Scottish Businesses Diversify To Survive

Over 60% of Scottish Small and medium enterprises (SMEs) say they have had to diversify their product or service in order to survive the recession.

The survey of over 1,000 SMEs carried out by New Start Scotland, the country's largest business support exhibition, found that a massive 62% of businesses have had to change their offerings to stay in business.

Ceri Rogers, organiser of New Start Scotland, said: "It's great to see that the entrepreneurial spirit in Scotland is still alive and well, despite the economic downturn. This research shows that Scottish entrepreneurs refuse to go down without a fight, and are determined to keep their businesses afloat at this difficult time.

"Although diversifying is a big step, if businesses do their research, it can also offer some big rewards - just look at what Sir Richard Branson has achieved."


And New Start Scotland exhibitors, The Go Group, Scotland's leading business support organisation, consider diversification to be one of the most effective ways of safeguarding businesses during recession and are urging more businesses to consider this option. Liz Metin, deputy director of Learning and Development at The GO Group, explains: "SMEs typically specialise in one area of business, meaning that they are unlikely to have another product, service or customer base to offset the damage if demand falls in their core sector.

"This can be risky. By branching out into different areas of business, SMEs can give themselves a safety net to fall back on if their organisation runs into trouble."

As part of its commitment to helping Scottish businesses survive the recession, The GO Group is helping businesses explore their options for growth - including their potential to diversify their services or products.

Metin continues: "In order to counteract the potential risks associated with diversification, it is important that SMEs conduct thorough market research into any potential new area of business; prepare a clear and structured development strategy before diversifying; and ensure that their sales, marketing and supply operations are able to cope with increased demands."

And businesses looking for advice or guidance on how to successfully diversify can visit New Start Scotland when it returns to the SECC on the 27th and 28th March for a fifth year running. The Go Group, along with 120 other exhibitors will be on hand to share hints and tips to help entrepreneurs turn their business dreams into reality.