Mid-sized Scottish businesses are placing international expansion at the forefront of their growth strategies, with 20% prioritizing overseas trade in the coming year despite facing significant global trade complexities.
A recent Economic Engine survey by BDO, which involved 500 mid-sized companies, revealed that businesses in Scotland are targeting key global regions, including Asia and Australia (both at 32%), and Africa (30%). Meanwhile, Europe remains an important focus, with 38% eyeing markets within the European Union and another 30% looking beyond the EU, particularly at countries such as Norway, Switzerland, and Iceland.
This drive for international growth comes in the face of continued challenges, including supply chain disruptions, tariff uncertainties, delayed deliveries, and critical skills shortages. Nearly half (46%) of Scottish businesses reported a lack of skilled personnel in export operations and supply chain management—an issue that could hinder their global ambitions.
In addition, more than a quarter (26%) of respondents cited reduced consumer demand as a looming concern, attributing it to high operational costs and living expenses impacting both businesses and individual buyers.
Despite these hurdles, optimism remains high among Scottish firms. With the UK Government expected to unveil a Small Business Strategy later this year, 94% of respondents believe the strategy’s emphasis on supporting smaller enterprises will positively impact their operations. Among them, 23% specifically called for a reduction in bureaucratic barriers, including the simplification of customs procedures and increased export support.
Government schemes such as the British Business Bank’s Growth Guarantee Scheme and UK Export Finance’s Export Development Guarantee are also seen as vital resources, offering financial support as companies navigate the possibility of new tariffs in overseas markets.
Commenting on the survey results, Martin Gill, managing partner at BDO in Scotland, noted that mid-sized firms continue to demonstrate strong ambition: “Although economic conditions remain challenging, mid-sized businesses in Scotland are highly ambitious and have their sights firmly set on driving growth, with overseas trade playing a central part in helping to realise those ambitions.”
He added that the upcoming Small Business Strategy presents a timely opportunity for both Westminster and Holyrood to bolster support for Scotland’s mid-market enterprises and reinforce their role in the broader UK economy.
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