Andrew McRae

The Federation of Small Businesses (FSB) in Scotland has unveiled its Big Small Business Survey results, shedding light on the future prospects of Scottish SMEs.

It reveals that 60% of small businesses aim for growth in the upcoming year.

FSB’s Scotland policy chair Andrew McRae said: “This is the most comprehensive study we’ve ever undertaken into the state of Scotland’s small businesses, the challenges they face and the opportunities they see ahead. We heard from firms in every part of Scotland, representing every industry sector.

“Too often, decision makers fall into the trap of treating business as a monolith, making decisions that assume our smallest firms are operating on the same playing field as multinational corporations.

“What this study demonstrates is that, not only is there a distinction to be drawn between small businesses and their larger counterparts, but indeed there is a huge degree of diversity within the small business community itself.”

The survey, which was undertaken earlier this year, asked a series of questions about past, present and future conditions, challenges and opportunities, with over 600 respondents.

Mr McRae continued: “It was very important that to get a comprehensive understanding of not only current trading conditions, but what has led businesses to where they are now, as well as their future aspirations.

“It’s clear that smaller operators have had a tough few years, with a similar proportion of respondents reporting that 2022 posed as great a challenge yet as the worst of the pandemic in 2020.

“It does appear, however, that things might be looking up and the much-anticipated economic recovery could be on the horizon, with three in five businesses telling us they plan to grow over the next year.”

He concluded: “We hope this study will serve as a useful tool for anyone needing to design and implement policies that touch the lives of small business owners.

“In recent years we’ve seen what can go wrong when decision makers don’t understand the challenges faced by our smallest operators, and we hope that the findings of the Big Small Business Survey can play an important role as we work to make Scotland the best place to do business.”