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Scotland: 2024 business survey

A positive outlook

Scotland’s business landscape continues to show resilience and adaptability amid economic challenges. Sectors such as technology, renewable energy, and tourism are driving growth, and businesses across the country are doing well to navigate inflation pressures and supply chain disruptions. Looking ahead, there is optimism as companies invest in innovation and sustainability to position themselves for long-term success, though ongoing economic uncertainties remain a significant consideration.

Jamie Grant

Head of Corporate Banking, Scotland

The bigger picture in Scotland

59% Of businesses surveyed plan to expand in the next 12 months.

75% Of respondents have staff development programmes in place.

53% Said they are confident they can access funds to support their growth.

It’s good to see that more than half (57%) of the Scottish respondents to our research, carried out in conjunction with News UK*, feel confident in their ability to successfully grow their business – and 59% plan to expand in the next 12 months. After the challenges experienced during 2023, this suggests a more positive outlook among companies in Scotland, although there is still a relative lack of confidence in the wider UK business market (37%).

Increased costs (45%) continue to be the biggest challenge for businesses questioned in the region, while 36% are concerned about both economic instability and recruitment and retention. Developing staff skills to meet future needs is top of mind for many, so it’s pleasing to see that three quarters of businesses have staff development programmes in place.

Although 53% of those surveyed are confident they can access funds to support their growth, 20% say a lack of access to finance is stopping them from expanding

After a tough few years, it appears that our businesses are once again starting to look for opportunities to grow and diversify, although there is still a need to focus on costs. It’s pleasing to see that 61% of Scottish companies surveyed have either met their goals or are making headway developing their business through technological innovations or diversification,” says Jamie. “For those in need of finance, Barclays offers a range of solutions to support businesses striving to grow and increase their investment in technology, people and products.

Jamie Grant

Head of Corporate Banking, Scotland

Embracing digital transformation in Scotland

87% Of businesses questioned say embracing digital transformation is their number one growth priority.

57% Of those questioned have embraced digital transformation through improved customer service using digital tool(s).

71% of those surveyed are embracing digital transformation through remote working.

Business leaders surveyed across Scotland say that embracing digitalisation is their top priority for growth, so it’s unsurprising that 62% are currently working on their digital transformation programmes. In this regard, Scottish businesses appear to be slightly ahead of others across the UK, where the national average is 54%.

Seven in ten (71%) of Scottish businesses in our survey are using remote working (above the national average of 64%), 57% are using digital tools to improve customer service, and 59% are using data for smart decision making, as the main ways to future proof their firms and embrace digital.

Digital transformation is increasingly recognised as a critical priority for businesses across Scotland. As leaders focus on embracing digitalisation, they’re unlocking new opportunities for growth, efficiency, and competitiveness in a rapidly evolving market. By investing in digital tools and technologies, Scottish businesses are not only enhancing their operations but also ensuring they remain agile and resilient in the face of future challenges

Jamie Grant

Head of Corporate Banking, Scotland

Artificial Intelligence

With data and artificial intelligence (AI) increasingly seen as core to business growth, it’s reassuring to see that 71% of business leaders from our survey in Scotland say they have a good understanding of the role data can play in responding to consumer behaviours and improving experiences. What’s more, 64% say they are well equipped to use data in this way.

Of course, adopting new technologies and processes is never straightforward. Of those surveyed, 16% say they’re already using AI. The others report their main barriers to using AI are employee skills gaps (29%) and a lack of understanding of AI’s benefits (28%). With AI expected to play a more significant role in helping firms to retain their competitive edge in a dynamic market, businesses could look to upskill staff, and take time to understand the potential benefits of AI. Businesses may want to consider running inhouse development programmes on this, or perhaps work with a third-party provider.

Overcoming the barriers to adopting AI requires businesses to focus on upskilling their workforce, investing in the right infrastructure, and fostering a culture of innovation. Barclays is committed to supporting businesses on this journey by providing tailored financial solutions, expert guidance, and access to resources. Together, we can help businesses harness the full potential of AI, driving efficiency and unlocking new avenues for growth.

Jamie Grant

Head of Corporate Banking, Scotland

The sustainability journey in Scotland

Almost a quarter (24%) of businesses in Scotland surveyed say they’ve never heard of Environment, Social and Governance (ESG) as a business topic, ESG is a framework that helps businesses understand and measure their impact on society, the environment and how transparent and accountable it is.

On a positive note, 71% are either familiar with or at least aware of it. Of these, almost a third (32%) say they have a well-established ESG approach embedded across their organisation.

Reducing waste can be an efficient way to increase a company’s competitive advantage and reduce costs – this is reflected in the high percentage (78%) of businesses questioned across Scotland that are planning to invest in this over the next two years. What’s more, seven in ten plan to provide their employees with sustainability training, while just over half are planning to focus on renewable energy, climate technologies, (technologies that are explicitly focused on reducing GHG emissions or addressing the impacts of global warming) and sustainable supply chain management.

Scottish businesses surveyed report that the main barriers to investing in ESG focused projects are a lack of clear return on investment (26%), lack of funds to invest (21%), and other business priorities (23%).

Scottish businesses have a unique opportunity to leverage the country’s abundant renewable resources, such as wind, hydro, and tidal energy, and to lead in the transition to a sustainable economy. By investing in clean energy projects and incorporating sustainable practices into their operations, businesses could reduce their carbon footprint while driving economic growth. Barclays is here to support these efforts, offering financing solutions, sustainability-linked loans, and expert advice to help businesses achieve their sustainability goals and capitalise on the green opportunities that Scotland offers.

Jamie Grant

Head of Corporate Banking, Scotland

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Get in touch

To discuss your business requirements and how Barclays can support you, contact us today.

*Source: YouGov ‘News UK Barclays Survey’ April 2024. An online quantitative survey of 1000 business leaders working in businesses with at least 250 employees. Working in all regions of the UK except London. NB Survey size in Northern Ireland 15 businesses.

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