Whenever I see any kind of optimistic news or outlook for the Scottish economy, my business-centric brain is compelled to dig further into the nitty-gritty details.
It’s easy to pay attention to the positive headlines which say things such as ‘Scotland is showing promising signs’ in terms of growth and opportunities for business, but only by deep diving into the statis can we learn how things are a lot more nuanced, and that some regions or sectors feel more confident than others.
It’s hard to shake the fact that popular hub cities such as Glasgow, Edinburgh and Aberdeen may be doing much of the heavy lifting for these types of stories, but Scotland is far more than just these three locations.
According to recent findings revealed by the Highlands & Island Enterprise (HIE), businesses in the more northern parts of the country seem to be becoming less and less confident, some even bluntly stating they need help.
Carried out by Ipsos, the survey commissioned by the HIE found that towards the end of 2024, the number of businesses across the Highlands who believe they’re struggling rose from 21 to 28 per cent.
This sharp rise in such a short time is a major cause for concern, especially as the survey gathered insights from a wide range of sectors across the Highlands and Islands.
This region is home to some of Scotland’s most vital industries, including oil and energy, whisky distilleries, and seafood production.
It’s not just their own wellbeing either, as all businesses surveyed are also feeling less confident about Scotland’s general economic outlook, which dropped from 50 to 44 per cent from the previous survey.
It revealed that one of the main factors causing this landslide in confidence is overall economic uncertainty. Business leaders in the Highlands & Islands aren’t feeling confident in their own operations when interest rates are unpredictable, and inflation is rising and falling as sporadically as it is done recently. Why steer your business in one direction when the economy can U-turn at the drop of a hat?
Other factors include the costs involved with running businesses, legislation and regulation and having access to skilled workers, with the survey stating that around 47 per cent of employers in the region believe they did not have enough people or skills, with temporary or seasonal roles far more challenging to fill than permanent positions.
Obviously, with this part of Scotland being more remote than your Central Belt cities, it’s understandable that enticing new workers to relocate for job opportunities is a challenge, not helped by the lack of accommodation for people to move to.
A more immediate solution though is tackling the skills shortage for the Highlands and Islands. By empowering current employees with the necessary skills and training they need to grow and evolve your business, companies can add a touch of self-sufficiency to operations.
Reassuringly, the survey highlights that most employers (around 80 per cent) are actively taking steps in the right direction with their workforce, with more than half offering training, 44 per cent allowing flexible working and 42 per cent looking to make pay packages and rewards far more competitive.
If this uncertainty among businesses is driven by workforce concerns, then it’s time for leaders across the region to take a hard look at their approach. By offering attractive job roles, creating outstanding work environments, and – most importantly – providing competitive financial incentives, businesses can strengthen their position and retain top talent.
This is especially crucial in less populated areas, where standing out as an employer of choice can make all the difference.
So, even though this is a culture shock, especially to anyone more accustomed in the hustle and bustle of more central Scotland, sometimes it’s important to shine the spotlight elsewhere in our beautiful nation.
By acknowledging why these Highland businesses are feeling less confident, we can then look at what we can do to try offer solutions, learning what is, and isn’t, truly working.
Bigger Is Not Always Better
There’s often still a misconception that bigger means better, for example when it comes to the size of a company.
You would think that a UK-wide business has the capacity to deliver a better service and more competitive pricing compared to a smaller, independent business, right?
I saw a post last week from Scotland’s money expert, Chloe Carmichael that challenges this when it comes to broadband providers.
She was working in partnership with price comparison website, Uswitch to highlight that smaller, regional broadband providers are worth considering over the broadband giants.
It turns out that Glasgow is a real UK hot spot for these regional providers that are often cheaper, less likely to raise prices mid-contract, and crucially, can be more reliable.
I bet lots of people bypass them for a brand they recognise, believing the service would be slicker and the price more competitive.
It’s great to see Uswitch championing these smaller providers – and it just goes to show that smaller businesses can not only deliver a better service, they can beat the big players on price in some sectors too.
That’s a huge advantage in the current climate as the cost of living crisis continues to bite and many utility companies are set to raise their prices next month.
And it’s not just homeowners who should be listening to Chloe’s advice – businesses should also be regularly reviewing their broadband provider and shopping around for better rates with smaller, regional firms.
It Made Me Laugh: A Relief to Fill in the Gaps
It’s official: abrdn has finally realised that vowels matter.
After four years of ridicule, the investment firm is reintroducing the missing vowels to its business name and returning to the classic “aberdeen group.”
The rebrand to abrdn in 2021 was universally mocked, with critics suggesting it looked more like a typo than a corporate strategy. Some even diagnosed the firm with “irritable vowel syndrome.”
But no more! Chief Exec Jason Windsor says this latest change will remove “distractions” and mark a fresh phase for the company.
Social media, naturally, had a field day, with one user joking that the firm’s share price rise might just be thanks to the vowels’ return.
If so, imagine what capitalising the A in Aberdeen would’ve done for the company!
It Made Me Cry: Scots Struggle to Save
It’s clear the savings pot is running dry for Scots, as a new study reveals 39 per cent of people are struggling to stash money aside.
With inflation soaring and the cost of living rising, many are feeling the pinch, leaving them without a penny to spare.
As much as I’d hoped things would improve in 2025, it’s evident the financial squeeze is proving to be a real ‘pain in the purse,’ as more households face difficulty saving for the future.
For now, it seems Scots are running on empty, but with careful budgeting, there’s hope for a brighter financial future. Let’s just hope the savings start to flow again soon.
