Scotland’s small businesses can make a “real impact” on the fortunes of the economy next year, according to the Business Gateway’s operations director for Tayside.
Andrew Burnett said trading conditions had continued to be challenging during 2013 but hailed an improving picture, with new-found expectations of better to come, as he urged firms to rise to the challenge.
He was speaking after a recent study from the Federation of Small Businesses unearthed improved top and bottom lines and boosted investment intentions.
Profitability rose by 9% in the final quarter of this year, the FSB found, against an 8% dip for the same period in 2012.
“Working with, and advising, many hundreds of businesses in Tayside and Fife every year, Business Gateway’s advisers know that the tough economic climate has presented testing times for many companies,” Mr Burnett said.
“On a positive level, the recent Voice of Small Business Index survey from the Federation of Small Businesses in Scotland tells us that there is a positive outlook from Scotland’s SMEs.
“There is evidence of companies seeing profitability and turnover rising, and many expect to increase capital investment over the coming year.
“This has to be good news for everyone,” he said.
“We know that many have found it hard to source finance, and we know that there can be tougher conditions to meet when lending is available.
“That said, there are many sources of funding out there if you know where to look,” he added.
He said firms would need to “stand out from the crowd” amidst fierce competition.
“Looking back over the past year there is no doubt that those businesses that have increased turnover and taken on staff have also spent time creating effective marketing plans,” added Mr Burnett.
Business Gateway Tayside will support a programme of workshops and other events next month, covering key topics including business planning, marketing, employing staff and social media.
l Major banks are starving small firms of credit, according to some of the UK’s leading accountants.
A study of finance leaders from across the UK found nearly three-quarters thought small businesses were struggling and more than half have held back on their own investment and employment decisions because of problems borrowing.
David Rowsby, the Chartered Institute of Management Accountants’ regional director for Europe, said companies must look at their accountants as more than “bean counters”.
“Given current financial constraints, and the increasing need for organisations to operate efficiently, effectively and ethically, management accounting has a crucial role to play in improving the quality of planning, control and decision-making,” he said.