Scotland’s smaller businesses believe revenue will accelerate this year despite them also expecting a worsening of trading conditions.
That is one of the findings in the latest quarterly SME (small and medium-sized enterprise) Growth Tracker report by research organisation Capital Economics, commissioned by Amazon UK and Enterprise Nation.
It assesses growth prospects and views on the broader UK economy from SMEs based on a YouGov survey of more than 1,000 UK SMEs.
Scottish firms reported a rise in revenue of 1.5% and an increase in employment of 0.9% over the past year, suggesting productivity growth of 0.6%.
They expected revenue and job growth to accelerate to 2.1% and 1% respectively over the coming year, around double the pace of growth they were expecting in the previous survey.
An SME Growth Tracker confidence index for individual company performance in Scotland was up 5 points to -8, compared to a UK-wide figure of -6.
Scottish firms’ confidence in the broader economy improved by six points to -29 in the latest report, reflecting an improving trend in each quarter since the snap general election last June. But Scotland’s SMEs are more pessimistic than their UK peers about economic prospects, with the latest confidence index putting them 11 points behind the rest of Britain.
The latest SME Growth Tracker comes after the second annual Amazon Academy, a free event designed to equip Scottish SMEs with the skills they need to compete in a constantly growing digital economy.
More than 500 SMEs and entrepreneurs were at the event in Glasgow earlier this month to hear from experts offering advice and support for growing business through digital tools and services.
Doug Gurr, UK country manager, Amazon, said: “Scotland’s SMEs are open for business, and those taking advantage of the opportunities presented by e-commerce can grow at a faster rate.
“The commercial benefits to be found by the adoption of digital technology can be enjoyed by all businesses.”
