The vast majority of the UK’s tech firms say they are confident about their prospects heading into 2025.
The inaugural Private Enterprise Barometer from accounting firm KPMG UK found 91 per cent were confident about their growth prospects next year.
The new poll gauged optimism among 1,500 private business owners, including 129 in the South West, across a range of sectors including professional services, finance, technology, industrial manufacturing and retail.
The poll found diversification will be a key strategy for growth in the region. Two-thirds (64 per cent) of South West businesses plan to develop new products or service lines, while the same proportion (64 per cent) intend to target new international markets.
Another significant driver of this optimism is the region’s focus on innovation, with almost half (48 per cent) attributing their confidence to plans for introducing new technology.
Two-thirds (66 per cent) identify AI, cybersecurity and digital transformation as critical investment areas. Workforce and skills development follows closely (51 per cent) with sustainability initiatives (48 per cent) also ranking highly.
David Williams, Bristol office senior partner at KPMG UK, said: “The resilience of South West businesses through the challenges of recent years is now translating into bold ambitions for 2025.
“Leveraging technologies like AI will be vital, not just for boosting efficiency but also for elevating customer experiences.
“It is heartening to see firms in the region pursuing their plans to expand and invest in innovation, while also prioritising sustainability and nurturing their teams.
“This well-rounded approach is what will bolster their success in the year ahead and contribute significantly if the region and the wider UK is to deliver sustained economic growth.”
Nationally, 92 per cent of Britain’s private business owners are confident of growth in 2025.
Those businesses with lower degrees of confidence highlighted challenges such as increased competition and access to funding as limiting factors.
When it comes to areas of planned investment over the next 12 months, technology was ranked as the highest priority (63 per cent), followed by skills and workforce (49 per cent).
Of those looking at future tech investment, almost three quarters (73 per cent) plan to invest in AI to improve the customer experience.
Euan West, head of KPMG private enterprise in the UK and EMA, said: “2024 has been a turbulent year, so it’s pleasing to see that private businesses are showing resilience and casting a very positive outlook for growth and investment in 2025 and beyond.
“Going into 2025 buoyed by this optimism will help these firms drive results in what will likely be another tough year.
“Investment in areas like technology and talent will be essential for firms to realise their growth ambitions and make a significant impact on the UK’s economic health.”
Pictured: KPMG’s Bristol office
