The data also revealed that 35% of UK small businesses expect growth over the next three months, up from 30% in the previous quarter. This boost in confidence mirrors levels seen in early 2022, with more businesses exploring fresh initiatives to fuel expansion into the final quarter of the year.

The survey examined upcoming initiatives small businesses are considering to unlock their growth potential. The IT and telecoms sector led the charge, with 77% of businesses eyeing growth projects – the highest in four years. Manufacturing saw 81% planning new initiatives for the next three months, a 6% rise since Q1, while construction, media and marketing, and transport and distribution all reached six-month or 18-month highs.

Key plans for growth included:

• Cost control: In response to ongoing economic pressures, 52% of businesses prioritised controlling fixed costs, while 33% focused on improving cash flow, and 24% planned to tighten policies on late payments.
• Equipment investment: The proportion of businesses planning to invest in new equipment hit a four-year high at 23%, particularly in manufacturing and construction, both at 27%.
• Hiring: 22% of businesses intended to hire more staff, with Yorkshire and the Humber leading at 26%, followed by London and the East of England at 25%. The legal, finance and accounting, and IT and telecom sectors were driving this trend.
• Expansion: The number of companies planning to enter new or overseas markets rose to 22%, a two-and-a-half-year high, particularly among manufacturing firms (28%), high-growth businesses (43%), and those with turnovers of £10 million or more (33%).

Joanna Morris, Head of Insight at Novuna Business Finance commented: “After a period of suppressed and muted confidence, signs indicate that the tide is turning. Our tracking research this quarter presents a double-positive position. Growth outlook for this quarter is up significantly on previous quarters - and there is also improvement in terms of the number of enterprises also planning ahead, considering new projects today that will deliver growth tomorrow. Small business leaders - not just in individual sectors but across the broader economy - are moving beyond survival mode and strategically positioning themselves for long-term growth. The increase in the number of business leaders planning to invest in new equipment, create jobs, and hire staff reflects this renewed sense of confidence.

“At Novuna Business Finance, we are dedicated to helping businesses harness this resurgence in optimism. We provide flexible, tailored financial solutions to help established small businesses to plan for long-term growth and transformation and – in doing so – to realise their full potential.”