This measure gives an indication of new firm formation and entrepreneurship, and provides a sign of how conducive the business environment is for encouraging new ventures and increased demand for businesses. Scotland has a low level of business start-ups relative to its population size, when compared to the UK as a whole. A strong and diverse private sector is essential for sustainable economic growth, and small businesses - which account for 98% of all enterprises - create vital jobs and are often the lifeblood of local communities.
The indicator measures the new VAT/PAYE registrations in Scotland per 10,000 adults. The figure is restricted to Scottish based businesses that have registered for Value Added Tax (VAT) and/or Pay As You Earn (PAYE) with HMRC during the relevant calendar year. Criteria for dashboard recent performance colour: The evaluation is based on: any difference within +/- 2 businesses per 10,000 adults suggests that the position is more likely to be maintaining than showing any change. An increase of 2 businesses per 10,000 adults or more suggests the position is improving; whereas a decrease of 2 businesses per 10,000 adults or more suggests the position is worsening.
This indicator uses business births, as published in the Office for National Statistics Business Demography: http://www.ons.gov.uk/ons/rel/bus-register/business-demography/index The population estimates used to form the rates are sourced from the Mid-Year Population Estimates, published by the National Records of Scotland: https://www.nrscotland.gov.uk/statistics-and-data/statistics/statistics-by-theme/population/population-estimates/mid-year-population-estimates