Skip to main content
We're here with practical information for your business. Learn about business planning, running a business and more.

Search

For a successful business, you need a viable business idea, the skills to make it work and the funding. Discover whether your idea has what it takes.

Forming your business correctly is essential to ensure you are protected and you comply with the rules. Learn how to set up your business.

Advice on protecting your wellbeing, self-confidence and mental health from the pressures of starting and running a business.

Learn why business planning is an essential exercise if your business is to start and grow successfully, attract funding or target new markets.

It is likely you will need funding to start your business unless you have your own money. Discover some of the main sources of start up funding.

Businesses and individuals must account for and pay various taxes. Understand your tax obligations and how to file, account and pay any taxes you owe.

Businesses are required to comply with a wide range of business laws. We introduce the main rules and regulations you must comply with.

Marketing matters. It drives sales and helps promote your brand and products. Discover how to market your business and reach your target customers.

Some businesses need a high street location whilst others can be run from home. Understand the key factors from cost to location, size to security.

Your employees can your biggest asset. They can also be your biggest challenge. We explain how to recruitment and manage staff successfully.

It is likely your business could not function without some form of IT. Learn how to specify, buy, maintain and secure your business IT.

Few businesses manage the leap from start up to high-growth business. Learn what it takes to scale up and take your business to the next level.

Seven in ten UK small firms are making growth plans

23 August 2023

The proportion of UK small businesses with specific plans for growth has reached its highest level for three years, according to new research.

A survey of small businesses owners conducted by Novuna Business Finance has found that 71% of enterprises are currently working on specific growth strategies to improve their future prospects - up from 65% in the first quarter of 2021.

The findings indicate that across five industry sectors in particular - manufacturing, construction, agriculture, IT/telecoms and finance/accounting - there is a three-year high for the percentage of small businesses working on a growth plan. The percentage of firms investing in growth strategies in these sectors are:

  • 86% of small manufacturers (up from 77% in Q1 2021);
  • 75% of construction firms (up from 57%);
  • 74% of agriculture businesses (up from 64%);
  • 74% of IT/telecoms businesses (up from 72%);
  • 70% of finance and accounting firms (up from 65%).

However, fewer small firms are confident about achieving growth in the short term. On average, just 31% of UK small firms are expecting growth in the next quarter. The most optimistic businesses are in finance and accounting, media, IT/telecoms, transport and hospitality.

"The percentage of small businesses predicting growth (31%) has been resilient in its consistency for three consecutive quarters. This new piece of research offers a clue on what might be next. If business owners are working on future growth initiatives now, we should see an uplift in the overall proportion of businesses reporting growth during the autumn and winter months." Jo Morris, head of insight at Novuna Business Finance

Strategies for business growth

The Novuna research suggests that key priorities for growth-oriented firms include: looking for help to fund new equipment (18%) and reassessing funding arrangements with lenders (12%). Keeping fixed costs down remains the top priority for 58% of respondents, while 30% are focused on improving cash flow and 26% say they are being stricter on chasing late payments. Reducing headcount is a goal for 21% of respondents.

In contrast, the prospect of securing growth by expanding overseas into new markets has hit a three-year low at 17%. Compared to much higher figures through 2016 and 2017 (consistently ranging between 25%-28%), the research suggests a disruptive legacy of Brexit on many UK small businesses.

Optimism among tradespeople rises

Also this month, data from the SME Insights Report, published by Simply Business, shows that 72% of tradespeople surveyed are feeling positive about their prospects in 2023. In addition, 39% of tradespeople believe the economy will improve, despite ongoing challenges caused by inflation.

The findings indicate that the rising cost of running a business is a top concern for 51% of tradespeople and 40% report that finding and retaining customers is challenging. Just over a quarter of tradespeople surveyed (28%) would like to see a review of the energy price cap to help ease financial burdens.

"The stoic spirit of small business owners is the backbone of the UK economy - their resilience is vital to the nation's recovery and growth," said Alan Thomas, UK ceo at Simply Business "Small businesses sit at the heart of our communities and are vital to our economy, and it is essential that we continue to support them in these times of financial uncertainty."

Written by Rachel Miller.

Stay up-to-date with business advice and news

Sign up to this lively and colourful newsletter for new and more established small businesses.