SME confidence reaches four-year high, Close Brothers finds

Confidence among UK SMEs has climbed to its highest level since February 2022, according to the latest Business Sentiment Index (BSI) from Close Brothers Asset Finance.

Conducted in March 2026, the survey found overall business confidence rose to 25.5 points, with five of the seven sectors surveyed reporting improved sentiment.

The index measures business owners’ appetite for investment, access to finance, views on the wider economy and expectations for business performance over the next 12 months.

Agriculture and print and packaging emerged as the strongest-performing sectors in the latest report.

Agriculture recorded a 148% increase in sentiment, driven by strong investment appetite, with 85% of respondents saying they planned to seek funding for business investment over the next year. Confidence in the wider economy was also above the UK average, with 46% expecting economic improvement during 2026.

Despite ongoing macroeconomic concerns, agricultural businesses remained optimistic about their own prospects, with 42% expecting growth and none anticipating closure.

Print and packaging businesses also saw a significant uplift in confidence, rising 181%, with 78% planning to seek external funding for investment. However, firms in the sector were more cautious about the broader economy, with 54% expressing concern that conditions may worsen over the coming year.

Across all sectors, 70% of SMEs said they planned to seek outside funding for business investment during the next 12 months, highlighting continued appetite for growth despite economic uncertainty.

The report also highlighted ongoing funding challenges facing smaller businesses. On average, 34% of SMEs said they had missed a business opportunity during the past year because of a lack of available finance.

The findings reflect wider concerns raised by the Federation of Small Businesses, which has identified access to finance as a key barrier to economic growth for SMEs.

While business owners were divided on the UK economy’s prospects – with 41% expecting growth and 45% anticipating a slowdown – sentiment about individual business performance remained more positive.

Most firms expected to maintain current performance levels during 2026, while a sizeable minority anticipated growth. Recruitment businesses stood out as the most optimistic sector in terms of expected business performance.

The research was based on a survey of more than 900 SME owners and senior business leaders across the UK and Ireland.