NOT all businesses are struggling – some flying at the moment and defying the storm clouds hanging over the economy.
In 2025, businesses were hit by National Insurance hikes, high interest rates for borrowing and stubborn inflation, hitting the spending power of potential customers.
The policies announced in the Budget in November will see more businesses turn to AI and ultimately replace humans with machines or choose to outsource to foreign companies rather than hire in the UK, many small business owners claim.
The recently-passed Employment Rights Act will see an additional 32,000 more dads per year able to access Paternity Leave immediately.
A new Bereaved Partner’s Paternity Leave will also be introduced from April, providing up to 52 weeks of leave for fathers and partners who lose their partner before their child’s first birthday.
Statutory Sick Pay (SSP) from day one and unfair dismissal rights moving to a 6-month qualifying period are also in the pipeline – while the minimum wage and living wage are also going up.
Newspage spoke to Small Medium Enterprise (SME) owners who are thriving despite the tough environment.
Steve Witt, Co-founder at Not Just Travel, said bookings through his business are up 8% year-on-year.
He added: “January to March consistently captures the cream of UK travel bookings, and 2026 is proving no exception. 10th January marked our busiest Saturday on record, with more British consumers making the most of the January deals. Average booking values are also up 8% year-on-year as consumers choose to spend more on more premium experiences.
“Cruise continues its commanding climb. No longer niche, it’s now mainstream, younger and booming. Our cruise sales have surged 300% since 2023, jumping from 8% to 20% of all holidays booked. While consumers curtail spending elsewhere, holidays remain non-negotiable.
“No matter the news headlines, that treasured time with loved ones keeps people going through daily demands and difficulties. We’re witnessing clients willing to make other sacrifices before surrendering their breaks, booking everything from last-minute escapes to holidays well into next year.”
Average booking values are up
Paul Hamilton, Founder & CEO at Halo Service Solutions, said his tech company is going from strength to strength.
He continued: “I started Halo, a business integration software platform, back in 2004 from my mother-in-law’s spare bedroom in Stowmarket. I had no idea or aspirations that 20 years later we’d be nurturing a purebred Unicorn. What was a conscious decision was to grow our talent pool from graduate rather than senior hires. We’ve stayed local and pledged not to sell out to Silicon Valley.
“Today, Halo has a valuation approaching $2billion, remains privately owned, and has been grown without outside help or investment. What is fantastic, and contributory to our success, is being surrounded by a team of almost 200 enthusiastic and motivated young people for whom work is what we love and thrive on.
“I’m proud of what’s been created through collective hard-work and ambition, and with our 10-year rolling pledge to remain independent, I’m confident that Halo will continue to go from strength to strength as a disruptive force in the tech industry.”
Jonathan Moser, CEO at London-based Mo’Living, said his team is irreplaceable by AI.
He added: “Despite a tough market, our property management business is thriving because landlords want freedom from day-to-day tenant stress. We handle everything end-to-end with a human maintenance team, including cleaners, plumbers and handymen, all irreplaceable by AI.
“With uncertainty around the Renters Reform Bill, many landlords are also switching to Airbnb and short-lets, where we provide a fully managed, compliant solution.”
Winning combination means repeat business
Rob Dawes, Director at Briight, said his model means “repeat business”.
He continued: “Podcasting is booming as businesses prioritise trust, visibility and long-term pipeline in a tougher economy. At Briight, we’ve seen strong growth in demand for video podcasting, particularly in B2B. As generative AI floods the market with competent-but-generic content, brands are realising that sounding ‘fine’ is no longer enough.
“They need a recognisable voice and proof of credibility. That shift is reinforced by changing audience behaviour. There are now over 1 billion monthly podcast viewers on YouTube, which sits just behind the BBC as the UK’s most-watched ‘TV channel’. In niche B2B, the impact is clear.
