It is home to the top five worst performing areas for start-up creation out of all 362, research by accountancy advisor UHY Hacker Young revealed.
The net number of start-ups being created in Scotland is 2.4 per 10,000 people, while the UK average is 13.2.
Aberdeen is the UK’s worst performing major city for new businesses created, with 18 more business closing than were opened in the city last year.
UHY explained that Aberdeen, the North Sea oil hub in the UK, has been hit badly by the downturn in oil markets.
Wales and Northern Ireland were the next worst areas for start-ups and the firm noted that 18 out of the 20 worst-performing areas were in the Celtic fringe.
Jon Warsop, UHY Hacker Young group chairman, said, “The number of net new business creation in Scotland should serve as a wake-up call to politicians on both sides of the border.”
“While the government’s eyes have been focused elsewhere, they have let Scottish businesses lag far behind.”
Last year, UHY said the top spot for business creation in the UK was City Road, which connects Old Street to Angel in London. The hub replaced Silicon Roundabout in Old Street, which saw the number of new start-ups fall by 70%.
The city of Warrington came in third, being one of only two areas outside of the capital to feature in the top 10.
In its new report, the firm urged central and Scottish devolved governments to provide more assistance to Scottish entrepreneurs.