City tops hot-spot poll for start-up firms

GLASGOW was the top hotspot in Scotland for start-up businesses last year – but the number of new firms opening their doors fell by a fifth.

Figures published by Companies House show 6189 new firms were registered in the city in 2017, compared to 5176 in Edinburgh.

But for the first time in years, the number of start-up companies in Glasgow fell by 20%.

Martin Little, of the Federation of Small Businesses, in Glasgow, said it was great to see the city retaining Scotland’s pole position for new firms two years in a row.

He added: “Those start-ups are graduates with great ideas, skilled migrant entrepreneurs and former employees with experience and expertise who decide to become their own boss.

“These new firms help make Glasgow’s business community unique, diverse and resilient and we need to get behind these ambitious entrepreneurs and support them.

“At the same time, it is concerning to see the number of Glasgow start-ups dropping considerably by over 20%.

“There are certainly a number of reasons behind this but our members have told us one of the biggest challenges to start and run a business is ever-increasing financial burdens.”

Research by the Federation of Small Businesses show costs including tax and employer obligations have risen significantly above inflation.

Mr Little said: “Rent, licensing fees and utility costs all hit you before you have had the chance to make your first pound in turnover, let alone profit, and this burden is increasing.”