Biz Birth Rate

Last updated 23 November 2017

The Business Birth rate in Scotland has increased from 49 new registrations per 10,000 adults in 2015 to 50 new registrations per 10,000 adults in 2016. Scotland's Business Birth rate is still much lower than that for the UK at 78 new registrations per 10,000 adults in 2016.



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: The population estimates used to form the rates are sourced from the Mid-Year Population Estimates, published by the National Records of Scotland:


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