The research was carried out by the University of St Andrews, Hull University Business School and Cranfield School of Management. It found that, although only 14% of men and just 5% of women are self employed in Scotland, they employ more than 10 male members of staff per company. That figure far exceeds jobs provided elsewhere in the UK, such as Wales, where self-employed entrepreneurs employ slightly more than two men per company, on average.

 

Entrepreneurs in Scotland also employ an average of just over three female members of staff, which is more than most of the UK's other regions. The FPB's spokesperson for Scotland, Jim Gorie, welcomed the Scottish Assembly's initiatives to support small firms.

 

"The Scottish Assembly's decision to free 120,000 small firms from paying business rates is a bold move and will aid many struggling companies," he said. "It is particularly valuable for start-up companies and retailers struggling with the current credit crunch."

 

However, Mr Gorie warned that more needed to be done to help small businesses to grow, including reducing the burden of red tape.

 

"The present Assembly has promised to improve local support services for small businesses, including the integration of local authority and enterprise networks. There is a vital need for professional, local advisory services, which are run for the benefit of the entrepreneur rather than the public sector bureaucracy," said Mr Gorie.

 

He added: "It is up to the Scottish Parliament to monitor the change and adjudicate when the obvious teething difficulties arise. It is also essential that the transfer of Business Gateway services to local authority control is accomplished both quickly and smoothly."

 

Recently, a bid to decentralise Scotland's Business Gateway support services, which are currently provided by Scottish Enterprise, hit a snag after talks between the Scottish Parliament and the Convention of Scottish Local Authorities (Cosla) broke down over money. It is understood that Cosla's bid for £50 million for council grants was far in excess of the £3 million set aside by Scottish Enterprise for local schemes.

 

FPB member John Michie, of IFB Ltd, a retail chemist based in Aberdeen, called for caution over the plans.

 

"The strength of Scottish Enterprise was that it could be strategic, allowing businesses to plan forward and have a better vision of where they were going," he said. "The problem with transferring Business Gateway services to local councils is that their short-term political cycles mean that projects can change quickly – making forward planning much more difficult."

 

For more information about how the FPB's range of products and business support services can help businesses to grow, visit www.fpb.org.