Number of Scottish businesses at record high

Official statistics show there were 365,600 private sector businesses (registered & unregistered) operating in Scotland as at March 2017 – up by more than 50 per cent since 2000 – providing more than 2 million jobs in Scotland.

The figure represents an increase of 11,110 (3.1 per cent) over the year, taking the number of businesses in Scotland to its highest level in the 17 years since the figures were first recorded.

The number of these firms which are VAT/PAYE registered is up for the sixth year in a row, by 2,405 (1.4 per cent) from 173,995 in 2016 to 176,400 in 2017 – and is also at a record high.

And the estimated number of unregistered businesses (the smallest firms with an annual turnover below the VAT threshold of £83,000 and do not have employees) rose from 180,500 in 2016 to 189,200 in 2017 – an increase of 8,700 (4.8 per cent).

Andy Willox, Federation of Small Business’s Scottish policy convenor, said: “These figures show that smaller firms are more important to Scotland’s success than ever before.

“As many big private and public organisations downsize and withdraw from local communities, smaller businesses are picking up the slack. From Stornoway to Selkirk, small firms are creating jobs, leading to the record lows in unemployment we’ve seen this year.

“However, with political and economic uncertainty ahead, policymakers can’t take Scottish business for granted. As we approach autumn budget setting, politicians and officials must give smaller operators the tools to succeed. This isn’t the time for new tax grabs or burdens on local enterprises.”