www.fsb.org.uk/scotland
SCOTLAND Q2 2021 SMALL BUSINESS INDEX Businesses optimism rose in Scotland in the second quarter of Small Business Confidence 2021 according to the latest FSB Small Business Index. Confidence 60 amongst Scottish small businesses improved by 1.7 points between Q1 40 and Q2 2021, reaching a reading of 20.5 points. This improvement comes as restriction measures in the country were eased substantially, 20 prompting an uptick in economic activity.
-100 -120 -140
Scotland SBI
UK SBI
Q2 2021
Q4 2020
Q2 2020
Q4 2019
Q2 2019
Q4 2018
Q2 2018
Q4 2017
Q2 2017
Q4 2016
Q2 2016
Q4 2015
Q2 2015
Q4 2014
Q4 2013
Q2 2014
-160
Source: FSB Small Business Index.
Net balance of small firms in Scotland reporting revenue/profit growth 30%
10%
-10%
-30%
-50%
-70%
Revenue
Profit
Q4 2021
Q2 2021
Q4 2020
Q2 2020
Q4 2019
Q2 2019
Q4 2018
Q2 2018
Q4 2017
Q2 2017
Q4 2016
Q2 2016
Q4 2015
-90% Q4 2014
The net balance of Scottish firms expecting to grow over the coming year stands at just 17.9%, again the weakest figure of any region or nation on this metric, and falling considerably short of the next weakest score. Scotland’s subdued growth outlook likely reflects similar trends to those underlying the profitability estimates.
-80
Q2 2015
Scottish businesses were least likely to expect growth over the next 12 months, though more firms plan to grow than contract. With a share of the Scottish economy still in its early stages of reopening, many businesses are likely tiding themselves over to ensure a smooth return to normal operations, putting growth aspirations on hold.
-60
Q4 2013
Scottish businesses amongst least likely to see improving profits in Q2. Small businesses in Scotland appear to be among those with the weakest profit growth in the UK. A net balance of -9.7% of small businesses in Scotland reported gross profit growth in Q2, meaning the number of businesses seeing profits drop from the previous quarter exceeded the number of those seeing higher profits. This was also the case when considering the UK-wide sample with a net balance figure of -1.4%. The weak profitability of Scottish businesses in Q2 may be explained by the prolonged restriction measures in the country, which have curtailed economic activity at the aggregate level.
-40
Q2 2014
The UK SBI reading subsides slightly, yet more businesses remain confident than not. The UK-wide Small Business Index saw a slight dip in Q2, reaching 18.6. This marks a fall of 8.7 points, having stood at 27.3 in Q1.
-20
Q2 2013
Only the South East recorded a larger uptick than that of Scotland, amounting to 6.9 points. Scotland was amongst the weakest scorers in Q1 meaning there was more scope for improvement as the economic recovery further took hold over the past months; nevertheless, Scottish confidence is now higher than the UK average.
0
Q2 2013
Though small businesses continue to exhibit confidence across much of the UK, Scotland was one of only three regions to record an improving SBI reading between Q1 and Q2. Scotland’s higher score in Q1 could be explained by its slower lifting of restriction measures compared to the rest of the UK, particularly England.
Source: FSB Small Business Index