UK firms are suffering from political fatigue due to uncertainty over EU membership and the possibility of a second Scottish independence referendum.
The Business Growth Fund’s first ever Growth Climate Index, a poll of more than 350 board directors working with fast-growing small and mid-sized UK firms, found 66% of Scottish company leaders expected conditions for growth to improve in the quarter ahead, while the figure was 76% for the UK as a whole.
The state of the economy was the biggest single issue for Scottish entrepreneurs, with 22% citing factors such as the low oil price as their main concern.
Recruiting skilled staff was also a major issue for Scottish companies, as was access to finance.
However, uncertainty over the UK’s EU membership and the possibility of a second Scottish independence vote were also causing significant concern.
Of the Scottish directors polled, 85% said another referendum would be bad for British business, a view supported by 79% of UK respondents.
More than half of those questioned said they “strongly agreed” a new poll would be detrimental, a figure that rose to 67% of Scottish respondents.
Simon Munro, BGF regional director Scotland, said: “Although Scotland’s economy is much more diverse than it was during previous oil price dips with sectors such as food and drink and renewable energy becoming increasingly important the oil and gas sector still employs thousands of people and has extensive supply chains.
“Rather than withdrawing, many businesses appear to be acting more robustly by looking for ways to adjust to the low oil prices.
“Businesses want a quick and decisive outcome from Britain’s EU referendum to remove uncertainty and they don’t want a second independence referendum adding to uncertainty in Scotland.”