It is always great to see positive news during these uncertain times in Scottish business.
According to findings from law firm Shakespeare Martineau, the number of Scottish businesses that entered administration in the first half of 2025 dropped by a significant 24 per cent, from 41 down to 31 compared to the same period last year.
Now, as someone who’s been playing the entrepreneurial game in Scotland for longer than I care to admit, I’ve seen far too many businesses vanish overnight. So, any sign of improvement – no matter how slight – is something to be cheered.
But, before we break out the bunting, beneath that headline lies a more complicated truth. The overall environment for businesses remains challenging, and job security is still teetering on a tightrope – especially in sectors where layoffs are looming like storm clouds on the horizon.
Yes, UK-wide administration figures are down too, which is good news. But Scotland still ranks ninth worst across the UK, accounting for around four per cent of all business collapses. To put it plainly – we’re heading in the right direction, but we’re still trailing the pack.
What’s worth noting is that this dip in administrations isn’t necessarily the result of a thriving economy. It’s more likely a result of businesses taking drastic, short-term action to stay afloat, whether tightening costs, slashing budgets, or making some very tough calls behind the scenes. These are stopgaps, not solutions.
And that’s where things get wobbly. Because while some businesses are staying open, they’re not exactly thriving. Far from it.
A recent survey from the British Chambers of Commerce (BCC) focusing on the North East of Scotland found that a troubling 24 per cent of firms expect to reduce their workforce in the next three months. That’s nearly one in four. So, while fewer businesses are shutting up shop completely, many are quietly dousing their sails to weather the storm.
Employers are facing pressure from all sides. Rising tax bills and increased National Insurance contributions are eating into hiring budgets. Yes, inflation has eased a bit—but input costs, energy prices, and borrowing rates haven’t. Add to that the ongoing global headaches around trade, supply chains, and tariffs, and you’ve got a recipe for stagnation.
The result? Fewer businesses in administration, yes, but firms are freezing recruitment, reducing headcount, and delaying any form of expansion. The job market is stalling, and families across Scotland are holding their breath, wondering if their next pay cheque will actually land.
So, what can we do to make this shaky ground more stable? First off, I salute every business leader who’s managed to keep the lights on. But now’s not the time for complacency. If we try to coast through this, we risk turning a cautious recovery into a full-blown relapse.
What we need is a steady hand and some common-sense interventions.
How about a cut, or at the very least, a freeze, on personal and employer National Insurance? That could be the morale boost businesses and workers alike need right now. Let’s also make it easier for entrepreneurs to take risks and graduates to stay in Scotland, contributing to our economy rather than chasing better offers down south or overseas.
Let’s be honest, this isn’t complicated. Scotland has never lacked in grit, ingenuity, or entrepreneurial spirit. We just need a bit of backup from policymakers—support that helps build confidence, not just tick boxes.
Because here’s the thing, when Scottish businesses thrive, Scotland thrives. GDP goes up. Communities grow stronger. Tax revenue reflects that success. And most importantly, people feel secure in their jobs and hopeful about their futures.
The dip in business administrations is encouraging, yes, but it’s not the full story. Without meaningful steps toward job security and economic stability, we could find ourselves sliding backward just as we were gaining ground.
Let’s not just celebrate the dip. Let’s build on it by digging deeper, acting smarter, and making sure that Scottish businesses don’t just survive, but that they flourish.
SIDE (234 words)
Investment in Scotland is always cause for celebration and this time the spotlight is on Clydebank.
It looks like there will be a changing of the guard as Indian firm Firstsource Solutions Limited has announced its plans to acquire local company Pastdue Credit Solutions.
Firstsource, a leading global provider of specialist domain-led Business Process Services (BPS), has agreed a deal to purchase debt-collection business Pastdue.
I’ve written before in this column about the positive trend we’re seeing in Foreign Direct Investment (FDI) in Scotland, but it’s largely confined to our biggest cities.
While I want to see Glasgow, Edinburgh and Aberdeen continue to flourish, it’s encouraging to see Scottish business outside of our main economic hubs reaching exciting deals.
Fresh investment not only protects jobs, but it also signals an intention to encourage growth, invest in infrastructure and, ultimately, build a long-term sustainable enterprise.
We live in an increasingly small world and Scotland must embrace the ever-strengthening march of globalisation if we are to keep up.
By all accounts, the collections industry is a growing market and this new investment from Firstsource should help Pastdue stay ahead of the curve and able to innovate with tech-enabled solutions.
Credit where it’s due to Firstsource and Pastdue for reaching this deal – and I hope it’s just a sign of things to come when it comes to Scottish business cashing in on overseas investment and, crucially, expertise.
Weep
It’s disappointing to see that sales in Scotland continued to drop for the second year running in June, falling a further 0.4 per cent from a decrease of 3.4 per cent in 2024, according to the Scottish Retail Sales Monitor.
With summer holidays and families gearing up to enjoy time away, we often see a natural dip in spending as people prioritise saving for travel, accommodation, and other holiday costs, so I’m hoping that this downturn will only be a temporary issue.
With focus turning to back-to-school items, hopefully July will improve, and June’s figures prove to be a short-term blip rather than the start of a longer-term trend.
Laugh (117 words)
I was amused to see Dunns Food and Drinks mark its 150th anniversary by testing whether you really can “fling a piece oot a 20-storey flat,” as sung in the classic Glaswegian folk tune The Jeely Piece Song by Adam McNaughton.
The team will launch sandwiches from a nominated high-rise in Glasgow to find out if the odds of it reaching the ground are truly “ninety-nine tae wan.”
It might sound far-fetched, but the stunt is very real and all in aid of a good cause, supporting youth charity AWARE Scotland.
I always enjoy seeing businesses get creative with their PR, and this campaign definitely raised a smile — I’ll be watching to see how the sandwich soars!
