Rural Scotland Business Panel Survey October 2022

3. Markets

Key findings

Three quarters (76%) of businesses were importers, sourcing goods from either the rest of the UK (74%) or outside the UK (33%).

Around half (52%) were exporters, selling to the rest of the UK (49%) or outside the UK (23%).

Import markets

Just over three quarters (76%) of businesses were importers, sourcing goods from either the rest of the UK (74%) or outside the UK (33%). The majority of businesses sourced goods and materials from Scotland (87%) (Figure 3.1).

Variation in import markets

Businesses in the South of Scotland (84%) were more likely than those in the Highlands and Islands (76%) and the rest of rural Scotland (72%) to source goods from the rest of the UK.

Businesses more likely than average to source from Scotland were: food and drink (95%), tourism (93%), accessible rural businesses (91%), and remote rural businesses (89%).

Those more likely to source from markets outside of Scotland included: large businesses (25+ staff) (82% from rest of UK, 55% from outside the UK) and businesses striving for growth (79% from the rest of the UK and 40% from outside the UK).

Export markets

Almost all businesses (96%) sold goods or services within Scotland, with 48% selling only within Scotland. Around half (52%) of businesses were exporters, selling to the rest of the UK (49%) and outside the UK (23%) (Figure 3.2).

Variation in export markets

Highlands and Islands businesses were more likely to export outside the UK (28%, compared with 20% in South of Scotland, and 22% in rest of rural Scotland). South of Scotland businesses were more likely to sell to the rest of UK (64%, compared with 48% in the Highlands and Islands and 47% in rest of rural Scotland).

Tourism businesses were more likely than average to sell to markets outside the UK (43% vs 23% overall), while creative industries (63%) and financial and business services (59%) businesses were more likely than average (49%) to sell to the rest of the UK.