Scots entrepreneurs defy start-up trend

SCOTLAND is bucking the trend for company formations, a report said yesterday.

The number of new companies formed in Scotland over the last financial year – 19,962 – held steady amid worsening economic conditions.

Scotland was one of only two nations and regions of the UK not to see a fall on the previous year, according to Oswalds, the corporate services firm.

There was no percentage change in the figures up to April compared to the equivalent 12-month period of 2006-7.

Across the UK, the number of new businesses created was 70,000 fewer in 2006-7 than in the previous 12 months – a fall of 16 per cent.

Andrew Cockburn, director at Oswalds, said the figures suggest the slowdown began around September and coincided with the credit squeeze. “New companies were formed in Scotland at a rate equivalent to more than 1,664 a month. This suggests the entrepreneurial spirit in Scotland is stronger than almost anywhere else in the UK.

“There is obviously more caution amongst entrepreneurs but at this stage there’s still considerable numbers of people willing to take a chance and form their own company,” he said.