Hansard

I place on record my thanks to the excellent clerking team who supported the committee’s work throughout the inquiry. Our convener, Gordon Lindhurst, eloquently set out many of the main themes that the inquiry covered, as well as our conclusions.

Following the enterprise and skills review and the publication of the Scottish National Investment Bank Bill, which will require close co-operation with the enterprise bodies, our inquiry has been timely. Small and medium-sized businesses are the backbone of the economies of areas such as my region, the Highlands and Islands. That is particularly the case in the most rural and remote parts. Access to services such as business gateway is vital in supporting local businesses that are already established and nurturing the vast pool of untapped entrepreneurial talent across the region.

Although business gateway is, for many, the first port of call for business support, the committee’s report found inconsistencies in its co-ordination with existing agencies, leading to the cluttered landscape that was referred to by the Fraser of Allander institute, as well as by many members today.

During the committee’s evidence taking, I raised questions about the cohesion and collaboration between business gateway and key partners in local economic development, such as Highlands and Islands Enterprise. In many ways, the distinct geography and business environment of the Highlands and Islands is reflected in the institutions that support businesses locally. It is not long since the Parliament had to fight off the threat of HIE’s board being folded into the Scottish Government’s strategic board, which would have led to it losing its own identity and oversight.

The inquiry was an opportunity to meet a range of business support services in different parts of the country. Along with other members of the committee, I visited business gateway, HIE and four SMEs in the Highlands as part of the evidence-gathering process. As the report noted, ease of access to financial support was an on-going problem for some of those businesses. I met services in Orkney and Shetland, and the divergences and discrepancies were stark. For example, in both Orkney and Shetland, the services co-locate with Highlands and Islands Enterprise. However, in the Highlands, they do not.

The summary of the committee’s business support survey notes:

“In general, too many agencies involved, and the business support landscape is confused.”

The Scottish Government’s 2017 enterprise and skills review recommended that it should streamline services. The question therefore has to be asked: why has the co-location of services, and the integration of customer relationship management systems, not been made a priority?

More can—and should—be done to improve agency-to-agency referral, and to recognise that it is all too easy for rural firms to suffer from passive officialdom. A proactive approach is the best way forward, along with an appreciation of the challenges, particularly in productivity, that we have to address.

In its written response to the report, the Scottish Government said:

“The Enterprise and Skills Review concluded that the division of responsibilities between national agencies and locally delivered Business Gateway was right”.

However, given the lack of co-ordination in some areas, and the different approaches that have been adopted across Scotland, that is a difficult position to hold. It seems that there is no real clarity as to where those responsibilities lie, or ought to lie.

I will touch briefly on equalities. The committee’s report asks the Scottish Government and its agencies to review the funding streams that are available to new and existing female entrepreneurs. We know that economic growth simply will not reach its maximum potential until more women are supported to start businesses. Women’s Enterprise Scotland published research that showed that our economy would be boosted by millions if the number of female-led businesses matched the number of those that are led by men. Angela Constance and Jackie Baillie called on the minister to be more rock and roll. I think that they hope that he will be like Mick Jagger, but we will probably have to settle for Mick Hucknall. [Interruption.] I am sure that the minister will take that comment as he wishes.

I welcome the commitments that the Scottish Government made in its written response, particularly the commitments to encourage entrepreneurship in underrepresented groups, and to work towards a national women’s centre for business. I am sure that all members of the committee will be keen to monitor progress in that area over the coming months and years.

There were a number of positive contributions from around the chamber today. My colleague Dean Lockhart identified the key failings of the enterprise and skills review—as well as other aspects of Scottish Government policy—in relation to reducing the cluttered landscape in business support. He also highlighted, as did others, the lack of accountability and measurable performance, which, inevitability, lead to inconsistent delivery and a lack of real impact on many of the Government’s economic priorities.

Alexander Stewart highlighted his 18 years of experience as a councillor, as well as the lack of transparency and accountability. He also highlighted the particular needs of rural communities and businesses, which Colin Beattie also mentioned. Brian Whittle spoke about his own experience of engaging with business gateway as well as the frustrations of others with whom he has spoken about the responsiveness of the service and the administrative burden of seeking support.

Entrepreneurship is a fast-paced world and it is important that the support that is offered moves at a similar pace. Rhoda Grant mentioned the Bad Girl Bakery, which I and my committee colleagues very much enjoyed visiting. She also talked about late payments, which are a real issue for many SMEs

Andy Wightman highlighted the Irish model, and the importance of local services and their integration with the national strategy. Gordon MacDonald covered that area, too. Like others, Angela Constance expressed her disappointment with COSLA’s response—she is certainly not alone in that among committee members. Jackie Baillie highlighted the need for business gateway to provide a good service across the country and not just in one or two areas.

There is much in the work of enterprise bodies at the national and local levels that is to be commended. I have met many dedicated members of staff in services such as Highlands and Islands Enterprise and the local business gateway, and people have shown great commitment to driving forward our local economies and supporting local businesses that need support. However, the committee found clear structural flaws that cannot be ignored by the Government or COSLA. Practical national solutions with a local reach must be found, and there must be an emphasis on cohesion, decluttering and developing a national strategy that ensures that the business gateway has a clearer remit.

It is crystal clear that there is not a shortage of potential growth and talent in Scotland. The challenge to the Scottish Government is to seize the opportunity and deliver for Scotland’s economy.