THE results of the latest research by the Federation of Small Businesses underline the challenges facing a sector which is regarded as a cornerstone of the Scottish economy.
They suggest small firms need clarity on Brexit fast and help coping with the challenges they are facing while waiting for the dust to clear.
Uncertainty about what Brexit will mean feeds doubts about the outlook for the economy in which firms operate. This makes it hard for even those who have no trade with Europe to have confidence in their prospects.
The FSB’s findings suggest the benefits exporters have enjoyed from the fall in the pound since the Brexit vote have not been enough to compensate for the difficulties it has posed for other firms.
These include increases in costs and cuts in spending by consumers amid the resulting rise in inflation.
The position looks worse in Scotland than in the rest of the UK. The FSB noted the costs of the oil and gas downturn are still weighing on Scotland.
With the Bank of England apparently set on raising interest rates steadily, albeit slowly, consumer spending is set to come under further pressure.
Against that backdrop ministers have to do what they can to make life easier for small firms while banks must show restraint in response to any further interest rate rises.
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