BUSINESS confidence has seen a dip across the UK, but Scotland specifically is on the rise. Find out here why and how your business should react:
Around the world, companies are struggling to cope with the current financial market, with some even having to close their doors for good – London alone saw 174,910 businesses dissolve in 2022, which is equal to 12.2% of their total business population and 32% of the total closures across Great Britain.
Scotland, however, fared reasonably well, considering the pressures which have been placed on business in the region. Compared to London, only 25,459 businesses dissolved in 2022, which amounts to about 9.2% of their total business landscape.
In fact, business confidence – which has been pretty low across the board in recent years – rose by four points this February. This is a figure taken by the “Business Barometer”, which surveys 1,200 businesses monthly and signals the economic trends for companies across the nation.
That being said, if you are running a business in Scotland, there are more to those figures than first meets the eye.
A Closer Look At Scotland’s Business Confidence
Although Scotland’s confidence grew to 14% in February, the damage being inflicted on the UK market cannot be understated. It goes far beyond London, too.
Over half a million of UK businesses dissolved last year, with the retail industry taking the biggest hit – 58,330 company dissolutions and a shrinkage of 11.2% — and places like Wales losing an eighth of their company population – a 12.5% loss, with 18,236 businesses being dissolved.
For any country, this isn’t exactly going to leave a feeling of confidence in business progress.
Indeed, a closer look at the data shows that Scotland has reported lower confidence in their business products month-on-month, falling down to a total of 7%. It is their confidence in the economy that takes them to a business confidence reading of 14% — with a rise of 8 points to 20% in economic optimism.
The top target areas for growth come with investing in their team, introducing new technology and evolving the business itself; 43%, 31% and 30%, respectively.
The Response By Your Business
If you are running a business in Scotland, then there are still plenty of things to be wary of throughout this year.
As ever with B2B companies, attaining a strong b2b loyalty program is vital to continue building upon relationships and ensuring that your customers feel comfortable and incentivised to keep buying from you.
For B2C companies, the incentive should be in working out how marketing trends are going to change in 2023 and maximising your own marketing, ensuring there is still footfall beyond the door.
In terms of B2B and B2C, the target areas for growth can certainly be heeded. As mentioned before, 43% of Scotland businesses stated their top target as an investment in their team, ensuring that employee engagement remains strong and the goal of reaching full potential is felt across the workforce.
Innovation, similarly, should be at the forefront of business minds. When we get to the other side of the financial struggles, it is the businesses that have grown with the times and innovated to secure engagement that will be left standing.
Ensure that you do not simply survive 2023 but focus on innovation, growth and becoming the best company you can be.
