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North East Entrepreneurs Report Recovery in Confidence but Remain Critical of Government Policy

Confidence among North East entrepreneurs is beginning to rebound, with 67% of business owners now feeling optimistic or very optimistic about their prospects – a marked improvement over the past two quarters, though still well below the confidence levels regularly seen 12 months ago, when more than 85% reported optimism.

The latest survey from the Entrepreneurs’ Forum reveals signs of recovery, but also highlights that uncertainty continues to dominate the market. Over 100 Entrepreneurs’ Forum members responded to the survey which revealed that while trading conditions have improved, they remain fragile with caution still influencing customer behaviour and investment decisions.

Encouragingly, business growth projections are also on the rise. Sixty-eight percent of respondents expect revenue growth over the next 12 months, up from 52% in the previous quarter. Most significantly, nearly a quarter (23%) of entrepreneurs now anticipate growth in excess of 20%, marking a striking turnaround from last quarter, when none of the members surveyed expected high growth. Most members see opportunities to exploit their existing markets (76%) and many (42%) are planning on introducing new products and services this year. One quarter (25%) are planning to make acquisitions in the next 12 months.

Despite this improvement, dissatisfaction with the Labour government’s economic approach remains high. Seventy-one percent of respondents still do not believe that current government policy will support entrepreneurial growth in the UK economy. Just 7% said they support the policies announced to date.

“We are seeing a slow but welcome return in business confidence and ambition,” said Elaine Stroud, CEO of the Entrepreneurs’ Forum.

“However, the feedback from our members is clear – while conditions may be stabilising, they’re still tough and putting pressure on cashflows, and the policy environment is not helping. Entrepreneurs want to grow but they don’t believe government strategy is designed with them in mind.”

This quarter’s survey also explored AI adoption among North East entrepreneurs for the first time. A striking 90% of respondents said they are now using AI in their businesses with 28% reporting daily use. The most popular applications are content creation and research. However, the biggest barrier to wider adoption is a lack of in-house expertise to identify and implement the right tools, highlighting a growing opportunity for those providing AI consultancy and support services.   Members also raised concerns about data protection when using AI technologies.

Elaine added: “It’s promising to see members embracing AI to boost productivity and efficiency but the knowledge gap is real. If we can help bridge that, there’s huge potential for AI to drive even more innovation and growth in the North East.”

The survey, conducted by Explain Market Research, ran from 16th May to 2nd June 2025 and gathered insights from 106 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 UK economy each year.

Founded in 2002, the Entrepreneurs’ Forum represents a dynamic and collaborative 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 .