Santander chief Nathan Bostock: We must help Scots SMEs flourish

The warning that businesses and markets don't like uncertainty has become a wearily familiar refrain in these unpredictable times.

Santander UK chief executive Nathan Bostock. Picture: Contributed

And with four national polls in the space of just three years, Scots have had more than their fair share of political turmoil.

Still, while many Scottish SMEs will understandably feel anxious about the future, I believe their outlook, given the right support, is brighter than ever.

Access to finance for Scottish SMEs has improved dramatically since the dark days following the financial crisis. New entrants to the market for SME finance, both from the banking sector itself – including Santander – and from technology-driven alternative finance providers, are transforming the competitive landscape, offering greater choice for SMEs looking to invest for future growth.

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Moreover, Scottish SMEs concerned by the macro environment in their domestic markets are increasingly finding success as they attract overseas customers.

One in four Scottish SMEs now exports, according to YouGov. Exporting SMEs both tend to grow faster and be much more resilient.

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Opportunities for SME growth are to be found across every industry. At Santander, we’ve seen rising levels of business activity in sectors ranging from hospitality and leisure to manufacturing, and from construction to professional services.

None of which is to gloss over the challenges Scottish SMEs face, whether from the continuing political uncertainties, particularly around Brexit, and long-standing problems including late payments.

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How, then, can Scottish SMEs overcome such hurdles? The SMEs I have met in Scotland recently are optimistic about the future and pragmatic about dealing with Brexit – but they need help if they are going to convince European customers to stick with them through a period of uncertainty.

Government can help by giving SMEs the information and support they need to adapt to future changes to trade. Large businesses can reach out to their supply chains. And the banking sector can provide the solutions, advice and connections SMEs need to fulfil their potential.

Scotland’s SMEs are the backbone of its economy, accounting for 99 per cent of its businesses, employing 1.2 million and generating 39 per cent of private sector turnover. Let’s give them the help they deserve.

• Nathan Bostock is chief executive of Santander UK

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