Business News Round Up (26/05/2023)
UK SMEs hopeful despite Cost of Living Crisis: 76% expect their businesses to perform the same or better in the next year
Resilient UK SMEs are weathering the storm caused by the cost-of-living crisis and the economic fallout from Covid-19 and Brexit, according to new research from cloud accounting provider FreeAgent. A survey of small business owners from across the UK, conducted by FreeAgent, has revealed the scale of the challenge facing the SME sector – with many business owners highlighting energy price rises, the lingering impact of Covid-19 and uncertainty around the UK’s future outside the EU as key areas of concern. But despite the gloomy economic landscape, many UK SMEs say they are optimistic about their future prospects, with 76.6% expecting their business to perform the same or better in the next 12 months. The research, which looks at the current state of the UK small business sector, shows a clear divide in the Cost of Living Crisis impact with nearly half of SME owners surveyed (45%) stating that the crisis has had little or no impact on their business, while 44.6% reported a negative impact. The report also highlights insufficient government support despite recent budget announcements and indicates a change of legislation may be needed to support UK SMEs struggling with late payment woes.
New investment platform for Glasgow shows the city is bucking the downward European trend for startup and scaleup venture capital
Glasgow is bucking a largely downward European trend for startup and scaleup venture capital (VC), according to a new investment platform showcasing the city’s tech scene. Dealroom, the global data platform for intelligence on startups, has released a new ecosystem report and platform for the city which shows eight per cent growth in VC funding in Q2 in 2023 compared to 2022, with £170m raised by startups. The city ranks third on a list of UK cities for VC investment, behind Manchester at 25 per cent growth and Birmingham on 18 per cent, with others such as Nottingham, Cardiff and London falling behind. More widely, against selected European cities, Glasgow fared better. It secured more VC investment than Milan (4.5 per cent), Zurich (-25 per cent), Madrid, Oxford (both -32 per cent) and Edinburgh (-43 per cent), according to figures put together by the Dutch data giant. Last year saw a record value set for external investments in Scottish university spinout companies with Glasgow-based universities featuring twice in the top 20 in the UK for most spinouts, the report showed. The Glasgow City Region Ecosystem Report, initiated by the Digital Economy team of Glasgow City Council and supported by Invest Glasgow, showed that the enterprise value of the region’s tech ecosystem currently stands at £3.4bn – having risen by 89 per cent since 2018.
UK ‘to agree deal’ on deposit return scheme
A deal could be announced on the controversial deposit return scheme as early as today that will allow Scotland to pilot a UK-wide facility. It is thought the UK Government will insist on a number of conditions that will ensure all recycling schemes across the four nations operate in a similar way and do not impose added costs on businesses. It appears an agreement has been thrashed out requiring the Scottish Government to accept the exclusion of glass from the scheme, and a standard charge and labelling across the UK. Businesses joining anywhere in the UK will automatically sign up for all schemes. The Scottish Government requires the project to be signed off by the UK Government under the Internal Market Act that aims to ensure a level trading field across the four nations. Scotland’s new First Minister Humza Yousaf postponed the scheme following a backlash from businesses saying it was too costly and confusing to operate.
https://dailybusinessgroup.co.uk/2023/05/uk-to-agree-deal-on-deposit-return-scheme/
Work starts on innovation hub for food and drink manufacturing
Work to create ONE SeedPod – the innovation hub for Scotland’s food and drink industry – has started in Aberdeen, following the completion of the capital funding package and award of the construction contract. Opportunity North East (ONE) is leading and delivering the Aberdeen City Region Deal innovation project to create the new space, facilities, programmes and an entrepreneurial environment on Scotland’s Rural College (SRUC) Craibstone Campus. ONE SeedPod is a £27m investment to enable manufacturing and production businesses to lead in innovation, productivity, sustainability and developing foods of the future. Robertson Construction is the main contractor, with the hub scheduled to open in late 2024. The project includes £10m of capital funding from the UK Government and Scottish Government via the Aberdeen City Region Deal – a partnership between the governments, ONE, Aberdeen City Council and Aberdeenshire Council. ONE has committed £5.4m and set up Food Hub to take the capital project forward. It also secured £3.1m for ONE SeedPod from the Just Transition Fund in 2022, while Scottish Enterprise has now confirmed £2m. David Kilshaw, who chairs the Food Hub board, said: “The ONE SeedPod industry innovation hub will put food and drink businesses at the forefront of product and process innovation, low-carbon high-value manufacturing, as well as the development of premium markets for consumer-led foods of the future. The unique combination of commercial facilities, sector knowledge, insights and expert networks in ONE SeedPod will stimulate ambition, nurture the next generation of high-growth start-ups, and accelerate scale-up.”
https://www.insider.co.uk/news/work-starts-innovation-hub-food-30076017