Business News Round Up (02/09/2025)
Mid-sized Scottish firms outperform expectations
Scottish mid-sized businesses are reporting stronger-than-expected performance in 2025, fuelled by greater access to finance and AI adoption, according to a survey. BDO’s latest Economic Engine research of more than 500 mid-sized business leaders shows nine in 10 (94%) have already beaten growth targets set at the start of the year, with more than a third (34%) saying they have significantly exceeded expectations. Greater access to investment or finance (40%) and resilient customer demand (43%) were key drivers of outperformance, supported by productivity gains from technology and AI (49%). This positive trading picture is translating into continued capital commitment. Three-fifths (60%) are holding investment steady, with more than a third (36%) stepping it up. Only 4% are delaying or scaling back UK investment. These figures suggest companies are backing their own pipelines and balance sheets, even as wider economic sentiment remains subdued.
North West mid-market outperforms expectations, but challenges persist
North West mid-sized businesses are reporting stronger-than-expected performance in 2025, fuelled by new products and services and an improving skills outlook, according to the latest Economic Engine research from accounting and business advisory firm, BDO. The survey of over 500 mid-sized business leaders shows nearly three-quarters (71%) have already beaten growth targets set at the start of the year, with more than one-fifth (23%) saying they have significantly exceeded expectations. Better-than-expected staff recruitment and retention (36%) and the successful launch of new products and services (52%) were key drivers of outperformance. This positive trading picture is translating into continued capital commitment. More than three-fifths (66%) are holding investment steady, with over a quarter (29%) stepping it up. Only 6% are delaying or scaling back UK investment. These figures suggest regional companies are backing their own pipelines and balance sheets, even as wider economic sentiment remains subdued.
Scottish businesses deliver record-breaking export growth with Scottish Enterprise support
Scottish businesses have delivered their highest-ever level of planned international sales – reaching an unprecedented £2.46 billion during 2024/25, a 20% increase on the previous year – with support from Scottish Enterprise. This milestone reflects Scotland’s growing global ambition and the strength of its innovation-led economy. Scotland’s national economic development agency celebrated the ground-breaking achievement, which is detailed in its Annual Report and Accounts for 2024/25, during a visit to international life sciences company Piramal Pharma Solutions in Grangemouth, a key Scotland-based exporter. Scottish Enterprise met all its performance targets for 2024/25 – with three areas exceeding the target range – during the first full year of its missions-based approach. Its targeted strategy for delivering economic transformation saw activity focus on the three core growth areas of Accelerating the Energy Transition, Boosting Capital Investment and Scaling Innovation.
Manchester is North’s most ‘innovative city,’ Scottish capital and Yorkshire pair also make UK top 10 in new Adobe rankings
Searches for business innovation have climbed 69% across Europe in the last quarter, showing just how vital creativity, technology, and fresh thinking have become. While hubs like London and Paris are often seen as innovation frontrunners – fostering cutting-edge tech, sustainable solutions, and dynamic startup scenes – they’re not the only cities making bold moves. Adobe Express has ranked the most innovative cities across the UK and Europe, analysing key factors including university rankings, Wi-Fi speeds, and tech jobs per 100,000 people, to reveal the hotspots where innovation is thriving. London took top spot, with Southampton and Bristol rounding out the top three. Manchester was the highest ranked Northern city at fourth, with an overall index score of 50.02. The city had the highest percentage of tech jobs in the rankings (187.9 per 100,000), the 34th best university in the world and an average Wi-Fi speed of 75 Mbps.