Chamber News
Confidence returns to rural business while financial concerns continue
28 August 2023 • Sarah Medcraf
Highlands and Islands businesses have growing confidence in Scotland’s economic output and the performance of individual enterprises, but concerns over finances remain prominent, according to a new survey of Scotland’s rural businesses and social enterprises.
Commissioned by Highlands and Islands Enterprise (HIE) in partnership with South of Scotland Enterprise (SOSE), the survey was carried out by Ipsos in June. There were 1,014 responses received from enterprises across the region and in a wide range of sectors.
More than half (55%) said they were confident in Scotland’s economic outlook. This is up from 50% in the previous survey at the start of the year.
A third (33%) said they had performed well over the past six months, up from 29%, while those saying they had struggled had declined slightly from 26% to 24%.
Improved performance, however, did not always equate to more profits. While 34% of respondents reported an increase in turnover, only 17% said profits had grown and 37% said they had declined. Accommodation and food services were particularly impacted, with 43% reporting increased sales or turnover, while 61% reported decreased profit margins.
The survey took place against the continuing backdrop of economic challenges. The cost of living and energy crises, rising mortgage rates, and ongoing industrial action all contributed to reduced economic output during May, while labour market and skills challenges remained.
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