Business News Round Up (29/07/2024)
Registered enterprises in Scotland’s high growth sectors fall, figures show
The number of registered enterprises in all areas of Scotland’s high growth sectors fell in a year, according to analysis from Scottish Labour. The figures show four years of consecutive decline in all six sectors identified as advantages by the Scottish Government. The sectors include energy, creative industries, tourism, financial services, life sciences and food and drink. Between 2022 and 2023, there were 1,730 fewer of these enterprises registered, official statistics show. There were 74,945 in 2022, but this figure fell to 73,215 a year later, and had also fallen from 81,935 in 2019, a decrease of more than 10%. The biggest decline in the sector occurred in financial and business services, where there were 1,105 fewer enterprises registered in a year.
Manchester retains top 10 spot for FDI attractiveness
Manchester has retained its position in the top 10 UK cities for foreign direct investment (FDI) attractiveness. The latest Investment Attractiveness Index has been compiled by a team of experts at the Centre for Economics and Business Research (Cebr), who have analysed the UK’s 50 largest cities according to eight indicators related to growth potential, local infrastructure and local skills. The report from law firm Irwin Mitchell says Manchester has moved up the rankings from 10th place to eighth despite its overall attractiveness score being 7.7 points lower than the previous year. This reduction in the overall score was in line with all but one of the other 50 cities analysed and mainly due to lower predicted GVA growth in 2024 compared to 2023.
Scots business confidence at two year high, but behind UK average
Despite reaching a two-year high, business confidence in Scotland still falls behind the UK average. While business confidence in Scotland has increased to its highest level in two years, it lags behind the rest of the UK, according to new data from the Institute of Chartered Accountants in England and Wales (ICAEW). The institute’s Business Confidence Monitor (BCM) for quarter 2 of 2024 shows a sustained increase in confidence, as businesses expect falling input price inflation to support further growth in demand as well as improved profits in the year ahead. In Scotland, however, business confidence only saw a marginal improvement in Q2 2024, with the index increasing slightly to +15.6 from +15.4 in the prior quarter. While this is well above historical average, it does lag behind the UK average of +16.7, up from +14.4 in the Q1.
https://www.digit.fyi/scots-business-confidence-at-two-year-high-but-behind-uk-average/
Investment platform commits £2.5m to Manchester’s hospitality industry
A start-up investment platform has committed to investing an initial £2.5m into Manchester’s hospitality industry. Shuffle provides upfront capital to its partner venues. This funding aims to unlock opportunities for commercial growth, including new site openings, updated interiors, and kitchen renovations. The company offers this immediate investment without requiring hospitality businesses to give up company equity. The investment is then repaid through Shuffle’s consumer-facing smartphone app which is set to launch later this year. Shuffle has been co-founded by Ollie Purdue, chief executive, and Enzo Ottens, COO, two entrepreneurs with backgrounds in the financial technology sector. Prior to launching Shuffle, Purdue founded digital banking service Loot, while Ottens founded Earnr, a finance and accounting tool for creators and the self-employed in the UK.