G&G verified business evidence
Across 2022 to 2024, 34% of UK SMEs with 10 or more employees were innovation active.
The UK Innovation Survey defines SMEs in its surveyed population of businesses with 10 or more employees. Microbusinesses below 10 employees are outside scope.
Survey definition excludes businesses with fewer than 10 employees.
Department for Business and Trade
UK Innovation Survey 2025
The business-size results report 34% of surveyed SMEs were innovation active.
Department for Business and Trade. UK Innovation Survey 2025. 4th of June, 2026. https://www.gov.uk/government/statistics/uk-innovation-survey-2025-report/uk-innovation-survey-2025-report
This is the most directly relevant innovation benchmark for established SMEs in the survey, but it applies only to those with 10 to 249 employees. It provides a national comparison without implying that every SME should innovate in the same way or at the same rate.
Among SMEs with 10 to 249 employees, 34% were innovation active, 39% were broader innovators, 34% undertook innovation-investment activities, 19% were product innovators, 3% had abandoned activity and 9% had ongoing activity. Large businesses recorded 47% innovation activity and 26% product innovation.
The statistic shows the share meeting the survey’s innovation-active definition during 2022 to 2024. The comparison with large businesses indicates a size association, not a causal resource effect. Ongoing or abandoned projects can be part of innovation activity, so the measure is not a success rate.
The survey definition of SME begins at 10 employees for this analysis; firms with fewer than 10 employees are outside scope. Results are self-reported weighted estimates from the UK Innovation Survey and do not quantify investment, novelty, revenue contribution or return.
G&G perspective: SMEs should prioritise innovations that solve a defined problem and can be tested without endangering core operations. Set evidence thresholds before committing further resources, involve the people who will use the change, and assess commercial adoption and operational results after launch.
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