The study also highlighted that milestones are hard-won – less than half (47%) of UK small businesses reached a goal in the last year and only 63% have done so in the last three years. Despite these challenges, 32% of UK small business owners said that macroeconomic conditions had no impact on achieving a milestone. This indicates a resilience to economic conditions as factors such as Brexit, the pandemic and high inflation have left them used to operating in a tough environment.

Kate Hayward, UK Managing Director at Xero commented: “It’s easy for small businesses to get caught-up in the daily grind, but they deserve to pause and give themselves a pat on the back every now and then. Having goals, writing them down and celebrating when something is achieved is an important, and rewarding, part of the small business journey.”

Globally, small businesses who celebrate milestones experience higher revenue increases, on average, than those who don't (30% vs 19%). While making money (66%) and the feeling of a job well done (53%) are the strongest motivations for UK small businesses to reach a milestone, UK business owners are divided about the value of celebrating success. When questioned about the impact of celebrating milestones, 55% believe it improves business performance, 51% think it benefits productivity and only 33% claim it affects profits.

On the whole, UK small businesses also appear to find the whole idea of identifying, reaching and celebrating wins uncomfortable with only 60% celebrating milestones some of the time. There was also a wide interpretation of what constitutes a milestone including achievements like being able to pay themselves (41%), having repeat customers (38%) and reaching profitability targets (33%), but no universal agreement.

Kate Hayward, UK Managing Director at Xero added: “It’s clear that small businesses don’t make a big deal about their wins. But taking a moment to recognise those special moments – whether big or small – can boost morale, motivation and performance. It doesn’t have to be much, small businesses can find ways to celebrate in a way that feels right for them – whether it’s a thank you email to the team, bringing in some treats to share or even a small reward for themselves.”

On average, UK small business owners spent £1,856 on celebrating key milestones in the last year. However, for owners that do take the time to recognise their business successes there is evidence that it is worth the investment. In fact, 65% say it improves motivation, and 57% say it reminds them why they started the business in the first place.

“One of my biggest milestones was when I saw our popcorn being eaten ‘in the wild’ at an outdoor film screening in Shoreditch by someone I didn’t know. It was pretty amazing and a really happy moment.” stated Laura Jackson, Co-Founder and Kernel-in-Chief, Popcorn Shed. “It feels very British to ‘keep calm and carry on’ and sometimes that means we don’t stop to acknowledge how far we’ve come.”

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