Mid-Sized Businesses (MSBs) are defined as those with turnover of between £25m and £499m. Growth in the number and performance of MSBs matters because they disproportionately contribute to growth and are more innovative, more likely to export and have higher productivity. Understanding MSBs across Scotland and what trends in growth exist (total number as well as their turnover and employment) will help the development of tailored policy responses specific to local circumstances. This research note sets out the extent and shape of MSBs across the regions of Scotland and how this has changed since 2010.
Methods
The methodology consisted of analysis of ONS (Office for National Statistics) data.
Findings
The analysis found that whilst there are 2,250 individual MSBs in Scotland, there are 6,620 active MSBs across Scotland’s eight regions; meaning each MSB is active in 2.94 regions on average. The Glasgow City Region has the most MSBs, who have the most employment and generate the highest level of turnover. However, the Edinburgh and South-East region has been driving the growth in Scotland’s MSBs since 2010, in total number, total employment and total turnover. MSBs in Aberdeen City and Shire have seen a significant decline since 2015 in turnover and in employment (but not the number of active MSBs), although Aberdeen City’s MSB total number was down -10% in 2018 from 2016. The Highlands and Islands region has had strong performance since 2010, predominantly from the Highlands local authority area, contributing 16% of the total Scottish growth despite only having 9% of total MSB activity. In MSBs activity and growth, the analysis showed that the South of Scotland and Ayrshire are falling behind other regions. Whilst disparities exist across regions, travel to work areas likely mitigate the potential impact of this in and around cities, but for these two regions, their overall levels of MSBs in Scotland and their growth levels present a challenge. Three key challenges to achieving sustainable, inclusive economic growth were identified: growth in MSBs is being predominantly driven by foreign-owned MSBs, with Scottish MSBs, despite increasing in number, becoming smaller (on average); Scottish-owned MSBs are more likely to be in locally-traded industries; and growth and activity of MSBs is concentrated in cities, and this trend towards cities is increasing. It is suggested that these need to be considered in a wider context of business creation, entrepreneurship, business growth and regional economic dynamics.
Cookies help Scottish Enterprise (“SE”, “us” or “we”) to provide you with a good experience when you browse our website and also allow us to improve our website. We assume that you are happy to receive all the cookies in the categories that you elect to allow, or which are strictly necessary for the operation of our website. You can change your cookie settings at any time.
Strictly necessary cookies
These are cookies that are required for the operation of our website. They include, for example, cookies that enable you to log into secure areas of our website.
Cookie name
Purpose
Expiry
DS_SEC_Necessary_AllowedCookies
This cookie is used to record your preferences in regard to accepting marketing, performance or functionality cookies across the site.
1 year
se_session
This cookie is used to provide secure access to SE website features such as address lookup and form validation/submissions.
When browser is closed
Performance and analytics cookies
They allow us to recognise and count the number of visitors and to see how visitors move around our website when they are using it. This helps us to improve the way our website works, for example, by ensuring that users are finding what they are looking for easily.
Third party service
Purpose
Where to find out more
Google Analytics
Google Analytics helps us analyse the behaviour of users on our site, such as which pages they view, how long they spend on each page, and which elements they interact with.
Hotjar helps us analyse the behaviour of users on our site by collating data into heatmaps, scrollmaps and other visual representations. It also allows us to add short surveys to the site.
These cookies record your visit to our website, the pages you have visited and the links you have followed. We will use this information to make our website and the advertising displayed on it more relevant to your interests. We may also share this information with third parties for this purpose.
Third party service
Purpose
Where to find out more
Google Ads
By consenting to advertising we will share personal data with Google Ads to perform ad measurement services on our behalf, and that we obtain customer consent for such sharing and use where legally required. Google Ads help us to show pay per click ads in Google search results. These cookies help us track who comes to our site through these ads, so we know how successful they are. By granting permission for marketing cookies, you are confirming that you are happy to be tracked from our sites and receive targeted marketing based on your Google account details.
The LinkedIn Insight Tag helps us analyse the behaviour of visitors to our site who have come through LinkedIn adverts, and also helps us target advertising on LinkedIn.
Our website includes embedded videos from YouTube using YouTube’s Privacy-Enhanced Mode. This means YouTube will not store information or set cookies unless you play the video. When you press play, YouTube may set cookies on your device and collect information about your activity, which may be linked to your Google account if you are signed in. These cookies are managed by YouTube and are subject to Google’s Privacy Policy.
SE sometimes embeds photos and video content from websites such as YouTube and Flickr. As a result, when you visit a page with content embedded from, for example, YouTube or Flickr, you may be presented with cookies from these websites. SE does not control the dissemination of these cookies. You should check the relevant third party website for more information about these.
SE will not use cookies to collect personally identifiable information about you. However, if you wish to restrict or block the cookies which are set by SE websites, or any third party websites, you can do this through your browser settings. The Help function within your browser should tell you how.
Alternatively, you may wish to visit the About Cookies website, which contains comprehensive information about cookies and how to restrict or delete cookies on a wide variety of browsers.
Please be aware that restricting cookies may impact on the functionality of the SE website.
SE and our other websites use a number of suppliers who set cookies on our behalf in order to deliver the services that they are providing. We are constantly reviewing our use of cookies and, as such, this cookies policy will be regularly renewed to include up to date information about the cookies used by our suppliers. We would highly recommend that you check this page on a regular basis.
Further information
Our website carries embedded ‘share’ buttons to enable users of the site to easily share articles with their friends through a number of popular social networks. These sites may set a cookie when you are also logged in to their service. Scottish Enterprise does not control the dissemination of these cookies and you should check the relevant third party website for more information about these.
Similarly, Scottish Enterprise sometimes embeds photos and video content from websites such as YouTube and Flickr. As a result, when you visit a page with content embedded from, for example, YouTube or Flickr, you may be presented with cookies from these websites. Scottish Enterprise does not control the dissemination of these cookies. Again, you should check the relevant third party website for more information about these.
Scottish Enterprise will not use cookies to collect personally identifiable information about you. However, if you wish to restrict or block the cookies which are set by Scottish Enterprise websites, or any third party websites, you can do this through your browser settings. The Help function within your browser should tell you how.
Alternatively, you may wish to visit the About cookies opens in a new window website, which contains comprehensive information about cookies and how to restrict or delete cookies on a wide variety of browsers.
Please be aware that restricting cookies may impact on the functionality of the Scottish Enterprise website.
Scottish Enterprise and our other websites use a number of suppliers who set cookies on our behalf in order to deliver the services that they are providing. We are constantly reviewing our use of cookies and, as such, this cookies policy will be regularly renewed to include up to date information about the cookies used by our suppliers. We would highly recommend that you check this page on a regular basis.