Small business owners within the Business Buzz network are absorbing rising costs, delaying investment and reconsidering recruitment rather than risk losing customers to further price rises, according to a new snapshot survey from the UK networking community.
The poll of 38 business owners and entrepreneurs in the Business Buzz community found the pressure is widespread: 82% had experienced higher costs over the past 12 months, and almost nine in ten of those surveyed said they were absorbing at least some of those increases themselves rather than passing them onto customers.
While the sample is small, the findings sit against a wider backdrop of business uncertainty and cost pressures. The Office for National Statistics’ latest Business Insights and Conditions Survey, published on 24th September 2026, found that economic uncertainty remained the most common challenge to business turnover, cited by 29% of trading businesses. Among businesses with 10 or more employees, labour costs were the leading challenge, reported by 37%.
Energy prices were also a growing concern nationally, with 64% of businesses reporting some degree of concern in early September. Within the Business Buzz survey, 79% described themselves as fairly or very concerned about fuel and energy costs.
Price rises have not been enough to offset the pressure. 42% of respondents had already raised their prices and a further 21% planned to, but of the 14 who had increased prices, 12 were still absorbing some of their higher costs, suggesting price increases are cushioning the impact rather than resolving it.
The financial squeeze is also starting to affect businesses’ ability to grow. Within the group surveyed, 45% said rising costs had affected their growth or investment plans, and 39% had already delayed recruitment, investment or expansion.
Simon George, Co-Founder of Business Buzz, said:
“What comes through strongly is that small business owners are trying to protect their customers as well as their businesses. Many have raised prices because they have had little choice, yet they are still taking on part of the increase themselves.”
“That cannot continue indefinitely. When margins are already tight, absorbing higher supplier, employment, energy and fuel costs leaves less money to recruit, invest or expand. These are not businesses lacking ambition; they are businesses being prevented from acting on it.”
Business owners in the survey were also asked what action would make the greatest difference. Lower taxes and business charges emerged as the strongest theme, with respondents citing corporation tax, VAT, National Insurance, PAYE, business rates and tariffs.
Several called for a reduction in the cost of employing people, including changes to employers’ National Insurance and better incentives for recruiting and training younger workers. Others wanted more affordable finance, simpler grant applications and action on fuel, energy and material prices.
Making Tax Digital and the added accountancy costs associated with it were also raised as examples of administrative pressure. The strength of feeling was clear, with some respondents saying they felt “taxed to death” and others warning that costs were continuing to rise while revenue and customer demand failed to keep pace.
67% said they did not believe government policy reflected the pressures facing small businesses, and a further 12% felt those pressures were understood only partly.
Simon continued:
“Small businesses are often described as the backbone of the economy, yet too many owners feel their reality is missing from the decisions being made on tax, employment and business support.”
“The clearest message from our community is that the cost of employing people has become a barrier to growth. If the government wants small businesses to create jobs and invest locally, it needs to make taking on staff feel possible again.”
“Business owners are resilient and used to solving problems, but resilience should not mean accepting every additional cost. They need practical support, simpler access to funding and a tax environment that gives them room to grow.”
For context, government figures show there were 5.64 million small businesses in the UK at the beginning of 2025, accounting for more than 99% of the private sector business population. Together, small businesses supported more than 13 million jobs and generated an estimated £1.88 trillion in turnover.
Business Buzz is calling for greater recognition of the pressures facing micro and small businesses, with a particular focus on employment costs, proportionate tax relief and simpler access to grants and affordable finance.
The networking community will also use the findings to shape practical support for its members, including guidance around pricing, supplier negotiation, cash-flow planning, recruitment and communicating necessary price increases to customers.
