New figures from the Federation of Small Businesses (FSB) show that for the first time in 15 years, more small businesses expect to shrink, close or sell up in the coming year than those planning to grow. It’s a significant shift – and one the FSB has called “a very dangerous situation” for the UK’s small business sector.

This net-negative growth reading in the FSB’s Small Business Index underlines just how tough trading conditions remain for many firms, despite falling inflation.

Among the issues that the FSB have identified that continue to put pressure on small businesses are:

  • Late payments, particularly from larger customers
  • Issues around proposals being made in the new Employment Bill
  • Reliance on personal guarantees when seeking finance

Small businesses are resilient, but it’s clear that challenges are mounting. If you need help, whether it’s rethinking your plans or looking at restructuring or exit options, please feel free to give us a call to talk through the numbers. We’d be happy to help you!

See: https://www.fsb.org.uk/media-centre/national-news/fsb-weekly-brief-newsletter-friday-18-july-2025-MCXKQVRRIZKZC7RF2MBYWE3L5OWE