The survey of over 500 mid-sized business leaders finds 74% have beaten growth targets in 2025, with 19% significantly exceeding expectations and 2% behind. Key drivers include access to external finance (42%), rising customer demand (40%), productivity gains from technology and AI (39%), successful launches (39%) and better recruitment and retention (39%). Two-thirds (66%) are holding investment steady and 29% increasing it; only 5% are delaying and fewer than 1% pausing or withdrawing investment. Only 35% view the UK as a strong environment for long-term growth, while 65% see conditions becoming more challenging and 20% are shifting operations overseas. Major challenges include skills gaps (36%), rising wage expectations (24%) and supply chain disruption (32%).
UK mid-sized businesses are reporting stronger-than-expected performance in 2025, fuelled by greater access to finance, AI adoption and resilient customer demand, according to the latest Economic Engine research from accounting and business advisory firm, BDO. The survey of over 500 mid-sized business leaders shows almost three-quarters (74%) have already beaten the growth targets they set at the start of the year, with 19% saying they have significantly exceeded expectations and just 2% reporting they are behind.
Access to external finance (42%) and rising customer demand (40%) were key drivers of outperformance, supported by productivity gains from technology and AI (39%), successful product or service launches (39%) and better-than-expected recruitment and retention (39%). This positive trading picture is translating into continued capital commitment. Two-thirds (66%) are holding investment steady and 29% are stepping it up, with only 5% delaying and fewer than 1% pausing or withdrawing investment.
#mid-sized-businesses #access-to-finance #ai-adoption-and-productivity #investment-and-growth #supply-chain-disruption
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