Businesses seek to drive growth amid economic challenges
In collaboration with Hiscox, the IoD conducted a survey of members to evaluate their business priorities for the rest of 2025. In addition, the survey also assessed perceived risks to business as well as directors’ insurance considerations.
Almost eight out of 10 directors surveyed said driving growth was the top priority for their business. More than a third also prioritised investing in technology/software (including AI) and products/services.
However, the majority of those surveyed (59%) identified economic challenges as the greatest risk to their business in 2025. Almost half cited changes to legislation/regulation as the greatest risk while others pointed to cashflow, geopolitical tensions and workforce skills/talent.
The Global Risks Report 2025, from the World Economic Forum (WEF), echoes the concern of survey respondents, concluding that the outlook is increasingly fractured across geopolitical, environmental, societal, economic and technological domains.
The IoD Directors’ Economic Confidence Index, which measures business leader optimism in prospects for the UK economy, remains at Covid pandemic level lows, despite a slight rise in March. The Index aligned to the findings of the survey, showing that workforce efficiency, developing new products/services and expansion were the motivation behind directors’ investment plans.
Despite cautious economic outlook and rising risks, it seems that businesses are taking proactive steps to future-proof themselves. The survey showed that 57% of respondents, or their leadership teams, had taken formal professional development to navigate the risks to business, highlighting a commitment to future-proofing for long-term business success.
This was further underlined by the business insurance policies in place among directors to help protect their businesses from potential risks. The majority had employers’ liability insurance – often a legal requirement – as well as professional indemnity insurance, with public and products liability insurance being the third most popular.
Despite a volatile environment, it is clear that businesses remain focused on growth. Many directors are proactively taking steps to mitigate risks and protect their companies, demonstrating a commitment to futureproofing in an increasingly uncertain business landscape.
The survey results can be viewed below.
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