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This item was published during the term of a previous administration that ended in April 2007

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Report on small businesses

25/09/2003

A survey into the attitudes of owners of small businesses was today published by the Executive. The message was generally a positive one with the majority of businesses saying they were doing well.

The "Small Business Service Omnibus Survey 2003 Report" was commissioned by the Executive to provide information on the views of owners of small and medium sized enterprises (SMEs) on a wide range of issues. It is a large scale survey with a representative sample of all SMEs in Scotland.

Commenting on the report, Deputy Minister for Enterprise, Lewis Macdonald said:

"I welcome this representative survey which reflects our commitment to listening to the views of small and medium-sized businesses. The study shows that over four-fifths of businesses are doing well. I am also encouraged that most businesses using the Small Business Gateway would recommend it to others.

"It is clear from the survey, however, that we need to do more to raise the profile of government business support services. The major awareness raising campaign accompanying the launch of the new Business Gateway will play a key role in addressing this issue.

"We will reflect carefully on all the findings for future policy development."

Some of the key findings include:

  • Over four-fifths (83%) of respondents said their business was doing well.
  • 21 per cent of SMEs employ more people than a year earlier.
  • 63 per cent of respondents say that they would encourage someone else to start up in business. Views were most positive in transport and construction businesses (72 per cent and 67 per cent) and least positive in manufacturing (48 per cent).
  • 22 per cent of businesses have successfully raised finance in the past year - higher than in the UK as a whole (18 per cent). However, the proportion of businesses seeking finance was higher in Scotland compared to the UK as a whole (26 per cent vs 20 per cent).
  • When asked to rank obstacles to success, nearly one in five Scottish businesses consider the economic environment to be the greatest obstacle. The next most commonly cited obstacles were competition or winning sales, tax and regulations. In the UK as a whole, businesses considered regulations to be the greatest obstacle to success.
  • The survey found that most SMEs using the Small Business Gateway were satisfied and 75% of those using the service would recommend it to others.
  • However 43 per cent of SMEs were not aware of the Small Business Gateway and had therefore not used it.

The new Business Gateway was launched on 14 July and replaced the Small Business Gateway. The Business Gateway has a single first contact access number - 0845 609 6611 - and new Website - www.bgateway.com

The survey commissioned by the Executive was an extension, or "boost", of a survey carried out by the Small Business Service (part of DTI) across the UK in 2002. The questionnaire was modified to take account of the Scottish business environment. A previous survey took place in Scotland in October 2001.

The study was conducted on behalf of the Executive by Databuild. A representative sample of 1,000 owners of small and medium-sized enterprises (SMEs) throughout Scotland was surveyed between October and December 2002. SMEs are defined as having less than 250 employees.

Page updated: Wednesday, July 21, 2004