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Introduction
According to the latest Quarterly Small Business Growth Survey by Novuna, the number of UK small businesses predicting growth has hit a 12 year low in Q3 of 2026. Just 24% of small businesses are forecasting any growth in Q3, down from 28% in Q2 of 2026.
The main reasons cited for overall growth prospects decreasing is due to economic uncertainty caused by continued geo-political tensions, such as the unresolved Iran crisis, rising fuel prices and local elections in the UK leading to a change in leadership in Government.
When drilling down into UK sectors, there is a mixed picture with a number of sectors seeing a significant downturn in growth prospects, whereas there has been a modest upturn in growth optimism across other sectors. These are detailed in the tables below.
What Are The Sectors Facing A Downturn In Growth Prospects Since The Last Quarter
| Sector | Q3 2026 | Q2 2026 | % Change |
| Retail | 21% | 38% | -17% |
| Construction | 15% | 29% | -14% |
| Media | 21% | 35% | -14% |
| Finance and Accounting | 34% | 45% | -11% |
| Hospitality | 21% | 25% | -4% |
What Are The Sectors Forecasting An Improvement In Growth Prospects Since The Last Quarter
| Sector | Q3 2026 | Q2 2026 | % Change |
| Transport | 35% | 28% | +7% |
| Agriculture | 27% | 20% | +7% |
| Medical Services | 25% | 21% | +4% |
| IT / Telecoms | 32% | 29% | +3% |
| Manufacturing | 31% | 29% | +2% |
Businesses who are looking to increase their growth prospects can apply for funding support, such as Government backed grants from providers in their local area, these include local authorities and enterprise support agencies. There is also support from national funding providers that cover growth for businesses in a particular sector.
What Are Some Of The Latest UK Business Growth Grants Funding Opportunities Available?
i) Business Growth Grant
Carmarthenshire County Council is providing funding to businesses with plans to grow and/or ensure sustainability. The funding can cover costs including equipment, fixtures and fittings, IT hardware, specialist software and training. Funding up to £50,000 is available.
Application Deadline: 31st October 2026
ii) Cynnal y Cardi Capital Business Fund
Ceredigion County Council is providing funding to support capital expenditure projects and specialist revenue expenditure that will support new and existing businesses with their growth plans and aspirations. Funding up to £50,000 is available.
Application Deadline: 14th August 2026
iii) Made Smarter East Midlands 2026/2027
Made Smarter and Lincolnshire County Council are running a scheme that aims to help manufacturers to choose and implement Industrial Digital Technologies to solve productivity and competitiveness issues. The scheme will provide funding for equipment and/or specialist advice to implement projects as well as a raft of support including fully funded Industrial Digital Technology Advice (IDTA) intensive support. Eligible areas for the funding are Derby, Leicester, Nottingham and Lincolnshire. Funding up to £20,000 is available.
Application Deadline: Applications are invited on an ongoing basis
iv) Cardiff Growth Fund
Cardiff Council is running a fund that aims to kick-start and grow the economy with a focus on creating a fairer, greener and prosperous future for Cardiff businesses. The fund will support businesses to relaunch, develop and grow. Funding up to £20,000 is available.
Application Deadline: Applications are invited on an ongoing basis
v) Innovation Worcestershire Grant
Worcestershire County Council is providing funding towards the cost of activities directly related to the development and/or introduction to market of innovative products, technologies or services. Eligible funding includes covering new tooling and equipment, creating a prototype, product testing and certification, IP and trademark protection, external market research, new marketing materials and product launch activities. Funding up to £15,000 is available.
Application Deadline: Applications are invited on an ongoing basis
vi) Strive For Success
South Staffordshire Council is running a programme with grant funding and a series of workshops aiming to support established and growing businesses in South Staffordshire at a critical stage in their development. Eligible funding includes business growth or scaling activity, productivity‑enhancing equipment or systems, digital development or transformation, market development or new routes to market and professional support linked directly to growth plans. Funding up to £7,000 is available.
Application Deadline: Applications are invited on an ongoing basis
vii) Sunderland Business Support Fund
Grow With NBSL and Sunderland City Council is providing funding to support bespoke business improvement projects. The fund will support projects where external expertise is being purchased to develop the business. Funding up to £6,000 is available.
Application Deadline: Applications are invited on an ongoing basis
viii) Bulwell Business Growth Grant
Nottingham City Council is providing grants to support businesses to grow and improve their productivity. Examples of eligible projects include research and development, digital marketing costs and the purchase of machinery that creates a ‘step change’ in commercial operations. Funding up to £5,000 is available.
Application Deadline: Applications are invited on an ongoing basis
How To Apply For Business Growth Funding Schemes
Full details about how to apply for schemes and the eligibility criteria is available on each individual scheme page on the relevant website. Any deadlines, who can apply and what eligible costs the grants will cover will also be outlined on these pages. Interested individuals and businesses can speak to growth advisors based at each provider who can guide them through requirements and eligibility criteria to see if the relevant funding is a match with their needs and help them to apply. There are also application forms and other supporting guidance available on scheme pages as well.