BUSINESS start up numbers have fallen in Scotland over the past five years but not as fast as in the UK as a whole, a study has found.
AN analysis of start up data by Bank of Scotland shows the number of new businesses in Scotland fell three per cent in the year to November, to 28,222, from 29,132 in the 12 months to November 2011.
The figures may spark concern in Scotland following longstanding efforts to boost the business birth rate.
However, with start up numbers falling by 19 per cent across the UK over the five years, to around 444,000, the study suggests Scotland has performed better than some parts of the country.
The findings also reveal there has been a surge in activity in areas such as the Orkney Islands, which Bank of Scotland said appeared to be encouraging an entrepreneurial spirit.
The number of new businesses formed fell in Glasgow and Edinburgh.
Jo Harris, managing director of retail business banking at Bank of Scotland, said: “The recent downward trend we’ve seen in new business start-ups is likely to be a response to the uncertain economic environment.”
However, the research adds to the body of evidence that suggests attempts to boost start up activity in Scotland may have had limited impact.
Figures compiled by clearing banks in Scotland found the number of start ups in Scotland in 2015 was 21 per cent, or 3,000 lower than in 2011, at around 11,700.
But Bank of Scotland said: “In contrast to England and Wales, the view in Scotland is much more encouraging.”
The number of start ups in England fell by 20 per cent over the five years to 395,088 from 494,614.
In Wales start up numbers plunged by 26 per cent, to 17,089 from 23,195.
The bank noted almost half (14 of 32) of Scottish regions saw growth in the number of new businesses over the last five years.
The Orkney Islands fared best with a 42 per cent increase in start ups from 83 to 118.
Noting the low unemployment rates in the area, Bank of Scotland said: “The group of islands is clearly fostering an entrepreneurial spirit.”
Some 1,354 started up in the Highlands in the latest year, up 15 per cent from 1,180 in 2011.
The City of Glasgow council area ranked 15th in Scotland, with 3,939 new businesses down 1 per cent from 3,994 in 2011.
City of Edinburgh was 21st with 3,301 start ups, down seven per cent from 3,547 in 2011.
The analysis was based on numbers compiled by BankSearch covering ventures opening a first business banking account with one of the eight biggest players in the UK. These include Bank of Scotland owner Lloyds Banking Group and Royal Bank of Scotland.
The information gathered by members of the Committee of Scottish Bankers for 2015 and 2011 was based on the number of accounts opened with Bank of Scotland, Royal Bank of Scotland, Clydesdale Bank and TSB Bank.
It did not include accounts opened with banks such as HSBC and Barclays.
Lloyds Banking Group has said it helped more than 100,000 businesses start-up in 2016.
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