Most owners of small businesses in Scotland think life is about to get harder for start-ups, according to research which suggests the picture is bleaker in other parts of the UK.

In a survey sponsored by Microsoft, market researchers found 71% of respondents in Scotland said they expected conditions for starting a business will worsen over the coming year.

The findings point to growing fears that the widely-predicted slowdown in the economy in the wake of the global credit crunch will start to impact on firms in Scotland, although the key housing and employment markets remain in good shape north of the border.

With 81% of businesses in the UK predicting that conditions will deteriorate, the study indicates that firms in Scotland remain in better heart than rivals elsewhere.

Despite concerns that the effort of some leading banks to bolster their balance sheets would lead to cuts in lending to firms, 94% of respondents in Scotland expected to be able to support business growth in 2008 using traditional funding sources.

However, development experts charged with trying to boost Scotland's sluggish business birthrate may be concerned by the finding that some 38% of all respondents would not encourage others who are thinking about starting up in business.

Gordon Frazer, managing director of Microsoft, said lack of confidence could be a bigger issue than lack of funding: "It seems that there is not enough being done on the ground to encourage people to take their dreams and turn them into reality.

"With a good idea, a lap-top and a spare room you could set up a business for the price of a family holiday."