Whitepapers
The Cost of Power: How Rising Energy Costs are Reshaping Small Business Growth in the UK & US
Rising energy costs are no longer just squeezing margins; they are actively reshaping how small businesses operate, invest, and grow across the UK and US.
May 27, 2026
Kieran Darmody
Summary
Small businesses have always adapted to changing market conditions, but rising energy costs are creating a new kind of pressure, one that is embedded into everyday operations. Liberis surveyed SMBs across the UK and US to understand how escalating energy prices are impacting growth, cashflow, investment decisions, and operational behaviour.
The findings reveal that energy costs are no longer viewed as a background expense. Instead, they are becoming a defining factor in how businesses plan for the future. From delayed hiring and reduced opening hours to stalled investment and tighter cashflow, the report highlights how energy volatility is influencing decision-making across sectors.
The report also uncovers a growing gap between intent and action: many businesses know what they need to do to reduce costs and improve efficiency, but lack the financial flexibility to act. Ultimately, the research points to a wider shift in the small business landscape, where growth is increasingly shaped by cost resilience as much as customer demand.
Key Takeaways
Rising energy costs are affecting far more than monthly overheads; they are changing how small businesses operate, invest, and approach growth. Key findings from the report include:
84.9% of UK businesses and 81.3% of US businesses report rising energy costs over the past 12 months.
More than 70% of UK SMBs expect energy prices to continue increasing over the next six months.
51% of UK businesses and 48.9% of US businesses have delayed or cancelled growth plans because of rising energy costs.
73.4% of UK businesses report moderate or major cashflow strain linked to energy costs.
UK businesses are increasingly changing operations to manage costs, including reducing opening hours, delaying hiring, and increasing prices.
67.3% of UK SMBs say there are actions they want to take to reduce energy costs but simply cannot afford to implement.
Businesses identified access to funding, flexible payment options, and energy efficiency solutions as the most valuable forms of support.
Small businesses have always had to adapt. Whether it's changes in demand, supply chain disruption, or new technology, they are used to adjusting quickly. But the ongoing rise in energy costs is a different kind of challenge. It is less visible than external shocks, but it is built into everyday operations.
Conclusion
The research makes one thing clear: energy costs are no longer just another operating expense for small businesses. They are becoming a strategic pressure point that is shaping operational decisions, investment priorities, and long-term growth potential.
While the impact varies depending on business type and operating model, the direction of travel is consistent across both the UK and US. Businesses are becoming more cautious, cashflow is tightening, and investment decisions are increasingly linked to cost stability rather than ambition alone.
At the same time, the findings highlight a significant opportunity. Many businesses are actively looking for ways to adapt, through efficiency improvements, operational changes, or funding support, but lack the financial flexibility to take action. Businesses that can access the right support at the right time will be far better positioned to navigate rising costs and unlock future growth.
As the report concludes, energy is no longer a background cost. It is becoming a defining factor in the future of small business growth.
About Liberis
Liberis is an embedded finance partner for platforms, including vertical SaaS providers, marketplaces, payment processors, and payment companies. Liberis enables platforms to offer tailored financial solutions to their merchant ecosystems, supporting growth across businesses of all sizes.
Liberis partners closely with platforms, combining merchant data and distribution with over a decade of finance expertise and funding experience across economic cycles. By understanding merchant behaviour and business rhythm, Liberis embeds finance directly into platform workflows, delivering funding and financial tools at key moments in the merchant lifecycle.
Rather than offering standardised products, Liberis co-creates solutions around each partner’s brand, technology, and merchant needs. Its flexible, API-driven architecture allows platforms to configure, launch, and scale embedded finance offerings across 15 markets, with the ability to add new products over time without requiring further platform integration.
For platforms, Liberis delivers recurring revenue opportunities and supports merchant acquisition and retention. For merchants, Liberis provides fast and transparent access to capital, from $500 to $1M+, with clear pricing, flexible repayment aligned to business performance, and dedicated support. For more information, visit their website: https://www.liberis.com/
Embedded Finance. Built Together.
