Operating profits increased by 10.5% last year and turnover by 12.0%, with an average return on capital employed of 10.0%.
However, Scotland fell behind the rest of the UK in all three categories.
A broader survey of 3000 owner-managed businesses across the UK revealed a 13.2% growth in turnover and an 18.3% increase in operating profit, with an average return on capital of 11.4%.
Scottish businesses excelled in their positive treatment of employees, with pay awards averaging 5.3% compared to 4.5% nationally, and an average wage of £13,646. Only employees in southeast England earned slightly more, with a mere £32 difference.
Despite this, Scottish businesses lagged behind their English and Welsh counterparts in terms of job creation, with employee numbers increasing by only 3.3% compared to 4.3% nationally.
In Scotland, profits saw the most significant growth in Edinburgh and the weakest in Aberdeen, where operating profits dropped by 4%.
Jack McLaren, head of KPMG’s owner-managed business services in Scotland, noted that while Scotland may be trailing in some areas, Scottish businesses are still thriving and healthy.
“These companies are experiencing steady and sustainable growth. Given the high number of owner-managed businesses in Scotland, they should be recognized for their contribution to the country’s economic growth,” McLaren said.