SME PULSE · October 2026
Change is happening. Cash isn't.
How UK small business is really doing.
It's a strange month. On the one hand, a new survey shows AI adoption among small businesses has jumped to over 50%. On the other, a staggering nine in ten firms are still getting hit by late payments.
That's the difficult reality for many right now. The pressure to invest in change – new tech, new systems, new skills – is huge. But the cash to do it is being squeezed. It means that when you do decide to start a project, you can't afford for it to go wrong. Getting delivery right has never been more important.
✍️ Gareth's take
That 54% AI adoption number is the stat of the month. It feels like every business owner I talk to is either trying an AI tool or feeling guilty that they aren't. There's a real pressure to get on board, and it's easy to see why. The promise of saving time on admin or marketing is compelling.
But I've been running projects for long enough to have seen this movie before. We saw it with CRM software a decade ago, and with cloud accounting before that. A new tool arrives, promising to change everything. Businesses rush to buy it, but six months later it's gathering dust because nobody had a clear plan for it. The software isn't the project. Changing how your team works is the project.
So before you spend a penny on a new AI subscription, do this. Take one sheet of paper and answer three questions. What specific problem are we trying to solve? Who owns making this work day-to-day? And how will we know if it's been a success? Getting that clear is the difference between buying a gadget and building a capability..... unless its creating a project from scratch in the easiest way possible.... you know where to go for that!
Gareth McBain · Founder, PM101
📊 The month in numbers
How the market is behaving, and what small businesses are actually doing.
Late payment
9 in 10
UK companies that experienced payment delays in the past year
A delay on your customer's invoice is a direct risk to your project's cash flow; you need a plan for chasing it that doesn't burn goodwill.
Source: Coface
Adoption
54%up from 35% in 2025
SMEs actively using artificial intelligence
If you're rolling out AI, you're not alone, but success depends on having a clear problem to solve, not just buying the first tool you see.
Source: Staffing Industry Analysts / BCC
Tenders
£45.2bn
Direct public sector spend with SMEs in 2025, the highest share in six years
Winning a public contract is a project in itself, requiring a disciplined bid process and a solid plan to deliver on your promises.
Source: BizEquals / Tussell
Insolvency
1,946-3% vs August 2025
Companies in England & Wales entering insolvency in August 2026
Business failure is a real risk, often caused by poor delivery on a key project or one big customer invoice going unpaid.
Source: Paidnice / Insolvency Service
🔁 SMEs managing change 5 stories
This month's stories are about making change happen when the pressure is on. We look at five businesses managing major projects, from launching new platforms and overhauling core systems to rethinking their entire approach to skills and suppliers.
1 of 5 · rebuildingsociety.com
Finance platform launches community P2P lending service for local SMEs
UK finance platform rebuildingsociety.com successfully launched its own new service: a community-focused peer-to-peer (P2P) business loan platform. The project involved creating a system to connect local SMEs seeking finance directly with lenders in the community. It was a significant strategic move for the company, expanding its services and reinforcing its brand. This kind of internal development project is a common form of business growth, requiring careful planning and execution to go from an idea to a live, working platform. The launch represented a major change in how the company operates, opening up a new way to serve small businesses while growing its own market presence.
The delivery angleLaunching a new platform is a complex project with lots of moving parts. You've got tech development, legal checks, marketing, and user onboarding to think about. How do you make sure you haven't missed a crucial step? Using a ready-made template for a project charter helps you think through all the angles from the start. It forces you to define what success looks like, who needs to be involved, and what the risks are. It’s a simple way to get everyone on the same page before you start spending real money.
Read the full story: rebuildingsociety.com
2 of 5 · Employment Hero (YouTube)
Academy Training advises SMEs to pivot from recruiting to upskilling
Academy Training, a UK training provider, is tackling the national skills gap by changing how SMEs think about talent. According to Operations Manager Kelly Goddard, the traditional model of just recruiting for skills is no longer working for small businesses. Instead, they encourage firms to see their own workplace as a training powerhouse. Driven by new government funding for apprenticeships, Academy Training provides a roadmap for upskilling existing teams and building a specialist workforce from within. Their approach is about moving past old myths to create a sustainable way to avoid the "SME brain drain" and grow talent in-house, protecting the business for the future.
