Scottish businesses defy weak economy

Published on Tuesday 21 February 2012 00:00

Half of all Scottish businesses expect to grow this year, according to two separate surveys that show sentiment remains robust despite the weak economy.

A poll by the Federation of Small Businesses (FSB) found Scottish members were slightly less optimistic than their counterparts in the rest of the UK.

But 50 per cent of small business owners north of the Border plan to grow their firms, with 20 per cent expecting to increase staff numbers and 69 per cent of Scottish respondents looking to increase their client base.

FSB policy convener Andy Willox said the report “paints a robust picture of small businesses determined to succeed in a challenging climate”.

He added: “Unsurprisingly, what most members tell us is that their success depends largely on the success of the wider economy. We therefore need bold, concerted action at all levels and in all sectors to help drive growth.”

The survey is backed up by the release today of data from the Institute of Directors (IoD) which shows that, despite expecting a mild recession in 2012, company directors are relatively optimistic about their own firms’ prospects.

Half forecast higher or much higher revenues in 2012 than in 2011, while just 27 per cent expect turnover to be lower.

David Watt, executive director of IoD Scotland, said further positive sentiment could boost the economy.

“The resounding message from the survey is the critical role of confidence at this stage in the economic cycle,” he said.