Scotland sees spike in number of new companies being created

New figures compiled by challenger bank Aldermore have revealed the extend of the growing trend of Scots starting new businesses during the first decades of the 21st Century.

The lender, which itself was only founded in 2009, said it had found that more firms were created in Scotland between 2007 and 2017 than in the 1990s and it is a trend that is reflected throughout the UK where there has also been a major jump in the number of businesses being started.

The total in 2015 was 383,000, from 275,000 in 2005, the bank said.

Aldermore’s latest Future Attitudes report also revealed that showed that 23 per cent of Scotland’s SMES were launched in the third quarter of the year, and 35 per cent between April and June.

In terms of what motives Scots to start their own business, Aldermore said that three in five SME owners in Scotland started out simply to become their own boss, 45 per cent wanted to make their own decisions and just over four in ten sought more flexibility in their lives.

Carl D’ammassa, group managing director, business finance at Aldermore, said: “With more people looking to become their own boss, it is vital they have a clear business plan in place to ensure everything goes as smoothly as possible, both in the run-up to launch and, more importantly, throughout the critical first 12 months of trading.”

He added that SMES “play a critical role in strengthening the UK economy and we must provide them with as much support as possible to ensure they triumph in the long run.

“Establishing or owning a business is a dream for many.

“However, it is key that all budding entrepreneurs realise the extensive amount of time and effort that will be needed to achieve their goals.”