Running a small business in the UK is no easy task. From supply chain disruption, shifting consumer demand, and fluctuating inflation levels, business owners are navigating an unpredictable environment.
With this in mind, SumUp surveyed 750* UK business owners and decision makers within small UK businesses to see how confident they feel about the state of the current UK market, their top growth priorities for the next 12 months, and how their confidence levels stack up against last year.
When it comes to SMEs in Belfast, what are their confidence levels and outlook for the year ahead?
Confidence levels among Belfast SMEs: 2024 vs 2025
READ MORE: Allstate NI Managing Director accepted into Forbes Technology Council
Over a third (37%) of SMEs in Belfast reported a stronger business performance this year, compared to last, including growth across key areas. Following this, we asked how confident they feel about the year ahead. Overall, confidence has increased significantly across the city.
One in seven (13%) of small business owners in Belfast described themselves as very confident about the next 12 months, expecting significant growth and success. While this represents a slight drop from the 16% who felt strongly confident in 2024, overall sentiment remains upbeat.
A further 50% of respondents expressed confidence, though with cautious optimism. They acknowledged potential challenges but maintained a positive outlook on growth opportunities. This represents a modest increase in confidence from 25% who reported a similar outlook in 2024.
In total, 63% of Belfast’s small business owners expressed confidence in the year ahead, an increase of 22 percentage points from last year, highlighting growing optimism.
While only 6% of SMEs in Belfast report feeling somewhat concerned, and an equal proportion as not confident about the future of their business over the next 12 months, a further quarter (25%) expressed neutrality or said they were unsure, expecting their business to remain steady with no significant growth or decline.
Current challenges faced by Belfast SMEs:
While over two-fifths (44%) of SMEs report a stable business performance compared to last year, a further 19% said their business has experienced a significantly weaker performance. When asked about what the current challenges were among business operations, rising costs pose the biggest concern for small businesses across Belfast.
Half (50%) of respondents identified the overall economy as their most significant challenge, including interest rates, inflation, and changes in consumer disposable income. Furthermore, 56% are challenged by the rising cost of raw materials, including supplies and inventory, and an equal proportion (56%) are finding the cost of bills difficult to manage, including energy, rent, and gas.
In relation to customers, over half (56%) reported that customers are spending less, with a noticeable drop in average purchase value. Furthermore, 50% noted that customer retention is getting tougher, expressing that it is becoming more difficult to keep customers engaged. A further quarter (25%) also raised their concern that customers will start buying from competitors for better prices or convenience.
Other concerns for SMEs in Belfast include retaining existing customers (38%), finding and retaining skilled employees (31%), while a further 31% have noticed that customers are more price-sensitive than before, often expecting discounts or promotions which is impacting profit margins.
How SMEs are staying on top of current concerns:
Nearly nine in ten (87%) SMEs in Belfast have made strategic changes in the past six months to navigate current challenges and remain resilient, which have resulted in a positive impact on their business performance.
When it comes to pricing strategy, SMEs are taking different approaches in response to current market conditions.Half of SMEs in Belfast (50%) have increased their prices in order to help profit margins, with a quarter (25%) reporting this change having a positive impact on their business. In contrast, almost a third (31%) have seen a positive impact from lowering their pricing structure to line up with customer spending habits.
A number of cost-saving measures have been put in place by SMEs. This has involved changes across their supply chains and professional services, including almost a third (31%) of SMEs who have switched to more affordable suppliers, streamlining logistics, or bulk-buying to secure better rates. Similarly, an equal proportion (31%) have switched service providers such as energy or broadband companies to cut ongoing costs.
Other adjustments SMEs in Belfast have made which have resulted in a positive outcome include upskilling staff or hiring new talent (38%), enhanced customer retention efforts (25%), and expanding into new markets or customer segments (25%).
Priorities for growth over the next year.
When it comes to growth priorities, SMEs are focused on strengthening their financial foundations, whilst exploring new opportunities for expansion.
The top priority for half (50%) of SMEs is to improve their profit margins, whilst over a third (38%) aim to reduce business costs and debt. To do this, 38% are focused on diversifying income streams, whether by opening a physical store, expanding into e-commerce, or exploring sales through social media platforms like TikTok. Meanwhile, 13% are aiming to secure funding or investment to support growth.
Other priorities for small businesses in Belfast include improving operational efficiency (25%), launching new products or services (19%), and preparing for economic uncertainty (6%).
Corin Camenisch, Product Marketing Lead at Sumup commented on the survey: “As champions for small merchants, we conducted this survey to discover the confidence levels of small business owners and decision makers in the UK to better understand the challenges they face, gauge their optimism about their future, and identify areas where support for SMEs might be needed.
“Overall, confidence levels of small business owners and decision makers across the UK are high. This positive outlook suggests that small merchants are prepared to navigate potential uncertainties and continue to thrive.
“We have provided tips off the back of our findings for those just starting out in business, or who are looking to deal with unexpected market fluctuations on our full campaign page.”
For more information and business advice, please visit the full campaign page here: https://www.sumup.com/en-gb/business-ideas/uk-business-confidence-report-2025/
Read the latest edition, Summer 2025, of Sync NI here completely free of charge.
Subscribe to the Sync NI newsletter for all the latest technology news, jobs and upcoming events in Northern Ireland.
Visit Sync NI online for the latest technology news in Northern Ireland.
