Business News Round Up (01/09/2020)
A quarter of a million Scots created new businesses in 2020, despite the pandemic
A new study has revealed that a quarter of a million people in Scotland set up or were running new businesses in 2020, despite the challenges of the pandemic. The Global Entrepreneurship Monitor (GEM), undertaken by researchers at the University of Strathclyde, estimates that 7.3% of the Scottish population – 247,000 adults – were actively engaged in setting up a business or already running an enterprise established in the last three-and-a-half years. A further 5.7% – or 194,000 adults – were entrepreneurs running more established businesses. The report found that 13% of 18 to 24 year-olds, or around 60,000 young people in Scotland, were early-stage entrepreneurs. It was the highest rate within the UK, growing steadily from 3.5% in 2007/09 period for people under 30 years old. Nearly 140,000 people from 46 economies across the globe were surveyed, with 2,019 responses from Scotland. The study found that Scotland had similar rates of total early-stage entrepreneurial activity (TEA) to other nations within the UK, but this remained steady in Scotland, while early-stage entrepreneurial activity in England suffered a significant decline from 2019 rates.
https://www.insider.co.uk/news/quarter-million-scots-created-new-24877818
Supply chain disruption now one of the top threats to growth, UK managers warn in new poll
Almost two thirds of UK chief executives have seen their supply chains come under strain during the pandemic while bosses around the world fear supply chain disruption – that’s the message from a new survey as shortages hit the headlines across the country. KPMG’s global poll of CEOs found supply chain risk was one of the three biggest business challenges, alongside cyber security and environmental and climate issues. Supply chain problems were seen as the main threat in sectors including consumer and retail, manufacturing and automotive. The results are released as a lorry driver shortage, the pandemic and Brexit have helped lead to increasing supply chain problems in the UK, hitting sectors from retail to construction. The KPMG 2021 CEO Outlook showed that 56% of chief executives globally – including 59% in the UK – say their business supply chain has been under increased stress since the start of the Covid-19 crisis.
https://www.business-live.co.uk/economic-development/supply-chain-disruption-now-one-21449099
UK business confidence jumps to more than four year high, survey finds
British business confidence hit highs not seen since April 2017 on hopes the economy is recovering strongly to pre-pandemic levels, according to a survey. Employers in England’s North West and East registered the biggest jump in confidence, the latest Lloyds Bank Business Barometer found. There was caution among companies about inflation and staff shortages. But firms in manufacturing, services and construction all posted greater optimism that recovery would continue. The monthly survey of 1,200 firms, conducted between 2 and 16 August, also saw business confidence in Northern Ireland turn positive after a negative response in July’s poll. The barometer found that overall business confidence among UK firms rose by six points to +36% in August, driven by improvements in companies’ trading prospects and expectations of stronger growth in the year ahead.
https://www.bbc.co.uk/news/business-58383035
Scottish businesses see ‘unprecedented’ support over Covid period
Firms across the country have seen a massive boost in financial support to fight the effects of the pandemic in 2020 and 2021.Scotland’s national economic development agency has announced “unprecedented” business support of more than £568 million in investment to Scottish businesses in 2020 and 2021. Scottish Enterprise said that their “record level” of funding supported more firms in Scotland than ever before, resulting in more than £1 billion additional planned private sector investment. Additionally, Scottish Enterprise said the support also secured almost 7,000 planned Real Living Wage jobs for communities across the country. The organisation worked with domestic and international businesses, with the aim of boosting innovation and investment in “key assets” to help companies become more resilient and drive growth.