SCOTTISH technology firms expect to grow five times faster than the UK economy this year amid confidence in the prospects for the sector research has found.
In a survey of growing technology firms, Barclays found on average Scottish businesses predicted they will grow sales by 14 per cent over the course of the year. Growth is expected to accelerate to an average 17 per cent in 2016.
Across the UK, technology firms expect to grow by an average 11 per cent in 2015, accelerating to 15 per cent in 2015.
In recent forecasts economists predict on average that the UK's Gross Domestic Product will increase by 2.6 per cent this year.
The results reflect confidence among Scottish firms in the outlook for the technology market. Three quarters of respondents expect strong economic conditions to support investment in new technology.
However, the research highlights a range of challenges facing sector players. Some 35 per cent of respondents identified increased competition as their most pressing concern, while 30 per cent cited attracting and retaining employees with the required talents.
The findings highlight the apparent importance of strong leadership fro companies that operate in fast changing markets.
Around nine out of ten firms that achieved growth of more than 20 per cent last year said strong leadership was the key catalyst for their firm's success. That compares with 73 per cent of firms that achieved growth of less than 10 per cent.
Ally Scott, Managing Director, Barclays Corporate Banking Scotland, said: "Strong leadership rang out loud and clear as being critical for growth, and this is particularly important in the first few years of a business' life." He said as fast growth businesses experience unique stressors and demands on their cash flow their leaders need to make many major decisions at speed.
Other factors seen as important by a majority of respondents in Scotland include investment in staff and new technology and careful strategic planning.
Completed in December, the survey covered 501 technology firms with turnover of £3 million to £50m, including 20 in Scotland.
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