A detailed analysis of the UK’s small businesses, from market confidence and finances to challenges and future plans.

Government changes create challenging conditions

These changes have put financial pressure on many small businesses, making it harder for them to retain or hire new employees.

At the same time, business rates relief for hospitality, retail, and leisure businesses was reduced significantly. 

These changes have put financial pressure on many small businesses, making it harder for them to retain or hire new employees.

Prices up and profits down

These challenging conditions have forced more small businesses to increase their prices.

said they’re planning to increase prices in the next 12 months,
up from 62 per cent in 2023.

of businesses expect profits to decrease this year
– up from 28 per cent in 2023.

“Despite testing circumstances, the UK’s entrepreneurial spirit remains a hallmark of our culture. I’m encouraged that 17 per cent of businesses expect profits to increase this year.”

“Providing over £2.8 trillion in annual turnover, small businesses are critical  to our economic prosperity. We must do everything we can to protect, support, and celebrate their spirit and resilience.”

Julie Fisher
UK CEO, Simply Business

First-hand insight from real businesses

To create our report, we spoke to over 2,000 small business owners, from tradespeople and contractors to shop owners and online businesses.

The importance of small businesses can’t be underestimated – they account for 99 per cent of all British businesses.

We want to understand what it’s like to be a small business owner in 2025, from the unique challenges they face to their economic outlook.