Britain’s online small businesses are showing resilience and optimism despite wider economic challenges, with nearly four in five confident they will grow in the next 12 months, according to new research from eBay UK.
The study, which surveyed 1,000 small firms selling via ecommerce platforms, found that 78 per cent expect growth in the year ahead. The main drivers of optimism included strong consumer demand (30 per cent), the adoption of new selling tools and AI innovation (20 per cent), improved support from ecommerce platforms (17 per cent) and stabilising economic conditions such as interest rates (16 per cent).
Small businesses are increasingly adopting artificial intelligence into their operations. Almost seven in ten respondents described themselves as excited (43 per cent) or curious (26 per cent) about AI’s potential. Already, 31 per cent are using it to save time on admin and content creation, while 27 per cent are deploying it to list products faster, test new product ideas, and reach more customers.
Despite the confidence, online sellers continue to face significant hurdles. The most cited barriers to growth were the wider UK economic climate (37 per cent), time constraints (30 per cent), access to funding (24 per cent), low business confidence (24 per cent) and administrative complexity (20 per cent).
The research also highlights a growing wave of digital-first entrepreneurs starting businesses with minimal resources. Almost half (44 per cent) launched with less than £1,000, while 3 per cent began with no capital at all. Many businesses started at home – 38 per cent from bedrooms, 21 per cent from kitchen tables, and 15 per cent from garages.
For most, these ventures are no longer side hustles: 69 per cent now say their ecommerce business is their main source of income or a serious full-time pursuit, reflecting a shift away from traditional employment toward flexible, digital-first careers.
Eve Williams, General Manager of eBay UK, said: “Britain’s online small businesses are reshaping what entrepreneurship looks like. Often with less than £1,000, people are creating careers on their own terms by building meaningful, resilient businesses from bedrooms, garages and kitchen tables.
“What’s striking is the confidence in the future these businesses have, particularly amidst significant economic uncertainty. Ambitious and adaptable, many are already embracing tools like AI to scale smarter and grow faster. At eBay we’re proud to support their journey, lowering the barriers to entry, championing innovation, and helping sellers build businesses that are flexible, digital-first and designed for the future of work.”
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Four in five online small businesses expect growth despite UK economic headwinds
