Businesses report rising cost impact on operations

Hundreds of businesses across southern Scotland took part in the survey

The vast majority of businesses and social enterprises in southern Scotland have seen rising costs impact their operations.

A survey carried out across Dumfries and Galloway and the Borders found 95% were facing challenges due to the issue.

The South of Scotland Business Panel Survey - carried out in June and July - also found confidence had fallen.

The number of businesses optimistic for the next 12 months had fallen to 40% from 52% in the previous study in February and March.

However, despite the challenges more than nine out of ten remained confident of their own viability over the next six months.

Jane Morrison-Ross said it was understandable business confidence had been affected by rising costs

The survey is part of a wider rural Scotland study in partnership with the Scottish government and Highlands and Islands Enterprise which currently takes place three times every 12 months.

South of Scotland Enterprise (SOSE) chief executive Jane Morrison-Ross said the findings highlighted the pressures currently facing businesses in the area.

"It is completely understandable that confidence has been impacted in the face of rising costs," she said.

"However, it is also encouraging to still see optimism and resilience strongly evident amongst the businesses and social enterprises who took part in the survey."

She said it highlighted what the priorities should be in helping businesses to creating a "thriving south of Scotland".

Zoe Meldrum, SOSE's economic research insights lead analyst, thanked the 600 businesses which had taken part.

"The business panel survey is really important in terms of allowing SOSE and partners, including the Scottish government, to get experiences and views of businesses and social enterprises in the south, and how best to support them," she said.