The State of Growth Report
Perth And Kinross State of Growth Report
Understanding where future growth will come from is essential to building a strong and resilient local economy. The State of Growth report was commissioned in 2025 to provide Perth and Kinross Council with a comprehensive, evidence-based overview of the region’s business landscape, highlighting current performance, future growth potential and investment opportunities.
Conducted by Growth Flag - a predictive economic insight and business intelligence platform - the report identifies businesses and sectors most likely to drive growth in the years ahead, and provides a robust, evidence-based foundation for investment decisions and economic strategy across Perth and Kinross.
By enabling a clearer understanding of sector strengths and growth opportunities, Council can better target business engagement and strengthen investment propositions through data-led insight. By combining local knowledge with advanced analysis, the report also supports more informed decision-making across economic development activity, helping to position Perth and Kinross as a competitive and investable location within Scotland and the wider UK.
Key insights from the report
- Over 5,600 registered businesses operate in Perth and Kinross, alongside a significant number of independent and non-limited enterprises
- More than 11% of businesses are predicted to achieve high growth, above the UK average of around 9%
- Strong growth potential is identified across key sectors including food and drink, energy transition, financial services and the visitor economy
- The region demonstrates a diverse and resilient business base, with opportunities across both urban and rural areas
About Growth Flag
The report is underpinned by Growth Flag, a predictive economic insight platform that analyses UK businesses to identify those most likely to achieve significant growth.
Using a wide range of financial and business data, Growth Flag provides a forward-looking view of economic performance, enabling places to move beyond traditional, retrospective analysis and take a more proactive approach to supporting growth.
(Link to article about Growth Flag)
Top 10 facts: Perth and Kinross economy
- 5,600+ registered businesses operate in Perth and Kinross
- 6,900+ additional non-limited businesses (including sole traders and freelancers) contribute to the local economy
- Over 11% of businesses are predicted to achieve high growth, above the UK average of around 9%
- Perth and Kinross was ranked the UK’s top local authority for business growth potential in 2025
- 99.7% of businesses are SMEs, highlighting a strong entrepreneurial economy
- The average business age is 11.35 years, compared to 8 years across the UK
- Around 58% of businesses are located in rural areas, reflecting a diverse economic geography
- Over 600 businesses are expected to achieve 20%+ growth in the next year
- The visitor economy generated £964 million in 2024, supporting over 12,000 jobs
- Approximately 1,700 businesses operate in key UK growth sectors (IS-8), with around 240 identified as high growth potential