According to KPMG UK’s inaugural Private Enterprise Barometer, 88% of private business owners in London and the South East are confident of delivering growth in 2025, bolstered by their plans to invest in technology such as AI.
The new poll, which surveyed 1,500 private business owners across the UK, including more than 250 in the capital and the South East, found optimism across sectors such as professional services, finance, technology, manufacturing and retail.
Looking ahead, over two-thirds (68%) plan on diversifying through new products or services in the next five years. London firms were the second most likely of all UK regions to have plans to invest in AI in the future, joint with Scotland (77%) and second only to the West Midlands (83%).
When it comes to areas of planned investment over the next 12 months, technology was ranked as the highest priority (63%), followed by skills and workforce (49%). Of those looking at future tech investment, almost three-quarters (73%) 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.”
Image source: Pete Linforth, Pixabay
