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      Scotland’s next decade won’t be shaped by a single industry, policy choice or political moment, but by the collective momentum of a nation that has always reinvented itself. From its engineering heritage to its reputation for innovation and global connectivity, Scotland is once again entering a defining chapter.

      Across the country, you can feel that shift. From the energy transition in the North‑East, to financial innovation accelerating in Edinburgh. From manufacturing renewal across the central belt, to university‑powered research clusters driving breakthroughs in fields from data and AI to advanced materials and life sciences. And increasingly, Scotland’s fast‑growing space sector is taking its place on the world stage, with the UK’s first licensed vertical rocket launch at SaxaVord Spaceport in Shetland, and cutting‑edge satellite innovation positioning the country at the forefront of the global space economy.

      At the same time, global geopolitical developments are reshaping established trade flows, while rising protectionism continues to exert pressure on global markets. Against this backdrop, businesses are actively rethinking how they invest, operate and compete - a shift that is reinforcing Scotland’s need for clarity, long‑term planning and strategic ambition.

      With a pivotal Scottish Election on the horizon, the decisions taken next, around investment frameworks, economic policy and regulatory certainty, will shape the pace and direction of that progress.

      Vishal Chopra
      Vishal Chopra

      Senior Partner for Scotland

      KPMG in the UK

      A confidence grounded in reality

      This momentum is reflected not just in what Scotland is building, but in how its business leaders feel about the road ahead. Confidence remains high - 84% of Scottish businesses are optimistic about the future - but it’s a grounded, pragmatic confidence shaped by the realities highlighted in Scotland’s evolving economic landscape.

      As organisations adapt how they invest, operate and compete, leaders are broadening their definition of success. It’s no longer only about short‑term performance; it’s about building enterprises equipped to navigate uncertainty and capitalise on new opportunities. That means thinking differently about supply chain resilience, risk exposure, digital capability and workforce readiness.

      You see that shift taking shape across sectors:

      • Energy companies preparing for a more diversified future.
      • Financial services firms influencing global markets.
      • Food and drink producers boosting competitiveness through quality and innovation.
      • Manufacturers modernising operations and strengthening productivity, seeking opportunities for growth through new global trade routes.

      And as Scotland approaches a pivotal election in May, a consistent message is emerging: businesses want stability, clear policy direction, and an economic environment that gives them the confidence to invest for the long term.

      Innovation at a crossroads

      That long‑term mindset is also reshaping how Scottish businesses think about innovation. As leaders look to build organisations that are resilient, competitive and investment‑ready, many are finding themselves balancing two major priorities. On one side is the continued push for digital transformation - AI, automation and stronger data infrastructure. On the other is the growing need to strengthen operational resilience, respond to regulatory change and prepare for the economy Scotland is moving towards.

      This balance is influencing where investment happens first. 35% of businesses are prioritising technology and 32% AI, both slightly below the UK average, however this doesn’t signal hesitation. It reflects a deliberate sequencing as organisations focus on the foundations they need in place to scale digital transformation effectively.

      At the same time, risk awareness is heightening. From cyber threats to supply‑chain vulnerabilities and shifts in regulation, Scottish businesses are paying closer attention to a widening set of strategic risks. With CYBER UK, the UK’s flagship cyber security conference, taking place in Glasgow in April, the national spotlight on digital resilience has never been sharper. It’s timely, too: 68% of businesses say cyber risk is increasing, and 51% are tracking a broader set of risk categories. This growing focus reflects a landscape where organisations are not only defending against emerging threats but also re‑evaluating how resilience underpins long‑term competitiveness.

      The result is a more intentional approach to innovation - one that embraces new technology and opportunity, but with a clear emphasis on doing so responsibly, securely and with long‑term competitiveness in mind.

      A talent story powered by purpose

      This more intentional approach to innovation is also shaping Scotland’s talent landscape. As businesses balance digital transformation with long‑term resilience, they are increasingly focused on the people and skills required to deliver that future. Recruitment confidence currently sits at 47%, broadly in line with the UK average, but the factors influencing career decisions are evolving.

      Across Scotland, purpose and impact are becoming powerful drivers, particularly for younger professionals. Many want to work for organisations that are forward‑looking, values‑led and contributing to Scotland’s wider economic ambition. That alignment of purpose is becoming a competitive advantage.

      Scotland is well positioned to attract and develop this talent. The country benefits from world‑class universities, thriving innovation hubs and expanding career pathways across technology, engineering, financial services and high‑growth sectors.

      But businesses are clear: skills development and job creation will be critical in the decade ahead. Leaders are looking for commitments that will help the workforce grow in line with Scotland’s aspirations and ensure the country can fully realise the opportunities ahead.

      Scotland’s decisive decade

      All of this - the momentum in innovation, the evolving skills landscape and the growing clarity of purpose within Scottish businesses - points toward a nation entering a pivotal period. Scotland now stands at the threshold of a decade that will shape its economic identity for a generation.

      Its strengths are clear: a diverse energy sector, a globally recognised financial centre, world‑leading universities and a growing track record in technology and innovation. Its ambition is equally evident, and businesses across the country are ready to build on that foundation.

      But turning ambition into outcomes will require the right conditions. Leaders consistently highlight three priorities:

      • Policy stability that gives investors long‑term confidence.
      • Clear, durable economic frameworks that enable growth across sectors.
      • Stronger collaboration between government, business and academia.

      With the Scottish Election now on the horizon, the opportunity is significant. The decisions taken in the months ahead can help Scotland articulate a bold, investable vision - one that strengthens competitiveness, accelerates innovation, and positions the nation as a leader in the global transition to a more resilient, future‑focused economy. The momentum is already visible: the Scotland Global Investment Summit, held in November 2025, showcased the country’s ambition on the world stage and highlighted the scale of international interest in Scotland’s capabilities. Building on that foundation, the choices made now will be pivotal in shaping Scotland’s long‑term economic trajectory.

      If the conditions align, Scotland is well placed not only to achieve its long‑term goals, but to become one of the world’s most dynamic, sustainable and forward‑looking economies - a momentum that will be on full display as Glasgow prepares to host the Commonwealth Games in Summer 2026, further showcasing the nation’s ambition and global confidence.

      These findings are just the beginning. Join the conversation and help shape Scotland’s next chapter - one defined by inclusive growth, innovation and long‑term opportunity.

      Read the full report: KPMG Private Enterprise Barometer 2026.

      Download the complete KPMG Private Enterprise Barometer 2026 to access in-depth analysis, practical strategies, and expert perspectives on the trends shaping the future of UK private businesses.
      Read your copy now and be part of the conversation shaping the next chapter of UK private enterprise.
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