Scottish small and medium-sized enterprises (SMEs) have reported revenues rising by 11.4% on average in the second quarter year-on-year, with 54% expecting turnovers to increase further by the end of the third quarter.
The latest Barclays SME Barometer also showed that while 77% fear the impact of recession, 78% are neutral or optimistic about their own business’ prospects.
The report takes in data from the billions of merchant transactions processed by Barclaycard Payments, combined with a quarterly YouGov survey of 577 SME leaders - including 56 businesses polled in Scotland.
More than half (57%) of SMEs in Scotland plan to invest in their business over the next 12 months, turning to recruitment (34%), marketing (30%) and purchasing new equipment or technology (21%) to shore up their operations.
More than a third (34%) have already increased their number of full-time employees during the second quarter.
Barclaycard Payments data showed an annual rise of 19.4% in the value and 21.5% in the volume of payments made to SMEs in Scotland between April and June this year.
More than two thirds (63%) of Scottish SMEs saw revenue increases in the second quarter of this year against 2021, compared to 55 per cent UK-wide. A similar number (65%) of small businesses also expect further gains this quarter, despite concerns about a the wider economy.
More than half (54%) of Scottish small business leaders are pessimistic about the prospects of the UK economy, with 87% concerned over rising cost of bills and inflation, 77% worried about the UK going into a recession and 83% worried about the soaring cost of energy.
Last quarter, 56% of Scottish businesses were concerned that increased living costs would impact consumer spending, and 30% feared it would make them less competitive as they would need to increase prices.
These concerns have dropped slightly in the third quarter, with 51% worried about consumer spending levels and 52% now worried that rising costs will impact their competitiveness.
Colin O’Flaherty, head of SME at Barclaycard Payments, said: “The current trading environment brings a host of challenges for businesses, but as we saw throughout the pandemic, SMEs are resilient and our research shows they are proving this again this in the face of rising costs and inflation.
“We are confident they will prove adaptable and innovative to meet the challenge, but now more than ever, the nation must pull together to continue its support for local SMEs and provide them with the support they need.”
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