Site navigation

Report: Scottish SMEs Face Mounting Cost and Revenue Pressures

Graham Turner

,

Scottish business pressure
New findings suggest these pressures are also weighing on investment, growth and leaders’ wellbeing.

Scottish business leaders are facing mounting pressure from rising costs, government policy and difficulties generating revenue, according to a new poll from CEO coaching and peer advisory organisation Vistage.

A live poll conducted at the Vistage Leadership Forum in Glasgow found that 67% of respondents believe recent government policy has added significant pressure to their operations, while half identified income generation as their single biggest challenge over the next six months.

The findings suggest the current business environment is also restricting companies’ ability to invest and expand. Nine in ten respondents, or 90%, said economic conditions have negatively affected their ability to invest, hire or grow, while 6% said they had been forced to scale back planned growth initiatives.

Employment costs emerged as the most common area where business leaders would like to see government intervention.

Some 62% of respondents said reducing the cost of employment, including National Insurance and wages, would help alleviate pressure on SMEs, while a further 22% called for tax and regulation to be simplified.

Emma van Rooyen, Managing Director at Vistage UK and Ireland, said: “Caught between revenue targets, rising costs and unfavourable government policy, the pressure facing local business leaders is acute. Over sixty percent of these Scottish CEOs reported facing significant levels of stress regularly and just under half stated that work related stress is directly impacting their health and relationships.

“Strategic decisions in a difficult economic climate cannot be made in isolation, nor can accountability be handed off to algorithms. Leadership was never meant to be a solo job, which is why Vistage ensures business leaders never lead alone.”

The poll also pointed to the personal impact of current business pressures on company leaders.

Nearly half of respondents, 48%, said they regularly experience high levels of stress, while another 14% reported experiencing significant stress almost constantly.

More than half, 53%, said work-related stress had significantly or moderately affected their health or personal relationships during the previous six months.


Recommended reading


Business leaders also reported drawing on a range of sources when making high-stakes decisions. Almost half, 49%, said they stress test sensitive decisions with external peer networks, compared with 33% who rely on their internal leadership teams.

A further 16% said they turn to family or friends when navigating significant business decisions.

The results come as Vistage’s Glasgow poll indicates many Scottish businesses remain focused on managing immediate financial and operational pressures rather than pursuing significant expansion, with revenue generation and employment costs among the most prominent concerns raised by respondents.

Graham Turner

Sub Editor

Latest News

Business Editor's Picks

Report: Scottish SMEs Face Mounting Cost and Revenue Pressures

Cybersecurity

Five Actions CISOs Can Take to Stay Ahead of Disruptions

Events Featured Finance

Just One Week to Go Until Fintech Summit 2026

AI Business

Will Costs See Enterprises Abandon Third-party Agentic AI?