The Scottish Government

Scottish Corporate Sector Statistics - Key Facts 2006

Headline Figures

• The total number of private sector enterprises in Scotland rose slightly (0.1%) over the past year to reach 265,435 as at March 2006. The associated employment of these enterprises increased by 1.4% to 1.888 million. However, this follows a decrease in both the number of enterprises and employment between 2004 and 2005.
• The total number of enterprises has increased by over 33,000 (14.4%) between 1999 and 2006.
• Over the last year, medium-sized enterprises (50-249 employees) accounted for a large part of the rise in the total number of businesses and associated employment, and saw the largest relative increases, 5.5% and 4.6% respectively. Since 2002, the numbers of medium-sized enterprises and associated employment had been declining year on year.
• The number of small and medium enterprises ( SMEs) and their associated employment have increased to 263,175 (up 0.1%) and 989,640 (up 1.1%) respectively over the past year.
• Enterprises with one or more employees comprised only 35% of all enterprises but provided 89% of all jobs. This is similar to previous years.
• The number of businesses in both the 'Mining, Quarrying & Utilities' and 'Financial Intermediation' sectors both increased substantially over the past year, up by 1,120 (29.8%) and 780 (19.2%) respectively. This is mostly due to the increased numbers of unregistered and self-employed businesses in these sectors.
• The number of businesses in the 'Motor Trade' sector decreased by 1,245 (-20.9%) over the past year, all due to small enterprises. 'Manufacturing' also continued to decline across all business sizebands, down by 1,445 (-8.2%) in total.
• The proportions of the numbers of registered businesses and associated employment of businesses with an ultimate ownership outside of Scotland remained at 3% and 34% respectively. Among large enterprises (250+ employees), the proportions were substantially higher at 81% and 61% respectively.

Total Businesses in Scotland

The total number of private sector enterprises in Scotland has increased by 345 (0.1%) since March 2005 to 265,435 in March 2006. The associated employment of these enterprises has increased by 26,790 (1.4%) to 1.888 million over the same period. Since 1999, the total number of enterprises has increased by 33,435 (14.4%).

Table 1: Number of private sector enterprises in Scotland by sizeband, 1999-2006

Source: Scottish Executive, ONS (IDBR)

Scotland lacks a critical mass of larger businesses, and a key challenge is growing and sustaining businesses of scale. The 2,255 large enterprises operating in Scotland accounted for just over 56% of turnover ¹. The following chart shows how the total number of enterprises, employment and turnover ¹ were split between small, medium and large enterprises in Scotland as at March 2006.

Chart 1: Share of enterprises, employment and turnover by size of enterprise, 2006

Source: Scottish Executive, ONS (IDBR)

Size of Businesses

Small (0-49 employees)
The total number of small private sector enterprises in Scotland has increased by 150 (0.1%) since March 2005 to 259,695 in March 2006. The associated employment of these enterprises has decreased by 20 to 745,850 over the same period. Since 1999, the number of small enterprises has increased by 33,185 (14.7%).

Medium (50-249 employees)
The total number of medium private sector enterprises in Scotland has increased by 180 (5.5%) since March 2005 to 3,480 in March 2006. The associated employment of these enterprises has increased by 10,740 (4.6%) to 243,800 over the same period. Since 1999, the number of medium enterprises has increased by 210 (6.4%).

Large (250+ employees)
The total number of large private sector enterprises in Scotland has increased by 5 (0.2%) since March 2005 to 2,255 in March 2006. The associated employment of these enterprises has increased by 16,060 (1.8%) to 898,380 over the same period. Since 1999, the number of large enterprises has increased by 35 (1.6%).

Small and Medium Enterprises (SMEs)

As at March 2006, there were 263,175 SMEs (0-249 employees) in Scotland (up 0.1% from March 2005) with associated employment 989,640 (up 1.1%). This represents 99% of all enterprises and 52% of all employment. Interestingly, enterprises with one or more employees comprised only 35% of all enterprises but provided 89% of all jobs.

Business Sectors

The sectors which experienced the largest relative increases in the number of enterprises between March 2005 and March 2006 were:

• Mining/Quarrying & Utilities - up by 1,120 (29.8%) to 4,875 enterprises.
• Financial Intermediation - up by 780 (19.2%) to 4,840 enterprises.
• Other Community, Social and Personal Services - up by 3,890 (11.9%) to 36,600 enterprises.

The sectors which experienced the largest relative decreases in the number of enterprises between March 2005 and March 2006 were:

• Motor Trade incl. vehicle repairs and fuel sales - down by 1,245 (-20.9%) to 4,725 enterprises.
• Manufacturing - down by 1,445 (-8.2%) to 16,190 enterprises.
• Business Activities, Real Estate, Renting - down by 2,685 (-5.9%) to 43,040 enterprises.

The sectors which experienced the largest relative increases in employment between March 2005 and March 2006 were:

• Health & Social Work - up by 7,510 (5.8%) to 137,680.
• Business Activities, Real Estate, Renting - up by 15,350 (5.3%) to 305,690.
• Other Community, Social and Personal Services - up by 5,090 (4.4%) to 120,150.

The sectors which experienced the largest relative decreases in employment between March 2005 and March 2006 were:

• Manufacturing - down by 10,910 (-4.3%) to 244,290.
• Retail Trade and repairs - down by 1,910 (-0.8%) to 247,650.
• Financial Intermediation - down by 630 (-0.6%) to 108,690.

Foreign Ownership of Businesses in Scotland

Information available on the foreign ownership of firms operating in Scotland is only for enterprises registered for VAT and/or PAYE. The table below shows the percentages of enterprises and employment for firms which had an ultimate country of ownership outside of Scotland broken down by size of firm as at March 2006.

Table 2: Percentage of firms with ultimate ownership outside Scotland, 2006

Source: Scottish Executive, ONS (IDBR)

More Information

A full set of the latest tables on business stock can be found at the following links:

Scotland Tables - www.scotland.gov.uk/Topics/Statistics/18389/Scotland

Local Area Tables - www.scotland.gov.uk/Topics/Statistics/18389/13044

¹ Turnover for financial intermediation enterprises is not available on a comparable basis and has therefore been excluded from this analysis.