97% of Owner-Managed Businesses say government support is failing them

We are members of the Association of Practising Accountants (APA), a Managing Partner-led network of professional service firms that collectively advise more than 14,000 owner-managed businesses across the UK. Each year, APA member firms collaborate on research exploring the opportunities and challenges facing this vital part of the economy.

The 2026 survey, conducted between May and July among 272 owner-managed businesses, paints a concerning picture. Nearly all respondents (97%) rated government support as poor or very poor, 91% expect labour costs to rise over the next 12 months, and only 32% identified growth as their primary business priority.

Other findings include:

• 88% anticipate supply-chain costs to rise over the next 12 months, up from 82% in 2025
• Uncertain trading conditions (40%), wage inflation (20%) and supply-chain inflationary pressures (14%) were identified as the biggest challenges
• 23% have used AI to reduce costs and / or increase output over the last 12 months
• Business growth was identified as the main priority for 32% of respondents while sustaining their business was the priority for 49% and business survival for 12%

Despite these concerns many of these businesses remained resilient:  

• 49% think they are in better shape than 12 months ago
• Only 6% identified labour shortages as their biggest challenge, down from 9% in 2025

Commenting on the findings, APA Chairman, Martin Clapson said: “The Government needs to reset its relationship with Owner Managed Businesses if it is to deliver the ‘good growth in every postcode’ the Prime Minister has spoken about.

“Our research makes clear that current Government SME policy is poorly aligned with the practical needs of Owner Managed Businesses who are vital engines for UK economic growth.

“There is a significant opportunity to unlock and liberate the potential of this sector of the UK economy. To seize it, Owner Managed Businesses must receive the structured, practical support they need to invest, innovate and grow.”

The APA is calling on Government to:

• Introduce greater fiscal incentives to unlock capital investment
• Encourage closer alignment of modern apprenticeships with the needs of the workplace
• Take a more realistic view of our future trading relations with Europe and outside Europe recognising that labour shortages coupled with an altogether more challenging export environment pose a real threat to long term growth
• Recognise that uncertainty remains across many sectors of the economy and that businesses want reassurance as well as clear and unambiguous advice and support

Alex Peal, Managing Partner at James Cowper Kreston, commented: “These findings highlight the pressure many owner-managed businesses continue to face. Rising labour and supply-chain costs, combined with ongoing economic uncertainty, are impacting confidence and causing many businesses to prioritise stability over growth. While the resilience shown by business owners is encouraging, greater clarity, certainty and practical support from Government will be essential to unlock investment, boost confidence, and drive sustainable growth.”

Read the full APA Survey Results 2026 in full here.