The Federation of Small Businesses (FSB) released figures this morning showing that business start-up rates are far slower in rural Scotland than in cities.
FSB figures showed that between 2010 and 2017, the number of registered businesses in Scotland’s urban areas increased from 108,145 to 125,545, an increase of 16 per cent.
However, over the same period, enterprises in the Scottish Borders only increased from 5,190 to 5,315, a smaller increase of 2.4 per cent.
In a submission to the Scottish Government’s National Council of Rural Advisers, the FSB argued that a key priority for Ministers should be boosting business start-up rates as well as local firms. The FSB identify that this needs to be a key focus of the new South of Scotland Enterprise Agency.
Poor connectivity, such as the lack of broadband provision, all exacerbate the problems associated with a slower start up rate.
Commenting on the figures, Rachael Hamilton MSP said:
‘The SNP Government for far too long have taken a city-centric approach, and this is now clearly evident through these figures’
‘There is a now a marked disparity between the performance of urban and rural Scotland’
‘Rural start-ups face many challenges in the Borders, an example being the lack of good broadband access as a result of the SNP’s failure to roll out superfast broadband effectively’
‘I hope that these findings are taken into serious consideration with the creation of the new South of Scotland Enterprise Agency’
‘The Borders needs new talent and ideas coming in to drive economic growth’