By Elaine Stroud, CEO of the Entrepreneurs' Forum
The Entrepreneurs’ Forum supports over 350 business owners from across the North East who collectively turnover more than £2.6 billion and employ over 16,000 people.
Our quarterly “Pulse Survey” gathers the thoughts of over 100 of our members, giving real-time insight into business sentiment.
The latest results show that despite ongoing concerns about rising costs and wider economic uncertainty, entrepreneurs remain optimistic about their own businesses.
Determined Optimism
More than 70% of respondents say they feel optimistic about their prospects over the next 12 months. That’s up more than 10% on 2025, with many founders reporting stronger pipelines, new opportunities, and encouraging levels of demand.
At the same time, the pressures facing SMEs are very real. Around 70% of entrepreneurs also cite rising costs as their biggest concern, with employment costs mentioned most frequently. Increases in minimum wage and National Insurance contributions are having a direct impact, particularly for labour-intensive businesses, alongside the broader cost of running a business.
Besides this, there is a clear concern about the wider economic environment. Nearly half of the respondents highlight government policy and regulatory uncertainty as a factor affecting confidence. For many founders, the challenge is not just the level of cost but the difficulty of planning with clarity.
What this creates is a very real tension. Entrepreneurs are seeing opportunities, but they are operating in conditions that make those opportunities harder to realise.
Strong pipelines, slower decisions
One of the most important insights in this survey is the challenge of converting pipeline into revenue. Around four in ten entrepreneurs report that this is becoming more difficult. Clients are taking longer to make decisions, projects are being delayed, and payment terms are stretching beyond what many businesses are used to.
In many cases, the demand is still there. The challenge is the time it takes for that demand to translate into cash. That gap between opportunity and revenue is where pressure begins to build.
Despite this, the overall direction remains positive. Three-quarters of respondents expect their turnover to increase over the next 12 months, and more than half anticipate growing their teams. Many also continue to invest in new products, new markets, and new capabilities.
We are also seeing rapid adoption of technology. More than 90% of respondents say they are now using artificial intelligence in some form, often to improve productivity, speed and efficiency. For many businesses, this is quickly becoming part of how they operate day to day.
Entrepreneurial Mindset
What stands out most clearly is the mindset of entrepreneurs themselves. There is a strong sense of resilience running through the responses. Founders are not ignoring the challenges, but they are not standing still either. They are adapting, investing, and continuing to push forward.
That balance of optimism and realism is important. Entrepreneurs understand the environment they operate within, but they remain focused on what they can control within their own businesses.
This is why entrepreneurship continues to play such a critical role in the North East economy. These are businesses that are creating jobs, investing in growth and building for the long term, even when conditions are not straightforward.
The overall picture is one of determined optimism. Confidence is there, but it is being tested by external pressures. The businesses that navigate this period successfully will be those that can manage that tension, maintaining momentum while adapting to a more complex operating environment.
Read the full report at entrepreneursforum.net