A recent report has highlighted a growing sense of optimism among tech firms in the South West of the UK, as they look ahead to 2025 with confidence in their growth potential. The inaugural Private Enterprise Barometer conducted by KPMG UK surveyed 1,500 private business owners, including 129 from the South West, revealing that 91 per cent of tech firms anticipate positive growth opportunities in the coming year.
Among the critical strategies for growth identified in the survey, diversification emerged as a key focus, with 64 per cent of South West businesses planning to develop new products or services and a similar proportion aiming to explore new international markets. Technological innovation is also seen as a significant driver of optimism, with nearly half (48 per cent) of respondents attributing their confidence to initiatives centred around new technology adoption. Investment priorities clearly lean towards AI, cybersecurity, and digital transformation, with 66 per cent recognising these areas as crucial, alongside workforce development and sustainability initiatives.
David Williams, senior partner at KPMG UK’s Bristol office, noted the resilience South West businesses have demonstrated through recent challenges, observing that this has translated into "bold ambitions for 2025". He emphasized the importance of leveraging technologies such as AI, stating, "not just for boosting efficiency but also for elevating customer experiences." Williams further reiterated that the region's approach of combining innovation with sustainability and workforce nurturing will significantly bolster their success in the upcoming year, ultimately contributing to sustained economic growth within the sector and beyond.
Nationwide, the trend mirrors regional sentiments, with a reported 92 per cent of Britain's private business owners confident in their growth prospects for 2025. However, some firms expressed concerns regarding heightened competition and access to funding as potential obstacles.
In alignment with the trends highlighted in the KPMG report, Cheltenham-based technology and digital innovation provider Emerge Digital has recently secured new contracts valued at half a million pounds, signalling robust demand for digital transformation services within the region. The South West has evolved into a leading area for technology, accounting for the fifth largest tech sector in the UK. Bristol, in particular, ranks as the fourth-most-popular UK city for start-ups outside of London.
Emerge Digital is currently working with a variety of local businesses, including Everhot, The HR Dept, Green Gourmet, Bannister Transport, and several others, assisting them in transitioning through digital transformation initiatives. Their services encompass a broad range of technology applications, from AI adoption to customer relationship management (CRM) updates, aimed at enhancing operational processes and customer interactions.
The company has reported a 30 per cent increase in turnover and a 26 per cent expansion in its customer base over the past year, attributing this growth, particularly within its Innovation arm focusing on cutting-edge technologies, to the burgeoning interest in automation and AI solutions. Nigel Church, CEO of Emerge Digital, stated, "We’ve had a really good year driven by a demand among businesses in the region to adopt new, emerging technologies," which he believes has equipped businesses to better meet customer needs.
As the South West embraces digital advancements and innovation, the efforts of firms like Emerge Digital exemplify the region's dynamic response to evolving market demands and the broader trend of AI automation shaping the landscape for businesses in the UK.
Source: Noah Wire Services