Highlands and Islands voice overwhelming support for European single market

The findings are included in a wide-ranging survey of the region’s businesses, commissioned by development agency Highlands and Islands Enterprise (HIE) and published online this week.

Almost 70 per cent of businesses who took part felt membership was important to the Scottish economy, including 39 per cent who stated it was very important. The single market was judged unimportant by 23 per cent, while seven per cent expressed no view.

Free movement of people was considered important by 75 per cent of those surveyed, and unimportant by 19 per cent.

The Highlands and Islands Business Panel was set up by HIE in 2008 to be a representative voice, matching the structure of the region’s business population in terms of sector, size and geographical distribution.

It now comprises more than 1,000 businesses and social enterprises of all sizes, located in every area of the Highlands and Islands, and covering a broad range of economic sectors.

The latest survey was conducted in April and May this year by Ipsos MORI. A total of 1,014 interviews with eligible businesses and social enterprises were held online and by telephone.

Some 78 per cent of those who took part said they were optimistic about their own business performance in the next 12 months, while 20 per cent were not.

Forty-three per cent anticipated that their businesses would grow in the coming year, while 44 per cent expected to remain stable.

General economic confidence was less strong, however. Although 49 per cent said their confidence in Scotland’s economic outlook had not changed over the past six months, 38 per cent recorded a decrease, and just 11 per cent felt more confident.

Increased confidence was higher among companies with 25 or more employees (20 per cent), and tourism businesses (16 per cent). The least confident were those working in the food and drink sector, where 46 per cent felt less confident than six months before, and those located in fragile areas (also 46 per cent).

Forty-one per cent of businesses employing four people or fewer also reported a decline in confidence.

Asked to judge their own performance over the past 12 months, 38 per cent said this had been steady. Thirty-one per cent had performed quite well, and nine per cent exceptionally well. Just over a fifth (22 per cent) had struggled slightly (17 per cent) or markedly (5 per cent).

Sales and turnover had risen for 39 per cent, and declined for 22 per cent. Profits were up for 25 per cent, and down for 30 per cent of those surveyed.

Among exporting businesses, 57 per cent reported that trade had been stable, 27 per cent achieved an increase, and 12 per cent experienced a decline.

Carroll Buxton, director of regional development with Highlands and Islands Enterprise, said the business panel plays a vital role in shaping regional development.

“With so many members from a variety of enterprises in all parts of the region, the panel provides a genuine voice for the Highlands and Islands business community,” she said.

“The findings from these surveys are always interesting in their own right, but what really matters is how HIE and our partners can use the information they provide to align our economic development activities with what the region’s businesses themselves judge to be most important.

“The information is hugely valuable to inform our own actions as a development agency, and also to ensure that the views of the region’s businesses and social enterprises are being gathered and presented to national policy makers.

“Field work is already under way for the next survey. We welcome interest from business people across the region who would like to join the panel, and would like to thank all those who are already members for sharing their views and their experience.”

The full report is available on the HIE website at www.hie.co.uk/businesspanel