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Entrepreneurs back growth despite rising costs and cashflow pressures

Business confidence among North East entrepreneurs has reached its highest level since 2024, despite ongoing concerns around rising costs, cashflow pressures, and economic uncertainty, according to the latest Pulse Survey from the Entrepreneurs' Forum.

The quarterly survey of 108 business owners found that more than four in five (81%) are optimistic about their business prospects over the next 12 months, up from 71% in February.

Confidence is being supported by strong opportunity pipelines, continued internal investment in businesses, and expectations for future growth. Almost eight in ten respondents (79%) expect turnover to increase over the next year, while more than half anticipate increasing their workforce.

However, the findings also highlight a growing challenge facing many businesses. While entrepreneurs remain confident about future opportunities, cashflow concerns have increased since the previous survey, with business leaders reporting longer sales cycles, slower customer decision-making, and greater difficulty converting opportunities into revenue.

Rising costs remain the most commonly cited concern, particularly wage inflation and employment-related costs, alongside macro-pressures linked to government policy, taxation, and regulation.

Elaine Stroud, Chief Executive of the Entrepreneurs' Forum, said: 

"One of the most encouraging findings in this survey is the continued increase in confidence among North East entrepreneurs.

"What's particularly striking is that much of this confidence is being driven by solid financial performance in the first quarter of the year, backed by the actions entrepreneurs are taking themselves to invest in their teams, improve processes, strengthen their offer, and build more resilient businesses.

"At the same time, growth is becoming harder won. Rising costs continue to create pressure, while many businesses are seeing projects take longer to secure and customers taking longer to make decisions.

"The overall picture is positive, but it combines optimism with realism. Entrepreneurs can see opportunities to grow but are being held back by cashflow constraints caused by higher cost pressures and slower decision making.”

The survey also highlighted the increasing role of Artificial Intelligence in business growth and productivity.

Almost all respondents (97%) are now using AI in some form within their business, while 84% have invested in AI tools, training or implementation during the past 12 months. More than three-quarters (78%) expect to increase their investment in AI over the coming year.

The Entrepreneurs' Forum Pulse Survey is conducted quarterly by Explain Market Research to capture the views of entrepreneurs across the North East and provide insight into the opportunities and challenges shaping the region's economy.

To review the full results, visit: https://entrepreneursforum.net/news/member-survey/

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