THE number of start-ups in Scotland plunged in the second quarter, but Glasgow reported a big increase in new businesses.
Figures compiled by the Committee of Scottish Clearing Bankers (CSCB) showed the number of businesses started in the three months to June fell by 16% to 3684, compared with 4365 in the preceding quarter.
The number of start-ups in the second quarter was down 8% on the same period in 2011.
The committee's numbers indicate the challenging economic conditions seen in the second quarter continued to put a dampener on activity in most sectors, especially property and construction.
Colin Borland, head of external affairs for the Federation of Small Businesses in Scotland, said: "It's certainly not easy at the moment for a lot of people. It's unsurprising that people will think twice about starting a business."
However, Mr Borland noted research by Strathclyde University for the latest Global Entrepreneurship Monitor indicated that entrepreneurial activity has been increasing.
The CSCB records businesses that open accounts with Bank of Scotland, Royal Bank of Scotland, Clydesdale Bank and Lloyds TSB Scotland. It does not record businesses that open accounts with other banks.
The clearing banks recorded 468 start-ups in the City of Glasgow area in the latest period, up 16% on the 404 logged in the first quarter. There were 412 start-ups in Glasgow in the second quarter of 2011.
Start-up numbers fell in the second quarter in Edinburgh and Aberdeen compared with the first three months of this year.
Stuart Patrick, chief executive of Glasgow Chamber of Commerce, said: "It's always difficult to draw any clear lessons from one quarter's results but there have been some initiatives established in Glasgow that may be part of the picture."
Mr Patrick cited the Entrepreneurial Spark business hatchery in the Gorbals. He said the city council's Digital Enterprise Glasgow project is making Glasgow a more attractive place to set up.
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