THE number of business start-ups in Scotland fell to a fresh record low in 2011 according to figures that will cause concern about the state of a key sector of the economy.

The four biggest banks in Scotland recorded 14,737 start-ups in the year to December, the lowest number since they started compiling records in their current form in 2002.

The number of start-ups was 5% lower than the 15,439 logged in 2010, which had been the lowest.

The fourth fall in successive years left the number of start-ups trailing 40% below the 2007 peak.

That year the Committee of Scottish Clearing Banks recorded 25,041 start-ups, the tail end of a debt-fuelled economic boom.

The figures for 2011 may stoke fears that the recession, followed by a lukewarm recovery, have dealt a heavy blow to the entrepreneurial economy.

Ministers hope entrepreneurs will help Scotland boost its anaemic growth rates. Increasing start-up rates is a policy focus.

Colin Borland, head of external affairs at the Federation of Small Businesses in Scotland, said: "With rising overheads and weak demand, a lingering lack of trust in banks and uncertainty about the future, things are clearly difficult in the real economy."

He added: "That said, there is no lack of entrepreneurial spirit or determination in Scotland. The latest corporate sector statistics suggest that we have seen a 12,000 spike in self-employment in recent years."

Mr Borland said start-ups recorded by CSCB in the fourth quarter of 2011 increased, by 7% annually, to 3,218.

The CSCB figures only cover businesses that open accounts with Royal Bank of Scotland, Bank of Scotland, Lloyds TSB Scotland and Clydesdale bank.

In the year to 31 March 2011 the Scottish Government-funded Business Gateway service helped a record 11,242 businesses start up.

A Scottish Government spokeswoman noted there was an increase in VAT/PAYE registrations in Scotland between 2009 and 2010, against a UK decrease over the same period.

She added: "However, these figures from the CSCB do underline that 2011 continued to be a difficult time for businesses.

"The Scottish Government is firmly committed to maintaining the most supportive business environment in the UK. This year's Budget maintains our system of business rate reliefs."