New research from specialist SME lender Shawbrook reveals that 71% of SMEs have grown in the last 12 months, with 21% experiencing significant growth. This marks a sharp increase from 2024, when only 46% reported growth and just 13% saw significant expansion.
Larger SMEs, those with between 100 and 249 employees, are performing particularly well, with 76% reporting growth, up from 49% the previous year.
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The positive trajectory is being driven by a combination of strong customer demand (32%), team expansion (29%), and investment in staff (27%). These trends suggest that SMEs are taking a proactive stance, prioritising internal capability and customer relationships in the face of ongoing external pressures such as inflation, higher wages, and regulatory uncertainty.
Looking ahead, many SMEs are planning to keep the momentum going. Almost half (48%) intend to upskill staff, 25% plan to hire new employees, and 22% are set to invest in premises upgrades. These plans point to a sector focused not just on survival, but on long-term growth and competitiveness.
Neil Rudge, Chief Banking Officer, Commercial at Shawbrook, said: “It’s great to see so many businesses not just holding steady in tough conditions but actually growing and investing in their future. Politicians love to talk about growth – but it’s Britain’s SMEs that actually deliver it. They don’t need more speeches, they need real backing: fair tax, smart policy and access to funding that helps them build, hire and grow.”
He added that the findings are a powerful reminder of the vital role SMEs play in the UK economy:
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By GlobalData“Even with wider pressures like the risk of a trade war and rising costs from things like minimum wage and National Insurance hikes, UK SMEs are proving themselves to be dynamic, resilient, and crucial to economic health. While big business grabs headlines, it’s SMEs that keep the UK running—creating jobs, paying taxes and powering local economies.”
As the labour market begins to open up and economic conditions evolve, SMEs are positioned to play a key role in recovery and growth. The research points to a sector that’s not just weathering the storm but actively investing in people and capacity—laying the groundwork for a more resilient and dynamic future.
