Scotland witnessed a surge in entrepreneurial activity in 2023, with more than 38,000 new businesses being established, according to the latest findings from UK insolvency and restructuring trade body R3.

An examination of data from Creditsafe revealed the formation of 38,313 new companies in Scotland during 2023, marking a substantial 12.1% increase from the 34,168 startups recorded in 2022.

This growth positioned Scotland fifth in terms of the annual percentage rise in startup numbers among UK regions and nations. It was outpaced only by Northern Ireland, which saw a 59.5% rise, followed by Greater London (14.7%), Wales (13.8%), and the West Midlands (13.8%) in terms of new business ventures.

March 2023 emerged as a peak month for Scottish entrepreneurship, with the launch of 3,798 new businesses.

However, despite these encouraging figures, Scottish companies are anticipated to encounter significant hurdles in the upcoming year. Economic forecasts suggest that Scotland's growth rate might remain subdued in 2024, posing challenges for these newly established businesses.

Richard Bathgate, chair of R3 in Scotland, said:

"Amidst tough economic challenges, including high inflation and the resultant rapid rise in interest rates and supply chain issues, tens of thousands of Scottish entrepreneurs embraced the opportunity to launch new businesses last year.

"Many of these new ventures are micro and small businesses but will play a crucial role in supporting the growth of the Scottish economy in the year ahead."

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