More than half of Scottish smes expect growth in 2026

4 hours ago

2 min read

New research from Business Gateway has revealed that 55 per cent of Scottish smes anticipate growth in their business over the next year.

The findings came from the second annual Business Baseline survey, which gathered responses from over 500 smes, entrepreneurs and business owners across Scotland.

The objective of the survey is to gain insight into the opportunities and challenges faced by Scottish businesses, as well as the types of support they may require. Two new questions were added this year, covering respondents’ views on Scotland’s economy and on innovation and technology in their business.

The survey found that 42 per cent of businesses expect moderate growth over the next year, with an average anticipated growth rate of 36 per cent. Businesses in the education, training and HR sectors were the most optimistic, with 68 per cent predicting growth, while sectors such as construction and food and drink reported lower growth expectations than last year.

Overall, 67 per cent of respondents expressed confidence in their business prospects over the next 12 months. However, only a quarter felt confident about Scotland’s economy.

The survey shows that rising costs continue to be the biggest challenge, cited by 63 per cent of respondents, while political uncertainty and regulatory changes were highlighted by 40 per cent, up from 25 per cent.

Financial and business support remain key needs for Scottish smes, with 34 per cent expecting to need financial support and 58 per cent requiring business support. The survey also found that pre-start businesses are the most likely to need financial assistance (56 per cent).

Over half of respondents (56 per cent) expect to increase their prices, although more anticipate prices remaining stable than in last year’s survey (35 per cent compared with 30 per cent).

Most smes see innovation as vital to their future growth (65 per cent) and half say they are embracing new technologies, including AI, but 58 per cent say they could do more and almost a third disagree that they are currently using the latest technologies.

Just under half (47 per cent) of businesses had plans in place to reduce environmental impact, with food-and-drink businesses leading at 70 per cent.

Councillor Gail Macgregor, chair of the Business Gateway board, said: "The 2025 Business Baseline survey highlights the resilience and adaptability of Scotland’s smes.

“While confidence and growth expectations have softened slightly compared to last year, it is clear that business owners remain focused on growth, innovation and building sustainable practices.

"Challenges such as rising costs, regulatory uncertainty and political pressures remain, but smes are showing remarkable determination to navigate these. It is vital that they continue to have access to practical guidance, financial support and expert advice to help them thrive in the year ahead."

https://bgateway.com