“We see podcast episodes on subjects such as accountancy, SEO and business coaching regularly generate over 100 hours of watch time from just a few hundred views. That’s sustained attention from a highly relevant audience. Crucially, it’s also a highly efficient spend: a single episode fuels weeks of marketing content. That winning combination means repeat business for us.”
Rachael Chadwick-Harrison, Managing Director at Chadwick Accountants & Bookkeeping, said she has found businesses want proactive accountants.
She added: “The reason we’re doing well is simple, businesses don’t want reactive accountants anymore. They want proactive advice. They want someone who’s actually working with them, not just filing things after the fact. Over the last few years, we’ve seen business owners under more pressure than ever, rising costs, uncertainty, constant change.
“What they’re really looking for is clarity and confidence. They want an accountant who goes beyond compliance, who spots issues early, explains the full picture, and helps them make better decisions before problems arise.
“In challenging times, businesses don’t stop needing advice. If anything, they need better advice. And the firms that are willing to step up, go above and beyond, and truly partner with their clients are the ones that will continue to thrive.”
Up year-on-year
Elliott Benson, Owner at Leeds-based Sett Mortgages, said his business is growing on word of mouth.
He continued: “We have been up year-on-year every year since starting and even doubled our turnover in the latest year. This is literally down to the service we provide and the amount of word of mouth referrals we get.”
Mitali Deypurkaystha, Human-First AI Strategist & Author at Newcastle upon Tyne-based Impact Icon AI, jumped on the AI train and it has led to her business flying.
She added: “My business is flourishing despite being incorporated only in August 2025 because I’m operating in the wake of the AI ‘gold rush’. In 2024, many companies acted on FOMO. AI was (and still is) sold as a silver bullet, often by AI marketers masquerading as AI consultants. In 2025, reality hit. When MIT reported 95% of generative AI projects failed, AI was blamed.
“But the real issue was poor strategy. You can’t ‘AI-ify’ something that doesn’t work; you accelerate failure. By 2025, leaders were realising that human-first AI isn’t just ethical. It’s commercially essential. I’ve seen companies use AI to speed up call-centre admin, then push agents to take 2-3 times more calls.
“The result? Burnout, sickness leave and lost gains. My work has focused on cleaning up poor implementations as well as on savvy business owners who want to do it right the first time around. I can’t see this trend changing any time soon.”
We carry on delivering excellence
Kundan Bhaduri, Entrepreneur at London-based The Kushman Group, said his business is doing well in spite of government policies.
He continued: “We do not treat property as a passive cash machine but as a service business where the tenant is a valued client rather than a nuisance. Our strategy is boringly simple as I buy tired assets that first-time buyers will not be able to get mortgages on, in strong commuter towns and then we spend months adding genuine value through heavy lifting rather than relying on market inflation to do the work.
“The government has thrown every tax hurdle imaginable in our path but we carry on delivering excellence. While the armchair investors flee the sector, I am buying unloved commercial and residential units in towns like Maidstone and Ashford and stripping them back to brick and rebuilding from there on. It turns out that offering a premium product in a shortage is still the best business model in the world – regardless of who sits in Number 10.”
Tony Redondo, Founder at Newquay-based Cosmos Currency Exchange, said the stifling UK climate of over-regulation actually drives his business.
He added: “Cosmos Currency Exchange was born in 2020 during lockdown when international commerce faced unprecedented challenges. While others retreated, we saw opportunity. Our success stems from rejecting the self-service, tech-dominated model that dominates foreign exchange. Instead, we offer something increasingly rare: personal, proactive service delivered by humans who understand each client’s unique needs.
“We’ve built our business on removing friction from international payments and receivables, making cross-border transactions as straightforward as domestic ones. The UK climate, burdened by excessive taxation, over-regulation, and persistent negativity actually drives our growth.
“Businesses and individuals are looking beyond Britain’s shores, discovering abundant opportunities overseas. We’re thriving because we help people capitalise on global possibilities while others fixate on domestic difficulties.”
Photo by Casey Horner on Unsplash.
