Corporate and Commercial
Owner Managed Businesses
Harshita Samani
November 2025
The UK government’s strategy published in August, Backing Your Business: Our Plan for Small and Medium-Sized Businesses, sets out reforms to drive growth and innovation across the SME sector, recognising their vital role in driving innovation, employment and economic growth within the UK.
With SMEs representing 99.8% of the UK businesses and generating over £2.8 trillion annually, the strategy places small and growing businesses – from start-ups to owner-managed enterprises – at the heart of the UK’s economic future.
But what does this mean for your business. Below, we highlight the key pillars of the strategy, and what founders, SMEs, and business leaders should consider to prepare.
- Fixing the Fundamentals
The government aims to cut late payments, reduce regulatory burdens by 25%, modernise tax and customs systems, they also plan reforms to support small developers and support the net zero transition including support with energy efficiency.
For SMEs, founders and business leaders, this means:
- Cash flow protection
Late payment remains a top cause of small business failure. Strong contract and invoicing processes are essential this includes ensuring your commercial contracts are drafted and reviewed to ensure compliance with new late payment legislation and interest clauses. - Regulation simplification
All business owners dream of a world with less admin and corporate reporting but it is essential to stay ahead of new compliance requirements that come with new licensing reforms and SaMBAs (Small and Micro Business Assessments) - Planning reforms
Growth-focused businesses may gain easier access to sites and infrastructure opportunities. - Net Zero readiness
Sustainability is becoming a competitive advantage with customers, investors and lenders. Ensuring a review of green leases, energy contracts, and sustainability-linked financing aids the transition to environmentally-conscious business practices.
- Unlocking Access to Finance
Reforms will expand start-up loans, British Business Bank programmes, introducing mandatory Code of Conduct for personal guarantees and improve access to finance for underrepresented founders.
Why this matters for SMEs and owner-managed businesses:
- Funding choices
The wrong loan or equity structure can add unnecessary risk if compliance with lender codes and guarantee terms aren’t considered. - Investor Readiness
Businesses with robust governance, shareholder agreements and IP protections are more attractive to investors. - Inclusive funding
New regional and diversity-focused schemes could unlock finance that was previously out of reach.
- Backing the Everyday Economy
Plans include licensing reforms for hospitality and night-time economies, High Street Rental Auctions and Community ‘Right to Buy’, transforming business rates, banning upward-only rent review clauses and introducing crime prevention initiatives.
Implications for business leaders:
- Rental flexibility
Property reforms may lower overheads or open up high street opportunities. - Licensing changes
Retail and hospitality businesses need to stay compliant to avoid costly disruption. - Crime prevention
Measures could help reduce theft and loss such as shoplifting and tool crime, protecting already tight margins.
- Future-Proofing Business Skills
Supporting digital adoption programmes and AI integration, leadership and mentoring initiatives, apprenticeship and skills system reforms and enterprise education and youth entrepreneurship awards form a key part of the strategy.
Why founders should take note:
- Workforce development
Apprenticeships and training can tackle skills shortages while building loyalty. - Digital & AI adoption
Early adopters gain efficiency, but compliance (e.g. data protection) must be built in. - Leadership growth
Governance and mentoring initiatives help scale businesses sustainably. Supporting leadership development through governance frameworks and mentoring agreements assist this.
- Opening Up Opportunities
The government is launching the Business Growth Service, providing export support and trade finance expansion, SME-friendly procurement reforms, IP protection and secure innovation reviews.
For SMEs and growing businesses:
- Public Procurement
More opportunities to supply government contracts, but preparation is key. - Export readiness
Strong contracts and customs compliance are vital to avoid delays and penalties. - IP Strategy
Innovations need to be protected and commercialised to maintain competitive advantage from registering and enforcing IP rights to licensing, and IP-backed financing. - Cybersecurity and Innovation
Strong protections build customer trust and secure growth..
The UK’s SME growth strategy is wide-reaching, with reforms that could reduce risks, open new opportunities, and make it easier to scale. For founders, owner-managed businesses and SMEs, the challenge is translating policy into action: tightening up contracts, reviewing finance options, investing in digital tools and skills, and safeguarding innovation. We play a critical role in helping our clients and their businesses interpret and implement these reforms, ensuring they remain compliant, protected and well positioned to seize new opportunities.
Those who prepare now will be best positioned to thrive as the strategy unfolds.
View our checklist to see what you can do to prepare
If you are a small or medium-sized business who wants to understand how you can utilise any of the points mentioned above or understand the effect these changes may have on your operations or growth plans get in contact with Harshita Samani.
