Business News Round Up (28/02/2022)
Scottish productivity is lagging behind UK average – Sandy Begbie
The recent CBI and KPMG Scottish Productivity Index found Scotland’s economy lagging behind the UK average in nine of its thirteen productivity indicators. Recent analysis from the Scottish Fiscal Commission also laid bare the ramifications of Scotland’s low productivity for our fiscal stability with several commentators noting that it could hinder the Scottish Government’s ability to deliver on its key pledges, including to end child poverty – a concern echoed by Holyrood’s Finance and Public Administration Committee. There are many different causes behind lagging productivity in Scotland: low immigration, an ageing workforce, and comparatively low levels of business investment to name a few. While there is no one solution, there is perhaps a simple logic that is missing in our general approach: Scotland must focus on playing to its strengths, maximising the economic potential in the sectors we currently excel in to unlock our true potential. This is particularly important as we continue to wrestle with and navigate economic recovery.
North West firms expect to increase staff numbers over coming year
Business confidence in the North West remained unchanged in February at 44%, according to the latest Business Barometer from Lloyds Bank Commercial Banking. Companies in the North West reported lower confidence in their own business prospects month-on-month, down three points to 44%. When taken alongside their optimism in the economy, up two points to 44%, this gives a headline confidence reading of 44%. The Business Barometer, which questions 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide. This month’s survey captured responses between 1st and 15th February before the removal of various COVID restrictions across the UK’s nations. A net balance of 46% of businesses in the region expect to increase staff levels over the next year, up 14 points on last month and the highest reading since last October. Overall UK business confidence saw an uptick in February, rising five points from January’s reading of 39% to 44% – its highest level since last September.
Scottish business confidence dips in February
Business confidence in Scotland fell two points during February to 35%, according to the latest Bank of Scotland Commercial Banking survey. Companies in Scotland reported lower confidence in their own business prospects month-on-month, down three points at 42%. When taken alongside their optimism in the economy, down two points to 28%, this gives the headline confidence reading. The bank’s Business Barometer, which questions 1,200 businesses monthly – including more than 100 in Scotland – gave a net balance of 31% of businesses in Scotland expecting to increase staff levels over the next year, up seven points on last month. Every UK nation and region maintained a positive overall confidence reading in February, but Scotland was the only UK nation that did not have a higher confidence reading than the previous month.
https://www.insider.co.uk/news/scottish-business-confidence-dips-february-26330770
Record number of women founding North West businesses, Rose Report finds
More businesses are being founded in the North West by women than ever before, a study led by NatWest CEO Alison Rose has found. According to the Rose Review Progress Report 2022, 14,885 companies were established by women in the North West last year, a figure that has more than doubled since 2018. The study also found that across the UK, female founded businesses account for a record share of new firms, outstripping growth in male led firms for the first time. More than 140,000 companies were established by all-women teams in the UK last year and the figure is growing by a third each year. Rose Review initiatives have seen tens of thousands of entrepreneurs across the UK benefiting from funding, advice and mentoring schemes, while thousands of students have received enterprise training, leading to significant year on year growth in female led start-ups.
https://www.business-live.co.uk/economic-development/record-number-women-founding-north-23217164