Scottish SMEs in a holding position as 67% say government policy increases pressure on business
Half of Scottish business owners cite income generation as their single biggest challenge over the next six months, while two thirds (67%) report that recent government policy has added significant pressure to their operations, according to a live poll undertaken in Glasgow by Vistage, the world’s largest CEO coaching and peer advisory organisation.
The findings, collected at the Vistage Leadership Forum in Glasgow on Wednesday, highlight that these businesses are operating under intense strain. Nine in ten leaders (90%) confirm that the current business environment has negatively impacted their ability to invest, hire, or grow, with 6% actively forced to scale back planned growth initiatives.
When asked about potential solutions, 62% of business leaders identified reducing the cost of employment (including National Insurance and wages) as one change Downing Street could make to alleviate the burden on SMEs. A further 22% called for the simplification of tax and regulation.
Emma van Rooyen, managing director at Vistage UK and Ireland, commented: “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.”
In addition to stalling business growth, the ongoing economic pressure is taking a direct personal toll on these business leaders:
Nearly half (48%) of respondents experience high stress levels on a regular basis, with an additional 14% reporting significant stress almost constantly.
Half (53%) state that work related stress has significantly or moderately impacted their health or personal relationships over the past six months.
To navigate high stakes choices, 49% stress test sensitive decisions with external peer networks, while 33% rely on their internal leadership teams and 16% turn to family or friends.