More than nine in 10 (93%) private business owners in the East Midlands 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 122 in the East Midlands, 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 East Midlands expressed confidence in their growth prospects for the next 12 months. By the mid-year mark, this sentiment has grown, with confidence levels rising to 93%, reflecting a change in outlook regarding their growth ambitions.
Technology continued to dominate as a leading investment priority for East Midlands-based businesses, with 62% identifying areas such as artificial intelligence (AI), cyber security and broader digital transformation as key focuses.
While the region trails London and the North East’s commitment to overall 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 East Midlands for the remainder of the year. A third of firms (66%) are looking to introduce new service lines and expand their client offering (down slightly from 72% at the start of 2025). Meanwhile, almost three in five (59%) are targeting entry into new markets – an increase from 52% at the start of 2025.
When it comes to external challenges, inflation remains the most pressing concern, cited by 43% of respondents. This is followed by concerns around rising employment costs, which 33% of business leaders flagged as a key risk.
The appetite for alternative funding options is also gaining momentum, with 51% 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.
Marc Abrams, Nottingham office senior partner at KPMG UK, said: “It’s encouraging to see such confidence from privately-owned East Midlands businesses at the half-year stage.
“From the manufacturing heartlands of Derbyshire and Nottinghamshire to the logistics corridors of Leicestershire, firms are channelling investment into technology, particularly AI, cyber security and digital transformation, to boost productivity and sharpen their competitive edge.
“Alongside this, there’s a clear push into new markets and service lines, backed by growing interest in private equity as a route to scale. While inflation and rising employment costs remain challenges, the ambition, adaptability and innovative spirit shown by the East Midlands’ private enterprises will be key in driving the region’s role as a driver of future UK growth.”
