More than four in five small businesses are planning to invest in 2026 to support growth and make them stronger, according to new research.
A survey by Novuna Business Finance has revealed that 84% of small business owners are starting the new year with plans to invest in new growth initiatives. It is a five-year peak after steady growth from 77% in 2022.
Novuna Business Finance noted that UK small businesses appeared to be “in a resilient mood” after a “challenging” trading period in 2025 when the percentage of small business owners predicting growth fell over four consecutive quarters to 25%.
The data revealed that manufacturing was the UK industry sector where small businesses were most likely to be starting 2026 with plans to invest in new growth initiatives, at 94% – up from 90% a year ago.
The survey of a nationally representative sample of 1,000 small business owners indicated that increasing new business income remained the top priority, at 46% of small businesses – a slight rise from 43% a year ago.
The research also showed that the percentage of small businesses prioritising the need to reduce fixed costs was up “significantly” on this time last year, from 24% to 40%. These include rent, service charges, utilities and fixed salaries.
There was also an increase in the percentage of business owners prioritising the need to build up financial reserves for the year ahead, up from 23% to 31%.
A quarter of small business owners (25%) said they were placing greater emphasis on the need to diversify their business in terms of new products and services – up from 20% a year ago.
Reviewing and looking for efficiencies in back-office operations was up from 12% to 20% for the year ahead.
More businesses were also starting 2026 prioritising the need to have more contingency plans in the event of prolonged market uncertainty – up to 17% from 12% this time last year.
Jo Morris, head of insight at Novuna Business Finance, commented: “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.”
