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Growth expectations rise for sixth straight quarter as North East entrepreneurs create jobs

Growth expectations among North East entrepreneurs have strengthened for the sixth consecutive quarter, with more than half of business owners also creating new positions during the past three months.

The latest Entrepreneurs’ Forum Pulse Survey found that 83% of North East entrepreneurs expect turnover to increase over the next 12 months. That is up from 79% in May 2026, and 52% when the measure last dipped, in February 2025.

More than a third (34%) expect turnover growth of over 20%, while just 3% anticipate a decline.

The positive outlook is also translating into jobs, with 56% of respondents creating new positions during the last quarter, up from 49% in May 2026, while the proportion reducing headcount fell from 19% to 13%.

Overall business confidence remains high, with 77% optimistic or very optimistic about their prospects for the year ahead, and only 1% pessimistic. However, the research also highlights continued caution around the wider economic and political environment.

Ahead of the Government’s October Budget, 34% of entrepreneurs said they were holding off at least one business decision until the Budget, with recruitment the most commonly delayed decision (22%), followed by capital investment (18%).

Elaine Stroud, Chief Executive of the Entrepreneurs’ Forum, said: “There is a lot to be encouraged by in these results. Growth expectations have now strengthened for six consecutive quarters, businesses are creating jobs, and many of our members are seeing strong demand, new contracts, and opportunities ahead.

“What is interesting is the contrast between confidence in their own businesses and confidence in the wider environment. Entrepreneurs are known for backing themselves, but one in three delaying a decision until after the Budget shows that greater clarity around the conditions in which businesses are operating really does matter.

“Entrepreneurs are used to navigating uncertainty, but decisions around people and investment become harder when the goalposts feel less certain.”

People remain the most commonly cited business challenge, selected by 35% of respondents, followed by sales at 32%. However, cashflow concerns have fallen from 31% in May to 25%, at the same time that expansion challenges have reduced from 24% to 18%.

Growth plans remain predominantly focused on opportunities close to home. Some 83% intend to grow within existing markets and 48% through new products and services, while the proportion considering international expansion has fallen to 6%.

Brendon Hayward, Chair of the Entrepreneurs’ Forum, added: “As we look ahead to the first North East Entrepreneurship Week in November, these findings reinforce something we see every day: the ambition is already here. Our opportunity as a region is to build on that momentum, create more connections and opportunities, and help more people start, grow, and scale businesses in the North East.”

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