One in ten rural businesses not confident of viability, survey finds

One in ten rural businesses are not confident they will be viable over the next six months, a survey has found.

Around 2,700 businesses across Scotland were surveyed by telephone in June and July as part of the Scottish Government’s “rural Scotland business panel”.

It found confidence in the economic outlook over the next 12 months was lower than in the previous survey, carried out in February and April.

Just 42 per cent of businesses said they were confident, compared to 56 per cent who were not.

Picture: PA

And while the majority (88 per cent) of businesses said they were confident that their business would be viable over the next six months, 11 per cent were not.

The biggest perceived risk to viability was rising costs (83 per cent said it was at least a medium risk) followed by reduction in customer demand (62 per cent) and ability to access supplies (57 per cent).

Over four in ten felt workforce challenges (46 per cent), low levels of stock (44 per cent), increased competition (43 per cent) and low or no cash reserves (41 per cent) were risks.

The majority of businesses (94 per cent) were being impacted by rising costs.

A report overview said: “Against a backdrop of rising inflation and a ‘cost-of-living crisis’, confidence in the economy fell again this round.

"While most rural businesses were being impacted by rising costs, coronavirus (Covid-19), EU exit and the Russia-Ukraine conflict, business performance and operating levels remained broadly unchanged since the previous wave.

“Most rural businesses were confident that they would be viable in the next six months.

"Rising costs, reduction in customer demand, and ability to access supplies were the biggest risks to future viability – but most felt equipped to deal with these challenges.”