Scottish micro-businesses predict post-pandemic rebound
Around 86% of Scottish micro-businesses expect activity levels to rebound over the next 12 months as consumer demand increases.
Shawbrook Bank Micro-enterprise monitor surveyed Scottish businesses with 25 or fewer employees to understand the opportunities and challenges facing the more than 360,000 micro-businesses in Scotland.
The study found that two-thirds (65%) believe that diversifying and introducing new sources of revenue for businesses will lead to a rebound, while 68% say it will come from growing consumer demand for products. and services.
Almost one-third (32%) also intend to hire additional full-time or part-time employees in the next six to twelve months.
Shawbrook found that three-quarters of Scottish micro-businesses felt optimistic when considering their business prospects over the past six months, with 58% saying demand for their businesses’ products or services had increased.
However, a decline in activity was due to decreased consumer demand (73%), suspension of trade during the lockdown (55%), and isolation or protection of staff (9%) .
Meanwhile, nearly three-quarters of those surveyed (74%) have a business savings account in place, with 34% of staff in training, 31% planning to improve cyber resilience and 29% of savings for the expansion of new products or services,
About 83% expect their business to grow in the next six to twelve months, with more than half (54%) planning to use savings to expand their offering and 49% to use excess profits towards future opportunities.
Almost half (47%) also plan to invest in new equipment over the same period, while 30% will introduce new training for employees or invest in digital, technology or automation.
Glendale Creative, a design and marketing agency, has decided to pivot its business after the cancellation of live events and conferences during the lockdown.
The company used its savings to upgrade the skills of colleagues to meet the changing demand for digital creative briefs and invested in new IT and security infrastructure to support staff working from home.
Sara Garvey, CFO of Glendale Creative, said: “When Covid-19 hit, the desire for many of our in-person services was gone – it forced us to pivot and focus on developing the digital side of our enterprise. “
Alun Williams, Savings Business Manager at Shawbrook Bank, said: “It is extremely encouraging to see Scottish micro-businesses with a positive outlook for the next 12 months, reflecting the agility that makes it easier for them to adapt to external factors.
“However, in the short term, micro-enterprises need to think about the opportunities or challenges ahead and how they will be financed.”
Don’t miss the latest headlines with our twice daily newsletter – subscribe here for free.