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      It’s gone by in a flash, but we’re almost at the end of Q1 for 2026 – how is business performance tracking against target for the first quarter, and how are local business leaders feeling about the rest of the year ahead?

      Research that we carried out at KPMG amongst 1,500 private business leaders in late 2025 provides a unique perspective of local business leaders assessing growth, innovation and opportunity. Our region’s data reveals the pulse of a business community ready to set its own direction.

      Turning caution into opportunity

      Kaljinder Nijjar
      Kaljinder Nijjar

      Office Senior Partner - Nottingham

      KPMG in the UK

      The research was conducted after the government’s Budget had been delivered and the picture that emerged was one of confidence and growth ambition. 76% of East Midlands businesses report confidence in future growth, sitting just below the national average (84%), with 34% of businesses feeling “very confident”.

      Increased demand for products and services drove that optimism for 45% of East Midlands businesses, signalling that the East Midlands marketplace remains lively and receptive to develop new offerings that meet local needs and expand reach.

      Diversification remains a top priority for East Midlands businesses, with 64% planning to introduce new service lines and broaden their client offerings. This agility is very much needed in the fast-changing world we live in and will help companies stay relevant, meet changing customer needs, and strengthen financial stability.

      Managing evolving digital market risks

      Even as demand grows, digital transformation continues at a measured pace. Fewer businesses have prioritised investment in technology (32%) and AI (28%), marking the region as one with untapped potential in this sphere.

      As businesses navigate the evolving landscape of digital transformation, an increased awareness of risks, especially those related to cyber threats, underscores how strategic technology investments are essential not only for driving growth, but also for protecting the region’s long-term prosperity.

      East Midlands businesses pair ambition with vigilance through high awareness of both cyber (68%) and broader risks (54%) signalling a culture that prizes resilience. This approach supports better decisions, protects assets, and builds a resilient business environment. Strengthening security and risk management increases stability, helping the region prosper through change.

      People powering regional progress

      Talent is crucial for regional growth, but recruitment (44%) and reskilling (21%) lag behind national figures, indicating a move toward investing in long-term skills development. Local talent drives this transformation by supporting development and keeping the East Midlands workforce competitive. This collective focus on people helps businesses and communities succeed together.

       The East Midlands story is about connection, resilience, and ambition. . Local leaders can help to shape this future by responding to today’s challenges and stepping forward to drive change.

      Use these insights as your starting point, join the conversation and help ensure the region’s next chapter is defined by growth and possibility – read the full report – KPMG Private Enterprise Barometer 2026.

      Download the complete KPMG Private Enterprise Barometer 2026 to access in-depth analysis, practical strategies, and expert perspectives on the trends shaping the future of UK private businesses.
      Read your copy now and be part of the conversation shaping the next chapter of UK private enterprise.
      Download now

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