The delivery angleShifting from a 'recruit-only' mindset to an 'upskill-first' one is a big change. Leaders often struggle with where to start. They have to explain the 'why' to the team, figure out training needs, and manage the process without it becoming a huge distraction. It’s easy to get stuck wondering if you’re doing it right. Getting quick, no-nonsense answers to your questions as you go can stop you from stalling and keep the momentum going. It gives you confidence that you are on the right track.
Read the full story: Employment Hero (YouTube)
3 of 5 · Staffing Industry Analysts
Half of UK SMEs are now using AI
Artificial intelligence is quickly becoming a standard tool for UK small businesses. A new British Chambers of Commerce survey found that 54% of SMEs are now actively using AI, a sharp increase from just 35% in 2025. It’s being put to work on practical tasks in marketing, customer service, and administration. The good news is that this change isn't costing jobs. A huge 95% of firms using AI reported it had no impact on their workforce size. Adoption is happening fastest in B2B service firms and larger SMEs, showing AI is moving from a buzzword to a real-world tool that helps businesses work better.
The delivery angleThis rapid adoption is great, but it's easy to buy an AI tool without a clear purpose. Rushing in can mean you get the wrong software or your team won't use it. What questions should you ask a vendor? How do you explain the change to your staff? Getting the tricky communications right is half the battle. A little help structuring your thinking saves a lot of headaches later. PM101 provides prompts to get you started on these exact conversations.
Read the full story: Staffing Industry Analysts
4 of 5 · ERP Artists
When your business outgrows its spreadsheets
Many growing SMEs hit a wall when their systems can’t keep up. Information gets scattered across different apps and spreadsheets for sales, accounts, and stock. This fragmentation forces staff to re-key data constantly, which wastes time and causes expensive mistakes. For a UK business, the problem gets serious when it affects compliance tasks like VAT submissions or management reporting. Growth exposes every one of these weak points. The fix is often moving to a single system, like an Enterprise Resource Planning (ERP) tool, that gives everyone one version of the truth. But choosing and implementing that new system is a major project.
The delivery angleMoving all your core business operations to a new system is a massive undertaking. It's not just about the software; it's about changing how everyone in the company works. Without a clear plan showing milestones, who owns what, and how the budget is tracking, these projects can drag on for months and disrupt the entire business. Having one place to see progress gives everyone the confidence that the change is under control, on time, and on budget.
Read the full story: ERP Artists
5 of 5 · Global Supply Chain Law Blog
SMEs urged to build more resilient supply chains
UK businesses are being pushed to get serious about their supply chains. Thanks to ongoing global instability, trade restrictions, and climate disruption, just finding the cheapest supplier is no longer enough. A new government strategy signals that companies are now expected to understand their entire supply network, identify weak spots, and build in resilience. For SMEs, this means a major operational shift. They need to move from simply buying materials to actively managing risk, so they don't get caught out by delays or shortages. It’s about ensuring they can keep making their products and delivering to customers, no matter what’s happening in the world.
The delivery angleMapping your supply chain and building a resilience plan sounds daunting. But it's just a project. You don't need complicated software; you need to know the basics of breaking a big job into small, manageable tasks. Who will identify key suppliers? What's the deadline for finding alternatives? Tracking progress helps everyone see how the plan is coming together, turning a vague worry into a solid defence for your business. Learning the fundamentals of delivery can make any challenge feel less overwhelming.
Read the full story: Global Supply Chain Law Blog
📚 Worth a read
New to running projects? Three recent pieces we think are worth your time.
- Building Confidence in a New Job: Why Curiosity Works Better Than Certainty
It offers good advice on tackling self-doubt when you’re new and still finding your feet.
- Senior leader announced delivery date and we don't have scope defined or resources hired.
A very common problem, with practical advice from others who have been in the same sticky situation.
- Builds Teams and Fosters Teamwork: The Leadership Skill That Turns Individuals Into One Team
A project is a team sport; here's how to get everyone working together towards the same goal.
Not sure if your change projects are set up for success? Take our free 3-minute check-up to see where your business is already strong, and where you could save time and money. https://pm101.co.uk/quiz
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