SMEs buck the trend with remarkable confidence
A new study by eBay UK reveals that nearly four in five online small and medium-sized enterprises (SMEs) are expecting growth over the next year, despite the wider economic pressures facing the country. According to the report, 78% of online small businesses surveyed anticipate increased sales in the coming 12 months, with a full one-third feeling “very confident” about their prospects.
A digital-first wave of entrepreneurs
This surge in optimism marks a shift in how businesses are launched and scaled today. Remarkably, 44% of respondents started their ventures with less than £1,000 in capital, and 3% began with zero initial investment. What once might have been a side hustle has become the primary income source for many, reflecting a new model of lean, digital-first entrepreneurship.
Key drivers of SME confidence
eBay UK’s findings highlight several factors underpinning this upbeat outlook:
- Strong consumer demand (30%) – sustained online spending has buoyed many sellers.
- New selling tools and AI innovations – 30% credited platform features that streamline listing and fulfilment.
- Increased platform support (17%) – service enhancements, seller learning resources and promotional programs.
One standout example is Rarewaves, which began as a small vinyl store in 2005. Today, it manages a turnover of $100 million, thanks in part to AI tools that coordinate millions of product listings across multiple marketplaces.
AI as the new growth engine
Artificial intelligence has quickly become central to many SMEs’ strategies. The report shows:
- 43% of sellers are excited about AI’s potential.
- 26% are curious but have not yet adopted it.
Those already using AI cite two primary benefits:
- Time savings on administration – automating repetitive tasks such as invoicing and customer queries.
- Efficient product listing – AI-generated titles, descriptions and image tagging accelerate the upload process.
Despite these gains, SMEs are not without concerns.
Headwinds and hurdles still loom
Top challenges identified by online small businesses include:
- UK economic climate – inflationary pressures and cost-of-living concerns dampen consumer sentiment.
- Time constraints – juggling growth initiatives with day-to-day operations remains a struggle.
- Access to funding – securing investment or credit lines continues to pose difficulties.
These barriers echo warnings from the British Retail Consortium (BRC), which reports that food inflation is set to reach 6%, a factor likely to further test consumer wallets and seller confidence.
eBay UK’s commitment to SME success
Despite these headwinds, eBay UK’s general manager remains optimistic about the resilience and adaptability of this entrepreneurial cohort. As Eve Williams puts it:
“Our sellers are ambitious and adaptable, already embracing tools like AI to scale smarter and grow faster. At eBay, we’re proud to support their journey—lowering barriers to entry, championing innovation, and helping sellers build businesses that are flexible, digital-first and designed for the future of work.”
Looking ahead
With 78% of online SMEs forecasting growth and a third “very confident,” Britain’s digital micro-businesses are proving remarkably resilient. By leveraging low-cost startup models, harnessing AI-driven efficiencies, and tapping into strong consumer demand, these sellers are carving out new career paths and contributing to economic dynamism—even as they navigate supply chain challenges, inflationary pressures and funding constraints.
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