As the economic outlook at home continues to worsen, Scottish companies are increasingly looking for opportunities in new markets.

But to the frustration of the consultant Charles Cormack, too many eyes in this country remain focused on the West rather than the East.

Cormack is admittedly a little biased, as he has been helping firms do business in the Baltic states for the last six years, but he remains puzzled as to why many Scottish firms are ignoring the phenomenal growth stories in Latvia, Lithuania and Estonia.

“I am not sure exactly why this is, but I do know that while our business development agencies generally do a good job, there is a fascination with the United States, which means we do not always see opportunities closer to our own doorstep,” he said. “Maybe that will change as the US suffers from the slowdown, but the window of opportunity is short and if we don’t take advantage, others will.”

Cormack believes there are a number of factors that make the region attractive to Scottish business. “The Baltic states are small but fast-growing markets and are strategically placed for companies wanting to explore eastern and central Europe as well as Russia,” he said.

“These countries are full of companies who want and need foreign investments and have low corporation tax rates — but, for some reason, many in Scotland are not looking.”

Cormack wants to change all that. He set up Cormack Consultancy six years ago after seeing at first hand the possibilities in the Baltic states.

The company now has offices in Edinburgh, Riga in Latvia, and Kaunas in Lithuania and representation in Tallinn in Estonia. It has helped more than 40 firms do business in the states.

The outlook remains good, according to Cormack, not least because the Baltic states have access to significant EU structural funds for a number of years.

Growth in the region has been particularly strong since 2000, when the states began preparing for accession to the EU, which happened in 2004.

Between 2000 and 2007, the Baltic states had the highest growth rates in Europe, with Estonia and Latvia growing by more than 10% and Lithuania a little less than 8%. However, Lithuania is still seen as the most robust economy in the region.

Unemployment in the states has fallen below the EU average and they are all due to adopt the Euro in 2010, but as relative newcomers they are susceptible to the problems associated with the downturn. Cormack, however, feels they are well placed to ride out any problems that may arise.

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