Recent data from the Intuit QuickBooks Small Business Insights Survey shows that 36% of small firms are currently growing, a sharp and welcome rise from just 21% in July 2024. This uptick in growth signals renewed momentum and optimism among small businesses. But while many are gearing up to scale, a significant portion remains stuck in first gear, unable to take full advantage of the technologies and tools available that can help accelerate their growth.

The AI advantage

Digital tools are proving to be ‌game changers, particularly artificial intelligence. For those small businesses who have already leveraged the power of AI, 77% say it has boosted their productivity and nearly half report measurable improvements within just the past three months.

Businesses are using AI to streamline administrative tasks, enhance marketing efforts, process data more efficiently, and improve customer service and financial planning. The advantages are clear: faster workflows, reduced errors, and greater output without a proportional increase in costs.

Despite these promising outcomes, a critical gap remains: almost one in three small businesses still haven't begun using AI at all. This represents a massive, missed opportunity, especially as the global economic environment becomes more competitive and digitally driven.

The International Monetary Fund (IMF) estimates that if small and medium-sized businesses (SMBs) across the UK were to fully adopt AI, the resulting boost to productivity could contribute an additional £470 billion to the UK economy by 2035. That’s a scale of impact no government or industry can afford to ignore.

Ambition meets friction

This productivity challenge is particularly urgent for small businesses. According to the same Intuit survey, increasing productivity is a top priority for 40% of small business owners. Yet only 21% say they are looking to upgrade their systems, including software, AI tools or other digital technologies. This disconnect highlights an underlying issue: many firms want to do more but lack the roadmap or knowledge to get there.

Too often, the tools small businesses need are fragmented, poorly integrated, or insufficiently supported. For example, businesses might adopt different software platforms that don’t communicate with each other, creating more problems than they solve. Others may invest in digital tools without adequate training or support, leading to wasted time and money. It's like fitting racing tyres on a car without checking the brakes – potentially dangerous and certainly inefficient.

The role of policy and support

The path forward must include stronger guidance and more accessible support. Small businesses don’t need more complexity; they need confidence. This is where policy plays a crucial role.  In April, Intuit launched the Small Business Growth Council, a new initiative designed to bring entrepreneurs together with policymakers to advocate for the structural changes needed to empower SMBs. The Council is already having an impact, helping shape national conversations and contributing directly to policy recommendations.

One such success is the inclusion of national AI champions in the Government’s recent Industrial Strategy, a key recommendation of the Council. The Prime Minister’s announcement of a new programme to upskill 7.5 million UK workers in essential AI skills by 2030 is another strong step in the right direction. This initiative, supported and informed by Intuit and other leading technology companies, signals growing recognition that digital fluency is no longer optional, it’s fundamental to growth.

Building a digital infrastructure for growth

To build on this momentum, we must treat digital adoption as a core element of the country’s economic infrastructure. That means introducing smart tax incentives to reduce the financial burden of digital transformation for SMBs. It means establishing regional upskilling initiatives to ensure that every business, regardless of location, can benefit from the digital economy. And it means providing AI-readiness assessments and targeted support to help businesses choose the right tools for their needs.

These interventions can create the conditions for widespread, inclusive growth. We already know what works. We just need the will to scale it.

Time to accelerate

The message from small business owners is clear: they’re ready to grow. They have the ambition, the ideas, and the resilience to lead a national comeback. What they need now is the right combination of tools, training, and policies to turn that potential into performance. The good news is that much of the groundwork has already been laid. With continued collaboration between the public and private sectors, we can build a roadmap for growth that empowers small businesses at every stage.

The stakes have never been higher. If we get this right, we won’t just boost GDP, we’ll build a more resilient, innovative and inclusive economy. It’s time to stop asking “Where’s the growth?” and start focusing on how to unlock it. 

The answer is right in front of us: in small businesses across the country that are ready to shift into high gear and lead the way forward.