As UK small businesses gear up for a new year of trading, research from Novuna Business Finance reveals a five-year peak in percentage of small business owners (84%) that are starting 2026 with plans to invest in new growth initiatives in order to make their enterprises stronger for the year ahead – and that growth agenda is being driven from the Capital
Small businesses in London emerged as those most likely to be starting 2026 with plans to invest in new growth initiatives (90%) – followed by small businesses in the East Midlands (89%) and the North West (84%).
Compared to this time last year, there has been an upturn in the percentage of London-based small businesses that start the New Year prioritising the need to boost new business income – 46% (up from 41% this time last year).
In addition, 28% of London small business owners are prioritising the need to diversify their business offering, through new products and services (up from 20% last year)
The percentage of London small businesses also looking to reduce fixed costs is up significantly 36% (compared to 22% this time last year). More London-based small businesses are starting 2026 aiming to boost their financial reserves (26% up from 18%) and more are placing priority on having more robust contingency plans in place, to cope with the prospect of prolonged market uncertainty (17% up from 12%).
Jo Morris, Head of Insight at Novuna Business Finance said, “Ahead of the New Year starting, we asked a nationally representative sample of 1,000 small business owners what growth initiatives, if any, they were prioritising to make their enterprises stronger for the year ahead. Small businesses in London emerged as those most likely to be starting 2026 with plans to invest in new growth to build greater strength and resilience into their enterprises.
“Our data paints a picture of determination from 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 sector in the early months of 2026.”
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