Entrepreneurs confidence returns amid policy woes

A North East business network is seeing a cautious return of optimism among its members after a year of uncertainty.

According to the latest survey by the Entrepreneurs’ Forum, 67 per cent of North East business owners now feel ‘optimistic’ or ‘very optimistic’ about the year ahead – a noticeable recovery from the previous two quarters, though still trailing behind last year’s highs.

The quarterly survey of 106 forum members, carried out by Explain Market Research, suggests that while confidence is returning, the market remains fragile. 

Businesses are seeing improved trading conditions, but many report customers are still cautious in their spending and investment behaviour.

Elaine Stroud, chief executive of the Entrepreneurs’ Forum, said: “We are seeing a slow but welcome return in business confidence and ambition.”

The report also notes revenue expectations are rising, with 68 per cent of respondents predicting growth in the next 12 months, up from 52 per cent last quarter. 

Notably, 23 per cent expect growth of more than 20 per cent – a significant jump from zero in the previous survey.

The majority of entrepreneurs (76 per cent) are focusing on growth in existing markets, while 42 per cent are planning new product or service launches. 

One in four are also considering acquisitions within the next year.

Meanwhile, artificial intelligence adoption emerged as a key trend in the latest survey, with 90 per cent of respondents now using the technology in their businesses. 

Content creation and research were the most common uses, while the biggest barrier to wider uptake was a lack of in-house knowledge.

Elaine added: “It’s promising to see members embracing artificial intelligence to boost productivity and efficiency, but the knowledge gap is real. 

“If we can help bridge that, there’s huge potential for artificial intelligence to drive even more innovation and growth in the North East.”

Despite this positive outlook, the survey highlights significant dissatisfaction with Government policy. 

Only seven per cent of respondents back Labour's economic approach, and 71 per cent do not believe it will support entrepreneurial growth.

Elaine added: “The feedback from our members is clear – while conditions may be stabilising, they’re still tough and putting pressure on cashflows, and the policy environment is not helping. 

“Entrepreneurs want to grow, but they don’t believe the Government's strategy is designed with them in mind.”

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