Despite ongoing challenges in the wider economy, new research commissioned and analysed by Uswitch business savings experts shows that UK SME leaders are looking ahead with confidence. Smaller firms are demonstrating resilience and optimism about their prospects, underlining the vital role they continue to play in driving growth.
The table below presents the growth expectations of SME owners for the upcoming three months.
Table 1: Growth Expectations in the next three months for SME owners
Growth expectations | Percentage |
Significant growth | 19% |
Moderate growth | 41% |
No change | 27% |
Moderate decline | 11% |
Significant decline | 3% |
As shown in the table, a combined 60% of SME owners anticipate some level of growth in the next three months, with only 14% expecting a decline in their turnover.
Plus, more than half of businesses (51%) plan to look externally for capital, and younger entrepreneurs are overwhelmingly driving that demand for finance, with a whopping 74% seeking external funding.
That combination of growth expectations plus a clear appetite for finance suggests many firms want to invest to scale, not simply hunker down in the next few months.
Young entrepreneurs are eager to invest, fueling demand for finance
Small businesses in the UK are showing real intent to grow, and a striking generation gap is shaping how they plan to get there.
The data reveals a clear generational gap in sentiment and strategy, with 84% of 18–24 year-olds expecting growth in their turnover in the next three months.
Table 2: Growth Expectations by Age Group
Age Group | Expect Growth | Expect Decline |
18-34 | 84% | 5% |
55+ | 30% | 25% |
In contrast, small business owners over the age of 55 take a different view, with a quarter of this group (25%) expecting an actual decline in their turnover in the next three months.
Their concerns are concrete: 53% point to rising operational costs, 48% to government policy or regulatory uncertainty, and 46% to inflation and weaker consumer spending.
In fact, only 12% of over-55s point to strong recent business performance as a reason for confidence in UK’s economy and its impact on their business.
Plus, 69% of over-55s say they are unlikely to seek external funding, and only 5% expect significant turnover growth in the next three months.
UK SMEs are thriving despite headwinds facing larger firms
While larger businesses have been hit by weaker-than-expected domestic and export sales, leading to lower confidence in turnover and growth, the picture looks different for UK SMEs.
Across the full sample, business owners point to increased consumer demand (27%) and improved access to finance (23%) as the main drivers of their positive outlook.
However, the top two concerns about the UK economy are rising operational costs (32%) and inflation (30%). These are practical, day-to-day pressures: energy, rents, wages and the cost of inputs that eat into margins.
What do business experts say?
Andy Elder, Uswitch business savings expert, says: “You can see two very different instincts in the data. On one hand, younger founders are ready to back their plans with finance and scale quickly; on the other, more established owners are tightening their finances and managing costs.
“If you run a small business today, the practical takeaway is simple: know where you sit. If demand is returning for you, make a plan to fund and protect growth. If costs are the problem, focus on pricing, efficiency and the areas where you can control spend. Either way, being deliberate about finance, whether you borrow or restructure, is what separates businesses that grow from those that merely survive.”
