Talent, Trends, and the Future: A 2025 Playbook for Entrepreneurs Exploring the trends, challenges, and opportunities shaping entrepreneurship in 2025, from talent shortages to the transformative power of AI and sustainability.

As the UK enters a more stable economic phase, 2025 promises a fertile environment for entrepreneurs. Jamie Livingston, CEO of the Edinburgh based, employee-owned Livingston James Group, shares insights on trends shaping the business landscape - from private equity's (PE) role in growth to creative strategies for managing talent amidst a competitive market.

What trends do you expect to drive UK entrepreneurship in 2025?
In a more stable environment, and viewed through a cautiously optimistic lens, there should be a lot more investment for growth businesses and entrepreneurs. We are emerging from a period of significant uncertainty following the UK and US general elections, and that turbulence has slowed investment. With more visibility on how things are likely to unfold in the coming years, the people who have put money into investment funds will expect them to be deployed – that means there is a big wall of private equity looking for a home in 2025.

How are you preparing for economic changes in the new year?
At Livingston James Group we are expecting further growth in our business, and are hiring to meet that demand – although not aggressively. We've had a good year in 2024 and expect 2025 to be more healthy still.

Client side, we do expect some smaller businesses, and particularly those in the family business sector to have to make difficult choices, particularly due to inheritance tax. Next generation leaders are facing some significant bills, and may need to sell businesses to pay them. Many will need to ensure they have the right talent in place to make the business attractive, and as a trusted advisor, we have been providing guidance accordingly.

Related: From Taxes to Texas: Why UK Entrepreneurs Might Be Eyeing the Exit

What sustainability initiatives will you focus on in 2025?
As an employee owned business, we see sustainability as a key focus, but over a longer period, rather than radical changes. We have a sustainability committee in place, and they have focused on improving our carbon footprint, by upgrading equipment, and reducing the amount of travel we make to ensure we are minimising our impact on the environment. We expect that to continue next year.

What challenges do you foresee with talent management in 2025?
The biggest challenge is an imbalance between supply and demand in the talent market. We simply don't have enough people. Factors such as an ageing population; the impact of Brexit on the perception of the UK not being open to talent from overseas markets; and an emerging dynamic – that few people are talking about – around people in their early 50s deciding they don't want a full-time executive career, are all having an impact. This coupled with Baby Boomers reaching retirement age creates a talent vacuum at the executive end of recruitment.

Particularly for smaller or fast-growing businesses, there is also a need to reassess how talent is managed. We have seen a significant rise in fractional mandates for certain roles – where we've advised clients to split a larger salary into a more junior executive, backed up by, for example, one day of senior consultancy. This has been particularly prevalent in marketing and finance roles.

How will AI and automation impact your business strategy next year?
Artificial intelligence (AI) and automation will have significant applications in aspects of our work – particularly around research. Where once the ability to research well in recruitment could be considered a unique selling point (USP), developments in AI will level the playing field. We'll then be able to deepen research, and also improve our back office functions, and I expect it to have a positive impact on both.

As recruiters, we truly add value in helping the client work out what they're trying to achieve through the appointment – the impact. We can use technology to increase our focus on the impact of hires, challenging clients on expectations, and helping them think creatively, such as fractional appointments. These elements are protected from technology, and where our focus will be as technology evolves.

If you could make one bold prediction about UK entrepreneurship in 2025, what would it be and why?
My crystal ball is as wonky as anybody's, but I think Elon Musk's impending appointment to Donald Trumps' US administration – regardless of where you stand on it – signals a shift towards governments paying more attention to the role entrepreneurs can play in policy making.

It's ironic this has happened at a time when Skyscanner entrepreneur Mark Logan has left his role in advising the Scottish Government due to frustration at the lack of impact he was able to have. We've seen some evidence of this with the UK Government's appointment of James Timpson as prisons minister, and I wouldn't be surprised if the trend continues.

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