NATIONAL economies live and die by the strength and proliferation of their start-ups and Scotland is no different.

Without vital grassroots businesses coming through, our standing as an innovator and fertile environment for new enterprise is vastly diminished on the global stage.

I therefore took great interest in reading a recent report by the Bank of Scotland on the number of businesses starting up across the country over the last five years — and it made for surprising reading in many regards.

The findings noted that there had been a three per cent drop in the number of businesses starting in Scotland since 2011 — compared to a 19 per cent drop for the rest of the UK — and it seems new business is holding up well north of the border.

Of particular interest was the Orkney Islands, which leapt by more than a third from just 83 in 2011 to 118 in 2016.

A 42 per cent increase is a fantastic achievement and certainly confirms Visit Orkney’s strapline that “there’s no other place in the British Isles quite like it” — especially if you are an entrepreneur.

The Highlands have seen an increase of 15 per cent from 1,180 new start-ups in 2011 rising to 1,354 in 2016 while Aberdeenshire’s jum-ped 10 per cent.

That’s great news for the north-east and, with confidence in North Sea oil at an all-time low, new start-ups creating employment and bringing money into the local economy can only be a positive step.

I’ve stated in this column many times before how Brexit uncertainty has seriously shaken business confidence within Scotland, and I suspect this will continue for many months with the entire withdrawal process continuing for two years.

The Bank of Scotland said that the recent downward trend in new business start-ups was “likely to be a response to the uncertain economic environment”.

Indeed, with Glasgow ranked 15th in the report, declining by just over one per cent, and Edinburgh ranked 21st, with start-up numbers falling by almost seven per cent, it seems entrepreneurs in Scotland’s largest cities are putting the brakes on investment and growth.

Such uncertainty is no surprise. However, I feel that the Scottish government could be doing more to reassure our business community and those who want to make 2017 the year to start their own company.

With start-ups and small businesses employing over 1.2million people across Scotland, Holyrood’s priority must be to help spark small businesses into life — and the time is now.

With the Federation of Small Businesses (FSB) recently reporting a “confidence gap” effecting 55 per cent of Scottish enterprises, the state of the domestic economy is the biggest barrier to growth for many and must be addressed sooner rather than later.

With South Ayrshire, Dumfries and Galloway and Argyll and Bute start-ups all declining by more than a fifth, the government must end talk of a second independence referendum for now, and push on with how we will make Brexit work for all of Scottish business.

With a more stable outlook going forward and a proper plan in place, there will be plenty of opportunities out there for start-ups.

I know the risks associated with going it alone better than most, but with determination and a good business plan, the rewards are plentiful.

Let’s hope that when we revisit start-up figures in the next five years, we’ll see Scotland outshine the rest of the UK.

GREAT NEWS THAT BABY BOX SCHEME IS BOOMING

IT WAS great to hear that Holyrood’s baby box scheme has proven a big success following a recent pilot.

The government project aims to tackle deprivation and give every child in Scotland the best possible start in life by encouraging new parents to better engage with their child and provide them with essentials.

All infants born in Scotland will go home from the hospital with various items including clothing, bedding, nappies, a baby book and toys — while the box itself cleverly doubles as a cot.

The pilot started in Clackmannanshire and Orkney and is set to be rolled out nationally by the summer which really is fantastic news.

It’s already received glowing feedback from parents that have benefited so far, and with such a simple idea, I don’t foresee any major issues with its sustained success.

The boxes, I feel, celebrate a little bit of what Scotland has to offer, considering the design of the packaging itself was picked from outstanding entries to a competition run by the V&A Museum of Design in Dundee.

The box also contains a poem entitled ‘Welcome Wee One’ by Scottish poet and novelist Jackie Kay, which I think is a lovely touch.

The whole concept of the baby box was inspired by a project in Finland but I think Scotland has adapted it well to suit our country’s own unique needs.

It would be brilliant to see some local and even national businesses backing the campaign.

It would help to help supply more of the items needed for the boxes as the campaign is rolled out across the country.

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Dear Shaf,
I run a small business which is a limited company. I have been offered a good job and I am going to pay everyone and close the company down.
Rather than incur the cost of an accountant to do this, I am going to do it myself then have the company struck off.
What happens to all the assets of the company ­— the computer, desks and the small amount of stock when the company is struck off? Is doing it myself the correct approach?

SHAF SAYS: You are quite correct for small companies with no debts and limited assets it is easier to strike off the company rather than appoint a liquidator. However if your affairs are as tidy as you claim, it may be relatively inexpensive to appoint a liquidator to deal with the closing of the company. It will also provide you with peace of mind that it is done correctly. If you do decide to do it yourself and have it stuck off, it is important that you sell all the assets of the business first. If the company has assets when you close down ownership, all the assets will pass to the Crown.

Dear Shaf,
I own a business-to-business services company. I am finding it quite difficult to get in front of directors of large businesses to tell them about the services we can offer. Do you have any tips on how to speak to them?

SHAF SAYS: A friend of mine runs a similar business and he uses LinkedIn to generate a significant amount of leads for his property services business. It is his best method of marketing for lead generation to principals. He also attends a number of network events which are geared to principals of companies. Have a look at directorsdinner.com

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IT MAKES ME LAUGH

I HAD to laugh when I read that some diners might be charged a penalty for leaving excess food on their plate.

Taza, an all-you-can-eat Indian buffet in Dundee, has created a cardboard cut-out for customers to measure the food left on their plate after they have finished their meal.

If the leftovers don’t fit within the measure, then they’ll face a £2 fee.

It’s a crazy idea but one that I fully support as it was introduced to combat the excessive volume of food that is needlessly wasted.

This Indian restaurant alone was wasting 600kg of food per week.

The cardboard cut-out idea shouldn’t necessarily be in all restaurants but I like the logic behind it and hope it helps to trigger a change in attitudes.

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IT MAKES ME CRY

IT was disappointing to hear that Edinburgh’s Christmas and Hogmanay events face being downsized this year as a result of funding cuts.

Both of the capital’s events have been run for the last four years under a joint £1.3million contract with two companies — Unique Events and Underbelly – the latter of which is also involved with the Edinburgh Fringe Festival.

That’s potentially set to change as new contracts suggest drastic reductions to festive event budgets. These occasions reported record high visitor numbers in 2016 and are said to be worth £240million to the economy.

We are risking downsizing a major annual boost for Scotland’s coffers.