The recognition, announced at an event today, follows analysis of the expected distribution and value of business growth across the UK for the year ahead. Considering the proportion of businesses in each area expected to achieve high growth, the average value of these businesses, and the relative risk of these businesses, the analysis identified Perth and Kinross as the top area in the UK with the strongest growth potential among local businesses.

Over 12% of businesses in Perth and Kinross are expected to achieve 20% growth over the next year, with higher levels in some parts of Perth and Strathallan ward area. This is significantly higher than the national average of 10% of businesses and demonstrates the strong environment for businesses across Perth and Kinross.

Perth and Kinross is a leader in food and drink, tourism and the financial industries, with a growing role in the energy-transition sector. The analysis highlighted that the area has a diverse range of small to large businesses – with the region having higher proportions of high growth potential businesses than the UK average across all key sectors.

Published in the Growth Flag Annual Report 2025, the analysis is conducted by Growth Flag, an innovative business intelligence tool with over 90% accuracy in forecasting which businesses will go on to achieve 20% growth in the next year. The robust data tool is used across the UK to identify the latest business trends – supporting more effective interventions that can have a positive impact on growing local economies.

Perth and Kinross Council leader councillor Grant Laing said: “This recognition is a testament to the resilience, innovation, and hard work of our local business community and showcases the diversity and strength of our local economy.

“We are committed to continuing our support for businesses in Perth and Kinross and fostering new opportunities for growth and innovation to support our vision for a stronger, more sustainable local economy.

“We will continue to work closely with our business community, leveraging tools like Growth Flag to identify trends and implement effective interventions that drive sustainable economic growth. Together, we will work hard to ensure Perth and Kinross remains a great place to do business.”

Nathan Shoesmith, insights and analysis at Growth Flag, said: “It is fantastic to celebrate the strong growth potential of businesses in Perth and Kinross.

“The data has shown consistently strong performance by businesses in the area over recent years, and this year our analysis has identified Perth and Kinross as having the strongest business growth potential for 2025.

“This marks a really positive picture for businesses in Perth and Kinross and I look forward to seeing their continued growth over the coming year.”