Full steam ahead for 2025

Scotland’s small-to-medium-sized businesses (smes) are feeling upbeat about the year ahead.

According to Business Gateway’s first annual ‘business baseline’ tracker, almost three quarters (74 per cent) of smes are confident about their prospects in 2025.  

Furthermore, the tracker, published at the end of 2024, reveals that over half (60 per cent) expect to grow their business in the months to come. More than 600 smes, entrepreneurs and business owners in Scotland were surveyed for the report. 

Commenting on the data, Business Gateway chief officer, Hugh Lightbody says: “The findings are a clear reflection of the resilience and optimism that define Scotland’s sme community. Despite ongoing challenges, it’s encouraging to see that the majority of business owners remain confident about their prospects.”

The optimistic outlook is echoed in the views of local business owners surveyed by Edinburgh Business and Lifestyle. Giles Etherington, founder and director of Melrose-based, award-winning brand consultancy, Brand Satellite reports: “I am positive about 2025. You have to be. There are a lot of challenges for sole traders and small businesses. But being positive has worked for me for 11 years now, so I am sticking with it.” 

Image of Giles Etherington by Kersten Gruenling

Giles’ expertise lies in helping businesses in Edinburgh and beyond to build a successful brand, through a three-stage process. This includes brand creation, branding and brand communication.  His ’28-day brand launchpad’ programme for small-business owners was nominated for the ‘Best Innovation in Business’ award at the Midlothian & East Lothian Chamber of Commerce Business Awards 2024.Sponsored

While the mood is generally upbeat, the Business Gateway survey reports that smes remain concerned about economic uncertainties, rising costs and the cost-of-living crisis.  It also notes that 88 per cent of respondents said they will need business support this year:

“Business owners need to embrace and invest in support,” emphasises Giles: “Far too many attempt to do too much themselves to keep costs down. They will do things they are not experts in, to save money. But this is a false economy.”

While audiologist Stephen Fairfield of Fairfield Hearing, acknowledges the challenges of 2025, he does not anticipate a significant impact:

 “This year will be a difficult year for the economy as a whole, but our sector and placement within it tends to shield us from the worst,” he confirms.

Image of Stephen Fairfield by Lloyd Smith

Fairfield Hearing, launched in 2019 by Stephen and his sister Ruth, a qualified aural-care practitioner, specialises in hearing healthcare, tailored to each client’s individual needs. As well as providing a comprehensive range of support for hearing loss at its clinics on Stafford Street and Wardie Avenue, it also offers ‘at-home’ hearing tests. In addition, it helps people suffering from dizziness and loss of balance and mobility, through in-depth balance consultations, in collaboration with the Edinburgh Balance Clinic. Sponsored

Adapting and innovating 

Business owners are taking a constructive approach to the challenges, says business coach and mentor, Alice Nisbet: “I am generally positive about business in 2025.  I think people are accepting that we are now living in an uncertain world, and we can’t hold back any longer, waiting for things to get better: we need to get on with things now.

"The economic environment will remain challenging in terms of high costs and limited spending, but businesses are adapting, which paired with innovation gives real potential for optimism.”

Reflecting on the type of support businesses most need at the moment to succeed, she says: “I believe strategy and planning are key if you want to develop and grow your business rather than just sustain it.”   

Edinburgh-based mortgage adviser, Lynsey McMenemy of Hansar Mortgages highlights the importance of marketing and branding, for businesses to thrive and grow: “As we exist in a digital world, having a strong digital presence is key,” she says. 

in 2024, Lynsey hit her six-figure turnover target by early September, three months ahead of her year end.  She also reports a positive beginning to 2025: “We have started the year well, with a strong number of first-time buyers and remortgage customers requesting advice."

She adds: “Business growth has been consistently positive, with the bulk of new clients coming to us as referrals from existing customers. I think this is the best way to grow any business and we are confident that this will continue through 2025 and beyond.”

Dunfermline-based mortgage adviser and founder of Mortgages One Stop, John Wilson, is also taking a positive view of the year ahead, having increased head count at his firm: “There will be growth in my business this year as I have taken on a broker, who has good experience in the Edinburgh and Fife markets, and good contacts in estate agencies and law firms,” he explains. 

Growth isn’t always about profits

Business-to-business buyer behaviour and value-articulation consultant, Gerry Forristal anticipates growth too – but emphasises that this can take different forms:

“Having been in business for over two decades, I’ve seen how resilient UK entrepreneurs can be, especially in places like Edinburgh, which is a hub of creativity and innovation. It’s been a challenging road since 2008, and many of us have had to adapt repeatedly, but that’s what entrepreneurs do – we get creative, we pivot and we take risks.”

He adds: “I expect growth, but not just in financial terms. For me, 2025 is about leveraging AI to create more efficient processes and deliver better services. Growth isn’t always about profits – it can also mean improving how you operate and adding more value to your clients.”   

The upbeat outlook about business this year extends across the UK. A study by Aviva, published at the end of 2024, reveals that 89 per cent of UK smes are confident about growing their business in 2025.

Commenting on the results of the study, David Schofield, sustainability director at Aviva says: "Smes are the backbone of the UK economy. Their growth is vital not only for economic stability but also for the prosperity of local communities across the nation. These survey findings underscore their determination and optimism.” 

The survey also points to the importance of community, reporting that most (89 per cent) of the smes who are optimistic about growth, also feel part of their local community. Three quarters (75 per cent) of smes say that it contributes significantly to their success.

Gerry agrees that feeling part of a community can be beneficial for business owners: “One of the biggest struggles when you’re self-employed is feeling like you’re ‘wearing every hat’ in the business. Many are unsure how to balance their core work with learning new skills or adopting new tools.

"It’s also easy to feel isolated, especially when you’re trying to figure out these challenges on your own.“This is why community is so important. I always encourage self-employed people to connect with others – whether it’s through networking events or creating their own group of like-minded professionals.

“Sharing knowledge and experiences can be a lifeline,” he concludes.