Two thirds of small and medium-sized enterprises (SMEs) in Scotland’s energy sector believe their business may not be viable within the next 12 months.
The study by legal firm Aberdein Considine, conducted by Censuswide, found that 67% of energy SMEs are under strain from a combination of policy uncertainty, financial pressure and workforce challenges.
The findings reflect broader economic instability affecting SMEs across key Scottish sectors, including retail, hospitality and food and drink.
Among the top concerns, 26% of respondents cited supply chain disruption as the biggest financial challenge, while 39% pointed to Scottish Government policy changes as the most significant barrier to business growth.
Brexit continues to have an impact, with 58% saying it has affected staff retention. One third (33%) identified growing their workforce as a key business priority.
Rod Hutchison, Partner and Energy Sector Lead at Aberdein Considine, said: “Our survey’s findings reflect the increasing uncertainty around the future of the energy sector in Scotland, with more than two thirds of the country’s energy SMEs currently questioning their viability. This highlights the urgent need for targeted and practical support to ensure the sector not only survives but is well-positioned to thrive in the years ahead.”
The report also revealed that 84% of energy firms are prioritising a full return to office-based work in the next year, reflecting a desire to strengthen collaboration and productivity.
This figure rose to 90% when looking at all sectors surveyed, marking a notable shift away from remote or hybrid working arrangements.
Despite challenges, there are signs of resilience.
Two thirds (66%) of energy SMEs expressed optimism about opportunities linked to the energy transition and over half (53%) plan to invest in sustainability and ESG initiatives in the coming year.
