With inflation still biting, supply chain disruptions ongoing, and growth capital harder to access, new findings from Shopify’s Global Business Pulse Survey reveal how UK SMBs are adapting to economic uncertainty by making measured, strategic decisions about pricing, investment, and expansion.
According to the research, which surveyed over 500 UK business decision-makers, 64% cite inflation and 63% point to shipping and logistics costs as the biggest pressures on business spending. In response, Deann Evans, Managing Director, EMEA, Shopify says, UK SMBs are rethinking how they grow, with many adjusting pricing, launching new products, or entering new markets to stay competitive.
While 40% of businesses have increased prices in the past three months – more than any other country surveyed – others are proactively seeking new growth paths: 1 in 3 have added new products or services, a quarter have shifted logistics providers or strategies and 28% have expanded into new markets.
Yet, caution still dominates. The data reveals that almost half (46%) of UK businesses are either avoiding major risks or being very cautious with investment, the most conservative posture of any market surveyed. That said, over one-third (35%) are actively taking more risks during this period in an effort to outpace more risk-averse peers.
The data also highlights the thresholds businesses need to cross before investing or hiring.
- 36% wait until they have a sustainable cash flow for 3+ months before hiring
- 34% don’t feel stable until they’ve had consistent profitability for several months
- 30% require sufficient cash reserves to cover operating costs
UK SMBs are being deliberate and data-driven in their decision-making, making strategic bets where they can, while ensuring they remain financially sound. UK founders are looking for predictable revenue and stable cash flow before making their next move.
Small businesses are the backbone of the UK economy. At a time when economic policy, SMB confidence, and business costs are top of mind, our data shows they’re adapting not just to survive, but to grow smarter, protect their margins, and futureproof their business.
– Deann Evans, Managing Director, EMEA, Shopify
