Majority of Britain’s private businesses are confident of growth in 2025

Over 90% of Britain’s private business owners are confident of growth in 2025, according to KPMG UK’s first ever Private Enterprise Barometer.

The new annual poll gauged optimism among 1,500 private business owners across a range of sectors including professional services, finance, technology, industrial manufacturing, and retail.

Of the 92% who are confident of their firm’s growth prospects in the next 12 months, 59% are very confident. Increased demand for products and services was cited as the main reason for this confident outlook, followed by overseas expansion.

Those businesses with lower degrees of confidence highlighted challenges such as increased competition and access to funding as limiting factors.

Business owners also have a positive longer-term outlook for growth. More than two thirds (69%) plan to diversify over the next five years by launching new products and services, with more than half planning to fund this from their own balance sheet. Of those looking to secure external funding, 41% will do so via private equity.

Most respondents are bullish when it comes to geographical expansion, with 63% planning to enter new overseas markets in the coming years. The main targets for expansion are Europe and North America.

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 encouraging 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 businesses to realise their growth ambitions and make a significant impact on the UK’s economic health.”