Smaller businesses are the engines of the UK economy but right now, too many are stuck in first gear. Right now, 36% of small businesses are growing—an encouraging sign, up from 21% in July 2024—but most small firms are ready to put their foot on the accelerator. Those using digital tools are shifting into higher gears: boosting revenue, increasing sales confidence, and enhancing productivity. Yet one in three small businesses still haven’t tapped AI tools.