Scotland’s smaller towns make their mark in national business report

While not surprisingly, the rankings showcased the dominance of Edinburgh in the Scottish economy, the UK Business Performance Report for 2019 published by Creditsafe; a UK business intelligence specialist, also shone light on a strong financial performance of businesses in Paisley and Perth.

The report found that Edinburgh’s businesses have the highest average net worth (£19.8m), net assets (£19.9m) and liabilities (£30.4m) in Scotland.

However, Perth and Paisley outperformed larger cities for the same criteria, placing second and fourth respectively for average net worth and second and third for average liabilities.

Paisley-based business coach, Colette Reilly, said: “While Paisley might have had a poor reputation in the past, this has changed in recent years, especially through our bid for City of Culture 2021. Local businesses, community groups, the council and Chamber have all rallied together to bring out the absolute best in the town and there is a real commitment to building on this energy and momentum.

“It offers the best of many worlds: we have excellent air, train and road connections making commuting and travel easier and more accessible. Why pay more for rental and rates when travel is so convenient for both business owner and customers?”

Interestingly, the one criteria not dominated by Edinburgh was average credit score, for which businesses in the regions of Kirkwall and Aberdeen topped the rankings with a score of 78. This figure, which is based on a scale of 1 to 100, is the most commonly used metric by businesses and lenders alike to check a company’s chance of becoming insolvent before offering their services to them. The score is based on a number of factors including key financials, how prompt a business is in paying suppliers, adverse information, plus lots more.

Average credit score by Scottish region - stats gathered by Creditsafe

• Aberdeen (78)
• Kirkwall (78)
• Edinburgh (77)
• Outer Hebrides (76)
• Lerwick (76)
• Galashiels (76)
• Dumfries and Galloway (76)
• Perth (75)
• Falkirk and Stirling (75)
• Inverness (75)
• Paisley (75)
• Kilmarnock (74)
• Dundee (74)
• Glasgow (74)
• Kirkcaldy (74)
• Motherwell (73)

Chris Robertson, CEO UK and Ireland at Creditsafe, said: “While there is plenty of talk around Edinburgh being the business centre of Scotland, it’s clear that other Scottish regions have plenty to offer to the national economy. With Brexit negotiations still ongoing, businesses want to ensure their investments are sound and Perth and Paisley certainly punch above their weight in this regard.”

“The two cities’ exceptionally positive financial performances must be celebrated, as they demonstrate that investment in Scotland should encompass more than just the larger cities.”