In 2010 there were 6795 firms registered in the region, but that had dropped to 6670 by 2017, according to new research by the Federation of Small Businesses (FSB).
However, Scotland overall saw a 13 per cent increase in the number of registered businesses during the same period — with every other Scottish local authority area also experiencing a rise.
Now the FSB wants the planned new South of Scotland enterprise agency to take action to boost the number of firms locating locally.
Regional leader Brian Sherman, of Dumfries, pictured above, this week said: “These worrying figures show that this region has missed out on the recent rapid growth of businesses in Scotland.
“It could be because we have more businesses closing down as people get older and local economy has been sluggish, or because we have fewer start-ups than in other regions.
“The new enterprise agency for the South of Scotland should look into what has been happening and where the decline is notable.
“If this trend continues, we could be left behind whilst the rest of the country sees start-ups booming and business scene thriving.”
Mr Sherman added: “The new enterprise agency will have a vital role to reverse this trend, support local smaller firms and create a more diverse business and employment base.
“We need to make sure that boosting business numbers and supporting smaller firms will be at the heart of its strategy.”
