Nearly half of UK small and medium-sized enterprise (SME) decision makers are optimistic about the year ahead, according to new research from Simply Asset Finance.
The survey, conducted in advance of the Autumn Budget, found that 49% of respondents expressed a positive outlook, up from 43% in 2024, while 19% said they were “really excited” about growth prospects, more than double last year’s figure.
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Despite this improvement in sentiment, the research indicates that many SMEs continue to face longstanding challenges.
High energy costs remain the most cited concern, with 40% of respondents identifying it as a barrier to growth. Among medium-sized firms, this figure rises to 54%. Additionally, 34% of SMEs are seeking greater tax incentives to support innovation and investment.
Support for corporation tax reductions has grown, with 36% of respondents now calling for cuts, up from 19% in the previous year. Government-backed loans also remain a priority, with 26% of SMEs identifying access to finance as a key enabler for expansion.
Confidence in the Government’s ability to deliver a pro-business agenda remains subdued, with only 36% expressing belief in its direction. The research highlights that many of the same macroeconomic concerns persist: 46% cite a stagnant economy, 39% point to high inflation, and 30% are concerned about elevated interest rates.
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By GlobalDataTwo-thirds of SMEs (68%) believe the upcoming Budget will have a “significant or fundamental” impact on their growth plans, underscoring the importance of the 26 November announcement.
Commenting on the findings, Mike Randall, CEO of Simply Asset Finance, said SMEs are demonstrating “a clear appetite to invest and grow,” but added that “frustration remains at the lack of support with ever rising costs.” He noted that energy costs continue to be “the biggest drag on growth,” and warned that without intervention, firms “are operating at a disadvantage.”
Randall concluded that the Government faces “a critical window” in the lead-up to the Budget, stating that “the right decisions could unlock growth and fuel productivity… the wrong ones risk stalling momentum.”
