Business News Round Up (20/06/2025)
Over 80% of Scottish SMEs see risk to viability over next 12 months, finds report
More than 80% of small and medium-sized enterprises (SMEs) in Scotland believe the viability of their business is at risk over the next 12 months, according to new research from Aberdein Considine. The survey, carried out by Censuswide on behalf of the legal firm, highlights the mounting economic pressures and uncertain market conditions faced by small to medium businesses in key sectors across the country. SMEs account for over 99% of all private sector businesses in Scotland, and the survey captures their views one year out from the next Holyrood election, as candidate selection has begun. Respondents pointed to several factors that present financial challenges, including increased costs, supply chain disruption, access to finance and uncertainty arising from policy and regulatory changes, with the findings indicating that these challenges are being felt by businesses of varying sizes within the SME category.
UK retail sales plunge 2.7% in worrying sign for economic growth
UK retail sales plummeted in May, the first time they have fallen this year, in a sharp reversal that suggests the economy could be struggling in the second quarter. The volume of goods sold online and in stores dropped 2.7% after four consecutive monthly increases, the Office for National Statistics said on. It was far worse than the 0.5% fall expected by economists and the biggest drop since December 2023. While Q1 saw the retail sector’s best performance since 2021, a sales surge fuelled by good weather and rising real wages has come to a sudden halt. A weaker retail sector will add to headwinds facing the UK economy in Q2 after bumper growth at the start of 2025. While gross domestic product growth hit 0.7% in the first quarter, the economy contracted in April and forecasters expect a sharp slowdown over the second quarter.
Praetura and Par Equity merge to create PXN – a £670m ‘Northern investment powerhouse’
Praetura and Par Equity are merging to create PXN Group – a new venture capital and investment firm with over £670 million in assets under management. The combined entity will be the fastest-growing venture and investment firm outside of London and the South East, with both Praetura Ventures and Par Equity more than tripling their assets under management since 2021. The merger, which will be subject to regulatory clearance from the Financial Conduct Authority, will bring together Manchester-based Praetura Ventures and Edinburgh-founded Par Equity, two firms known for backing early-stage and scale-up businesses outside of London and the South East. In a statement this morning the two companies said that by joining forces, PXN Group will “unlock greater investment potential across underserved regions and offer a broader suite of opportunities for entrepreneurs, institutional investors, retail investors, public sector organisations, and financial advisers.”
First ever Entrepreneurship Advisor appointed by UK Gov
UK entrepreneurs are to benefit from a ‘direct line’ to the UK Government following the appointment of Alex Depledge, MBE, as the Treasury’s first entrepreneurship adviser. Over the coming months, Depledge will advise the Chancellor on the Government’s entrepreneurship landscape, focusing on addressing key barriers faced by businesses looking to startup and scale-up in the UK. The Government said that Depledge’s additional expertise will help to boost high-growth businesses, with the hope that this will bolster further economic growth. Bringing extensive entrepreneurship experience to her new role, having successfully built several businesses from the ground up, including Resi and Helpling, the Government said that Depledge can offer invaluable advice to growing firms. Depledge will engage with the UK’s entrepreneur ecosystem, including VC firms, taking the temperature of the community on vital issues, such as the impact of regulations, access to finance, talent acquisition, and innovation support.
https://www.digit.fyi/first-ever-entrepreneurship-advisor-appointed-by-uk-gov