A DROP of 2.5% in the number of private firms in Scotland “spells trouble” for both the economy and local communities, ministers have been warned.
Official figures showed that as of March 2018 there were an estimated 345,915 such businesses operating in Scotland – a drop of 8830 (2.5%) on the previous year.
The number of unregistered firms – which have a turnover below the VAT threshold of £85,000 a year – fell by almost 5%, with 8720 fewer businesses operating in 2018.
However, the number of businesses that are registered for both VAT and PAYE also decreased in the last 12 months, dropping by 105 to stand at 176,295.
That marked the first reduction in the number of private registered businesses since 2011, Scottish Government figures showed.
Almost all of the 345,915 private firms operating in Scotland were classed as small businesses, having up to 49 employees – with 98.2% of companies coming into this category.
Meanwhile, there were 3925 medium-sized firms, employing between 50 and 249 people, and 2380 large companies, with a workforce of 250 or more.
Small and medium-sized firms provided an estimated 1.2 million jobs across Scotland, according to the report, with the Federation of Small Businesses (FSB) describing these companies as a vital part of the “fabric of Scotland”.
FSB Scotland policy chair Andrew MacRae said: “A decline in the number of Scottish businesses spells trouble for our ambitions for our economy and our local communities.
“To tackle this problem, we need to see more people in Scotland choose to start up in business and develop a business environment which helps local firms thrive.
“In the short term, we need to see a Brexit deal which works for smaller firms, not just key sectoral interests, and a Scottish budget which puts enterprise at its heart.
“In the long term, we need a stronger start-up culture, as well as tax and regulatory systems which recognise the difference between multinationals and family firms.
“These figures also underline just how important smaller businesses are to the fabric of Scotland.
“By giving smaller businesses the best chance to succeed, we can boost prospects for the country as a whole.”
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel