Roundtable finds owner-managed firms display defiant resilience in tough market

That was the strong message that emerged from the first Scotsman Insider owner-managed business roundtable, which brought together founders, advisers, and investors.

The roundtable, the first of four planned special events, was attended by figures across a broad spectrum of the economy, including those working in hospitality, recruitment, healthcare, manufacturing, law, investment, and technology.

The event forms part of the Scotsman Insider OMB 100 series, which shines a light on the best-performing Scottish owner-managed independent businesses. It is supported by BGF, Burness Paull, Quilter Cheviot, and CT Accountants Advisers.

The discussion returned repeatedly to labour shortages, rising staff costs, and growing regulatory complexity, with participants clear that while growth continues, it is becoming more difficult to achieve.

Adam Clark, group director at Arnold Clark, said the impact of rising employment costs is being felt before businesses even begin trading.

“Costs are the biggest issue at the moment,” he told the gathering. “Before you even start trading, you’re dealing with a huge increase in your staff bill. That’s a real hit to absorb, and in this market you can’t always pass that on.”

That pressure is being compounded by structural shifts in the labour market. Ryan Bowman, founder of Bow Hospitality, claimed the post-Brexit environment has changed the composition of the workforce, creating new challenges for employers: “Before Brexit, you had a steady flow of younger workers coming into the sector. Now that’s gone, and we’re seeing an older workforce on the floor. That changes how you hire and how you train.”

The result is a more disciplined approach to growth, with businesses focusing on performance and efficiency rather than expansion at any cost.

Alongside those operational pressures, the roundtable highlighted a shift in how businesses think about scaling and investment, with greater emphasis on planning and structure.

Gemma Hamilton, head of origination at BGF, said clarity of strategy remains a defining factor: “A lot of owner-managed businesses get caught up in the day-to-day and don’t step back to ask where they want to be in five years. Without that, it’s very difficult to grow or think about an exit.”

That lack of long-term planning is often linked to a wider gap in access to experience.

Scott Davidson, director at Glencairn Crystal, observed that many businesses are still navigating growth without the benefit of practical guidance.

“You’re trying to grow, but you don’t always have access to the people or experience that would help you take the next step,” he said. “There’s a lot of experience in Scotland, but it’s not joined up. If that could be improved, it would make a real difference.”

Technology was another central theme for the roundtable participants, particularly the role of artificial intelligence (AI) and automation in offsetting cost pressures.

Paul Duffy, chief executive at Zudu,said that businesses need to focuson the fundamentals before adopting new tools. “Businesses are trying to adopt AI without having the right processes or data in place,” he said. “If those foundations aren’t there, the impact is limited. AI is a tool – the value comes from how you use it.”

Other roundtable guests pointed to more immediate productivity gains. Jon Quick, chief executive of tech firm Launchpad, said automation is already changing how work is done in sectors such as manufacturing.

He said: “In some cases, what was a four-person process can now be done by one person and a machine. That’s not about replacing people, it’s about freeing up time for them to focus on more important things.”

However, the discussion also highlighted the fact that technology adoption is not without its challenges. Scott Taylor, director at Change Recruitment, explained that uncertainty remains a key barrier.

“Businesses know AI and other tools can help, but there’s uncertainty about how to implement them and what impact they’ll have on roles,” he said. “The challenge is bridging that gap and helping businesses understand how to apply technology in a practical way.”

Beyond operations and technology, governance and structure emerged as critical factors in determining how successfully businesses scale.

Paul Mason, head of corporate finance at CT Accountants Advisers, insisted that alignment across leadership, ambition and governance is essential.

“When businesses scale successfully, it’s usually because there is alignment between the leadership team, the governance structure, and the level of ambition,” he told the roundtable. “If those things are aligned, you tend to see strong performance. If they’re not, that’s where friction comes in.”

That focus on structure is becoming increasingly important in a more cautious deal environment. Paul Scullion, head of corporate at Burness Paull, said more owners are actively considering their options: “We’re seeing more owner-managed businesses considering a sale than we have in the past. There’s still a strong appetite for deals, but owners are thinking more carefully about their options than they might have done previously.”

And, for advisers, the gathering agreed the challenge is ensuring that businesses are prepared.

Philip Pagan, corporate tax director at CT Accountants Advisers, said that many companies still enter funding processes without the necessary foundations: “We often see companies come into funding processes without the governance, reporting, or management information neededto support their plans.”

PARTICIPANTS

Adam Clark, group director, Arnold Clark

Ryan Bowman, founder, Bow Hospitality

Gemma Hamilton, head of origination, BGF

Scott Davidson, director, Glencairn Crystal

Paul Duffy, managing director, Zudu

Jon Quick, CEO, Launchpad

Jim Hall, founder, Clyde Munro Dental Group

Iain Atkinson, director, Eden Scott

Paul Mason, head of corporate finance, CT

Paul Scullion, head of corporate, Burness Paull

Scott Taylor, director, Change Recruitment

Jo Davidson, director of policy, Edinburgh Chamber of Commerce

Philip Pagan, corporate tax senior manager, CT

ROUNDTABLE KEY TAKEAWAYS

1 Early exits limit long-term growth

Strong businesses are often sold before reaching full scale-up, driven by de-risking, succession gaps, or uncertainty around the next stage.

​2 Caution around debt and investment

Many Scottish founders remain wary of external capital, slowing expansion compared with more aggressive markets.

​3 Lack of visible pathways to scale

Beyond early growth, founders often lack clear guidance on what comes next, turning scaling up a business into a trial-and-error process.

​4 - Fragmented support ecosystem

Advice, funding and expertise exist in Scotland, but are not always easy to access at the right time.

​5 - Lifestyle businesses by default,not design

Some Scottish companies plateau not through choice, but because the route to scaling further is unclear or feels too risky.

SCOTLAND STILL STRUGGLES TO CREATE BILLION-POUND BUSINESSES

Scotland produces strong businesses, but too few reach full scale. Participants at the Scotsman Insider owner-managed business roundtable questioned why more firms are not growing into billion-pound companies.

The issue, they argued, was not down to a lack of capability. Across sectors, Scotland has founder-led businesses with strong products, loyal customers and international potential. Instead, the constraints sit around mindset, structure, and support.

Several contributors pointed to a culture of caution – particularly around debt and external investment.

For some founders, the priority is stability rather than aggressive growth, leading to businesses plateauing or being sold earlier than they might in other markets.

Access to experience was also described as uneven.

While Scotland has successful entrepreneurs and advisers, many smaller firms struggle to connect with those who have scaled up businesses before.

Without that guidance, growth can feel like a “guessing game”, especially beyond the early stages.

There was also a sense that the ecosystem remains fragmented – support exists, but it is not always visible or easy to access at the point it is needed.