THE number of businesses in Scotland has risen to a record high with figures up by 50 per cent since records began over a decade ago.

In total, there were 361,345 private sector businesses operating in March 2015, the highest since figures started being compiled in 2000 and employing around 1.2million people.

According to the Scottish Government's chief statistician, there has been a year-on-year increase of almost 8 per cent between March 2014 and March 2015.

Over the longer term, the total number of businesses in Scotland has increased by more than 50 per cent between 2000 and 2015, an increase of 121,375 businesses.

Explanations for the rise include the rise in IT and online employment, student start-ups and redundancy payments since the global economic crash being ploughed into new businesses.

A recent survey found that early-stage entrepreneurial activity exceeded the average rate in Denmark, Finland, Ireland and Norway, the so-called Arc of Prosperity, and matched levels in 20 innovation-driven economies.

Other factors cited include lifestyle changes, with more people adopting the 'career portfolio' approach to their professional life, essentially dabbling in two or three fields.

At the same time, grants and support networks for start-ups has developed in recent years.

One major business umbrella body welcomed the figures as promoting social mobility and "making communities more resilient to global economic shocks".

Colin Borland, of the Federation of Small Businesses, said: “More and more Scots are taking the plunge and going it alone. But this isn’t just a story about the march of the one man bands.

"We have also seen an increase in the number of businesses who are employing staff or trading above the VAT threshold.

“If we’re serious about driving social mobility and building a recovery that doesn’t leave big parts of the country behind, then we need to embrace entrepreneurship.

"Going into business can help you break through the petrified social structures that are holding you back and realise your full potential.

"And the more people we have setting themselves up in business, the broader and stronger their local economies become, making communities better able to benefit from a rising economy and more resilient to global economic shocks.”

The biggest rise was among unregistered businesses, small traders who are not registered for VAT and PAYE.

This figure rose by 13.2 per cent between March 2014 and March 2015, to 191,010 businesses.

The number of registered businesses also rose, by 2.3 per cent, to 170,335.

Deputy First Minister John Swinney said: “It is hugely encouraging that there are now a record number of businesses in Scotland, creating jobs, generating inclusive growth and demonstrating the overall strength of the Scottish economy.

“In Scotland’s Economic Strategy we identified increasing the business base as a key driver for growth and competition across the economy and I am pleased to see that we have made improvements in this area, and we will continue to do so, supporting businesses to start and grow through Business Gateway and our enterprise agencies.

“In addition, recent figures show that the Small Business Bonus Scheme (SBBS) has benefited more than 99,000 commercial properties in Scotland by either eliminating or substantially reducing business rates.

“We will continue to do all that we can to unlock Scotland’s huge entrepreneurial potential, supporting businesses to flourish and grow, with the huge benefits that this brings for everyone in Scotland.”