Private businesses eye international trade to drive revenue and growth in 2026

70% of private business owners look to international markets to help boost business in 2026
Four-fifths say a push into new markets and the launch of new products will help drive revenues
87% are confident of growth in the next 12 months

Seven in 10 of UK private business owners are looking to international trade to support growth plans and boost revenue over the next 12 months, according to KPMG’s annual Private Enterprise Barometer.

The poll, which gauged levels of optimism among 1,500 private business owners about their firm’s prospects in 2026, found that Western Europe was the most favoured destination for trade (46%), followed by Eastern Europe (40%). Over a third (34%) cited North America as a preferred trade destination, suggesting that UK firms managed the introduction of tariffs well in 2025

Asia has become a greater focus for executives, with 27% now considering it for trade opportunities, up from 21% last year. The trade deal between the UK and India may have contributed to this increased interest.

The survey also found 87% of executives are confident about their growth prospects for this year. The main drivers for this optimism include increased demand for services, plans to introduce new technology and strategic growth initiatives. This figure is slightly lower than last year’s 92%, but it still presents an optimistic and ambitious outlook. Notably, the findings reveal that more than six in 10 businesses intend to enter new markets and launch new products and services.

When looking at challenges, businesses highlighted cost pressures and potential tax policy changes as barriers for growth. This year’s survey also found that 30% of private business owners had a positive outlook for the UK economy, compared to 42% last year. However, despite this, more than half thought revenues would rise by up to five per cent, with 46 per cent predicting a rise of the same amount in profits.

When it comes to planned investment areas over the next 12 months, artificial intelligence (AI) emerged as the priority, overtaking technology as a whole, which led in the first survey last year.

“Confidence among business leaders remains strong, but there is an undercurrent of caution amid a subdued economic outlook for the UK and most other developed economies" commented Euan West, Head of UK Regions and UK & EMA Head of KPMG Private Enterprise, Head of Markets & Growth, KPMG in the UK.

“While international expansion is on the agenda, the geopolitical environment remains volatile and unpredictable, which means the UK’s private enterprise and family business leaders and owners are having to take a pragmatic and adaptable approach.

“Against this backdrop the search for growth is one that requires strategic clarity, determination and agility and it’s encouraging to see business leaders making AI an investment priority.

“As ever, I am heartened and inspired by the can-do spirit of the private enterprise community.”

Euan West

Head of UK Regions and UK & EMA Head of KPMG Private Enterprise, Head of Markets & Growth

KPMG in the UK

mail
call

Notes to editors:

Methodology

One Poll, a member of the British Polling Council, surveyed 1,500 private business owners for KPMG between 28 November and 12 December 2025.

The following questions were posed to 1,500 private business owners, unless it says otherwise:

1. When thinking about your firm’s growth prospects over the next year, how confident are you about your overall business growth?

	%	n
CONFIDENT [NET]	87%	1303
Very confident	41%	608
Confident	46%	695
Neither confident nor unconfident	9%	128
Unconfident	4%	56
Very unconfident	1%	13
UNCONFIDENT [NET]	5%	69
Column n	1500

2. What are the top factors making you confident about your firm’s overall business growth over the next year? [Please select up to three answers.]

	%	n
Increased demand for our products and services	46%	593
Plans to introduce new technology	42%	549
Marketing and other strategic growth initiatives	37%	486
Plans to enter new markets or launch new products or services	33%	433
A more positive outlook for the UK economy	30%	386
Access to more advantageous financing	24%	311
Easing cost pressures	20%	259
Greater certainty over regulation	17%	228
Greater political certainty	11%	146
Other (please specify)	0%	4
Don’t know / not sure	1%	9
Column n	1303

3. What are the top factors making you unconfident about your firm’s overall business growth over the next year? [Please select up to three answers.]

	%	n
A less positive outlook for the UK economy	55%	38
Cost pressures	52%	36
Weaker demand for our products and services	41%	28
Changes to tax policy (eg capital gains tax, national insurance contributions from employers)	39%	27
Increased competition	16%	11
Uncertainty over regulation	14%	10
Potential for political disruption (domestic or overseas)	12%	8
Difficulties accessing funding	10%	7
Supply chain issues	6%	4
Difficulties entering new markets	6%	4
Difficulties accessing / retaining the right talent	6%	4
Difficulties implementing or making the best use of technology	4%	3
Other (please specify)	4%	3
Column n	69

4. How do you expect your company’s revenue to change in the next 12 months?

	%	n
INCREASE [NET]	82%	1235
Increase significantly (5%+)	28%	421
Increase moderately (1–5%)	54%	814
Stay about the same	12%	181
Decrease moderately (1–5%)	4%	64
Decrease significantly (5%+)	1%	17
DECREASE [NET]	5%	81
Prefer not to say	0%	3
Column n	1500

