Small Business Survey Scotland: 2022-2023

Business Performance and Outlook

• 29 per cent of SME employers that had been trading for at least one year had employed more people than a year previously. 53 per cent employed the same number and 18 per cent employed fewer
• 27 per cent of SME employers expected to employ more people in 12 months’ time, and 11 per cent expected to employ fewer
• of all SME employers that had been trading for at least one year, 46 per cent increased their turnover over the previous year (risen from 39 per cent in the 2021 survey). 26 per cent had approximately the same turnover and 23 per cent had lower turnover
• 35 per cent of SME employers expected turnover to increase in the next 12 months, 45 per cent expected turnover to stay approximately the same and 16 per cent expected turnover to decrease
• 82 per cent of SME employers generated a profit/surplus in their last financial year (up from 74 per cent in the 2021 survey)

Figure 6: The most reported obstacles to the success of the business were the level of energy prices (72 per cent), taxation/VAT/PAYE/ National Insurance and business rates (44 per cent), staff recruitment/skills (42 per cent) and regulations/red tape (41 per cent). UK exit from the EU was noted as an obstacle by 38 per cent of SME employers and the COVID-19 pandemic by 34 per cent.

Major obstacles to the success of the business (2022-23). Multiple answers allowed to this question.

Source: Small Business Survey Scotland 2022-2023 from DBT and Scottish Government. For Figure 6 data, see table ‘G2’.

• of those SME employers that reported UK exit from the EU as a major obstacle to business success, an increase in the cost of EU imports was the most reported difficulty experienced (71 per cent, higher than the 56 per cent reported in 2021)
• 77 per cent of SME employers aimed to grow sales over the next three years