The research conducted by Growth Flag, a business analyst firm, expects 12% of businesses in Perth and Kinross to achieve 20% growth over the next year.

Growth Flag created a tool with more than 90% accuracy in forecasting which businesses will achieve 20% growth in the next year and found that the national average sits at around 10%.

The analysis also highlighted that the area has a diverse range of small to large businesses and that the region has higher proportions of high-growth potential businesses than the UK average across all key sectors.

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SNP MP for Perth and Kinross-shire Pete Wishart has welcomed the analysis and said the local authority is “filled to the brim” with fantastic business.

“This recognition is a fantastic vote of confidence in Perth and Kinross’s local economy,” he said.

“Perth and Kinross is filled to the brim with fantastic businesses of all sizes. Throughout my time as an MP, I have had the pleasure of speaking to hundreds of them, and have seen first-hand their resilience, creativity and innovation.

(Image: Colin Mearns)

“Now more than ever, it is vital that we capitalise on this momentum to ensure that Perth and Kinross continues to be a top destination to do business for generations to come.”

The data also showed that the Perth and Strathallan ward areas had the highest levels of business growth.

SNP MSP for Perthshire South and Kinross-shire Jim Fairlie added that the analysis highlights the area’s ambition to be Scotland’s food capital with a growing food and drink sector.

He said: “This is massive news for Perth in Kinross. Being identified as having the strongest business growth potential in the whole of the UK, with significantly higher growth expectations than the national average, is a testament to the array of talent we have here.

“Particular recognition has been given to our food and drinks sector, our diverse range of enterprises, and our emerging status as a leader in the energy-transition sector.

“From the earliest days when I established Perth Farmers Market in 1999, I always believed Perth could and should be the food capital of Scotland. This recognition shows that that ambition is being realised.

“All focus now needs to be on cementing our place at the top, and I will certainly be playing my part in achieving that.”

Nathan Shoesmith, insights and analysis at Growth Flag added: “It is fantastic to celebrate the strong growth potential of businesses in Perth and Kinross.

“The data has shown consistently strong performance by businesses in the area over recent years, and this year our analysis has identified Perth and Kinross as having the strongest business growth potential for 2025.

“This marks a really positive picture for businesses in Perth and Kinross and I look forward to seeing their continued growth over the coming year.”