Nearly half of UK business owners and CEOs say they are more willing to take risk than a year ago, signalling a growing sense of optimism about future growth, according to new research released by private equity firm ECI Partners.
The survey shows 47% of respondents now have a higher appetite for risk, compared with just 26% who say their appetite has fallen.
Confidence appeared to increase with company size, with 57% of businesses with over 500 employees saying they are more open to risk than last year.
Risk appetite varied sharply by sector too. Technology businesses are the most confident, with 58% reporting a higher appetite for risk, followed by HR companies at 57%. Only 31% of retail sector companies said they have a higher appetite for risk.
Despite improving sentiment, rising costs are the single biggest concern for UK businesses, cited by one third of respondents. Other challenges include digital transformation (14%), the perceived threat from AI (13%) and regulation and compliance (11%).
Challenges also differ markedly by sector. Digital transformation is a significant issue for healthcare businesses (71%), but far less so for media and marketing companies (12%). Rising costs are a particular concern in education (71%), manufacturing (44%) and technology (44%), while talent shortages are most acute in healthcare (40%).
“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,” says Tom Wrenn, managing partner at ECI Partners.
“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.”
Confidence is translating into ambition for many, with more than 81% of businesses considering international expansion as a growth driver in 2026, including 86% of large companies, 84% of medium-sized firms and 75% of smaller businesses.
Of those companies considering international expansion, private equity and venture capital are the most popular funding options, cited by 35% of respondents, ahead of government grants (26%) and bank finance (23%).
Medium-sized companies surveyed are most likely to be considering private equity for international expansion (40%) compared with a third of large companies and just under a third of small companies.
