Monday October 26th 2026
Dalkeith High Street
Written by Midlothian View Reporter, Liam Eunson
Midlothian is part of a region recording higher levels of entrepreneurial activity than the Scottish average, with new research highlighting both the opportunities and challenges facing people looking to start a business.
The Global Entrepreneurship Monitor (GEM) Scotland report for 2025-2026 found that 13 per cent of working-age adults in East Central Scotland were involved in entrepreneurial activity, compared with around 12 per cent nationally.
The East Central region includes Midlothian, Edinburgh, East Lothian, West Lothian and Falkirk.
Across Scotland, entrepreneurial activity increased by almost two percentage points to 11.7 per cent in 2025, the highest level recorded since the survey began in 2002.
The annual report also found that the number of people running established businesses had increased to just over one in ten working-age adults.
Compiled by the universities of Edinburgh and Glasgow, the research draws on responses from 2,085 adults surveyed in Scotland in 2025, as part of a wider UK sample of 8,513 people.
The findings suggest that around one in five people aged 18 to 64 in Scotland have experience of entrepreneurial activity.
However, researchers warned that opportunities to start and sustain a business remain unevenly distributed, with differences between regions and genders.
Among 18 to 24-year-olds, participation in early-stage entrepreneurship has remained steady at around 12 per cent since 2020.
Researchers said this contrasted with wider UK concerns about rising economic inactivity among young people.
Young men and women in Scotland were participating in early-stage entrepreneurship at roughly similar rates, but established business ownership was considerably lower among women aged 18 to 24 than their male peers.
The report also found that young people who were not currently involved in entrepreneurial activity often had positive attitudes towards starting a business and were more likely to identify potential start-up opportunities than other groups.
Across the wider working-age population, a gender gap remained.
In 2025, 8.7 per cent of working-age women in Scotland were running or setting up a new business, compared with 12.2 per cent of men.
The research also identified significant differences between regions. East Central Scotland recorded an entrepreneurial activity rate of 13 per cent, while West Central Scotland led the country at around 14 per cent.
By contrast, Eastern Scotland, defined in the report as the area north of the Firth of Forth encompassing Angus, Dundee City, Clackmannanshire, Fife, Perth and Kinross, and Stirling, recorded a rate of nine per cent.
Women’s participation in early-stage entrepreneurship was particularly low in this region, at 4.6 per cent.
The researchers said dividing the former Eastern Scotland region into two areas had helped reveal disparities that were previously less visible.
They highlighted the importance of targeted support for areas that risk being overlooked, particularly communities between the central belt and Scotland’s more peripheral regions.
The report also found that entrepreneurial activity among minority ethnic groups in Scotland continued to outpace that of White Scots, at 21 per cent compared with 11 per cent.
Access to business support was another area examined by the research. Across Scotland, 59 per cent of entrepreneurs said they were satisfied with the support available in their area.
However, satisfaction varied across the country, with Southern Scotland, the Highlands and Islands, and Eastern Scotland recording levels below the national average.
Around two-thirds of working-age adults across all regions believed that most people considered starting a business to be a good career choice.
Dr Samuel Mwaura, of the University of Edinburgh Business School, said the findings highlighted the potential for entrepreneurship to help address economic inactivity, particularly among young people.
He said: “This report identifies the big trends shaping Scotland’s entrepreneurship. It is clear that entrepreneurship provides a clear pathway to reduce economic inactivity, particularly among young people.
“Our spotlight has revealed some disparities in the regions and by gender – particularly in Eastern Scotland which appears to be a straggler region across a range of dimensions.
“The regional disparities highlight the importance of greater examination and tailored support to be directed to ‘liminal’ areas sandwiched between the central belt and the peripheral areas as these can be easily overlooked.
“Gender parity in opportunities for young women to start a business is encouraging, but the stark disparity in ability to fully establish and sustain businesses is a worrying concern that policy and enterprise support must address.”
Professor Sreevas Sahasranamam, of the University of Glasgow’s Adam Smith Business School, said the findings underlined the need for more targeted support.
He said: “The re-emergence of a four-percentage-point gender gap in early-stage entrepreneurship, particularly stark in Eastern and North Eastern Scotland, alongside regional differences in perceptions of enterprise support, highlights the need for more targeted, place-based interventions to ensure entrepreneurial opportunity is shared across all of Scotland.
“Scotland cannot afford a postcode or gender lottery in entrepreneurship if it is serious about unlocking inclusive growth, innovation, and economic renewal.”
Although Scotland has experienced steady growth in entrepreneurial activity in recent years, the report found that its start-up rate remained below England’s, with performance more closely aligned with Wales and Northern Ireland.
Cabinet Secretary for Economy, Tourism and Transport Stephen Flynn welcomed the findings, saying the record level of entrepreneurial activity suggested growing confidence among aspiring business owners.
He said: “It is incredibly encouraging to see this year’s GEM survey showing a record number of people in Scotland being involved in entrepreneurial activity since the survey began more than 20 years ago. It indicates that our young and aspiring entrepreneurs have growing confidence in the country’s conditions and business environment.
“We know there is more to do to ensure that more people, regardless of their gender, background or region have the opportunity and support to start and grow a business.
“The Scottish Government’s Programme for Government makes a clear commitment to creating a world-class entrepreneurial economy and are committed to backing our entrepreneurs at every stage of their business journey.”
The report was led by the University of Edinburgh Business School and funded by the Scottish Government.
Darren Pirie, head of accelerator and partnerships at NatWest Group, said the challenge was now to help more businesses survive and grow beyond the start-up stage.
He said: “This year’s report shows that entrepreneurial ambition in the UK is thriving. More people than ever are starting, running or considering a business, with entrepreneurial activity at record levels.
“The challenge now is helping more businesses survive, scale and succeed. At NatWest, we’re committed to supporting founders with the finance, expertise and connections they need to turn ambition into sustainable growth.”
The full report is available through the Global Entrepreneurship Monitor publications website.
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