More than nine in 10 private business owners across the North West are confident about delivering growth in 2025, according to KPMG UK’s first ever Private Enterprise Barometer.
The new poll gauged optimism among 1,500 private business owners, including 129 in the North West, across a range of sectors including professional services, finance, technology, industrial manufacturing and retail.
Increased demand for products and services was identified as the main reason for this confidence – cited by over half (51%) of respondents – followed by a more positive outlook for the UK economy (44%).
Indeed, North West-based businesses recognise the opportunity to expand their services and product offerings with two-thirds (66%) citing this as a focus for future diversification. This was followed by expansion into new markets, of which 59% of respondents intend to do.
Looking ahead, North West businesses have also identified technology and AI as important focuses, with three in five (61%) respondents citing the importance of investments into technologies including AI, cyber security and digital transformation. Almost three quarters (73%) identified AI as a key area for future investment.
With 2025 fast approaching, recruiting people with the right qualifications and experiences to help businesses drive growth is proving to be a challenge for firms across the North West. KPMG’s research found that less than half (47%) currently feel confident they can recruit people with the right qualifications and experience for their business – below the national average (55%).
Chris Stott, Manchester Office Senior Partner at KPMG UK, said: “Despite the challenges seen in recent times, it’s positive to see the vast majority of the region’s private firms – often operating in less regulated spaces – feel confident about their prospects for next year. This positive outlook will be instrumental in pushing them to achieve their ambitions for expansion, as they target growth through new offerings and entering new markets internationally.
“With a reputation as a tech start-up hotspot, a large contingent of North West businesses have identified AI as a key target area for investment, evidencing plans that drive long-term growth beyond 2025. With tech remaining a priority for private firms, it’s vital that we continue to support investment and the development of the skills needed to maximise the potential of game-changers like AI.”
As far as the National outlook is concerned,over 90% of Britain’s private business owners are confident of growth in 2025.
Those businesses with lower degrees of confidence highlighted challenges such as increased competition and access to funding as limiting factors.
When it comes to areas of planned investment over the next 12 months, technology was ranked as the highest priority (63%), followed by skills and workforce (49%). Of those looking at future tech investment, almost three quarters (73%) plan to invest in AI to improve the customer experience.
Euan West, Head of KPMG Private Enterprise in the UK and EMA, said: “2024 has been a turbulent year, so it’s pleasing to see that private businesses are showing resilience and casting a very positive outlook for growth and investment in 2025 and beyond.
“Going into 2025 buoyed by this optimism will help these firms drive results in what will likely be another tough year. Investment in areas like technology and talent will be essential for firms to realise their growth ambitions and make a significant impact on the UK’s economic health.”
