Oxfordshire Small Business Confidence Survey – Autumn 2026

New Skills 2 Grow research finds that Oxfordshire’s business decision-makers remain broadly optimistic about the year ahead, despite widespread pressure from rising operating costs.

Key findings

• 73.5% reported increased operating costs during the previous 12 months.
• 73.5% rated their confidence at four or five out of five.
• 58.8% said their revenue had increased.
• 58.8% expect their business to grow during the next 12 months.
• 42.2% may recruit employees or contractors.
• 92.2% are already using or testing artificial intelligence, although only 12.7% use it regularly.

Rising costs remain the central challenge

Transport and fuel emerged as the most widespread cost pressure, selected by 60.8% of respondents. Tax was selected by 52.9%, followed by advertising and marketing at 34.3%, rent and premises at 29.4%, and wages and employment costs at 27.5%.

Materials and stock, technology, insurance and energy costs were also identified. The results show that many businesses are not facing one isolated expense. They are managing a combination of mobility, taxation, premises, staffing and customer-acquisition costs.

Confidence and growth expectations remain positive

Despite rising costs, 75 respondents—73.5% of the sample—rated their confidence at four or five out of five. Sixty respondents reported increased revenue during the previous 12 months, while the same number expect their business to grow during the year ahead.

No respondent selected an expected decline. Forty-one anticipated stability, while one was unsure.

“The results show genuine resilience. Many local businesses remain confident and expect to grow, but they are doing so while managing substantial pressure on costs, time and customer acquisition.”Julian Frincu, founder of Skills 2 Grow

A pronounced divide by business size

The survey identified a notable difference between respondents from businesses with one to five people and those with six or more. Larger respondents were more likely to report high confidence, expect growth, contemplate recruitment and use AI regularly.

These comparisons do not prove that business size directly causes greater confidence, recruitment intent or AI adoption. They do, however, indicate that microbusinesses may require different forms of practical support from larger organisations.

“Confidence alone does not remove the pressure. Small firms need practical support with pricing, marketing effectiveness, capacity and systems if expected growth is to become sustainable growth.”Julian Frincu

Competition is the biggest obstacle to growth

Competition was identified as the single biggest obstacle to growth by 24.5% of respondents. This was followed by rising costs at 21.6%, lack of time at 17.6% and finding customers at 16.7%.

Marketing and artificial intelligence

Google and search engines were the most frequently selected best-performing marketing channel, followed closely by paid advertising, email marketing and networking.

AI engagement was particularly high within the sample. Ninety-four respondents were already using or testing AI: 49 used it occasionally, 32 were testing it and 13 used it regularly.

Voices from Oxfordshire businesses

Eight respondents provided written comments and gave permission for them to be quoted anonymously. Selected comments included:

About the research

Suggested citation: Julian Frincu, Skills 2 Grow (2026), Oxfordshire Small Business Confidence Survey – Autumn 2026.