year increases across manufacturing, construction, retail, media, and agriculture sectors.
Nationally, over two in five small businesses are seeking to increase new business income for 2025.
For one in five, this involves diversifying their business model and developing new products and services.
Financial prudence is also crucial, with businesses focusing on tackling fixed costs and building financial reserves.
Novuna Business Finance head of insight Jo Morris said: “A lot of attention in recent weeks has been on the Autumn Budget – and whilst our data suggested that 86% of UK small business owners were fearful of Budget announcements, in truth small businesses finish 2024 in a resilient position.
“The percentage of enterprises predicting growth has been at a two-year peak since July and, on top of this, a huge proportion are already prioritising growth projects to invest in for the year ahead.”
