Almost nine in 10 (89%) private business owners in the South East 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 125 in the South East, from across various industries.
Following a challenging six months of economic headwinds, KPMG has revisited businesses to understand how developments in the first half of 2025 may have influenced their outlook.
Earlier this year, 89% of private businesses in the South East expressed confidence in their growth prospects for the coming 12 months. By mid-year, that optimism remains strong, demonstrating a steadfast commitment to growth despite ongoing economic challenges.
Technology continued to dominate as a leading investment priority for South East-based businesses, with almost seven in 10 (68%) identifying areas such as artificial intelligence (AI), cyber security and broader digital transformation as key focuses.
While the region trails behind London and the North East’s commitment to technology investment (74%), 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 the South East. Almost two-thirds of firms (63%) are looking to introduce new service lines and expand their client offering.
Meanwhile, more than half (58%) are targeting entry into new markets. These priorities align with the start of the year, indicating a sustained appetite for growth through innovation and market expansion.
When it comes to external challenges, inflation remains the most pressing concern, cited by almost half (45%) of respondents. This is followed by potential tax rises in the Autumn Budget, which a third (35%) of business leaders flagged as a key risk.
The appetite for alternative funding options is also gaining momentum, with over a third (37%) 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.
Steve Hickman, Reading office senior partner at KPMG UK, said: “Private businesses across the South East have continued to demonstrate remarkable resilience and ambition, even in the face of economic uncertainty.
“This confidence in growth reflects not only their adaptability but also a clear commitment to investing in the future.
“It’s great to see that over half of South East businesses are targeting entry into new markets and looking to expand internationally, with ambitions very much alive and kicking.
“The region’s many family-owned firms will be watching the Chancellor’s Autumn Budget closely for clarity on potential tax changes that could influence investment and succession plans.
“With technology and diversification driving growth – from AI and cyber security to new service lines and markets – and a growing openness to alternative funding, the South East’s private businesses are showing the resilience and forward-thinking needed to keep powering the UK economy.”
Nationally, the mid-year check-in saw a rise in confidence, with 93,2% of respondents confident in their growth prospects for the months ahead. Earlier this year, 92% were confident of their firm’s growth prospects in the next 12 months.
Business priorities remained the same, with tech, skills and innovation still dominant. However, there was a slight dip in interest when it came to the areas of ESG and sustainability.
Looking ahead, private businesses highlighted a range of areas they saw as key to helping build this planned growth in the upcoming Autumn Budget.
These included the faster adoption of new technology and subsequent investment in research and development, fresh measures to help with business profitability, support to help nurture skills and talent, and the continued focus on a renewed industrial strategy.
Euan West, head of KPMG Private Enterprise in the UK and EMA, said: “2025 has been filled with many challenges at home and abroad for firms of all shapes and sizes.
“Private businesses have continued to show resilience and adaptability in the face of these challenges, which is reflected in their steady levels of confidence about the future.
“The results of this survey show that the UK is seen as a stable environment for business, providing a strong launch pad for future growth, but there are still challenges, particularly when it comes to ongoing inflation conditions.
“All eyes will now fall on the Autumn Budget to see if the concerns of private businesses are addressed.”
