• Swindon & Wiltshire Economy
• Thursday February 12 2026

Most private firms in South West confident about their growth prospects

Almost eight in 10 private firms in the South West feel confident about their growth prospects, according to a new survey.

78 per cent told researchers from KPMG’s Private Enterprise Barometer they were feeling optimistic.

The annual survey captured the perspectives of 1,500 privately owned businesses, including 116 in the South West, from across various industries including professional services, finance, technology, industrial manufacturing and retail.

Increased demand for products and services drove optimism for 42 per cent of the region’s businesses, with a further 41 per cent highlighting plans to introduce new technology as another positive influence.

With tech being a key priority, two fifths identified areas such as digital transformation as a key investment focus, followed closely by artificial intelligence (37 per cent).

The region’s appetite for AI investment sits slightly above the UK average of 38 per cent, highlighting a strong commitment to innovation and a determination to stay ahead in an increasingly digital economy.

Diversification is also high on the agenda for private businesses across the South West. Three-fifths of businesses (60 per cent) are looking to introduce new service lines and broaden their client offering.

Appetite for internationalisation is also strong, with 70% of respondents confirming that appetite has risen in the over the last twelve months – in line with the UK average.

Almost half (49 per cent) of businesses are also targeting new markets as a way to diversify in the next five years.

Eastern Europe was also the most favoured destination for trade and expansion amongst South West businesses, with almost two-fifths (39 per cent) citing the region as a priority.

The appetite for alternative funding options is also high, with 45 per cent of regional businesses open to private equity investment. This reflects a willingness amongst firms to explore new sources of capital to support innovation and accelerate growth.

When it comes to M&A activity more broadly, two-fifths of South West businesses (39 per cent) are focused on internal growth only, while 31 per cent are open to M&A opportunities and a further 24 per cent are actively pursuing acquisitions.

David Williams, South West and Wales regional office senior partner at KPMG UK, said: “While the relative weakness in confidence is significant, the fundamentals tell a more encouraging story – strong demand continues, and firms are actively investing in technology to drive growth.

“What’s striking is the commitment to tech investment and diversification. Rather than just weathering challenges, South West businesses are positioning themselves for long-term success through innovation.

“The South West has genuine competitive advantages, from recognised strength in the aerospace sector to a thriving Bristol-Bath tech cluster.

“As momentum builds, what we’re seeing now is a combination of capability and ambition which puts the region in a strong position to convert innovation into sustainable, long-term growth, even while navigating short-term headwinds.”