Scotland’s self-employment hot-spots revealed

Interactive maps put together by the Federation of Small Businesses (FSB) in Scotland show the proportion of people who work for themselves in 479 Scottish towns, cities and suburbs.

The study reveals that smaller, wealthier, rural towns in the north half of Scotland are more likely to have high levels of self-employment. Conversely people living in poorer towns elsewhere in the country – especially those that used to have a large industrial employer – have much lower levels of self-employment.

Further, towns that currently have one large employer, like St Andrews, also have a low proportion of people who work for themselves.

Andy Willox, FSB’s Scottish policy convenor, said: “The great differences we see in levels of self-employment across Scotland tell a story about the country we live in.

“This data shows the most successful local communities have high numbers of people who are their own boss.

“Unsurprisingly, popular tourist destinations are awash with smaller firms. Scotland’s market towns still have thriving business communities too.

“We find high levels of unemployment and low self-employment in towns that bear the scars of Scotland’s industrial decline, suggesting that poverty is a barrier to self-employment and the social mobility that comes with it.

“Research shows that you’re less likely to set up on your own if you have few skills; have little in the way of cash reserves; if you don’t have a car or own your home.”

There are now more than 200,000 Scottish people who are self-employed – more than the number of people who work for the NHS or Scottish local authorities.

Andy Willox said: “Big business and public sector downsizings, alongside new business models powered by digital technology, have resulted in a steady increase in the number of Scots self-employed.

“This trend is not exclusive to Scotland, but it’s something to which we need to adapt. Our response should be to support, not pity, those who choose to work for themselves.

“We need to get behind those people and places that want to change their circumstances. Boosting self-employment and business activity could help to turn around some of Scotland’s most disadvantaged places.”