Business News Round Up (27/02/2026)
Gen Z business loans surge 34% in North West
Gen Z entrepreneurs in the North West secured 272 loans worth £2.7m in 2025, according to new data from the Start Up Loans programme. The programme, part of the British Business Bank, says the number of loans taken out by young founders increased by 34% in 2025. Gen Z borrowers accounted for 17% of all regional loans, the joint second-highest proportion in the UK. Only the South West, at 18%, had a higher proportion of loans going to Gen Z founders. Research published last year by KPMG found Gen Z workers are increasingly leaving corporate careers in pursuit of entrepreneurial opportunities, with 42% leaving to work in start-ups and 35% going freelance or becoming self-employed. Younger Gen Zs entering the workforce face a tough job market, with ISE data showing a record 140 applications per graduate vacancy, the highest level in over 30 years.
https://www.thebusinessdesk.com/northwest/news/2167935-gen-z-business-loans-surge-34-in-north-west
Scottish business confidence rebounds amid tech investment push
Business confidence in Scotland rose four points during February to 41%, according to the latest Business Barometer from Bank of Scotland. While companies in Scotland reported lower confidence in their own business prospects month-on-month, down 12 points at 41%, their optimism in the economy rose 20 points to 41%. Taken together, this gives a headline confidence reading of 41% (vs. 37% in January). A net balance of 45% of businesses in Scotland also expect to increase staff levels over the next year, up three points on last month. Looking ahead to the next six months, Scottish businesses identified their top target areas for growth as introducing new technology, such as AI, automation or digitalisation (51%), investing in their team, for example through training (35%) and entering new markets (32%). The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
https://www.digit.fyi/scotland-business-confidence-2026
North West businesses record highest confidence levels outside of London in February
Business confidence in the North West rose by ten points to 58%, according to the latest Business Barometer from Lloyds – the highest figure recorded outside of London in February. While companies in the region reported lower confidence in their own business prospects month-on-month, down three points at 67%, their optimism in the economy rose 22 points to 48%. Taken together, gives a headline confidence reading of 58% (vs. 48% in December 2025). Looking ahead to the next six months, North West businesses identified their top target areas for growth as entering new markets (47%), introducing new technology, such as AI or automation (46%), and evolving their offering, for example by introducing new products or services (45%). Overall, UK business confidence was unchanged since January at 44%.
Scottish factories see rise in orders as turning point
Scotland’s engineering plants have seen an upturn in orders after six negative quarters in what is seen as a turning point for the sector. Investment in training was also at its most positive level in recent quarters, indicating a commitment to re-skilling. More than a third (37%) of companies surveyed by trade group Scottish Engineering said they were prioritising reskilling existing staff. Apprenticeships are also high on the agenda, with 24% of companies focused on modern apprentices and 6% prioritising graduate apprentices. Scottish Engineering chief executive, Paul Sheerin, said: “Our first quarterly review of 2026 contains some genuine reasons for optimism, starting with orders without which business life remains tough for our companies. And it’s especially welcome to see the positive optimism amplified in the most important metric for our industry’s future – and highest level index for this quarter: training investment.”