Budget uncertainty is already a business risk – for SMEs, growth must come from within
Small businesses and entrepreneurs make up 99% of the business population in the UK. With rising costs and concerns over taxation weighing heavily, it’s understandable that these business owners are anxious about what October 28th will mean for them.
But while small businesses cannot control government policy, they can control how they connect with customers, build loyalty, and create opportunities for growth. In an uncertain economy, that can determine success or failure.
The True Value of the 99%
Despite the pressures small businesses are facing, consumers clearly recognise their value. 95.2% of consumers believe small businesses are important to their local communities, while 83.7% say they receive a better overall experience from small businesses than larger companies. Half of UK shoppers are even willing to pay more to support a local independent brand.
The public understands what Westminster sometimes forgets: these businesses are the social and economic fabric of our towns. They provide distinct character, human connection, and a local focal point that national corporate giants cannot replicate. But strong loyalty alone will not keep businesses open.
Anxiety Is Becoming a Business Risk
Uncertainty is already affecting business decisions. More firms are planning to reduce investment than increase it, while many are scaling back recruitment plans and delaying growth decisions.
The Federation of Small Businesses (FSB) published analysis earlier this year that found confidence at -71, one of the lowest readings in the history of its Small Business Index.
When businesses delay investment, recruitment and expansion while waiting for clarity, growth suffers before any policy changes have even taken effect.
Finding Certainty From Within
Entrepreneurs and small business owners cannot control what the Chancellor announces inside the Budget, nor can they dictate interest rates or macroeconomic headwinds. Instead, they need to focus on what they can control.
Marketing is an important and powerful lever that can work in any economic environment. Growth engines for SMBs include word of mouth, email marketing and social media. But our research at Constant Contact shows that small business owners are taking it one step further and becoming ‘creators’ as well, using storytelling on their own channels to build trust, strengthen customer relationships and drive repeat business. While word of mouth remains highly influential at 51.3%, social media is almost as important, at 47.7%, for discovering new independent brands.
At Constant Contact, we see firsthand how technology helps entrepreneurs build and protect their most valuable asset: their customer relationships. Because most business owners want to focus on serving their clients rather than becoming full-time digital marketers, AI tools can help automate repetitive, time-consuming tasks. Globally, our data demonstrates that AI tools can cut email production time by up to 23%, buying back valuable hours for small business owners so they can focus on high-value human judgment, strategic planning, and personal client care.
Even in an uncertain economy, small businesses have a competitive advantage that larger companies struggle to replicate: genuine customer relationships. Those that invest in these relationships will be better positioned to weather uncertainty and grow. But the responsibility cannot rest with small businesses alone. They are a critical pillar of our economy and communities, and the upcoming Budget needs to give them the support they need to thrive.
Constant Contact, an official sponsor of the Chelsea Women’s Football Team, is currently running a competition to give six entrepreneurs and independent businesses the chance to get free advertising in next year’s matchday programme. This opportunity will put these businesses in front of a captive audience of 40,000 people. Entries are open and entry is free. Businesses are encouraged to enter before the closing date of December 31, 2026. Entry details are here: Constant Contact’s competition to win free advertising space in Chelsea’s matchday programme
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