More than two-thirds (63%) of Scottish small and medium-sized enterprises (SMEs) saw revenue increases in the second quarter of this year against 2021, compared to 55% UK wide, according to the latest quarterly Barclays SME Barometer.

A similar number (65%) of small businesses also expect further gains this quarter despite concerns about a looming recession.

This reported revenue growth comes, however, at a time when more than half (54%) of Scottish small business leaders are pessimistic about the prospects of the UK economy, with 87% concerned over the rising cost of bills and inflation, 77% worried about the UK going into a recession and 83% worried about the soaring cost of energy.

Last quarter, 56% of Scottish businesses were concerned that increased living costs would impact consumer spending, and 30% feared it would make them less competitive as they would need to increase prices.

These concerns have dropped slightly in Q3, with over half (51%) businesses worried about consumer spending levels and 52% now worried that rising costs will impact their competitiveness.

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