New figures from the Scottish Liberal Democrats show that small businesses have declined in Scotland since 2020.
The party’s economy spokesman, Jamie Greene MSP, has called on the SNP Government to urgently boost support for small businesses as he revealed significant drops in the number of small or medium-sized enterprises (SMEs) across Scotland.
Mr Greene asked the Scottish Government to provide the number of SMEs in every Scottish parliamentary constituency in each year since 2015.
The data showed that since 2020, the number of SMEs in Scotland has fallen from 177,020 to 171,660 – a decline of 5,360.
Over the past decade, 24 parliamentary constituencies have seen a fall in the number of SMEs, with notable declines in more rural parts of the country, according to the Scottish Liberal Democrats.
This includes a 13.8% fall in SMEs in constituencies across Aberdeen and Aberdeenshire since 2015, and an 8% fall in Caithness, Sutherland and Ross.
The Scottish Liberal Democrats have secured tens of millions in support for business in this year’s draft Scottish budget, including a new £2.5 million package backing young entrepreneurs and an initial £36 million for business rates relief.
Mr Greene said: “These figures show concerning drops in the number of small and medium-sized businesses across Scotland.
“I’ve spoken to lots of skilled and entrepreneurial people who feel there are too many barriers to starting their own business, from the SNP’s economic incompetence to the crushing burden of red tape.
“I am pleased that Scottish Liberal Democrats secured some support for businesses in the draft budget, but we think the Scottish Government can go further.
“That’s why, in the coming weeks, we will be squeezing the Scottish budget for every penny to deliver for businesses.”
Deputy First Minister Kate Forbes said: “Entrepreneurs and start-up companies are the backbone of our economy and the Scottish Government has been working systematically to develop the pipeline of support required to help them develop, grow and prosper.
“The facts show that we are making clear progress in establishing the right conditions to help business founders succeed.
“There was a 17.9% increase in Scottish start-up businesses in the first half of 2025, while investment deals in Scotland grew by 24% in the first half of 2025 compared to the second half of 2024.
“The Scottish Budget 2026-27 continues to support business, investment and a skilled workforce to accelerate economic growth, including record funding for our entrepreneurs and start-ups as we act to harness Scotland’s strengths and opportunities to drive long-term prosperity.”
