Small business and freelancer outlook in 2026
UK small businesses are showing signs of resilience in 2026, but confidence remains cautious.
The British Chambers of Commerce’s latest survey found that 47% of businesses expect turnover to increase over the next 12 months, although only 17% plan to increase investment in the short term. Inflation and taxation remain two of the biggest concerns for SMEs.
That suggests many businesses are still looking to grow, but they are being more selective about where they spend and invest.
What is holding SMEs back?
Higher costs remain the main challenge.
Inflation, labour, utilities and taxation are continuing to put pressure on margins. The BCC found that 60% of businesses still see inflation as a concern, while 52% are worried about taxation.
That helps explain why investment remains subdued, even where turnover expectations are improving.
For many owners, growth in 2026 is less about expanding quickly and more about improving efficiency, protecting margins and focusing on the parts of the business that generate the strongest returns.
What about freelancers?
Freelancing remains a major part of the UK economy, but the market is more mixed than it was immediately after the pandemic.
IPSE estimates there are around 4.4 million self-employed people in the UK. Flexibility and independence remain major attractions, but irregular income, pressure on day rates and financial security are still significant concerns.
Demand also varies considerably by sector. Specialist freelancers with scarce skills may continue to see strong opportunities, while others are facing more competition and cautious client spending.
What are businesses doing to stay resilient?
Many SMEs and freelancers are focusing on:
- improving margins rather than simply chasing turnover
- using technology to reduce costs and improve productivity
- building more recurring or repeat revenue
- broadening their customer base
- improving cash flow and financial visibility
- reducing reliance on one customer, employee or the owner
These measures can help a business cope with difficult trading conditions and can also make it more attractive to a buyer in future.
What does this mean if you are thinking about selling?
A cautious economy does not mean buyers stop looking for good businesses.
It does mean they are likely to look more closely at the quality of earnings, customer retention, margins, management strength and how dependent the business is on its owner.
A company that has remained profitable and well managed through a difficult period can demonstrate resilience, which can be attractive to buyers.
Thinking about selling your business?
If you are considering selling within the next few years, understanding how your business is performing relative to the wider market is a useful starting point.
At Intelligent, we can provide a free, confidential business Valuation, alongside information about current buyer demand and the factors likely to influence value.