In collaboration with Smart Data Foundry and The Centre for Economics and Business Research (Cebr), the latest iteration of the Sage Small Business Tracker has been launched.
The Tracker analyses anonymised Sage Accounting and Payroll data of over 140,000 UK Small and Mid-sized Businesses (SMBs) and looks at how they are performing in real terms in the current economic climate. The anonymised data set includes SMBs from all regions across the UK, including Northern Ireland, Scotland, and Wales.
The latest Sage Small Business Tracker presents a mixed picture for small businesses during a challenging economic climate. Revenues were down and profit growth slowed, but overall profits stayed strong, rising 3.7% in the year to Q2 2025. This shows many companies are still holding up well, despite the tough environment.
Key data points for Q2 2025:
These figures show UK small businesses are still under pressure, but as the backbone of the economy they need smart policies and practical initiatives to drive growth.
Adam Williams, who has spent the last 8 years at Tyne Chease, the UK's first artisan vegan cheese company based in Northumberland, which has scaled from a kitchen-table operation to an award winning producer, said broad UK findings align with Tyne Chease's experience.
"Rising costs and cautious consumer spending are piling on the pressure. The general consensus among my network is that it is increasingly difficult to compete. That said, I'm confident in the path Tyne Chease is on."
While pressures remain, regional variations highlight areas of relative strength. The data shows a more positive picture in the North East, for example, where small business revenues grew 3.9% in real terms, outpacing the UK-wide average.
Download the report for the full analysis.
