Business confidence climbs in South of Scotland

CONFIDENCE in the economy has risen to its highest level for over three years, according to the latest South of Scotland Business Survey.

A total of 600 businesses across the South took part, with 48 per cent saying they are confident in Scotland’s economic outlook, compared to 37 per cent last year.

It’s the highest level of confidence recorded since early 2022.

Other findings of the latest survey, carried out in June and July 2025, highlights businesses are striving to grow, with fewer looking to downsize, while the vast majority had identified areas to develop their organisations.

But it also threw up a range of external and national challenges which firms locally face, with business performance mixed.

Key findings included:

- In terms of aspirations, the largest percentage of respondents were striving to grow (42 per cent), followed by 38 per cent content at current level and 17 per cent looking to downsize.

- Around a third of businesses identified their biggest strengths as understanding their market and opportunities, adaptability to changing circumstances, and their workforce.

- Most businesses (59 per cent) had been operating in the South of Scotland for more than 25 years.

- Top areas to develop for included their workforce and workforce wellbeing), premises or equipment, and new domestic market opportunities.

- More than half felt that tourists and visitors were an opportunity for them. This was followed by renewable energy projects, community-led projects or developments, large construction or infrastructure projects, or companies investing in or establishing a base in the area.

- Views on business performance over the last six months were mixed, with 31 per cent saying their business had performed well, 40 per cent saying business had been fairly steady, and 28 per cent saying they had struggled.

- Most respondents considered current economic conditions (66 per cent) and the cost of labour (60 per cent) to be the biggest risks to their business.

- On automation and artificial intelligence, a higher proportion of businesses considered it be an opportunity (27 per cent) rather than a risk (14 per cent) to their operations.

Commenting, Jane Morrison-Ross, chief executive at SOSE, said: “It’s wonderful to see the upturn in business confidence.

“It has been a difficult period, but we know our businesses are resilient, ambitious and ready to grow.

“Our ambitions for the South of Scotland mirror those of our businesses – to create a resilient, sustainable and growing economy that shows why the South is the place to be.”

The full survey is available to view at www.southofscotlandenterprise.com/business-surveys.