KPMG Private Enterprise Barometer Pulse 2026

London combines ambition with scale. The capital records some of the strongest indicators of growth activity in the survey, with 77% of businesses planning to enter new markets and 50% expecting private equity to support their growth ambitions, both above the national average. However, London is also more exposed than most regions to global uncertainty, with 39% identifying supply chain and trade disruption as a key risk. The result is a region that remains outward-looking and growth-oriented, but highly attuned to international economic conditions.

The South East presents a more measured profile than many of its peers. Businesses report lower exposure to inflation and cost pressures than the UK average, with 41% citing them as a key concern compared with 47% nationally. Despite this, acquisition activity remains relatively subdued at 18%, and private equity usage sits slightly below average. Rather than pursuing aggressive expansion, many firms appear focused on steady, sustainable growth, supported by a comparatively favourable risk environment.

The South West's story is less about growth at any cost and more about building capability. Workforce and skills investment is higher than the national average, with 41% prioritising it, while concerns around supply chain disruption are notably lower than elsewhere in the UK. Confidence sits slightly below the national average, but businesses in the region appear focused on strengthening their organisations from within. In many respects, the South West reflects a longer-term approach to growth, centred on people and capability rather than rapid expansion.

Businesses in the East of England appear particularly conscious of external disruption. Supply chain and trade risks are cited by 39% of respondents, significantly above the national average of 33% and among the highest levels recorded in the survey. At the same time, workforce investment sits below the UK average, suggesting many firms are prioritising resilience and managing external risks over broader capability-building. The picture is one of cautious pragmatism: businesses remain active, but with a clear eye on the challenges emerging beyond their immediate markets.

Mergers and acquisitions feature more prominently in the East Midlands than anywhere else in the survey. More than a quarter of businesses (27%) view acquisition as part of their growth plans, above the national average of 22%. While confidence and expansion activity remain more measured than in some neighbouring regions, the data suggests businesses are pursuing targeted opportunities where they can accelerate growth, consolidate market position or access new capabilities through deal activity.

The West Midlands combines growth ambition with a willingness to pursue a range of expansion strategies. Seventy per cent of businesses plan to enter new markets, while 26% are considering acquisitions, making the region one of the most active in the UK for inorganic growth. That combination suggests businesses are not simply looking to grow organically but are actively exploring multiple routes to scale. In a challenging market, the West Midlands appears focused on seizing opportunities rather than waiting for conditions to improve.

Wales is one of the more cautious regions in the dataset when it comes to expansion. Only 39% of businesses plan to enter new markets, significantly below the national average of 61%, while acquisition activity also lags the wider UK picture at just 12%. That does not necessarily point to pessimism; rather, it suggests a preference for consolidation and careful capital allocation in a challenging economic climate. Welsh businesses appear focused on strengthening existing operations before pursuing more ambitious growth plans.

Unlike some regions that show sharp divergences from the national picture, the North East is characterised by consistency. Most indicators sit broadly in line with UK averages, suggesting a business community that remains steady despite wider economic pressures. Confidence is slightly above the national norm, but the biggest story here is the absence of major outliers. In a survey where many regions show strong biases toward particular risks or growth strategies, the North East presents a picture of balance and stability.

The North West emerges as one of the UK's most expansion-minded regions. Nearly three-quarters (73%) of businesses plan to enter new markets, comfortably ahead of the national average of 61%. While confidence remains strong, what stands out most is the region's willingness to pursue growth despite ongoing economic uncertainty. Rather than retrenching, many businesses appear focused on extending their reach, suggesting a degree of resilience and optimism that continues to underpin the regional economy.

Yorkshire & Humber combines confidence with ambition. Seventy per cent of businesses plan to enter new markets, placing the region among the UK's strongest performers for expansion activity. What makes this particularly notable is that businesses continue to pursue growth despite the same pressures facing firms elsewhere in the country. Rather than being defined by risk, the regional picture is one of momentum, with organisations continuing to explore new opportunities and markets as part of their long-term growth strategies.

Scotland stands out as one of the more cautious regions in the Pulse. While a majority of businesses remain confident, confidence levels sit below the national average and businesses are noticeably less focused on expansion than the wider UK picture suggests. Only 41% plan to enter new markets, compared with 61% nationally, while 55% cite inflation and rising costs as a key concern – the highest proportion of any UK region. Private equity also plays a smaller role in growth plans, suggesting many businesses are taking a measured approach to growth while navigating a particularly challenging cost environment.