Businesses in Yorkshire are showing resilience against national recruitment trends while facing significant regulatory and cost pressures, according to a new report.

The 2025 Family, Privately Owned and Owner-Managed Business Survey Report from Armstrong Watson, Accountants, Business and Financial Advisers, included one in five respondents from the region.

The survey found that Yorkshire firms are coping better with the search for talent. Just over a quarter of businesses in the region found recruitment ‘very difficult,’ compared to the national figure of 32%. Yorkshire businesses are also more likely to use staff referral bonus schemes and improve recruitment processes alongside flexible working and benefits.

Despite this, the region is not immune to economic pressures. Almost half of respondents in Yorkshire (48%) cite ‘changing regulations’ as the main challenge to growth over the next three years, while 46% cite an ‘increase in costs impacting business viability.’ This reflects the burden of rising employment costs, including increases in Employer National Insurance and the National Minimum Wage, which are felt acutely in sectors such as hospitality, retail, and care.

However, only 28% of firms foresee a lack of funds as an obstacle to growth.

Paul Dickson, Chief Executive and Managing Partner at Armstrong Watson, said: “These businesses are not just economic contributors; they are woven into the fabric of our communities. This year’s survey highlights the resilience and adaptability of business owners who continue to innovate, invest and plan for the future – even in the face of rising costs, recruitment challenges and economic uncertainty.”

Yorkshire firms appear more digitally mature than the national average, with only 19% relying on manual processes, compared to 30% nationally. However, 30% of businesses are ‘not concerned’ about the threat of a cyber attack, indicating a potential vulnerability.

Encouragingly, 23% of Yorkshire business owners have written down their growth plans and communicated them to stakeholders—a figure higher than the national average of 18%.

Mr Dickson concluded: “Having a strategic plan not only guides long-term goals but also drives more effective short-term planning and decision-making. We are committed to supporting businesses through every stage of their journey – from growth to succession.”