Business News Round Up (07/05/2026)
BDO: appetite for overseas expansion grows amongst PE-backed businesses
Private equity-backed businesses have a growing appetite for international expansion, despite the ongoing geopolitical uncertainty facing Scottish mid-market companies, according to BDO. The latest research from the accountancy firm shows more than three-fifths of PE-backed businesses (64%) are looking to enter new international markets, ranking it as the biggest opportunity for growth over the next six months. The firm’s bi-monthly Economic Engine survey of 500 mid-market businesses – companies with revenues between £10 million and £500m – shows that while domestic growth remains a priority for private equity-backed companies, investment will also fuel growth in other territories over the next 12 months, including North America, Asia-Pacific and the EU. This correlates with the latest export figures from the Office for National Statistics (ONS).
Day one sick pay ‘risks millions of lost working days’ for small business sector
New fears are stalking the small business sector, which is already reeling from huge increases to running costs following jumps in the Minimum Wage and employers’ National Insurance contributions (NIC). The cost of employers’ National Insurance Contributions have jumped by £28bn, or 24%, in the past year to March 31 2026, says UHY Hacker Young, the national accountancy group. The main rate of Employers’ NIC increased on April 6, last year from 13.8% to 15%, which has seen the bill for employers rise from £116bn to £143.9bn in the past year. However, last month new statutory sick pay (SSP) rights became law, which could push some businesses to the brink and trigger millions of additional sick days, it has been claimed. Employees are now entitled to statutory sick pay from the first day of absence, rather than having to wait until day four of absence.
RSM: growth in Scotland’s tech industry surges despite geopolitical uncertainty
The number of new technology companies incorporated in Scotland the first quarter of 2026 surged, despite geopolitical tensions and uncertainty, according to RSM UK. RSM’s analysis shows there were 687 new tech incorporations in Q1 2026, up 70 per cent from 405 the same quarter last year, and increasing 37 per cent from 502 in Q4 2025. Will Simpson, head of technology for RSM in Scotland, said: “Scotland’s tech sector is still thriving despite the current ongoing headwinds. We already have a strong tech ecosystem throughout Scotland but cannot be complacent in an industry where the workforce can be very mobile. With tech featuring in some of the manifestos it will be interesting to see what support is offered in the forthcoming election as, with the right support, this sector could be a significant contributor to economic growth in Scotland.”
New report highlights region’s fastest growing manufacturers
The region’s fastest-growing manufacturers have been revealed in Insider’s Manufacturing Growth 100, while we also explore the growth potential of Greater Manchester’s manufacturing sector. To rank the Manufacturing Growth 100, turnover in the last two years from accounts filed at Companies House is used to calculate the percentage gain over their latest year. The full list is published in the May edition of North West Business Insider, out now. In a further section – sponsored by GM Business Growth Hub – we also took a look at the growth potential of Greater Manchester’s manufacturing sector. New analysis from Red Flag Alert identified 50 companies ranked as highly likely to expand revenues by more than 20 per cent over the next 12 months. The list is based on Red Flag Alert’s proprietary growth score, applied to manufacturing SIC codes only and filtered to include businesses carrying low or no credit risk.