After a tough business year due to high inflation and a sluggish economy, Scots firms are setting their sights on the areas of business development, staff training, productivity, and recruitment in 2024, new research from the Bank of Scotland has found.

The data revealed that one third (33%) of businesses based in Scotland are aiming to develop their business in the New Year, though while being cognisant of finances: 31% have reported their plans to keep a closer eye on costs over the next 12 months.

In a bid to facilitate the desired growth, almost half (49%) of Scottish businesses are expecting to hire more staff in 2024, while around a third (34%) want to invest more in staff training. What’s more, and to help attract and retain talent, more than a quarter (30%) of firms are also planning on increasing staff wages.

With the expectation that inflation will continue to fall, more than two thirds (68%) of firms are confident that they’ll see their business become more profitable in 2024 compared to 2023.

Concerning turnover, almost two thirds (60%) expect their turnover to increase in the New Year. Of those expecting an increase, around one fifth (21%) anticipate growth of 5 to 10%, while around 23% of firms have eyes on growth of up to 5%.

Commenting on the findings, Martyn Kendrick, the regional director for Scotland at Bank of Scotland commercial banking, said: “Scottish firms are entering the New Year with ambitious growth plans, not only to be more productive but also to invest in their teams and the training that will help them flourish.

“It’s been a challenging year but the recent easing in inflation and stabilisation of interest rates are helping to create an environment where businesses can look ahead more confidently and put measures in place to boost future growth.”

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Kendrick continued: “By taking the time to reassess priorities and manage cashflow carefully, businesses will be ready to benefit from new opportunities and to tackle headwinds more effectively in the future.

“Hopefully the New Year will see demand for our world class industries and services continue to improve and help further support growth for Scottish businesses during 2024.”