Small business growth hopes 'at lowest ever level'

Research carried out by the Federation of Small Businesses (FSB) has revealed that only around one in six small businesses anticipates growth over the coming 12 months.

21 Jul 2026

Research carried out by the Federation of Small Businesses (FSB) has revealed that only around one in six small businesses anticipates growth over the coming 12 months.

The FSB's latest Small Business Index (SBI) for the second quarter of this year showed that just one in six small firms expects to grow in the next year.

Revenue performance among small firms was very subdued in the second quarter, with just 22% of businesses reporting an increase in takings over the past three months.

Firms cited the economy, tax and rising labour costs as main barriers to growth.

Tina McKenzie, Policy Chair at the FSB, said: 'With a new government imminent, we need to see new drive, ambition and focus to get the 'growth, growth, growth' promised at the election.

'We cannot and must not accept a 'new normal' where more small firms believe they will shrink, sell up, or close entirely than anticipate growing over the next year. Small firms are the only engine of growth present in each and every postcode and we need them firing on all cylinders.'