Prices up and profits down
are absorbing some or all
of their increased costs
of small businesses have raised their
prices to cope with soaring operating costs
say financial uncertainty
is one of their biggest challenges
For many owners, the fear of losing customers over price is one of their greatest concerns. They know consumers are feeling the cost of living too, and many are cutting back on non-essential spending. Yet small businesses keep finding a way through.
AI adoption – a big shift in the last 12 months
One of the biggest shifts we tracked this year is how small businesses are approaching artificial intelligence.
of UK SMEs already use AI
(more than double the 22%
recorded in 2025)
are wary of security
and privacy risks
aren’t yet sure how AI could
be useful for their business
“Small businesses account for 60% of employment in the private sector and contribute £2.8 trillion in turnover to the UK economy each year. The numbers show the role of small businesses in the economy is a vital one. But perhaps even more important is the hidden value: one that connects communities, fuels purpose, and shapes our culture.”
Julie Fisher
UK CEO, Simply Business
First-hand insight from real businesses
To create our report, we surveyed almost 2,000 small business owners across the UK – from tradespeople and contractors to shop owners and online businesses.
We wanted to understand what it’s really like to run a small business in 2026 – the unique challenges owners face, their economic outlook, and the support they need to move from survival mode to growth.
“You can’t control the economy but you can control your cash flow, your pricing, and your target market. I think small business owners are really resourceful. And you can get a lot of fresh perspectives when it feels like a challenging or difficult time.”
Fi Titus
Chartered Accountant
Co-founder of Coco Financial and Fineo
About Simply Business
We’re one of the UK’s largest business insurance providers. Since we started life in 2005, we’ve helped three million small businesses and self-employed people find the protection that’s right for them – from builders to bakers and personal trainers (we cover landlords, too).
More than a million customers across 1,000 different trades trust us to support them with their insurance. You can build a policy tailored to your business, choosing only the covers you need to help protect your business’s name.