High costs, tough hiring conditions and looming changes to employment policy mean it’s a challenging time to be running a business in the UK. At times like these, Yorkshire needs to draw on the grit and resilience it’s famed for.
Our recent research suggests business leaders in the region are doing exactly that: well over half (64 per cent) say they would recommend Yorkshire and the Humber as the best place to start a business. That confidence matters. It signals that businesses believe in the strength of the local economy and are willing to invest in its future.
Small businesses aren’t just investing in the economy, they are also investing in people. Our research found that 77 per cent of business leaders in the region say they can meet their hiring needs with local talent, well above the national average.
Employers in Yorkshire clearly believe successful businesses can be built locally - a positive sign both for SMEs and for people looking for work.
Kevin Fitzgerald shares his expert insightplaceholder image
Kevin Fitzgerald shares his expert insight
Few regions in the UK have the heritage or regional identity that Yorkshire does, so perhaps this sense of confidence shouldn’t come as a surprise. What really sets Yorkshire apart, though, is its loyalty to the local business community.
Eight in ten business leaders say they have chosen a local supplier over a cheaper national or international alternative – which, at a time when every cost line is under pressure - is pretty remarkable and something the region should be proud of.
Of course, we can’t pretend that running a small business right now is easy. The pressure on costs is real and hiring remains uneven and fragile.
Our real-time proprietary data of over 1,700 small businesses in the region reveals employment growth trending downwards throughout 2025, although recent months suggest the situation may be stabilising. That slowdown is hardly surprising.
Rising employment costs and regulatory change has created uncertainty across the country and many employers have paused hiring.
And small firms are about to face another test as they prepare for changes linked to the Employment Rights Act, coming into effect this April.
New rules around redundancies, guaranteed hours, shifts and flexible working will make workforce management more complex. Businesses need the clarity, time and support needed to adapt without stalling growth.
That’s why we recently partnered with Leeds United Football Club to support local businesses. We understand both what the club means to the community and the pressures SMEs are under.
Over the coming months we’ll be hosting compliance seminars at Headingley, giving businesses the guidance they need to navigate these changes with confidence.
This is a stressful time. But the firms that emerge strongest will be those that treat this period as an opportunity to tighten processes, sharpen workforce planning and get ahead of change before it becomes disruption.
Our data shows that businesses in Yorkshire can absorb pressure. But even the strongest foundations crack if the strain goes too far.
If the region can hold on to its mix of confidence, local loyalty and resilience, Yorkshire won’t just weather the next phase of change. It will emerge from it stronger and ready to drive growth.
Kevin Fitzgerald is UK Managing Director for Employment Hero