Results from our recent Business Barometer quarterly research revealed that small businesses in the construction sector started 2026 with slightly greater level of confidence for the year ahead. Set against just 17% of construction enterprises predicting growing during the final months of 2025, for the start of 2026 this had risen to 24%. On face value, this could be viewed as modest upturn - but given the macro-economic and geo-political uncertainty dominating the economy, the upturn for the construction sector is noteworthy for perhaps bucking a general direction of travel.
Underpinning this small business resilience is a commitment to innovation, combined with a willingness to modernise and adapt. And here, sustainability is important to small business owners. At a time when some governments and major businesses have softened their commitments to Net Zero, emissions and sustainability, UK small businesses are emerging as the business community's new flag carriers on maintaining a focus and commitment to sustainability. Small business owners are often closer to their customers and the see first-hand the business sense inherent in supporting the communities where they operate or do business.
And here the significance of the construction sector emerges.
Findings from new Spring 2026 research, revealed that 95% of small business owners in the construction sector had changed their view on one or more aspects of sustainability - things they now regarded to be more important to their business than they were a year ago. Further, 88% of small business owners in the construction sector said that sustainability was personally important to them as an issue - as parents, as citizens and as business owners.
In terms of the overall attitudes to sustainability as a concept - 24% of construction small business owners said they were working on transitioning sustainability at a strategic level, ensuring it was embedded in their business culture and plans. A further 25% said that this year they were committed to taking more practical steps to support sustainable business practices on a day-to-day level.
In terms of the specific aspects of sustainability that construction businesses rated as more important going into 2026 - 38% prioritised improving policies and facilities towards packaging and waste - and recycling for products and services. In addition, 37% of construction small businesses placed greater importance for 2026 on their business having a positive social impact in their immediate community. A further 17% said they were Investing in local suppliers or contractors and 13% were committed to creating jobs locally.
In terms of who has been most influential in encouraging them to take sustainability seriously - the close focus many small businesses have on direct customer and staff feedback came into play. Nationally, 27% of respondents mentioned the influence of their customers and 26% cited the influence of staff members. A reminder that business owners are also everyday consumers - 18% of small business owners mentioned their partner and 17% the pester power of their children, in committing their enterprises to sustainability.
Our new Novuna Business Finance research also demonstrates that sustainability is not seen as a ‘nice to have' for construction small businesses - with many citing it as a crucial factor to supporting business growth. Nationally 23% of business owners believed they would win more business by being more sustainable - and 18% said they feared losing existing business if they were not seen by their customers to be sufficiently sustainable as an enterprise.
Despite the positive commitment from the sector to move forward with sustainable plans and practices in 2026, many business owners recognise that there are factors that threaten to limit the progress they would like to make - and financial factors here are key. Nationally, 32% of business owners commented on the impact of rising energy and fuel costs (32% and 27% respectively) and 26% remained deeply concerned about the future picture for inflation and the potential of interest rate hikes in the future. Add to this the feeling of uncertainty caused my macro-economic and geo-political tensions, and many businesses are feeling very real financial pressures. This can undermine small business confidence and result in them putting long-term investment and growth plans on hold. That said, our data suggests the conviction behind and - commitment to - sustainability remains strong.
And finally, we asked small business owners in the sector what they would do differently if they were starting their enterprise from scratch today - and the answers here give a valuable impression on the underlying issues that business owners think are really important. Here, sustainability issues topped the list - with 23% of respondents saying they would set out a plan for energy use that is efficient and as low cost as possible. In addition, 22% of respondents would invest more regularly in efficient modern equipment enabling scale, rather than repurposing old equipment.
Through this research - and our ongoing podcast interviews with small business owners across the UK - my sense is that, for many small businesses, sustainability is not about perfection-it's about creativity, commitment, and practical action. Small businesses are leading by example, and their efforts demonstrate that sustainable growth and commercial success go hand in hand.
At Novuna Business Finance, our aim is to listen and find helpful and workable solutions to support small businesses turn these ideas into practical action. Many want to do more on sustainability but aren't always sure where to start. Sometimes it's a lack of financial resources, other times uncertainty about what's required, and often the landscape can feel complex. That's why we help break it down into achievable steps, celebrate progress, and give businesses the confidence to act and keep building into the future.
Novuna Business Finance provides business finance to SMEs and bigger corporations across the UK. This includes asset finance, stocking, block discounting and sustainable project finance provided through brokers, vendor organisations, manufacturers and direct to the business community.
With an asset portfolio of more than £1.9bn, the business is active across multiple sectors from transport and agriculture to construction and manufacturing and was awarded Best Leasing and Asset Finance Provider at the 2025 Business Moneyfacts Awards.
The business' Sustainable Project Finance team is also supporting the development and construction of sustainable energy and transport projects, which are critical to the decarbonisation of the UK's infrastructure.
To discover more visit: Novuna [1]