5. How do you expect your company’s EBITDA to change in the next 12 months?

	%	n
INCREASE [NET]	67%	1005
Increase significantly (5%+)	21%	308
Increase moderately (1-5%)	46%	697
Stay about the same	28%	416
Decrease moderately (1–5%)	3%	50
Decrease significantly (5%+)	1%	14
DECREASE [NET]	4%	64
Prefer not to say	1%	15
Column n	1500

6. How are you planning on diversifying your business in the next five years, if at all? [Please select all that apply]

	%	n
Enter new markets (e.g. internationalisation or new customer segments)	63%	944
Create new service lines or product categories	63%	941
Via acquisition	22%	331
Other (please specify)	0%	4
N/A - We are not planning on diversifying in the next five years	11%	159
Unsure	3%	41
Column n	1500

7. Which sources of finance will you mainly use to finance your plans? [Please select all that apply]

	%	n
Company’s own balance sheet/internally generated funds	59%	766
Private Equity	46%	596
Capital markets/IPO	31%	405
Government supports/grants	27%	357
Senior debt finance, i.e. bank debt	23%	305
VC or angel investors	18%	233
Alternative Lenders	16%	214
Friends and family	14%	187
Other (please specify)	0%	3
Unsure	1%	18
Column n	1300

8. Where do you have any plans for internationalisation/ expanding to new markets? [Please select all that apply]

	%	n
Western Europe	46%	430
Eastern Europe	40%	375
North America	34%	321
Asia	27%	252
Australia and New Zealand	24%	224
Middle East	21%	199
Central America	21%	198
South America	20%	193
Africa	20%	188
Other (please specify)	0%	1
Not yet decided	8%	76
Column n	944

9. Has your company’s appetite for international trade and expansion changed in the past 12 months?

	%	n
INCREASED [NET]	70%	1050
Increased significantly	26%	386
Increased moderately	44%	664
Stayed about the same	27%	409
Decreased moderately	2%	28
Decreased significantly	1%	13
DECREASED [NET]	3%	41
Column n	1500

10. When thinking about the future of your business which do you think is the most important area for investment? [Please select up to two options]

	%	n
Technology (e.g. ERP, digital transformation)	39%	590
AI	38%	567
Product and Service Innovation	27%	408
Workforce & skills	25%	376
Sustainability	21%	314
Risk Management and Mitigation, including cyber security	20%	296
Regulatory compliance	12%	173
Other (please specify)	0%	4
Column n	1500

11. Which, if any, of the following statements do you agree with on workforce? [Please select all that apply]

	%	n
We are confident that we can recruit people with the right qualifications and experience for our business	50%	187
We are looking to reskill some of our existing workforce	38%	142
We are finding it challenging to recruit people with the right skills	24%	91
We are having to change or rethink our Employee Value Proposition to help with recruitment and retention	19%	70
We are ok with recruiting people but are struggling to retain them	14%	51
None of the above	5%	19
Column n	376

12. Which areas of technology will your company be investing in? [Please select all that apply]

	%	n
Data quality and management	56%	329
Cloud and digital infrastructure	54%	321
Production / manufacturing automation	33%	195
E-commerce	34%	199
Renewable energy / green-tech	31%	185
Reporting and Analytics	31%	182
ERP (including finance systems)	28%	164
CRM	28%	163
HR systems	27%	158
Unsure	2%	13
Column n	590

13. What is the reason for technology investment at your company? [Please select all that apply]

	%	n
Process improvement/efficiency	63%	372
Improving decision making – better access to insights	54%	318
Improving customer experience	54%	318
Improving controls / reducing risk	45%	267
Improving employee experience	42%	250
Current technology nearing end of life / Obsolescence	34%	198
Other (please specify)	0%	1
Column n	590

14. What do you think are the biggest opportunities for you from AI? [Please select all that apply]

	%	n
Efficiency and productivity gains / reduced reliance on human effort	59%	336
Better quality decision-making	55%	314
Accelerated innovation	54%	307
Embedded AI in products and services	52%	297
Enhanced sales and customer experiences	47%	266
Not sure / none	1%	5
Other (please state)	0%	1
Column n	567

15a. How has the risk climate changed for your business in the past 12 months, for cyber and other risks?

Cyber

	%	n
INCREASED [NET]	70%	206
Significantly increased	23%	69
Somewhat increased	46%	137
No change	22%	64
Somewhat decreased	7%	20
Significantly decreased	2%	6
DECREASED [NET]	9%	26
Column n	296

15b. How has the risk climate changed for your business in the past 12 months, for cyber and other risks?

