The number of SMEs in Scotland has fallen since 2020, Liberal Democrat figures show

New figures from the Scottish Liberal Democrats show that small businesses have declined in Scotland since 2020.

The party's economy spokesperson, Jamie Greene MSP, has called on the SNP Government to urgently increase support for small businesses as it revealed significant falls in the number of small and medium-sized enterprises (SMEs) across Scotland.

Greene called on the Scottish Government to provide the number of SMEs in each Scottish parliamentary constituency 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 decrease of 5,360.

Over the last decade, 24 parliamentary constituencies have seen a fall in the number of SMEs, with notable falls in more rural areas of the country, according to the Scottish Liberal Democrats.

This includes a 13.8% drop in SMEs in the Aberdeen and Aberdeenshire constituencies since 2015, and an 8% drop in Caithness, Sutherland and Ross.

The Scottish Liberal Democrats have secured tens of millions in support for businesses in this year's draft Scottish Budget, including a new £2.5 million package to support young entrepreneurs and an initial £36 million for business rates relief.

Greene said: “These figures show worrying falls in the number of small and medium-sized businesses in Scotland.

“I have spoken to many entrepreneurial and skilled people who feel there are too many barriers to starting their own business, from the economic incompetence of the SNP to the crushing burden of bureaucracy.

“I am pleased that the Scottish Liberal Democrats have achieved some support for business in the draft budget, but we believe the Scottish Government can go further.

“That is why, in the coming weeks, we will be cutting the Scottish budget so that every penny goes back to business.”

Deputy First Minister Kate Forbes said: “Entrepreneurs and start-ups are the backbone of our economy and the Scottish Government has been working systematically to develop the support needed 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 start-ups in Scotland 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 businesses, investment and a skilled workforce to accelerate economic growth, including record funding for our entrepreneurs and start-ups as we act to build on Scotland’s strengths and opportunities to drive long-term prosperity.”

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