Scotland sees autumn uplift with rise in new businesses, R3 research shows
An increase in the number of start-up businesses in Scotland since last year is a welcome uplift for the country, but businesses are still facing a challenging economic outlook. This is according to new research from R3, the UK’s trade body for restructuring, turnaround and insolvency professionals.
R3’s analysis of data from Creditsafe shows that the number of new businesses started in the region rose by 22% in September 2025 to 3,574 compared to September 2024 when there were 2,930 new start-ups.
The country’s performance reflects the national trend, with Scotland recording the fifth highest growth in start-up activity across the UK over the period. Only Wales (35%), the North East (29%), West Midlands (26%) and the North West (24%) saw larger increases in new business formations.
Emma Widdowson, chair of R3 and legal director at Addleshaw Goddard, commented:
“The rising numbers of new business start-ups suggests that entrepreneurial confidence is returning. Despite this, the economic climate remains challenging and quarterly insolvency statistics are due out later this month. Directors are facing inflationary pressures and rising employment costs linked to higher National Insurance contributions however, firms across Scotland are showing real resilience by innovating, investing in technology and adapting their strategies to remain competitive.
“While insolvency-related activity has remained steady, it’s clear that many businesses are still operating in difficult conditions. As we approach the November Budget, there’s a degree of nervousness about potential tax rises and their impact on the business community.
“Given the ongoing uncertainty, directors must remain vigilant about the financial health of their companies. Whether a business is newly established or long-standing, it’s vital to monitor finances closely and seek early professional advice from R3 members if challenges begin to emerge.”