Entrepreneurial spirit high in Scotland despite pandemic

A survey commissioned by Business Gateway has revealed national appetite for starting a business has not been hindered by the impact of COVID-19.

While the pandemic and its impact are a concern for 80% of respondents across Scotland, two-thirds (67%) of the survey sample said they are ‘seriously considering’ starting their own business within the next six months, including half (49%) who said they were ‘definitely’ going to do it.

For the other half of respondents, the prospect of knowing where to get free advice was a motivating factor and increased the possibility they would go ahead with a new business idea.

Motivations individuals gave for starting a business included wanting to be their own boss (80%), doing something they enjoy doing, (73%) and exploiting an opportunity in a sector or industry (63%). These factors were more influential than COVID-19 or Brexit, although these were cited as secondary influences.

The industries where people hoped to start a business were varied and included food and drink (9%), financial and business services (8%) and retail and wholesale (8%). However, no single sector dominated across the board.

These findings coincide with the launch of a national Business Gateway campaign ensuring start-ups are aware of and have access to the critical support they need to get their idea up and running during these challenging economic times. Free support available includes 1:1 advice with local business advisers, online resources including webinars and online tutorials, and research services, helping start-ups determine if their business idea is viable.

The Business Gateway DigitalBoost programme, which recently received an additional £1.5million funding from the Scottish Government also provides businesses with free support to help them take advantage of technologies, improve productivity and resilience and create new market opportunities in this new climate.

Business Gateway’s research was carried out from 19th to 27th August 2020 and targeted 500 adults across Scotland, including SME decision leaders and potential start-ups*.

Steven Heddle, COSLA’s Environment and Economy Spokesperson and chair of Business Gateway Board said: “These findings are a testament to Scotland’s rich spirit of entrepreneurism and innovation and it’s positive to see that despite the pandemic, people remain interested in pursuing a career working for themselves. COVID-19 may not be the one driving factor, but it’s certainly made many individuals consider a different career path or way of earning a living. It is also encouraging to see that the provision of expert, free business advice services encourages people to take the first step.

“This period of uncertainty has seen businesses adapt and diversify as needed, and Business Gateway is no exception. These findings will underpin our development of business support for the year ahead, helping us identify what services, resources, and connections we can offer Scottish businesses to ensure they succeed.”

Start-ups and those running a business can access 1:1 local adviser support and online resources to tackle their business challenges by contacting their nearest Business Gateway office.

*About the research

Fieldwork was conducted online by 3Gem, from 19th to 27th August 2020, amongst 500 Scottish adults, split into two sample groups as follows:

· n=354 x SMEs (1-249 employees) business decision-makers

· n=146 x potential start-ups

· Sample was split across North (incl. Aberdeen) – 21%, South West (inc Glasgow) - 47% and South East (inc Edinburgh) - 32%