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North East entrepreneurs say Government economic policy is hampering growth

North East entrepreneurs feel their contribution to the economy is undervalued and lack any confidence that Government policy will lead to economic growth, the latest Entrepreneurs’ Forum survey reveals.

Of the 110 North East business owners who responded to the survey, nearly half (47%) strongly disagree that current policies will help grow the UK economy over the next 12 months while 82% expressed some level of disagreement. 

Rising National Insurance costs are adding to the pressure, forcing entrepreneurs to rethink their investment and growth strategies. 

“Entrepreneurs in our region are feeling the strain,” comments Elaine Stroud, CEO of the Entrepreneurs’ Forum, “The biggest worry is the financial pressure on businesses, particularly from National Insurance hikes, making it increasingly difficult for them to invest for growth.

“This is shown in a downgrading of growth expectations. In this survey, no respondents reported expecting turnover growth over 20%, a stark decrease from the 1/3 of members expecting high growth six months ago.”

Challenges continue to mount with ‘People’ (44%) and ‘Sales’ (43%) being the most pressing concerns. Reduced confidence in the economy is causing an elongation of the sales cycle and this, together with cautious customer spending, is making growth harder. Recruitment struggles – particularly for skilled roles – also persist.

Raising finance remains a mixed picture with members frustrated by the cost of finance and the length of time it takes to complete a raise. Nevertheless, 43% of members have plans to raise external finance in the next three years, mainly to fund working capital and acquisitions. 

Elaine added, “If I can take any positivity from this survey, is that entrepreneurs aren’t resting on their laurels. They are actively seeking to introduce new products and services to market and to stay ahead of their competition. There is also evidence members are looking to acquire, perhaps taking the opportunity to consolidate in their sectors, gaining market share.

“These are challenging times, and as always, we are grateful to our members for their valuable insights,” adds Elaine, “Their feedback helps us shape the support and resources needed to navigate these difficulties together.”

The survey, conducted by Explain Market Research, ran from 13th February to 3rd March 2025 and gathered responses from 110 members of the Entrepreneurs’ Forum.

Forum members are North East business owners who have been trading for at least two years and generate a minimum annual turnover of £250,000. Collectively, they contribute over £2.25 billion to the economy each year.

Founded in 2002, the Entrepreneurs’ Forum represents a thriving community of more than 340 North East entrepreneurs. Its partners include Agilico, Blu Sky, Hilton Newcastle Gateshead, Northumbria University, RBC Brewin Dolphin, Ward Hadaway, Maitland and North East Times.

This was posted in Bdaily's Members' News section by Entrepreneurs' Forum .