Small businesses in the East Midlands are the most likely outside London to be starting 2026 with plans to invest in new growth initiatives, according to new research from Novuna Business Finance.
The data shows 89% of small business owners in the region are entering the new year with growth plans in place, compared with 84% nationally. The figure marks a sharp increase from last year, when 72% of East Midlands firms said they were prioritising new investment, and represents a five-year high for the region.
Across the UK, 84% of small business owners say they are planning to invest in growth initiatives at the start of 2026, also a five-year peak.
The East Midlands outperformed other regions outside the capital, ahead of the North West at 84% and the West Midlands at 83%.
The renewed focus on growth follows a challenging trading period in 2025, when the proportion of small business owners predicting growth fell across four consecutive quarters to 25%.
Novuna’s research, based on a nationally representative survey of 1,000 small business owners, shows manufacturing firms are the most likely to be investing in growth in 2026, with 94% planning new initiatives. IT and telecoms followed at 89%, while property and real estate saw one of the largest year-on-year increases, rising from 72% to 85%.
Across the 10 sectors surveyed, all but one recorded a year-on-year rise in businesses prioritising growth. Retail and finance were unchanged, while media was the only sector to record a decline.
In the East Midlands, increasing new business income remains the top priority, cited by 48% of small businesses, up from 41% a year ago. The data also shows a significant rise in firms focusing on cost reduction, with 42% prioritising lower fixed costs, compared with 25% last year.
Building financial reserves was cited by 22% of businesses, while 25% said they are prioritising diversification into new products or services, up from 20% a year ago.
Jo Morris, head of insight at Novuna Business Finance, said: “As we all prepare to start a New Year, our data paints a picture of determination and resilience from small business owners in the East Midlands. Last year was, for many, a low-point, with small business growth forecasts hitting a record low and many concerned about external factors, such as US tariffs and fears of tax rises in the Autumn Budget.
“Despite all this, more than eight in 10 small business owners are going into 2026 determined to find new ways to make their enterprises stronger and more resilient.”