More than 80% of UK small businesses are planning growth-focused plans for 2025, reflecting rising optimism as businesses report their highest growth in two years, according to research by Novuna Business Finance.
Key areas of focus include increasing new business sales (43%) and reducing fixed costs (24%). Diversifying business models and developing new products or services are also priorities for one in five companies. However, recent National Insurance reforms appear to have recruitment ambitions, with only 7% of SMEs prioritizing the recruitment of older people and 9% planning to recruit younger talent.
By region, London leads the way, with 94% of businesses prioritizing growth, followed by the West Midlands and the North East with 83% each. Sectors such as media (92%) and manufacturing (90%) are likely to be the focus of growth plans, highlighting the strong momentum in these industries.
The findings come as 35% of small businesses reported growth nationally in the past three months, the highest figure in two years. Despite the concerns surrounding the Autumn Budget, many SMEs are ending 2024 on a strong note.
Joanna Morris, Head of Insight at Novuna Business Finance, said: “The percentage of businesses predicting growth was at its highest level in two years since July. A large segment is already prioritizing growth projects for next year. We are committed to helping businesses realize their potential and build on the confidence that has resurfaced this year.”
Financial prudence remains a key theme, with businesses aiming to address fixed costs and build financial reserves as part of their strategy to ensure sustainability in a changing economic environment.
This research highlights the determination of UK small businesses to move forward, positioning themselves for continued success in 2025 and beyond.
