Scottish Business Pledge - Statistical Overview August 2016

Pledge Elements

As at 3 August 2016, 276 businesses had signed up to the Business Pledge – representing 0.2% of the Scotland’s registered business base. The table below shows the number and share of businesses signing up to each of the nine pledge elements.

Pledge Element Businesses % Share
Paying the living wage 276 100%
Not using exploitative zero hours contracts 276 100%
Pursuing international business opportunities 217 79%
Playing an active role in the community 204 74%
Investing in Youth 201 73%
Committing to an innovation program 197 71%
Committing to prompt payment 187 68%
Supporting progressive workforce engagement 160 58%
Making progress on diversity and gender balance 97 35%

Chart 1 below shows that 28 businesses are already fulfilling all nine elements and that 210 businesses (76%) are already fulfilling at least six of the nine elements.


Businesses signing up to the Pledge

To find out more about the signatory businesses, we have matched the 276 signatory businesses to the Inter-Department Business Register (IDBR). The IDBR is a database of all businesses that are VAT and/or PAYE registered. It was possible to match 246 of the 276 signatory businesses to the IDBR extract from March 2015. An IDBR match could not be found for 30 of the 276 businesses – the main reason for non-match was that the signatory business was relatively new and therefore not on the register yet.

Analysis of the 246 signatory businesses that could be matched to IDBR shows that:

The majority (69%) of signatory businesses were small, employing less than 50 people. However, as small firms make up 96 per cent of firms within the Scottish economy, proportionately more medium and large firms had signed up to the Pledge than these firms' share of the Scottish business base.1
The signatory businesses collectively provide 59,120 Scottish jobs, 2.4% of all jobs.
Nearly half (45%) of all signatory businesses operated in two broad sectors: 'information and communication' (22%) and 'professional, scientific and technical activities' (23%). In the overall economy, these sectors make up 5% and 19% of firms respectively. This may be linked to the fact that higher quality working conditions already exist in these sectors (e.g. better pay), making it easier to make the pledge.
The pledge businesses have a total of 835 business sites (offices, shops, factories, etc) across Scotland.

1Medium firms account for 15% of pledge signatories and large firms 16%; these firms respectively account for 2% and 1% of the Scottish business base overall.