The survey, conducted by the Improvement Service on behalf of Business Gateway and our partners, gathered insights from over 500 SMEs across Scotland. While 67% of businesses remain confident about their own prospects, this is down from 74% in 2024. Confidence in Scotland’s wider economy is even lower, with only 25% expressing optimism.
Rising costs remain the biggest challenge, cited by 63% of respondents, while concern over political and regulatory conditions is at 40%, up from 25% last year. Demand for support is strong, with 58% of businesses expecting to need support and 34% seeking financial support —grants being the most popular option.
Innovation is seen as key to future success, with 65% of SMEs valuing it highly, though technology adoption remains uneven. Meanwhile, environmental planning and fair work practices have slipped year-on-year, with 47% and 63% of businesses respectively reporting measures in place.
Councillor Gail Macgregor, Chair of the Business Gateway Board, said: “While confidence has softened, Scotland’s SMEs continue to show resilience and determination to grow. Access to practical guidance and financial support will be vital in the year ahead.”
You can download the full report here.