New survey reveals almost three-quarters of Scottish SMEs are confident about their future
A new annual business tracker has revealed that SMEs in Scotland are feeling confident about their future, with almost three-quarters (74%) expressing confidence in their prospects in the next year.
Business Baseline – which surveyed more than 610 SMEs, entrepreneurs and business owners across Scotland – also found that while over half of respondents (60%) anticipate growth in their business* in the next 12 months, 60% also expect to raise the price of their products or services.
As 2024 comes to a close, the survey reaffirmed the challenges of the last few years, with ‘economic uncertainties’, rising costs’, and ‘the cost-of-living crisis’ noted as key concerns.
Support needs were more common in less established businesses; among respondents who had not yet started their business, 70% anticipated needing financial support and 88% needed business support in the next year.
Business Gateway emerged as the most likely to be used source of business support (82%) whilst grants were the most likely source of financial support to be sought (61%).
The impact on Scotland’s economy is clear to see, with SME businesses providing an estimated 1.2 million jobs, which was 55.9% of private sector employment. SMEs accounted for 99.3% of all private sector businesses and 42.4% of private sector turnover as at March 2023.[1]
Notably, however, a quarter of SMEs surveyed in the Business Baseline confirmed that they work more than 50 hours per week, with 11% rating their work-life balance as ‘extremely poor’. Therefore, it is vital that they have access to support services available to them.
Over the past five years, Business Gateway has supported nearly 200,000 businesses, including over 50,000 in 2024 alone.
Commenting on the latest data, Business Gateway chiefoOfficer, Hugh Lightbody, said: “The findings from this year’s Business Baseline survey are a clear reflection of the resilience and optimism that define Scotland’s SME community. Despite the ongoing challenges, it’s encouraging to see that the majority of business owners remain confident in their prospects.
“That said, there are clear challenges which remain to ensure small businesses can thrive. We are committed to providing the necessary support to ensure that businesses can navigate this, continuing to offer practical resources and guidance to help SMEs navigate the evolving landscape, address financial pressures, and strengthen their growth strategies.”
Other data from the Business Baseline found:
- Just over half of participants (53%) said that the goal for their business in the next 12 months was to increase sales while 47% want to improve profits and 31% want to develop new products.
- Rising costs were the most common challenge amongst business owners (64%). Thirty-seven per cent of respondents said they anticipated needing financial support in the next year and over half (61%) of respondents anticipated needing business support.
- Over half (55%) of businesses had plans in place to reduce their environmental impact, with respondents from the tourism sector leading in this regard (73%). These aim to promote secure employment, fair pay, and good working conditions.
*The food and drink sector is the most optimistic, with 78% of respondents predicting growth within their business in the next year.
