EF News
Optimism amongst North East entrepreneurs remains high despite market uncertainty, new research by the Entrepreneurs’ Forum has revealed.
106 business owners responded to the latest Entrepreneurs’ Forum Member Quarterly Pulse Survey which revealed that optimism among North East entrepreneurs remains high, with 86% of respondents reporting they feel optimistic or very optimistic about the year ahead. This figure is slightly down from the 88% recorded in the latest survey conducted in May 2024, noting a 6% shift from very optimistic down to simply optimistic.
A marginal increase in pessimism was also noted in this survey, with 3% of respondents now feeling pessimistic, compared to none in May.
Sentiment towards the prospects for the UK economy in general is more mixed, with 50% of entrepreneurs expressing neutrality. This stance is attributed to uncertainty surrounding the impact of the new government and anticipation of the October budget. Many entrepreneurs are awaiting clarity on potential government policy announcements, particularly concerning taxation, workers' rights and legislative burdens on SMEs, which is adding caution to investment strategies.
Challenges around managing staff continue, but the focus has shifted towards sales and cash flow concerns. A quarter of respondents now cite cash flow as a significant challenge, a notable increase from 15% in the previous survey. Sales concerns have risen, while marketing issues have lessened, suggesting a period of market stagnation as the new government’s direction becomes clearer.
Despite these concerns, the outlook for business growth remains positive, with one-third of members expecting turnover to increase by over 20% this year and a further 50% expecting growth of up to 20%.
As in previous surveys, growth is anticipated to come from capturing a larger share of the domestic market. International expansion plans have tapered with only 13% of respondents aiming to go global, down from nearly a quarter in May 2024. Acquisition plans have also diminished, with only 12% considering growth through acquisitions, compared to 18% previously.
Elaine Stroud, CEO of the Entrepreneurs’ Forum, commented: “While there is a slight tapering in optimism driven by the uncertainty of what the new government will announce in next month's budget, our members remain largely positive about their business prospects. Anticipated growth in turnover and the focus on domestic market expansion are promising indicators for the region and our entrepreneurs.”
The Entrepreneurs’ Forum was founded in 2002 and represents over 340 North East entrepreneurs with a collective turnover of £2.25 billion per annum.
Its partners include Agilico, Blu Sky, Hilton Newcastle Gateshead, LDC, Northumbria University, RBC Brewin Dolphin, Ward Hadaway and White Digital.
