71% of small and medium-sized enterprises (SMEs) grew over the last year, with 21% reporting significant growth, research from Shawbrook found.
This compared to 46% growing in 2024, and only 13% of SMEs seeing significant growth.
Larger SMEs with 100 to 249 employees performed best, as 76% reported growth, compared with 49% in 2024.
Key reasons for growth included strong customer demand (32%), team expansion (29%) and investment in staff (27%).
Additionally, the data showed SMEs were focused on building up their teams and customer base despite market pressures.
The research found almost half (48%) of SMEs planned to upskill staff, 25% were looking to hire new employees and 22% aimed to upgrade their premises.
This suggested businesses were preparing for further growth and investing in their people.
Neil Rudge, chief banking officer, commercial at Shawbrook, said: “It’s great to see so many businesses not just holding steady in tough conditions but actually growing and investing in their future. Politicians love to talk about growth – but it’s Britain’s SMEs that actually deliver it.
“They don’t need more speeches, they need real backing: fair tax, smart policy and access to funding that helps them build, hire and grow.
“These findings are a good reminder that, even with wider pressures like the risk of a trade war and rising costs from things like minimum wage and National Insurance hikes, UK SMEs are still proving themselves to be dynamic, resilient and a vital part of the economy.”
Rudge added: “While big business grabs headlines, it’s SMEs that keep the UK running – creating jobs, paying taxes and driving local economies.”
