EF News
Entrepreneurial confidence across the North East remains subdued, with just 58% of business owners feeling optimistic or very optimistic about the year ahead, the latest Entrepreneurs’ Forum survey has shown.
Whilst still positive, the results mark another decline from the previous quarter. In previous years, entrepreneurs in the region have frequently reported confidence levels of 80% or above. However, these levels dropped sharply after the Autumn 2024 budget and have not yet returned to earlier highs. Forum members cite tough trading conditions, ongoing uncertainty, and concern that the upcoming autumn budget could further impact performance.
The survey, which gathered insights from over 100 business owners, highlights the mixed picture for entrepreneurs. Confidence in government economic strategy has weakened again, with 57% of respondents believing policies will negatively affect their business over the next 12 months – up from 39% last quarter. Calls for a reduction in business taxes, particularly National Insurance, is seen as a priority in the forthcoming budget.
Despite these headwinds, growth ambitions remain positive. Forty percent of members expect turnover growth in the next year while a further 25% predict expansion of more than 20%. Hiring plans are also encouraging with 44% of entrepreneurs planning to increase headcount.
The survey also included a deep dive into artificial intelligence adoption. An overwhelming 94% of members are already using AI in their businesses. The most common applications are marketing and content creation (82%), operations and process automation (58%) and data analysis and forecasting (37%).
Encouragingly, two-thirds of members report business performance improvements from AI, including 17% who describe the benefits as significant. Looking ahead, 73% plan to increase investment in AI tools over the next 12 months, with 28% intending to make substantial investments.
Elaine Stroud, CEO of the Entrepreneurs’ Forum, said: “While confidence remains well below the historical average, it's encouraging to see that our members are resilient and pushing forward with growth plans. They remain determined to get on with business, to create jobs and to invest in technology that can improve productivity. AI adoption is gathering pace and it’s exciting to see the potential it holds for driving further innovation and growth in the region.”
The survey, conducted by Explain Market Research, ran from Wednesday 20th August to Thursday 4th September 2025 and gathered insights from 106 members of the Entrepreneurs’ Forum. Forum members are North East business owners who generate a minimum annual turnover of £250,000. Collectively, they contribute over £2.5 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, RBC Brewin Dolphin, Ward Hadaway, Maitland and NET.
