Third of Scottish SMEs considering shutting down

Over 33% of small business owners have considered closing in Scotland according to research that suggests they may have had a more difficult time that their south of the border rivals. A Royal Bank of Scotland and Smarta website survey said that over 35% of those that responded in Scotland said they had thoughts of quitting in the early stages compared to UK’s total of 30%.

However a more realistic point of view from owners in Scotland has been taken of their prospects than with others. Only 33% of owners in Scotland overestimated sales while over 40% did in the UK. In the UK over 58% of those that responded said they underestimated costs while only 53% of those in Scotland said they had underestimated.

The survey showed that Scottish owners were quicker to try and get internet potential to boost their sales. Across the UK over 77% of small businesses do not have a website while only 56% in Scotland do not.

A relaxed approach as to the running of their business appears common in the UK. Thirty-five percent of businesses have only a £100,000 turnover or less and work without a business plan while over 63% have no formal accountancy relationship and over 80% did not have legal support.