UK business leaders remain cautiously optimistic about growth in 2025, with 83% expressing confidence in their own company’s prospects, according to the latest HLB Survey of Business Leaders. The survey draws on a record number of UK responses and outlines the challenges and opportunities facing owner-managed businesses in the UK.
While 33% of business leaders expect global growth to rise-slightly up from last year-many still feel the burden of increasing risks. Economic uncertainty is the primary concern, noted by 79% of respondents, followed by cybersecurity threats (69%) and tax risks (69%).
Pete Wilmer, Managing Partner at Hawsons, UK member firm of HLB, commented:
"Owner-managed businesses are resilient, but now is the time for them to think ahead. While confidence remains strong, smart decision-making will be key to navigating 2025: focusing on efficiency, technology adoption, and people development."
Practical Strategies for Business Owners: Efficiency and Technology Investment
Business leaders are taking proactive steps to secure growth in the year ahead. In particular, 53% are upgrading their technology systems, with 30% integrating AI into their operations. For business owners, this is a clear opportunity:
- Embrace AI and Automation: Start by looking at how AI can streamline your operations, from automating administrative tasks to enhancing customer engagement. Even simple AI tools can boost efficiency, freeing resources to focus on strategic growth.
- Upgrade Your Tech Infrastructure: Investing in your IT systems can optimise your workflows and help mitigate risks like cybersecurity threats. In uncertain times, robust systems that can scale with your business are vital.
Pete added, "Tech adoption doesn’t have to be overwhelming. Start small by automating one or two key business processes, then scale as you see results."
Focus on Talent Development to Drive Future Growth
While hiring remains a challenge, UK businesses prioritise developing their existing teams. 36% of business leaders believe their workforce is high-performing and engaged, yet many still see room for improvement.
To bridge this gap, consider:
- Investing in Training and Development: Focus on continuous learning to keep your people competitive and motivated. 63% of leaders already prioritise this, recognising that skilled employees are crucial for long-term success.
- Foster a Strong Company Culture: Nearly 60% of leaders are improving company culture and purpose. Align your team with the company's vision and values. A strong, positive culture boosts morale and drives innovation.
- Succession Planning: Over half (53%) of business owners invest in succession planning and leadership development. As a business owner, it is essential to consider the next generation of leaders and how to empower them for the future.
Pete highlighted: "As your business grows, your people become your most valuable asset. Focus on nurturing talent, fostering engagement, and preparing your team for leadership roles. This is the foundation of sustainable growth."
Powering Up Innovation for Long-Term Success
Despite a low percentage of leaders considering themselves successful innovators (only 23%), UK businesses are actively working to improve. The survey found:
- Create a Culture of Innovation: 51% of leaders focus on encouraging innovation within their businesses. As a business owner, consider fostering an environment where ideas are encouraged and creativity is rewarded.
- Cross-Functional Collaboration: Over a third (33%) of the business is improving collaboration across different areas. This can break down silos and encourage a more agile, responsive business model.
- Collaborate with External Partners: Thirty percent of businesses partner with other companies to spur innovation. Look beyond your internal team and consider forming strategic alliances with other companies to share knowledge, resources, and ideas.
Pete advised: "Innovation isn’t just about big breakthroughs- it's about creating a culture where new ideas thrive. Encourage experimentation, and be open to new ways of doing business."
Cybersecurity and Risk Management: Don’t Wait for a Breach
With cybersecurity risks high on the agenda for 69% of UK leaders, now is the time for business owners to invest in strengthening their defences. This includes:
- Implement Strong Cybersecurity Measures: Regularly update your systems and educate your employees on best practices for data security. A strong cybersecurity plan is no longer optional - it’s essential.
- Focus on Risk Management: With 79% of leaders concerned about economic uncertainty, it’s critical to assess and mitigate financial, operational, and strategic risks. Work with experts to build a robust risk management framework that helps your business stay resilient in the face of change.
Pete added, "Cybersecurity should be a top priority. Develop a comprehensive strategy and train your team to spot potential threats."
About the Survey
The HLB Survey of Business Leaders 2025, conducted between September and November 2024, gathered insights from 1,242 business leaders across 55 countries, including a record number of UK respondents. The survey explored global and regional business sentiment, risks, and growth strategies.
Pete Wilmer
Senior Partner