EF News
Growth ambitions remain strong for North East entrepreneurs, with seventy percent of Entrepreneurs’ Forum members expecting turnover growth in 2026, according to the latest member survey.
Completed by 106 Forum members following the Chancellor’s Autumn Budget, the survey paints a picture of resilience across the region, albeit with clear divisions in confidence.
Entrepreneurial confidence remains muted with 59% of business owners feeling optimistic or very optimistic. This represents no significant change in confidence over the past four quarters and remains well below the 79% average recorded in the two years preceding the November 2024 Budget.
The Chancellor’s November 2025 Budget did little to reassure business owners with 57% of members believing it will have a negative impact on their business and a further 38% saying it made no difference. Just 6% of those surveyed said that the budget would have a positive impact. Above-inflation rises to the minimum wage, coupled with last year's rises in National Insurance, continue to be cited as key concerns, alongside ongoing economic uncertainty which is lengthening sales cycles.
Despite these challenges, Forum members continue to outperform the wider economy. Fifty five percent of respondents have created new roles in their businesses during 2025, equating to 405 new jobs across the survey sample.
Looking ahead to 2026, confidence in growth opportunities remains strong. Nearly 80% of members see further expansion potential within their existing markets, while almost half plan to launch new products or services. This optimism is expected to translate into further job creation, with 42% planning to increase headcount in the next 12 months.
Access to capital will play a key role in supporting this growth. Almost a third of members are planning to raise external finance, primarily to fund working capital and acquisitions. Of those seeking investment, more than a quarter plan to raise over £5 million.
Despite this positivity, members are continuing to experience challenges with finding the right people for their teams. Rising employment expenses are pushing businesses to focus on efficiency, enabling growth with leaner teams. While job losses have been reported across all sectors, leisure and hospitality were the most affected, driving much of the reduction of 529 roles lost across the survey sample.
The survey also points to a continued surge in artificial intelligence adoption. An overwhelming 96% of members are now using AI in their businesses and productivity gains are becoming increasingly evident, with 80% reporting performance improvements this quarter, up from 67% last quarter. Most members also plan to increase their investment in AI tools over the coming year.
Elaine Stroud, CEO of the Entrepreneurs’ Forum, said: “While confidence remains subdued, our members are getting on with business and seeking out opportunities. They are creating jobs, investing in innovation and actively planning for growth despite ongoing economic headwinds. The pace of AI adoption is particularly encouraging and highlights the determination of North East entrepreneurs to improve productivity and remain competitive.”
The survey, conducted by Explain Market Research and active from Wednesday 26th November 2025 to Saturday 6th December 2025, gathered insights from Entrepreneurs’ Forum members who are North East business owners with a minimum annual turnover of £250,000. Collectively, Forum members contribute £2.7 billion of revenue to the UK economy and employ 16,000 people.
Founded in 2002, the Entrepreneurs’ Forum represents a dynamic and collaborative community of more than 350 North East entrepreneurs. Its partners include Agilico, Blu Sky, Hilton Newcastle Gateshead, RBC Brewin Dolphin, Ward Hadaway, Maitland and NET.
