One in 10 new Scots firms hit £100,000 turnover

ALMOST one in ten Scottish businesses set up in the past three years is already turning over in excess of £100,000, research published today reveals.

The result, amid a backdrop of anaemic growth and record business failures, will cause surprise.

Across the UK, about one in 20 companies started up during the “recession era” can boast revenues of more than £200,000 per annum. One in 65 has a turnover of £500,000-plus.

The research, by the business banking arm of Barclays, also provides evidence that many people made redundant during the downturn have decided to become their own boss.

While the figures for Scotland were close to the UK average, Surrey was found to have the highest proportion of businesses defying the slump.

Some 15 per cent – or about one in seven – are turning over more than £100,000.

Steve Cooper, head of Barclays Business, said: “Whilst Scotland may not have the same number of recession-busting small businesses compared to places like Surrey, in general SMEs in Scotland have still performed well.

“In fact, our recent regional impact index showed SMEs in Scotland had experienced substantial growth in turnover and profitability over the previous 12 months compared to other parts of the UK.”

The research suggests the high number of start-ups is partly due to the Dragons’ Den effect, while the cost of starting a business “can be extraordinarily low”.

Cooper added: “While turnover isn’t the same as profit, there’s no doubt that many of these businesses are on the way towards setting their owners up for the long term.”