Businesses in Scotland: 2023

Time Trends

As at March 2023, there were an estimated 340,760 private sector businesses operating in Scotland. Over the longer term, the number of businesses increased by 43.2% between 2000 and 2023. This is an increase of 102,865 businesses. A rise in the number of unregistered businesses drove this increase over the long term. Unregistered businesses have almost doubled (up 87.6%, +78,160 businesses) since 2000. The number of registered businesses have also increased over this period. Registered businesses increased by 16.6% (+24,705 businesses).

Figure 2: As at March 2023, there were an estimated 340,760 private sector businesses operating in Scotland. The total number of private sector businesses in Scotland decreased by 5.6% over the latest year. This was a decrease of 20,150 businesses.

Private sector businesses operating in Scotland, 2000 to 2023.

Source: Businesses in Scotland 2023 from the Scottish Government.  For Figure 2 data see table ‘Time Series 1’.

Time Trends – Unregistered Businesses

The number of unregistered businesses in Scotland decreased over the latest year. Unregistered businesses are those registered neither for VAT nor for PAYE. This decrease drove the fall in the total number of private sector businesses. The number of unregistered businesses decreased from 185,740 as at March 2022 to 167,390 as at March 2023. This is a drop of 18,350 unregistered businesses, or 9.9%.

Time Trends – Registered Businesses

The number of registered businesses in Scotland decreased over the latest year. Registered businesses are those that have registered for VAT and/or PAYE. The number of registered businesses reduced from 175,175 as at March 2022 to 173,370 as at March 2023. This is a decrease of 1,805 businesses, or 1.0%. This is the third year running to show a decrease in the number of registered businesses, with the number of registered businesses falling every year since the beginning of the COVID-19 pandemic. Prior to 2021, the registered business stock generally increased each year between March 2011 and March 2020.

Figure 3: The number of registered businesses in Scotland decreased over the latest year by 1,805 businesses, or 1.0%.

Private sector registered businesses, 2000 to 2023.

Source: Businesses in Scotland 2023 from the Scottish Government.  For Figure 3 data see table ‘Time Series 2’.

The number of small registered businesses (0 to 49 employees) decreased over the latest year by 1.1%. This is a reduction of 1,885 businesses.

The number of medium-sized businesses (50 to 249 employees) increased over the latest year. A rise of 45 businesses since March 2022 brought the number of medium-sized businesses to 3,880. This increase is also reflected in the longer term trend. There has been an increase of 15.8% in the number of medium-sized businesses since 2000. This is a rise of 530 businesses.

The number of large businesses (250 or more employees) also increased over the latest year. A rise of 35 businesses since March 2022 brought the number of large businesses to 2,375. Again, the longer term trend also shows this. There has been an increase in the number of large businesses – with an increase of 130 businesses since 2000 (+5.8%).