UK business leaders are becoming more open to risk as confidence returns to the market, according to new research from mid-market private equity firm ECI Partners.
The survey of UK CEOs and business owners found that 47% now have a higher appetite for risk than a year ago, compared with just 26% who say their appetite has fallen. The remaining 27% report no change. Larger companies appear the most confident — 57% of businesses with more than 500 employees said they were more open to risk than last year.
Technology and HR companies were the most bullish, with 58% and 57% respectively reporting higher risk appetite. By contrast, only 31% of retail respondents said they were more willing to take risk, citing higher business rates and national insurance costs as contributing factors.
Despite the renewed optimism, cost pressures remain the top concern for UK businesses, cited by a third of respondents. Other major challenges include digital transformation (14%), the perceived threat from AI (13%), and compliance and regulation (11%). Sector variations were notable — digital transformation was identified as a major challenge by 71% of healthcare businesses, while rising costs were particularly acute in education (71%) and manufacturing (44%).
The research also suggests strong prospects for private equity investment. More than half (57%) of respondents said they are considering private equity funding, with interest highest among architecture, engineering, and construction businesses (80%), followed by retail, hospitality and leisure (69%), and technology (67%).
International expansion is firmly on the agenda for 2026, with 81% of companies considering overseas growth. This ambition spans company size — 86% of large businesses, 84% of mid-sized, and 75% of smaller companies are planning international moves. Among those eyeing expansion, private equity and venture capital were the preferred funding sources (35%), ahead of government grants (26%) and bank finance (23%).
Creative industries lead the field in using private equity for overseas expansion, at two-thirds of respondents, followed by travel (50%) and financial services (47%).
Respondents said they valued expertise and networks from investment partners (32%) above all else, followed by technology and AI capability (28%), international reach (18%), and access to talent (10%).
Tom Wrenn, Managing Partner at ECI Partners, said the findings reflected the sentiment his firm sees across the market. “This research is what we like to see as investors — positive sentiment from UK business leaders with a renewed appetite for risk, especially amongst tech CEOs,” he said. “What is particularly striking is the number of management teams actively considering private equity as they look to expand internationally and navigate the shifting sands of GenAI. We see this from the founders and CEOs we speak with, who are looking for experience and expertise from their partner to navigate the growth opportunities ahead of them.”
ECI Partners has invested in growth businesses for five decades and says the survey results underline a growing recognition of private equity as a strategic partner rather than a source of capital alone.
You must be logged in to post a comment.