Other risks

	%	n
INCREASED [NET]	48%	141
Significantly increased	13%	38
Somewhat increased	35%	103
No change	40%	118
Somewhat decreased	10%	30
Significantly decreased	2%	7
DECREASED [NET]	13%	37
Column n	296

16. Have you, or are you planning to review your business operations on any of the following areas to better understand your environmental impact? [Please select all that apply]

	%	n
Use of sustainable materials	60%	188
Our sources of energy	43%	134
Our supply chain	36%	113
Business travel	34%	108
Vehicle emissions	32%	101
None of the above	6%	19
Column n	314

17. Why do you see regulatory compliance as the most important area for investment? [Please select all that apply]

	%	n
To improve efficiency in reporting and compliance	53%	92
New regulation impacting my business	45%	77
To strengthen our internal control environment	42%	73
New reporting requirements	35%	61
The increased focus on the ESG agenda	35%	60
Column n	173

18. Why do you want to invest in innovation? [Please select all that apply]

	%	n
To improve current products and services	60%	244
To improve operational efficiency	53%	216
To stand out from competitors	51%	208
To find new market opportunities	48%	196
To improve processes to enable innovation	38%	155
Column n	408

19. What is your company’s current appetite for M&A activity? [Please select all that apply]

	%	n
Open to opportunities but not actively seeking	38%	576
Focused on internal growth only	34%	509
Actively pursuing acquisitions	32%	473
Considering full / partial exit or external equity investment	29%	430
Actively pursuing full / partial exit or external equity investment	26%	387
Considering non-core divestitures	16%	242
Other (please specify)	0%	4
Column n	1500

20. What is the primary motivation for M&A interest? [Select one]

	%	n
Access to new technology or talent	33%	490
Market share expansion	23%	341
Equity investment to support growth	13%	193
Cost synergies	13%	190
Geographic diversification	13%	190
Defensive consolidation	4%	53
Shareholder exit	1%	22
Other (please specify)	1%	21
Column n	1500

21a. Following on from the Budget, will the measures outlined by the Chancellor in these areas have an overall positive or negative impact on your business?

Business profitability

	%	n
Positive impact	59%	887
No impact	24%	353
Negative impact	14%	208
Not sure / N/A	3%	52
Column n	1500

21b. Following on from the Budget, will the measures outlined by the Chancellor in these areas have an overall positive or negative impact on your business?

Investment in growth opportunities

	%	n
Positive impact	60%	896
No impact	26%	384
Negative impact	10%	149
Not sure / N/A	5%	71
Column n	1500

21c. Following on from the Budget, will the measures outlined by the Chancellor in these areas have an overall positive or negative impact on your business?

Investment in ESG efforts

	%	n
Positive impact	50%	747
No impact	35%	519
Negative impact	8%	122
Not sure / N/A	7%	112
Column n	1500

21d. Following on from the Budget, will the measures outlined by the Chancellor in these areas have an overall positive or negative impact on your business?

Staff recruitment/retention

	%	n
Positive impact	52%	775
No impact	33%	490
Negative impact	10%	153
Not sure / N/A	5%	82
Column n	1500

21e. Following on from the Budget, will the measures outlined by the Chancellor in these areas have an overall positive or negative impact on your business?

Opportunities to expand in the UK and/or globally

	%	n
Positive impact	58%	873
No impact	27%	399
Negative impact	10%	149
Not sure / N/A	5%	79
Column n	1500

21f. Following on from the Budget, will the measures outlined by the Chancellor in these areas have an overall positive or negative impact on your business?

Attracting outside investment

	%	n
Positive impact	55%	822
No impact	30%	455
Negative impact	8%	124
Not sure / N/A	7%	99
Column n	1500

21g. Following on from the Budget, will the measures outlined by the Chancellor in these areas have an overall positive or negative impact on your business?

Tax implications for company shareholders

	%	n
Positive impact	38%	576
No impact	32%	478
Negative impact	23%	345
Not sure / N/A	7%	101
Column n	1500

For media enquiries, please contact:

Rob Smyth, Media Relations Manager

T: 07548 115836

E: rob.smyth@kpmg.co.uk

KPMG UK media relations

Tel: +44 (0) 207 694 8773

About KPMG in the UK:

KPMG is trusted to make the difference for our clients, people and the communities we work in. With our people’s deep sector expertise and cutting-edge technology, we help organisations overcome their biggest challenges and unlock new opportunities to transform and grow.

On 1 October 2024, KPMG UK and KPMG Switzerland merged to form KPMG UK/Swiss Group, scaling our strengths and amplifying the difference we make.

KPMG International Limited is a global organisation of independent professional services firms providing Audit, Tax and Advisory services in 138 countries and territories. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

Loading

The page is loading.

Loading

The page is loading.

Private businesses eye international trade to drive revenue and growth in 2026

Euan West

Contact

Company

Services