Official figures obtained by the Scottish Liberal Democrats have revealed a significant and concerning decline in the number of small and medium-sized enterprises (SMEs) operating in Scotland since the start of the decade.
Steady Decline Across Constituencies
The data, released on Saturday 17 January 2026, shows that the total number of SMEs in Scotland has fallen from 177,020 in 2020 to 171,660. This represents a net loss of 5,360 small businesses over a six-year period. The figures were compiled after Scottish Liberal Democrat economy spokesman, Jamie Greene MSP, requested a constituency-by-constituency breakdown of SME numbers from the Scottish Government, covering each year since 2015.
Analysis of the past decade shows that 24 parliamentary constituencies have witnessed a fall in their small business count. The downturn has been particularly pronounced in more remote and rural parts of the nation, raising alarms about regional economic health.
Rural and Energy Regions Hit Hardest
Areas formerly buoyed by the energy sector have seen some of the most dramatic contractions. According to the Liberal Democrats, constituencies across Aberdeen and Aberdeenshire have suffered a 13.8% fall in SME numbers since 2015. Similarly, the vast Highland constituency of Caithness, Sutherland and Ross has seen an 8% decrease.
In response to the troubling statistics, Mr Greene issued a stark warning, stating he has spoken with many "skilled and entrepreneurial people" who feel thwarted by excessive barriers. He cited "the SNP’s economic incompetence" and "the crushing burden of red tape" as key factors stifling business creation and growth.
Calls for Action and Budgetary Wins
The Scottish Liberal Democrats have confirmed they secured several measures in this year's draft Scottish budget aimed at alleviating pressure on businesses. These include a new £2.5 million package to back young entrepreneurs and an initial £36 million for business rates relief.
While welcoming these steps, Mr Greene argued they do not go far enough. "I am pleased that Scottish Liberal Democrats secured some support for businesses in the draft budget, but we think the Scottish Government can go further," he said. He pledged that his party would be "squeezing the Scottish budget for every penny to deliver for businesses" in the coming weeks.
The figures have ignited a fresh political debate over the support framework for Scotland's vital SME sector, which forms the backbone of the national economy. The Scottish Government has been approached for comment on the data and the criticisms levelled by the Liberal Democrats.
