Confidence among UK small business owners remains strong in 2025, despite persistent cost pressures and economic uncertainty, according to new research from SumUp.
The study, which surveyed 750 small business owners and decision makers across the country, offers a snapshot of the resilience, challenges, and priorities driving the UK’s SME sector.
Almost half (43%) of those surveyed reported stronger business performance this year compared to 2024, although overall optimism has dipped slightly. One in five (20%) described themselves as very confident about the year ahead—a small drop from 24% last year—while 32% said they felt somewhat confident, also down from 36% in 2024.
Despite these marginal declines, the number of business owners who are not confident at all has significantly decreased, falling from 9% in 2024 to just 3% in 2025. Meanwhile, those feeling somewhat concerned dropped from 10% to 5%. Notably, 40% of respondents described their outlook as neutral or uncertain, citing fluctuating consumer demand and market conditions.
Rising costs continue to dominate the concerns of small business owners. Nearly half (47%) said that increased prices for raw materials, supplies, and products were the most significant challenge, making it harder to maintain healthy profit margins.
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