ONE of Scotland's leading entrepreneurs has said independence would be bad for business in Scotland, fearing it could provoke an anti-Scottish backlash south of the Border.

John Pirrie, who sold the LCH Generator business he built with his brother James for £62 million, told The Herald he is concerned that independence could cause big problems for Scottish firms by threatening their positions in other parts of the UK.

"I am thinking more of the business context, more of a backlash from England and English sentiment," said Mr Pirrie.

Noting that around 50 million people live in England and Wales compared with around five million in Scotland, Mr Pirrie said those markets provide a vital source of business for many Scottish firms that they can ill-afford to jeopardise.

"It's not easy to establish yourself, you have to work hard as a Scottish company to prove yourself south of the Border but it's going to be even harder [if Scotland becomes independent]," Mr Pirrie said.

"We think an independent Scotland would be bad for business in Scotland," concluded Mr Pirrie, a partner in Nevis Capital, which was formed to invest some of the proceeds of the sale of LCH to Speedy Hire.

Mr Pirrie questioned whether an independent Scotland would be big enough to compete on the global stage.

"I just don't see the advantage in such a small population having control," said Mr Pirrie. "There is a question if the economy is large enough."

He is concerned that businesses will be damaged by the uncertainty about the future status of the country in the run up to the referendum on independence that First Minister Alex Salmond wants to hold in 2014.

Mr Pirrie's concerns were echoed by Brian Aitken, an experienced corporate financier who is a partner in Nevis Capital.

It has been suggested the government of an independent Scotland could cut corporation taxes to boost business. However, Mr Aitken wondered how much scope ministers would have to reduce taxes given the costs of maintaining the public sector.

He predicted the costs of providing pensions for public sector workers would increase steadily as the population ages.

"We are not sure that we have done our homework and are heading down a road that will take up an enormous amount of time and be a distraction towards an end that will leave us worse off," said Mr Aitken.

"Having the debate is a massive distraction from the key issues that need to be addressed which are the economy and unemployment," he added.

A spokesman for Finance Secretary John Swinney said: "Scotland's leading business person and entrepreneur, Jim McColl, has said that many people in business are convinced that a productive and prosperous future for Scotland depends on securing real economic powers for the parliament through constitutional change.

"And the director general of the Institute of Directors, Simon Walker, said he is 'relaxed' about the possibility of Scotland becoming independent."

Engineering entrepreneur Mr McColl has spoken in favour of greater powers for Holyrood rather than independence.

Mr Swinney's spokesman added: "Already, Scotland is attracting more inward investment jobs than anywhere else in the UK, including London, and independence will see Scotland become the sixth wealthiest country per head in the OECD. Scotland will have a £1 trillion asset base in the form of Scotland's North Sea oil and gas reserves – at the same time as the UK is now £1 trillion in debt.

"This is a time to talk positively about Scotland, and we will be very happy to meet with Mr Pirrie and Mr Aitken to discuss our nation's future."