In a challenging economic climate, entrepreneurial business owners in Scotland are being proactive, according to the latest research from Rathbones.
The investment manager commissioned Censuswide to survey 1,035 high net-worth individuals - defined as those with more than £250,000 in investable assets - and business owners during February, April and May. Of these, 155 were Scottish business owners.
The findings showed 46% plan to expand their business in 2023, predominantly either by acquiring new talent or extending their geographical reach.
An additional two fifths (43%) plan to take on more investment and just under a third (32%) plan to go public with their business.
Despite 28% of business owners in Scotland admitting their business(es) have been negatively impacted by the recent political and economic volatility, most remain optimistic, with growth the key priority.
Others are also taking advantage of the opportunities a volatile economy can present, choosing to develop or accelerate business exit strategies. 30% of business owners in Scotland are considering downsizing their business, while a further 32% are planning an exit or sale.
Rising interest rates, high inflation and ongoing supply chain issues will undoubtedly challenge business owners and add new financial pressures, but the research highlights how tough economic times can often present opportunities for business and entrepreneurs, whether that’s consolidation, going public or starting a new venture.
Indeed, in 2022 the number of companies in the UK increased by 16,000 (1%), despite economic turmoil. While 57% of business owners in Scotland said they have concerns about their business over the next 12 months, many are looking to expand, invest and sell.
Angus Kerr, head of Scotland at Rathbones, commented: “Times have been challenging for UK businesses, so it is certainly positive to see such resilience and ambition among business owners and entrepreneurs.
“This confidence and desire for success, and moreover growth, should help provide some stability and strength to the UK economy.”
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