The SME survey by Elevator reveals that Scotland’s SMEs are adopting AI, planning to hiring, and hunger for more support.

Elevator found that 2 out of 3 business owners want more external support with their business, with only half having accessed external finance. Forty percent of SMEs say access to finance is their biggest roadblock to growth, followed by talent (27%).

The survey found that 74% of SMEs in Scotland are already using AI in their business, while 55% plan to invest in innovation and new technology.

Seventy-two percent SMEs cited the importance of local community to the success of their business.

The inaugural SME survey by business support organisation Elevator found that, in spite of growth challenges, 75% of respondents are either “extremely confident” or “somewhat confident” about their business prospects in the year ahead.

Elevator CEO Rachel Ross said: “While it’s encouraging to see the level of confidence in the Scottish SME sector, the survey has also revealed that the nation’s SME leaders want more external support, and that there are national disparities. Crucially, access to finance and understanding finance options remains a serious issue for businesses across the country.”

Sixty per cent of respondents said grants are their primary source of external finance, 21% said debt finance, with 14% securing equity finance as their primary source. 43% have received support from Business Gateway, 28% from Scottish Enterprise, 13% from Scottish Government, 11% from UK Government, and 6% from Highlands and Islands Enterprise.

About half (51% of respondents said their revenue increased in their last financial year, while about a quarter (23%) said their revenue decreased, and 26% said their revenue stayed at a similar level. Around four in ten (40%) of Scottish SMEs export outside the UK, with Europe the top export region ahead of North America and Asia.

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Over eight in ten (83%) said they don’t have a CFO, with three in four (75%) not having a company board, while 85% do not have a non-executive director.

On the importance of local community to business success, around 80% of Scottish SMEs said local community was “extremely important” or “somewhat important” to the success of their business. The vast majority (92%) said they believe entrepreneurship can build community wealth in Scotland.

“Community and the role of entrepreneurship in building community wealth is overwhelmingly important to our SMEs in Scotland, and we think that is one the most interesting findings to come out of our survey,” Ross said.

Asked what impact stronger local entrepreneurship would have in their area, Scottish SME leaders said more local jobs (77%), more opportunities for young people (68%), increased local pride and confidence (62%), better local services (57%), and stronger local supply chains (55%).