Small Business Survey Scotland: 2024-2025

Business performance and outlook

Employment

• 23 per cent of SME employers that had been trading for at least one year employed more people than a year previously, an increase from 19 per cent in the previous year. 55 per cent employed the same number and 23 per cent employed fewer (totals do not sum precisely due to rounding)
• 22 per cent of SME employers expected to employ more people in 12 months’ time. 68 per cent expected to employ the same amount and 10 per cent expected to employ fewer

Turnover

• Of all SME employers that had been trading for at least one year, 34 per cent increased their turnover over the previous year, compared to 44 per cent reported in 2023-24. 36 per cent had approximately the same turnover and 25 per cent had lower turnover
• 34 per cent of SME employers expected turnover to increase in the next 12 months, 48 per cent expected turnover to stay approximately the same and 15 per cent expected turnover to decrease

Profit

• 76 per cent of SME employers generated a profit/surplus in their last financial year

Growth Outlook

• 71 per cent of SME employers in Scotland aimed to grow sales over the next three years, a decrease from 76 per cent reported in 2023-24

Growth Barriers

Figure 6: For Cohort B, the most reported obstacles to the success of businesses were the level of energy prices (61 per cent), taxation, VAT, PAYE, National Insurance and business rates (59 per cent), and staff recruitment/skills (46 per cent each).

Major obstacles to the success of the business (2024-25). Multiple answers allowed to this question

Source: Small Business Survey Scotland 2024-2025 from DBT and Scottish Government. For Figure 6 data, see table ‘G2’.