Why small business owners are eternal optimists (even in tough economic times)

Entrepreneurs nearby always start a business because they love what they do, they know they’re good at it, and they genuinely believe they can make it grow. Even when the wider economic picture is uncertain, that optimism tends to endure.

New research suggests that resilience and ambition remain defining traits of the UK’s small business community. According to data from Novuna Business Finance, 84% of small business owners are beginning 2026 with plans to invest in new growth initiatives – the highest figure recorded in five years. That’s a striking vote of confidence after what many described as a bruising 2025, when growth forecasts fell over four consecutive quarters.

What’s particularly notable is not just the scale of ambition, but its breadth. Growth plans span regions and sectors, with London-based firms leading the charge (90%), followed closely by the East Midlands (89%) and North West (84%). 

Manufacturing stands out as the most growth-focused sector, with 94% of firms planning to invest, while industries such as construction, hospitality, transport and legal services have all recorded strong year-on-year increases in intent.

Entrepreneurial spirit

This kind of momentum doesn’t happen by accident. It reflects a mindset that’s common among entrepreneurs: an instinct to look forward. For many small business owners, difficult trading conditions don’t extinguish ambition – they sharpen it. Instead of pulling back entirely, many business owners choose to reassess, adapt and find new ways to build resilience (and ultimately success).

That’s evident in the types of initiatives firms are prioritising. Increasing new business income remains the top focus (46%), but there’s also a growing emphasis on strengthening foundations. 

The proportion of businesses prioritising cost reduction has jumped sharply year-on-year, as has the number building financial reserves. A quarter of firms are looking to diversify into new products or services, while more are reviewing back-office operations and contingency planning in case market uncertainty persists.

In other words, this isn’t reckless optimism. It’s pragmatic confidence. Small business owners aren’t ignoring economic reality – they’re responding to it with deliberate, strategic decisions designed to put them in a stronger position for whatever comes next.

Financial support

Access to finance plays a critical role in turning that optimism into action. Whether it’s investing in new equipment, expanding premises, hiring staff or smoothing cash flow, growth often requires capital upfront.

That’s why the conversation around affordable lending for SMEs has become increasingly prominent in political and economic circles.

Recently, Labour MP Gareth Thomas introduced a private members’ bill urging the government to require banks to expand access to low-cost lending for small and medium-sized enterprises. Backed by several senior Labour figures, the proposal would mandate banks to measure and disclose how effectively they are reducing financial exclusion, including improving access to finance for underserved entrepreneurs.

The rationale is straightforward. If small businesses are willing to invest, innovate and grow, even after a difficult year, then the system should be structured in a way that supports that ambition, rather than constraining it. Affordable, transparent lending can be the difference between a good idea staying on paper and becoming a sustainable, growing enterprise.

One of the biggest challenges for entrepreneurs isn’t a lack of ambition, but navigating a complex, often opaque lending landscape. Uncertainty around eligibility, affordability or likelihood of approval can discourage business owners from exploring finance at all, even when it could support sensible, well-planned growth.

That’s where comparison-led platforms like money.co.uk play a role. By allowing small business owners to explore and compare suitable funding options in minutes, and see how likely they are to be approved before applying, they help remove some of the friction that sits between ambition and action.

This matters not just for individual entrepreneurs, but for the wider economy. Small businesses employ millions of people, support local communities and drive innovation across sectors. Their collective optimism has a knock-on effect: when they invest, confidence spreads.

Ultimately, optimism is part of the job description for entrepreneurs. But optimism alone isn’t enough. When it’s matched with realistic planning, strategic investment and access to fair finance, it can become a powerful engine for growth, regardless of the economic climate.