A new report led by former Skyscanner executive Shane Corstorphine highlights major gaps in Scotland’s support for growing tech companies. Released on November 11, 2025, the document urges quick changes to boost the nation’s economy by helping more startups become global players.
Report Spotlights Scotland’s Scaleup Shortfalls
Scotland boasts a vibrant startup scene, but many firms struggle to scale up and compete worldwide. The report, titled Scaling Scotland: Building the Engine for the Next 50 Years of Prosperity, points out that the country has about 1,500 scaleups earning up to 5 million pounds in revenue. Yet, only 85 companies bring in over 50 million pounds each year.
This gap limits job creation and economic gains. Experts say closing it could add over 100,000 high-value jobs and 20 billion pounds in annual company revenues. Corstorphine, who chaired the Scottish Scale-up Panel, stresses that current support feels scattered across public and private groups.
The findings draw from data by groups like the UK’s ScaleUp Institute. They show Scotland lags behind peers in turning early-stage ventures into big successes. Recent trends in AI and tech innovation make this issue even more pressing, as global competition heats up.
Key Recommendations to Fix Fragmented Support
The report lays out 15 priorities for business leaders and government officials. A top suggestion is creating a Scottish Scale-Up Enablement Hub to unify efforts and cut red tape.
It also calls for reforming public investments to focus on high-potential firms. This includes more venture debt options to help founders keep equity while growing.
Here are some core recommendations:
- Set up a central hub for streamlined advice and resources.
- Boost access to growth capital through targeted funds.
- Introduce tax breaks, like a Beckham-style incentive, to attract top talent.
- Strengthen leadership training for CEOs in scaling businesses.
These steps aim to make ambition a normal part of Scotland’s business culture. Corstorphine notes that without them, the nation risks falling behind in the fast-changing global economy.
Panel members, including local entrepreneurs, back these ideas. They argue for a shift from startup-focused aid to scaleup strategies that build long-term prosperity.
Challenges Holding Back Scottish Tech Firms
Fragmented support tops the list of problems. Multiple agencies offer help, but overlap creates confusion for growing companies. This leads to wasted time and missed opportunities.
Talent shortages add to the strain. The report mentions how higher taxes might deter skilled workers from moving to Scotland. Recent data shows the public purse lost about 60 million pounds in tax revenues due to this issue.
Economic pressures, like a projected 4.7 billion pound budget gap by 2029, complicate matters. Still, Scotland’s tech sector shows resilience in areas like life sciences and energy. Firms such as Wordsmith AI, which raised 19 million pounds this year, prove the potential exists.
Economic Impact and Future Outlook
Scaling up could transform Scotland’s economy over the next 50 years. The report estimates massive gains if more firms reach higher revenue levels.
| Revenue Bracket | Number of Scaleups | Potential Job Growth |
|---|---|---|
| Up to £5m | 1,500 | 30,000 |
| £5-10m | 280 | 20,000 |
| £10-50m | 250 | 25,000 |
| Over £50m | 85 | 25,000 |
These figures highlight how targeted support might create balanced growth. Linking this to trends like AI adoption could position Scotland as a tech leader in Europe.
Recent events, such as the UK’s focus on innovation post-Brexit, align with these goals. Scotland’s history with unicorns like Skyscanner shows what’s possible with the right backing.
Industry Reactions and Calls for Action
Business leaders praise the report’s bold vision. Ross McNairn, CEO of Wordsmith AI, warns that ignoring AI talent needs could let other countries pull ahead.
Others echo the need to end fragmented aid. A former executive notes that Scotland’s entrepreneurial ecosystem stands at a pivotal point. Social media buzz, including posts from industry watchers, shows growing support for these changes.
Government officials have yet to respond fully, but the timing ties into broader talks on economic recovery. With global shifts in tech and trade, many see this as a wakeup call.
What do you think about these recommendations for Scotland’s tech growth? Share your thoughts in the comments below and spread the word to spark more discussion.
