MORE than nine in 10 (92%) private business owners in the East of England are confident of delivering growth in 2025, according to KPMG UK’s first ever Private Enterprise Barometer.
The poll surveyed 1,500 private business owners, including 130 from the East of England, across sectors such as professional services, technology, finance, industrial manufacturing and retail.
More than half (52%) of firms in the East of England reported increased demand for their products and services, underpinning the region’s optimism.
Looking ahead, almost three quarters (72%) plan to diversify by creating new products or services, while nearly half (45%) intend to target international expansion in the same time period.
Technology investment will be a key focus, with 73% of the East of England’s private businesses prioritising areas such as AI, cybersecurity and digital transformation – the highest in the country. Innovation is also high on the agenda (47%), followed by workforce and skills development (48%).
Almost three in five (59%) of respondents said they were confident they could recruit people with the skills needed for their businesses – ahead of the national average (55%).
Joe Faulkner, East Anglia Office Senior Partner at KPMG UK, said: “East of England firms have faced their fair share of challenges in recent years, but these high levels of confidence underscore the boldness of their growth ambitions for 2025.
“Harnessing the power of emerging technologies like AI will be important for businesses of all sizes – not just to boost productivity but to elevate customer experiences and stay ahead of the curve. It’s heartening to see so many businesses making innovation a top priority, while also keeping a sharp focus on investing in their people. Across the UK’s economy, this will help to unlock growth long term.”
National outlook
92% 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.”