Setting up an SME will always present challenges, regardless of your level of expertise or your confidence in your business concept.
But we’re innovators. Scots are famous for being ideas people, and we have many business leaders at the helm of SMEs who are shining examples of this.
Stats recorded in March 2024 showed we had just over 355,800 small and medium-sized enterprises operating across an array of sectors, from tourism and hospitality to construction, tech and more. That’s impressive.
However the vulnerability of small businesses can’t be ignored, as their size can make them more susceptible to the impact of market disruption.
And it seems they are painfully aware of this, with shock statistics from Aberdein Considine revealing that small business owners’ self-belief was at rock bottom.
Its recent report revealed more than 80 per cent of Scottish SMEs fear for their viability in the coming year. That’s a huge percentage and should be a wake up call for policymakers and support networks alike.
This crisis of confidence for SMEs – is reportedly due to factors such as inflation, supply chain disruption and uncertainty arising from policy and regulatory changes from the Scottish Government.
Aberdein Considine highlighted the burden of tax and regulatory change “at a time when firms can least afford it” and hopes policymakers will pay heed to this data in the leadup to the next election.
Interestingly, it’s the second time recently that we’ve seen tax in the spotlight amid discussions around the pressures facing Scottish businesses.
Only a month ago we saw esteemed business tycoon and philanthropist Sir Tom Hunter calling for more business friendly-decisions from government. He believes a low tax environment would attract entrepreneurs and wealth creators and lead to increased economic growth.
Now, we’re seeing figures that reinforce the impact of the tax burden and it makes grim reading. I knew confidence was low but even I was surprised to see as many as 80 per cent of companies are genuinely concerned about whether they’ll be here in a year’s time.
The report showed some sectors are especially feeling the strain, with the more than four in five businesses in the hospitality and food & drink sectors fearing they may not survive.
However I know that the resilience of the Scottish entrepreneur is extraordinary, and I know that these passionate businesses will pull out all the stops before throwing in the towel.
Factors like taxation and regulation are outside of our control and we have to hope and trust that those with the power to effect change will listen – and act.
In the meantime, the one thing we can do is turn our attention to the bits we can control.
It’s important that business leaders continually scrutinise their operations and ask themselves if they have taken all of the necessary steps to weather the storm.
Business models that worked five years ago may no longer be fit for purpose. Whether it’s rethinking your supply chain, restructuring operations to reduce overheads, flexibility is key. The winners in this climate are not necessarily the largest or most established players — they are the most adaptable.
Investing in technology, training, and sustainability may feel counterintuitive when margins are tight, but these are long-term bets that build operational resilience. Embracing digitisation can free up resources and improve service.
The same survey showed that over half of SMEs are planning to invest in ESG (Environmental, Social and Governance) initiatives over the next year, and I applaud that. It isn’t just good ethics — it’s good business. Increasingly, customers and investors are drawn to companies with a conscience.
Finally, remember you’re never alone in the world of business. Whether through peer networks or local enterprise agencies, collaboration is an underrated lifeline. Mentoring, idea-sharing, and even joint ventures can spark innovation and strengthen confidence in difficult times.
We may not control the winds, but we can adjust our sails. Let Scotland’s SMEs show the world what resilience really looks like.
The Rebel Bear Brings Street Art to Linlithgow
Banksy might be regarded as the master of street art, but many Scots will be equally familiar with The Rebel Bear.
The home-grown mystery muralist mixes social commentary with artistic expression, with much-loved works that touch on everything from love and politics to surveillance and humanity.
If you’ve walked around Glasgow you’re bound to have seen some of them, from Bath Street in the City Centre to Ashton Lane in the West End and many more.
Works have also popped up in further flung locations like London, Paris and New York. And now…drumroll…they’re coming to Linlithgow.
Yes, I’m excited, and yes, I’m completely biased.
My property investment company recently acquired BOXXS Self-Storage which has teamed up with The Rebel Bear to create a vibrant and exciting gallery of large-scale original works, painted directly onto the storage containers.
Like most other street artists The Rebel Bear faces growing police pressure when working in public spaces, so we jumped at the incredible opportunity to work with the artist and offer a safe space to work within this industrial space.
I hope to see plenty of people stopping by to see the site’s transformation from functional to fun.
Once it’s all over, some of the pieces will be relocated to another site and some will be repurposed as office units, becoming a permanent fixture of the built environment in West Lothian.
Side
300 Scottish Jobs at Risk as Customer Support Moves Offshore
I was shocked to hear that more than 300 jobs are at risk amid after Capita announced plans to transfer Scottish Power’s customer support operations to South Africa.
Capita is the outsourcing partner that handles the customer support contract for the energy supplier. It was reported some 80 of the 303 roles at risk are Scotland-based.
I’m always sad to see jobs moving out of the UK and really feel for the workers facing fears of redundancy.
I wasn’t in the slightest bit surprised to see harsh criticism from trade union Prospect, with a spokesperson describing the move as troubling and blasting the ‘lack of joined up thinking’ at a time when we’re trying to move towards a just transition.
It Made Me Laugh
I was amused to see two Glasgow fast-food spots joining forces in what they have described as “Scotland’s biggest food collab.”
The bold statement reminds me of when world-famous singers come together to drop ‘the hottest album of the year.’
Who are these massive businesses, you may ask? It’s Spuddies Southside and Lucky B’s Hot Chicken.
Have they over-egged the magnitude of this partnership just a tad? I’d say so. But you’ve got to admire the cheeky way these relatively small businesses have brazenly bigged up their partnership for some promotion.
I’ve often said to make your business stand out from the rest you need to think outside the box and they’ve certainly done it. And the food looks pretty darn tasty too!
