AS Christmas nears and city streets, town centres, shops, bars, and restaurants become busier and busier, it is tempting to wonder where the economy would be without the festive season.

A trip to Edinburgh a few days ago hammered home the point, as the pavements were so packed it was impossible to walk along Princes Street at anything resembling a brisk pace.

From a footfall perspective, the scene – which is doubtless being replicated in other Scottish towns and cities – offered plenty of encouragement, given the struggles many urban centres have faced in the wake of Covid, and amid the ongoing cost of living crisis.

Yet, vital though these last days of the year are commercially – and to retail and hospitality in particular – there came a timely reminder recently of a part of the economy that is often unheralded and perhaps overlooked.

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The spotlight was shone brightly on this sector at a major event in Glasgow, when The Herald hosted its latest annual Scottish Family Business Awards.

The names of many of the winners may not come into the household category, but that should not dim the massive contribution they make to Scotland’s economic well-being, whether it is through the jobs they provide, the contribution they make to their local communities, their willingness to invest in new technology, or the part they are playing in Scotland’s drive to net zero.

It was a pleasure, for example, to observe the celebrations of Hebridean Cruises, which operates popular wildlife cruises on the west coast of Scotland, as the firm triumphed in the customer service excellence and Scottish family business of the year (micro) categories, and Girvan butchery firm We Hae Meat, which won the awards for green family business and Scottish family business of the year (small-medium).

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These were just two of many teams who were able to take the evening off from their hectic schedules and, for a moment at least, celebrate the contribution their businesses make, day after day, throughout the year.

One thing that is particularly remarkable about the Scottish family business scene is the longevity of many of its most successful operators. This was seen in the fact that the awards presentation paused to wish a happy 85th birthday to Elizabeth Equi, whose family established their award-winning ice cream company, Equi’s, in Hamilton in 1914.

The roots of one major winner on the evening stretch back even further.

The award for outstanding contribution went to Jim Walker of Walker’s Shortbread, whose grandfather, Joseph, established the Scottish food giant when he took the brave step of taking out a £50 bank loan to open a small bakery in Torphins, Aberdeenshire, in 1898.

Jim Walker was unable to attend the event to pick up the award, but recorded a touching video message in which he praised the hard work and loyalty of the company’s staff. Walker's has grown from its very humble beginnings into a business which now employs more than 1,400 people, turns over £165 million, and exports its shortbread around the world.

"I'm both proud and honoured to receive this award, which has come to me as a result of 125 years of hard work and commitment by many people," Mr Walker said.

Highlighting the commitment made by his grandfather, father Jim, uncle Joe, brother Joe and sister Marjorie to Walker's during their lifetimes, he said that while he was the last surviving member of the third generation, five of the fourth generation and one of the fifth are involved in the company today.

And he declared: “Our staff have been simply amazing, and with many of our existing staff being the third generation of previous employees. We have a huge appreciation for the efforts of everyone that have gone into our company and the family attitude that permeates throughout.”

He added: "There is no doubt that a family business that is not working well can be somewhat challenging. And there is also no doubt that a family business working well can be unstoppable.”

It was a fitting end to an evening which celebrated the best of Scottish family business.

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Yet, in toasting success, it is also important to reflect on the challenges these businesses have had to endure to retain their positions at the top, not least because of Covid and the series of economic challenges that have come in its wake.

Indeed, resilience was perhaps the word that was most commonly uttered on the awards evening as the finalists were unveiled and the awards were ultimately presented.

Hugh Lightbody, chief officer at Business Gateway, summed up the situation well in his remarks on the evening’s programme, writing: “Family businesses are the backbone of Scotland’s economy, and their demonstrated resilience in recent years deserves recognition and celebration.”

There is an argument, though, that family firms need more than just their own resilience to survive in these economically challenging times.

As speculation grows over the contents of the forthcoming Scottish Budget, which will be announced on December 19, Colin Borland of the Federation of Small Businesses expanded this week on how ministers could help small firms of all kinds in its plans for the 2024/ 2025 financial year.

Writing in The Herald, Mr Borland acknowledged that Scottish ministers have difficult decisions to make, amid reports of struggles to balance the books.

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But he said there are straightforward ways in which the Scottish Government can help, including by simply refraining from introducing further regulation, which frequently means cost.

Mr Borland also contended that steps should be taken to address one of the perennial bugbears of small firms in Scotland, namely to ensure that they are able to take a bigger share of public sector contracts.

“So, it seems procurement reforms thus far have not moved the dial,” he wrote. “Indeed, if anything, they’ve turned it the wrong way. The Budget statement could therefore commit ministers to using the forthcoming Community Wealth Building legislation to introduce statutory targets to increase public sector bodies’ – and other publicly funded anchor institutions’ – spend with smaller local firms.”

He also said: “Further, in some instances, doing nothing does genuinely cost nothing. So, the Budget offers an ideal opportunity to reaffirm the Government’s commitment to think long and hard before introducing any new business regulations on small firms, including assessing their cumulative impact. Decisions on regulations can have as much, sometimes more, real-world impact on businesses’ bottom lines as tax changes, so should merit attention at every fiscal event.”

If the Scottish Government is as serious as it says about improving the lot of Scottish business, it should give due consideration to what Mr Borland has had to say. That way, we can perhaps ensure there continues to be plenty of family firms to celebrate when the awards next come around.