UK businesses urged to blend agility & discipline for 2026 growth

UK business leaders are facing a complex landscape for 2026, with economic growth projections remaining just above one per cent and external pressures such as technology, rising costs, and geopolitical shifts influencing their decisions.

Lucy Hogarth, founder and director of The Marketing Centre, which works with over 150 small and medium-sized enterprises and mid-sized businesses across the UK, has identified five primary forces set to shape the business environment in the coming year. These factors include economic volatility, rapid advancements in artificial intelligence technology, changes in workforce models, a growing emphasis on environmental, social and governance (ESG) standards, and an evolving regulatory context.

Economic landscape

Hogarth describes the current economic setting as one where, despite easing inflation, caution prevails among policymakers and business leaders alike. She notes, "Inflation is easing but not gone, and the Bank of England remains cautious. Tight margins and subdued investment mean only the most disciplined and diversified businesses will thrive. CMOs warn that competitiveness and cost control must be top of the agenda."

This environment is causing many businesses to focus on maintaining their competitiveness and closely controlling costs, as muted investment and tight margins continue to characterise the market.

Technology acceleration

The speed of technological development is another major consideration. Generative AI, automation, and machine learning are all rapidly becoming central to how companies scale their operations and marketing efforts. Hogarth says, "Generative AI, automation and machine learning are now central to scaling operations and marketing. Meanwhile, immersive tech, voice search and social commerce continue to expand the digital playing field. Businesses using AI to personalise experiences, automate workflows and improve decision-making will gain a significant edge."

Workforce models and flexibility

Shifts in the labour market have been driving increased interest in fractional leadership, including part-time and remote roles that combine cost-effectiveness with experienced skillsets. "Labour markets remain tight, driving interest in fractional and remote models that blend affordability with experience. Upskilling, culture and purpose-driven leadership are now decisive factors in retention," said Hogarth.

ESG and authenticity

The importance of trust and transparent action around ESG issues has also moved to the forefront. "Sustainability has moved from a tick-box to a trust issue. Clients and consumers want transparent, measurable action. Credibility matters more than slogans, and those caught 'greenwashing' risk lasting reputational harm," Hogarth explained.

Regulation and geopolitics

With regulations evolving, especially around emerging technologies and international trade, agility and thorough scenario planning are required. Hogarth identifies this need, stating, "From AI ethics to trade policy, the rules are changing fast. Scenario planning and agility are key to staying compliant and competitive."

Adapting for growth

Hogarth advocates a deliberate and measured approach for businesses looking to succeed in such conditions. She recommends that leaders diagnose their businesses' strengths and weaknesses before taking action, using data to identify where improvements can be made. Companies are encouraged to define multiple 'growth levers', such as expanding into new market segments, innovating their products or services, and developing partnerships to extend their reach. All approaches should have measurable outcomes and clear accountability.

She adds that marketing efforts should be cohesive and multi-channel to ensure consistent visibility and engagement. "A joined-up, multi-channel approach is essential. Combine digital and offline tactics such as social, SEO, paid media, PR, events and video, to create consistent visibility and engagement. Avoid 'random acts of marketing' and instead ensure that each channel serves a clear purpose in the customer journey," Hogarth said.

On the need for scalability, she advises investment in systems and automation that maintain efficiency and quality as demand grows. Businesses should also "model multiple growth scenarios and monitor cash flow carefully. Balance ambition with realism - sustainable growth beats short-term spikes every time."

Strategic marketing

Too often, CEOs try a few tactics and expect instant results. Instead, you need a clear strategy built on your why - who you are, what makes you different, and why your customers should care.

Hogarth calls for a balanced approach, stating, "Leaders should balance quick wins with long-term brand building: it takes time to generate sustainable growth. Smart leaders know the compound impact of consistent marketing over 12-24 months."

On the topic of content, video is highlighted as an essential tool for growth as competition for consumer attention intensifies. "The brain is wired to react to motion, and we're competing harder than ever for attention. Short-form video builds awareness; longer pieces drive conversion. AI tools make video easier and more cost-effective than ever - but keep it authentic," she said.

Rise of fractional leadership

The press release also notes an uptick in demand for fractional chief marketing officers-senior marketing professionals who can provide strategic guidance for a business without the commitment of a full-time executive hire. Hogarth states, "Businesses scaling through uncertainty increasingly turn to fractional CMOs - senior marketing leaders who deliver high-level strategy without the full-time cost."

She adds, "Fractional CMOs bring deep experience, challenge assumptions and can hit the ground running. They help you balance risk with ambition and drive execution that's aligned to your growth goals. For growing SMEs, this model offers flexible access to C-suite expertise and an external perspective at critical inflection points. It's an approach that's reshaping how ambitious businesses plan, pivot and grow."

Hogarth concludes, "2026 won't deliver explosive economic growth, but it could reward those who pair disciplined planning with agile execution. By diagnosing gaps, leveraging technology, staying authentic and tapping into flexible expertise, businesses can turn uncertainty into competitive advantage."