Nine in 10 (89%) private business owners in Yorkshire are confident of delivering growth in 2025, according to KPMG’s mid-year Private Enterprise Barometer check-in.
Earlier this year, KPMG unveiled its first-ever Private Enterprise Barometer, an annual survey capturing the perspectives of 1,500 privately owned businesses – including 124 in Yorkshire – from across various industries.
Following a challenging first six months across the UK and international economy, KPMG has surveyed these businesses again to understand how developments in the first half of 2025 may have influenced their outlook.
Earlier this year, 91% of private businesses in Yorkshire expressed confidence in their growth prospects up until the end of 2025. At the mid-year mark, this sentiment remains, reflecting an unwavering commitment to growth ambitions despite continued economic uncertainty.
Technology continues to dominate as a leading investment priority for Yorkshire-based businesses, with three-fifths (61%) identifying areas such as artificial intelligence, cyber security and broader digital transformation as key focuses.
While the region trails behind London (74%) and the North East’s (74%) commitment to overall technology investment, it nonetheless demonstrates a clear and persistent ambition to remain at the forefront of digital innovation.
Diversification is also high on the agenda for private businesses across Yorkshire. A growing number of firms (69%) are looking to introduce new service lines and expand their client offering, meanwhile, almost two-thirds (63%) are targeting entry into new markets. Both of these figures show increases from 63% and 60%, respectively, at the start of 2025.
When it comes to external challenges, inflation remains the most pressing concern, cited by almost half (46%) of respondents. This is followed by rising employment costs, which more than a third (35%) of business leaders flagged as a key risk.
The appetite for alternative funding options is also gaining momentum, with two in five (41%) of regional businesses now open to private equity investment. This growing interest reflects a broader willingness among firms to explore new sources of capital in support of innovation, growth and long-term resilience.
Phil Murden, Leeds office senior partner at KPMG UK, said: “Despite economic pressures, Yorkshire’s private businesses are showing impressive determination to grow, with confidence holding strong at the mid-year point.
“Diversification remains key, with more firms expanding services and targeting new markets – proof that leaders across the region are evolving to meet demand.
“Technology investment, particularly in AI and cyber security, is gaining momentum, with Yorkshire firms harnessing these tools in ways that build on the region’s strengths – from advanced manufacturing in West Yorkshire to financial services in Leeds and emerging tech hubs in Sheffield. This blend of industrial heritage and digital innovation is helping to future-proof the region’s economy.
“With inflation and rising employment costs still a concern, further support in these areas would help maintain the positive momentum across Yorkshire’s private enterprise landscape.”
 private business owners in Yorkshire are confident of delivering growth in 2025, according to KPMG.){kind=link}