Scotland’s technology sector continues to demonstrate remarkable resilience and growth, with a 5% increase in tech startups recorded in 2024. According to the latest analysis of Companies House data by audit, tax, and consulting firm RSM UK, a total of 1,663 new tech companies were incorporated in Scotland last year.
The data shows a total of 1,663 new tech businesses were incorporated in Scotland in 2024, up from 1,553 the previous year. Most UK regions and areas saw a year-on-year decline, except for Scotland, the north east of England and Northern Ireland.
This upward trend builds upon the strong performance observed in previous years.
In 2023, Scotland saw a 21% rise in tech company incorporations, with 1,553 new firms established.
The consistent growth in the Scottish tech sector underscores its position as a vibrant hub for innovation and entrepreneurship.
Hannah Atchison, associate director at RSM in Edinburgh, commented:
“It’s fantastic to see Scotland’s growth compared to other UK regions. Scotland, in particular, shines in the gaming industry. Nationally, video games rank among the top five subsectors for incorporation growth, which likely contributes to Scotland’s success. Additionally, Edinburgh’s robust fintech sector, rooted in its long-established financial services, is also a significant factor.”
Vishal Chopra, Scotland senior partner at KPMG UK, said: “Despite a challenging economic backdrop, the quality and resilience of Scottish businesses continues to shine through, with a strong end to the year in terms of VC investment. Edinburgh’s thriving life sciences and technology sectors have been a key driver of activity, showcasing the city’s ability to attract significant investment even in a cautious market.
“While investors remain measured in their approach, the fundamentals of Scottish businesses remain strong, and the growing focus on innovation and sustainability has put many in a strong position to deliver VC-backed growth this year.”
As Scotland’s tech sector continues to flourish, it’s clear that fostering an environment conducive to both startup creation and scalability will be crucial for sustaining this growth trajectory and maximising the economic potential of the country’s tech industry.