Business News Round Up (02/06/2023)
Three in five Scottish small businesses believe they can grow next year
The Federation of Small Businesses (FSB) in Scotland has published the results of its Big Small Business Survey, which shows that three fifths of businesses intend to grow in the next year. The survey, which was undertaken in January among 602 small businesses across Scotland, found that 45.3% of reported rising turnover during the last year, while 41.4% said turnover fell – and 13.1% stated no change. Businesses in the wholesale and retail trade, and motor vehicle repair (52%), alongside accommodation and food services(51%) sectors were most likely to report a decrease in turnover in the last year. Almost half of Scottish small businesses saw an increase in turnover of up to 10% last year. Just over three fifths of businesses that reported a decrease turnover in the last year attributed this to either the cost-of-living crisis or overall economic uncertainty. Scotland policy chair Andrew McRae said: “Too often, decision makers fall into the trap of treating business as a monolith, making decisions that assume our smallest firms are operating on the same playing field as multinational corporations. “What this study demonstrates is that, not only is there a distinction to be drawn between small businesses and their larger counterparts, but indeed there is a huge degree of diversity within the small business community itself.” The report also revealed that more than a tenth of Scottish small businesses spend more than eight hours per week on regulatory compliance.
https://www.insider.co.uk/news/three-five-scottish-small-businesses-30130232
Business leaders call for more support for Northern start-ups
More needs to be done to ensure innovative Northern start-ups have the support needed to thrive, according to a venture capital firm and an airport technology company it recently backed. Praetura Ventures is a Manchester-based VC that invests in early-stage businesses. AeroCloud is an airport tech start-up based in Macclesfield that recently raised a $12.6m in a Series A round that included a commitment from Praetura. Ben Davies, group marketing director at Praetura, highlighted some successes for the North, in particular the growth of its technology sector. He told Insider: “Over the last 15 years, the North has seen a massive transformation of its tech sector, and the Northern Powerhouse agenda has played an important role in creating opportunities and helping to shape the region into becoming a leading European tech ecosystem. There are great things happening here; Manchester raised over £532m in funding last year, more than Lisbon and Rome. And despite an overall downturn in funding in the UK last year, valuations in the North went up 400 per cent in 2022, bucking the trend that was happening across the rest of the country. While there are success stories from the different cities, what the Northern Powerhouse has done is help bring us together into one community. From Leeds and York to Manchester and Liverpool, a number of startups from the region have established a strong foundation, and this first wave of success stories is now fuelling the growth of more innovative businesses across the region, offering a network and a more extensive talent pool.”
Factories adopt flexible working as orders grow
Scotland’s industrial companies are investing in training and offering more flexible working to meet skills shortages in a sector that continues to defy wider predictions of an economic slowdown. The trade group Scottish Engineering reported a ninth consecutive quarter of rising orders and output, taking the industry into a third year of positive sentiment. Half of responses to its latest quarterly survey reported increased orders and output, compared to one in five experiencing a decrease. Around a third forecast increases for the coming three months, underlining that generally, the theme of “busy and stretched” continues. The data contradicts a UK-wide survey pointing to orders drying up amid a broader slowdown. The purchasing managers’ index (PMI), compiled by S&P Global and the Chartered Institute of Procurement and Supply, fell to a four-month low of 47.1 last month, down from 47.8 in April. A reading below 50 indicates decline. The PM I report said new export orders dropped for a 16th consecutive month in May. There were reports of weaker intakes of new work from the US and Europe, which were linked to rising international competition and, in the case of the EU, customers switching to local sources to avoid post-Brexit trade and transportation complications, the survey found. The Scottish Engineering survey paints a different picture with exports are up for the second quarter running, at 18% higher than the UK order net increase of 15%. This year continues its overall optimistic outlook, with wider second quarter data reflected in a net 21% increase in optimism.
https://dailybusinessgroup.co.uk/2023/06/factories-adopt-flexible-working-as-orders-grow/
Manufacturing Growth Programme delivers 12,435 SME jobs as it targets new looking funding landscape
One of the UK’s most successful industrial business support programmes comes to an end in June after helping the manufacturing sector to create or safeguard 12,435 jobs since 2016. The Manufacturing Growth Programme (MGP), which is designed and delivered by Oxford Innovation Advice, will see funding from the European Regional Development Fund end and is now urging the Government and local authorities to ensure that tailored advice for manufacturing SMEs is quickly put in place. A recent independent evaluation of the programme found that MGP has delivered excellent value for money and achieved real results. The report revealed that over 95% of companies surveyed expected their business to grow in the next five years because of receiving support from the programme, with 63% identifying the development of new products as one of the key areas. In addition, 63% said they had already seen an increase in turnover, while 52% cited improved productivity as the main outcome of the support received. MGP was established in October 2016 to address some of the main barriers to growth experienced by SME manufacturers. Since then, it has been providing grant funding for business improvement/capital projects and specialist mentoring from industry experts, with 4564 companies assisted across the East and West Midlands, Yorkshire & Humber and the South East.