Small Businesses: The UK’s Hidden Power‑Ups
Think of the UK economy as a giant race car. The tiny, nimble businesses are the mini‑turbo boosters that keep the machine humming. But right now, most of them are stuck in the gravel— 36 % are actually growing, a jump from 21 % in July, yet they’re just waiting for the green light.
Why the Digital Gear Shift Matters
When a business embraces digital tools, it’s like swapping a squeaky stick‑shift for a slick automatic. Revenue climbs, sales confidence soars, and productivity becomes the kind of “super‑charged” boost that makes competitors sit in their rearview mirrors.
But here’s the kicker: one in three SMBs still haven’t played with AI tools. That’s a missed pit‑stop the UK can’t afford. The IMF’s crystal ball predicts that if small and medium‑sized firms fully rider the AI wave, the economy could swell by a whopping £470 bn by 2035.
What the Latest Survey Says
The Intuit QuickBooks Small Business Insights Survey lit up the scoreboard with some eye‑popping numbers:
- 77 % of businesses say AI has moon‑shot their productivity – up from a solid 40 % that stuck around in the past three quarters.
- Hey, almost 63 % use AI every now and then; that’s a 50 % swing from July.
- Nearly 1 in 6 consider AI a “core” part of their ops.
- A 47 % boost in productivity in just the last three months.
How AI is stepping into their lives:
- Administrative tasks – 38 %
- Marketing – 38 %
- Data processing – 36 %
- Customer service – 35 %
- Bookkeeping – 30 %
- Financial planning – 23 %
- Innovation – 22 %
These aren’t just numbers; they’re proof that AI is the turbocharger in the small‑biz world. Some businesses are already revving their engines and shifting gears.
Why Efficiency Is the Name of the Game
More than two‑thirds of small firms say getting more output without raising costs is their top priority. But where prices are creeping so much, digital tools become lifesavers—cutting time, trimming errors, saving money.
Here’s the snag: only 21 % are actually upgrading their systems (software, AI, anything digital). Some don’t know how to tap into that productivity boost, while apps that don’t talk to each other create friction faster than a bad pair of racing tyres without brakes. The result? You install a shiny piece of tech but it rattles the whole tank.
To keep those gains rolling, we must clear the road: provide trustworthy guidance, sensible resources, and policies that remove friction.
In short, the UK’s economy is alive, and the engines that keep it running are small businesses—just hit the accelerator and bring AI into the mix. The next stop? Growth that’s inclusive, nationwide, and full throttle.
