Perth and Kinross has most potential for business growth, according to new research

The recognition, announced on Thursday, follows analysis of the expected distribution and value of business growth across the UK for the year ahead.  Perth and Kinross was identified as the top area in the UK with the strongest growth potential among local businesses after consideration of the proportion of businesses in each area expected to achieve high growth, the average value of these businesses and their relative risk.

Over 12% of businesses in Perth and Kinross are expected to achieve 20% growth over the next year, with higher levels in some parts of Perth and Strathallan ward area. This is significantly higher than the national average of 10% of businesses and demonstrates the strong environment for businesses across Perth and Kinross.

Perth and Kinross is a leader in food and drink, tourism and the financial industries, with a growing role in the energy-transition sector. The analysis highlighted that the area has a diverse range of small to large businesses - with the region having higher proportions of high growth potential businesses than the UK average across all key sectors.

Published in the Growth Flag Annual Report 2025, the analysis was conducted by Growth Flag, an innovative business intelligence tool with over 90% accuracy in forecasting which businesses will go on to achieve 20% growth in the next year. 

The robust data tool is used across the UK to identify the latest business trends - supporting more effective interventions that can have a positive impact on growing local economies.

Perth and Kinross Council leader Councillor Grant Laing said: "This recognition is a testament to the resilience, innovation, and hard work of our local business community and showcases the diversity and strength of our local economy. We are committed to continuing our support for businesses in Perth and Kinross and fostering new opportunities for growth and innovation to support our vision for a stronger, more sustainable local economy.

"We will continue to work closely with our business community, leveraging tools like Growth Flag to identify trends and implement effective interventions that drive sustainable economic growth. Together, we will work hard to ensure Perth and Kinross remains a great place to do business."

Nathan Shoesmith, Insights and Analysis at Growth Flag said: "It is fantastic to celebrate the strong growth potential of businesses in Perth and Kinross.

"The data has shown consistently strong performance by businesses in the area over recent years, and this year our analysis has identified Perth and Kinross as having the strongest business growth potential for 2025. This marks a really positive picture for businesses in Perth and Kinross and I look forward to seeing their continued growth over the coming year."

Steven Stewart, Co-Chair of Perth and Kinross Business Partnership, said: "It's fantastic to see independent recognition of the significant growth potential of local businesses in our region.

"From micro businesses to social enterprises and SMEs to corporates, we have a diverse economy and fantastic opportunities from our strengths in food and drink, tourism, financial services, and energy transition solutions.

"Business growth, along with investment in enterprise, skills and employability in initiatives, is central to solving the challenges we face around poverty and inequality.

"That's why it's critical the region's business community works together and in partnership with third sector organisations and Perth and Kinross Council to convert our strong credentials into good growth that benefits all of our citizens and communities."