www.fsb.org.uk/scotland
SCOTLAND Q3 2023 SMALL BUSINESS INDEX
0
-50
-100
Q3 2023
Q1 2023
Q3 2022
Q3 2021
Q1 2022
Q1 2021
Q3 2020
Q3 2019
Q1 2019
Q3 2018
Q1 2018
Q1 2020
Source: FSB Small Business Index
30%
10%
-10%
-30%
-50%
Revenue
Q4 2023
Q2 2023
Q4 2022
Q2 2022
Q4 2021
Q2 2021
Q4 2020
Q4 2019
Q2 2020
Q2 2019
Q4 2018
Q4 2017
Q2 2018
Q2 2017
Q4 2016
Q2 2016
Q4 2015
-90%
Q2 2015
-70%
Q2 2014
Despite this, there are some signs that small businesses in Scotland believe the situation will begin to improve, with a higher net balance expecting revenue growth in Q4 2023. That said, at -8.5%, the figure remains in overall negative territory.
UK SBI
Net balance of small firms in Scotland reporting revenue growth
Q4 2013
These findings are consistent with the lower overall SBI reading for Scotland compared to the UK, showing the link between business sentiment and revenue performance.
Q3 2017
Scotland SBI
The number of Scottish small businesses reporting revenue declines in Q3 exceeded the number reporting an increase. As such, the net balance of firms reporting revenue increases was negative, amounting to -14.6%. This is a notable worsening compared to Q2 when this metric recorded its first positive reading since Q1 2022. Within the net balance figure, 28.1% of Scottish small businesses reported revenue growth over the quarter, less than the UK-wide share of 33.5%. The share of Scottish small businesses reporting a revenue contraction over the quarter was higher than the equivalent figure for the UK as a whole.
Q1 2017
Scotland’s SBI reading was the second most pessimistic amongst UK nations and regions.
Q3 2016
-200
Q1 2016
-150
Q3 2015
The UK-wide SBI remained in negative territory in Q3. Q3 represented the sixth consecutive negative reading on the UK-wide SBI. This prolonged period of pessimism underscores the economy’s recent struggle with slow growth, as it contends with various challenges.
50
Q4 2014
Small business sentiment in Scotland was negative for a second consecutive quarter, having recorded -11.7 in Q2. The negative sentiment reflects the prevailing uncertainty in the current economic landscape, across both the UK and Scotland. Growth prospects are hindered by tighter interest rates, continually elevated inflation, and subdued consumer activity.
The FSB Small Business Index: Small business prospects over coming three months
Q1 2015
The Small Business Index (SBI) in Scotland declined in Q3 2023, dropping by 18.5 points to reach -30.2. The negative reading means that the number of Scottish small businesses expecting their performance to improve over the coming quarter is exceeded by the number expecting their performance to worsen.
Source: FSB Small Business Index