Economic bright spots but founders pay dips
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We’ve known it forever, but here it is in black and white - small business owners are getting through the latest global economic squeeze the same way they always do - by paying themselves less.
Our latest dive into member confidence in our Small Business Barometer shows just how much strain owners are carrying personally. 76% now pay themselves less than £20,000 a year – up from 63% in 2025 – and it's even higher among businesses with staff. Founders are keeping the lights on by cutting their own pay first.
There are bright spots, though. Confidence has dipped overall, but tech firms are bucking the trend, hiring intentions are holding steady among businesses that already employ people, and AI adoption keeps climbing, now at 64%. But with so many owners already sacrificing their own income to keep their businesses afloat, this has to be a key message for a new Chancellor, with a Budget looming, to take on board. The Barometer found across every generation, the ask is the same: bring the tax burden down.
Speaking of tax, this week we’ve responded to a consultation on a proposal to take tax on side hustle income directly from day job payslips. It will be based on old data from previous years and will involve a deep understanding of tax codes. Your boss will know how much you earn at the weekend too – that could be an awkward conversation. Do you agree?
What do you think?
Back to the real world – fashion, darling! We speak to fashion designer Ber McNamara on launching a successful fashion brand in a crowded market. She warns fashion founders to be patient and don’t expect overnight success. We know it.
Side hustle tax from your payslip? Here's why we pushed back
Why Ber McNamara believes timeless fashion will always outperform trends
Good growth, closed doors: The real barriers to UK exporting
Small Business Barometer: Three in four small business owners now pay themselves less than £20K a year
Maikai and Enterprise Nation have partnered to offer fully-funded AI training (delivered by Baltic) for the Enterprise Nation community.
Discover how Baltic's AI courses support adoption, boost productivity, and turn technology into a catalyst for change.
🎧 New podcast episode: Usman Khalid on refugee entrepreneurs and changing narratives through coffee
🏆 Win a £5,000 grant to invest in a greener future
📧 Join the remaining Marketing Mondays sessions from Enterprise Nation and Constant Contact, designed to help you get better results from email marketing
💰 Enjoy 90% off for six months and simplify your finances with Sage Accounting
🏛️ Where is government technology heading next? Join the Government Technology and AI Conference 2026 for insights on AI, procurement and digital delivery - use 10OFF
💬 Join conversations with like-minded members in Groups
The Opportunity Hub - free talks with inspirational figures
🗓 Thursday 6 August | London
That’s all for this week!
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