Findings from the Sage Small Business Tracker Q3 2025

Smart Data Foundry Collaborates on Latest Sage Small Business Tracker

The Q3 2025 Small Business Tracker, produced by Sage UK in collaboration with Smart Data Foundry and the Centre for Economics and Business Research (CEBR), shows that small businesses continue to find profitability gains, aided by rising revenues, which outpaced expenditures.

Drawing on data from businesses across all UK regions (including Northern Ireland, Scotland, and Wales) the Tracker provides a real-time view of how SMBs are navigating the current economic environment. The wider UK economy grew 1.3% year-on-year in Q3, easing slightly from 1.4% in the previous quarter. 

Key Takeaways

• Profits increased – Small business profits grew by 5.7% year-on-year. This is the third consecutive quarter of accelerating growth and marks the highest pace of growth since Q1 2022.
• Revenues rose – Real revenues for small businesses rose 2.5% year-on-year. Revenue resilience has been impressive amidst the prevailing headwinds created by elevated borrowing costs, sticky inflation and struggling confidence.
• Expenditure rose modestly – Real expenditure for the average small business rose by 0.8% in the year to Q3 2025, equal to the pace in the previous quarter. Expenditures grew more slowly than revenues, allowing profits growth to accelerate.

Despite higher revenues, productivity fell, erasing nearly all the previous quarter’s gains – In Q3 2025, productivity for the average small business fell by 4.6% year-on-year, following a 4.6% increase in Q2 2025.

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Download the full report for comprehensive insights into how UK small businesses are adapting in 2025 and the role data can play in supporting their continued success.