Business News Round Up (09/05/2024)
Scottish GVA set for slower than predicted rise as Government urged to promote a ‘functional, pro-growth business agenda
Scotland’s GVA is expected to rise more slowly than predicted this year – but economists say the country’s longer-term prospects remain encouraging. The latest EY ITEM Club Scottish Spring forecast shows Scotland’s GVA is expected to rise by 0.4%, down from the previous forecast of 0.7%. The UK economy is also set for weaker than expected growth, of 0.6%. The report’s 2025 forecasts for Scottish GVA are now a little stronger for 2025, at 1.7%, compared to 1.4% last quarter, with further sustained growth expected. However, Scotland’s economic growth is expected to lag the UK which is forecast to grow by 1.8% a year in 2025 and 2026, rising to 1.9% in 2027. The EY report said the weak finish to 2023 had dampened overall expectations and that Scotland’s economy, like the rest of the UK, had not grown for two years.
https://www.insider.co.uk/news/scottish-gva-set-slower-predicted-32753935
Boost for SMEs as WeDo secures £50m in funding
WeDo Business Services has secured £50m in funding which will enable it to significantly expand its support of small and medium-sized companies across the UK. The funding is provided by alternative investment manager Waterfall Asset Management and will be used to help WeDo bolster the growth of its SME customer base through a range of finance facilities. The WeDo group has its headquarters in Greater Manchester and additional offices nationwide. It provides invoice and trade finance, asset finance, loans, and start-up funding to a growing client base, as well as accountancy, HR, back-office, and IT services. WeDo was founded by Mark Lindsay and Chris Robinson in 2019 with just four staff and has grown rapidly through organic expansion and acquisition. It currently has over 70 staff across its Oldham headquarters and its network of offices.
Accessing capital for growth still major challenge in Scotland according to latest survey
BDO LLP’s latest bi-monthly Economic Engine survey of 500 mid-market businesses, has revealed that more than a quarter of regional businesses (28%) are struggling to secure funding, whether that’s through bank loans, private equity, private credit loans, or government grants. The survey of mid-sized businesses has shown that despite inflation easing in recent months, reaching its lowest level for more than two years, regional businesses are still suffering from inflationary pressures. Just over a fifth of Scottish companies (21%) said declining customer demand, triggered by consumers spending less due to ongoing high living costs, as well as an increased number of B2B customers going out of business, was impacting their bottom line.
Glasgow enterprise hub aims to address Scotland’s low spinout rate and lack of growth capital for startups
A new enterprise hub in Glasgow aims to address systemic issues in Scotland’s economy – including a lower rate of university spinouts than the UK and lack of growth capital for startups. The Royal Academy of Engineering has opened the hub at Strathclyde University’s Graham Hills building to support budding engineering and tech entrepreneurs. Enterprise Hub Scotland will focus on helping local entrepreneurs to commercialise deep tech innovations, spin out companies from universities and attract further external investment. The Academy’s Enterprise Hub has already supported 35 early-stage entrepreneurs in Scotland and awarded £1.6 million in total grant funding to date. Led by Senior Enterprise Manager Emma Loedel, it will champion engineering excellence across Scotland and support local entrepreneurs who are tackling complex environmental, economic, and societal challenges.