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Running a small business in Kent has always come with its challenges, but 2025 is shaping up to be a defining year for many local business owners.
With rising costs, shifting consumer habits, and changes in regulations, businesses are having to adapt fast. But it’s not all bad news—there are opportunities on the horizon for those who are ready to evolve and take advantage of new trends, funding, and support available.
So, what’s happening in Kent’s small business landscape right now?
How Kent Businesses Are Coping With the Economic Climate
Despite economic uncertainty, small businesses in Kent are proving their resilience. While some have struggled with revenue dips, others are finding ways to innovate, attract new customers, and grow despite the challenges.
Reality check: In the first quarter of 2024, 42% of small businesses in the South East reported a drop in revenue, showing that it’s still a tough market. But…
Optimism ahead: Many Kent-based SMEs are predicting an 18% rise in revenue over the next three months, slightly below the UK average of 22%, but still a sign of confidence.
One of the biggest shifts is how businesses are adjusting their strategies. Those that rely on footfall and traditional advertising are finding it harder, while those investing in branding, digital marketing, and online sales are seeing better results.
Rising Costs and the Impact on Small Businesses
There’s no denying that costs are going up—and fast. From energy bills to supplier costs and staff wages, businesses are having to be smart about where they spend their money.
Wage inflation is a real challenge. Over the past year, small businesses have seen an 8.2% rise in wages, outpacing the 2.2% inflation rate. The job market remains competitive, and many businesses are having to pay more to keep skilled staff.
Utilities aren’t getting any cheaper. Small businesses in Kent are preparing for a 30% rise in water bills by 2030, as approved by Ofwat. The increase is intended to fund environmental and supply improvements, but it’s an extra strain on businesses already stretched by costs.
New tax and regulation changes are adding pressure. Updates to National Insurance contributions and inheritance tax relief from the latest Budget have raised concerns for small business owners. There’s ongoing debate about how these changes will impact growth, hiring, and succession planning.
It’s clear that for Kent businesses to stay profitable, they need to find ways to work smarter, cut unnecessary costs, and invest in areas that bring long-term returns.
The Shift in Consumer Spending and Market Trends
Consumers are spending more cautiously than they were a few years ago. Impulse buys are down, research time before purchases is up, and people are prioritising value more than ever.
So, what does this mean for Kent businesses?
Online presence matters more than ever. Customers are researching brands before they commit. Having a strong brand identity, a professional website, and active social media channels is no longer optional—it’s essential.
Sustainability is becoming a selling point. More consumers want to buy from brands that show they care about the environment. Businesses that can demonstrate sustainability efforts—whether it’s through packaging, sourcing, or processes—are building stronger relationships with their customers.
Local support is still strong. The good news? Consumers in Kent still love to support local businesses—but only if they can find them, trust them, and see the value in what they offer. Businesses that position themselves as part of the local community tend to do better in the long run.
Networking, Support, and Business Community Growth
One of Kent’s strengths has always been its business community. There are more networking opportunities, industry events, and local initiatives than ever before, helping businesses connect, collaborate, and grow.
Kent Business Show 2025 (March 13, Ashford International Hotel) is bringing together hundreds of local entrepreneurs to network, showcase their services, and gain insights into what’s working right now.
Litchfield Magazine’s Reader’s Choice Awards have highlighted some of Kent’s best businesses in 2025, proving that local brands can still gain strong recognition if they’re putting themselves out there.
The Federation of Small Businesses (FSB) in Kent continues to push for fairer regulations, improved payment practices, and better SME funding options, helping local businesses navigate ongoing economic uncertainty.
Now more than ever, building strong relationships with other businesses, suppliers, and customers is key to long-term growth.
Funding and Investment: Where Can Small Businesses Get Support?
For businesses looking to scale, innovate, or just keep things steady, there are several funding options available in Kent right now.
Kent and Medway Business Fund – A £55 million pot offering loans between £25,000 and £600,000 for businesses focused on innovation, job creation, and sustainability.
Growing Green Grant – Grants of up to £7,000 for businesses working towards net-zero goals, plus access to accredited training and tailored sustainability action plans.
Partners for Green Growth Scheme – Available for Medway SMEs, offering up to £2,500 to support decarbonisation and sustainable business practices.
Enterprise Investment Scheme (EIS) – A government-backed scheme designed to attract angel investors through tax incentives, with ongoing discussions about expanding limits to drive more investment into SMEs.
While funding is available, businesses need to know where to look, understand what they qualify for, and apply strategically. Seeking expert advice can help businesses secure the right funding for their needs.
What’s Next for Kent’s Small Businesses?
The business landscape in Kent is changing, and staying ahead means staying adaptable. The businesses that are thriving are the ones embracing digital transformation, focusing on brand visibility, and staying connected to the local community.
Investing in brand identity, marketing, and digital presence is key. More customers are researching businesses online before making a purchase, so having a strong, professional brand image makes all the difference.
Strategic financial planning will be critical. With rising costs, businesses need to be smarter with their budgets, making sure every investment—whether in staff, marketing, or operations—has a clear return.
Community matters. Small businesses that engage with other local brands, attend networking events, and take part in community initiatives will continue to grow stronger.
Kent’s small business sector is full of potential—but it’s those who adapt, innovate, and market themselves effectively that will see the biggest success in 2025.