Rising costs and the impact of geo-political market uncertainty are daily pressure points that risk derailing the commitment of construction small businesses to achieve their sustainability goals, according to new research.
With the percentage of construction small businesses predicting growth on the rise – up from 17% at the end of 2025 to 24% for Q1 2026 – and with 88% of business owners saying that committing to sustainability is personally important to them this year, the new findings from Novuna Business Finance underline the risk of disruption that daily market pressures can have on business planning, it says.
The nationally representative survey of 1,000 small businesses explored the external challenges that business owners in the construction sector felt undermined their commitment to achieve their sustainability goals for 2026. Nationally, 32% of respondents commented on the impact of rising energy and fuel costs (32% and 27% respectively) and 26% remained deeply concerned about the future picture for inflation and the potential of interest rate hikes.
With mounting tensions in the Middle East already impacting oil prices, 16% of construction enterprises said the economic impact of world events was a serious concern – and, closer to home, 24% of respondents bemoaned the economic impact of UK Government policies, such as last year’s rise in National Insurance for businesses.
Beyond financial and economic factors, many small businesses in the construction sector also felt particularly impacted by a range of supply chain and local issues. Nationally, 16% of construction enterprises mentioned a skills shortage limiting their ability to deliver on sustainability initiatives. In addition, 12% of respondents were concerned by the difficulty experienced in sourcing sustainable materials – and a further 16% found it difficult to find the right partners to operate in a sustainable supply chain, where everyone shared the same values.
Jo Morris, Head of Insight at Novuna Business Finance, said:
“Small businesses in the construction sector are acutely aware of the everyday external pressures they face, from rising material costs to skills shortages — yet our research also shows they remain committed to sustainability. Together, these factors illustrate a sector striving to balance economic realities with a genuine commitment to greener practices. As a business that works alongside businesses in the sector, we see first‑hand how economic pressures shape decision‑making, and we work closely with businesses to provide practical support.”
