New research commissioned by top Scottish law firm MFMac (Morton Fraser MacRoberts) has found that 48% of Scottish business leaders rate the availability of investment capital in Scotland as “scarce or very scarce.”
Just 8% of the business leaders surveyed described investment as “readily available” — sparking fears that Scotland’s growth ambitions are being choked off.
“As a consequence, firms are concentrating on ‘defensive’ strategies in the months ahead, such as increasing revenue (79%) and improving operational efficiencies (65%), with little headroom for growth strategies such as entering new export markets (6%) or product diversification (22%),” said MFMac.
“A flat economic outlook is the primary barrier to growth, with two-thirds (67%) identifying the uncertain economy as their biggest challenge, with more than a third (38%) calling conditions ‘weak’.
“Official data shows that GDP per head in Scotland is estimated to have grown by just 0.2% during Q1 2025, while annual real GDP per head grew by 0.3% in the whole of 2024.
“Meanwhile, the volume of private sector investment in Scotland has slowed in 2025 after building some momentum last year.
“Mid-market private equity deals in Scotland fell 14% in the first half of 2025, while the number of venture capital deals recorded in Q1 declined by 6% compared to the previous quarter.”
MFMac CEO Chris Harte said: “It is proving hard for Scottish businesses to shake off the effects of wider economic stagnation, which might explain why many leaders think investment capital is so scarce.
“Scotland remains one of the UK’s top destinations for foreign investment, but domestic capital investment is looking harder to come by …
“There are still plenty of pockets of resilient, ambitious businesses looking to expand products and services, or enter new markets. But the broad view suggests businesses are being held back by a lack of investment capital and a fragile economy. The two feed off each other.
“Business leaders want to see long-term measures in place to create the conditions for growth. This will be a key battleground for the business community when the debate around the next Parliament begins.”
MFMac’s research surveyed 117 senior decision makers online, a process carried out by Taylor McKenzie Research and MFMac in August 2025.
Respondents worked for organisations with an average of 94 employees. Nearly a quarter (22%) represented organisations with over 250 employees. The average turnover of respondents was £2.3 million with 49% having a turnover over £1 million.