Meeting of the Parliament 22 May 2019
I thank the convener, the committee and all those who took part in the inquiry by sharing their views. Their contributions shaped an insightful and highly relevant report on the state of business support in Scotland. As Mr Lindhurst set out in his opening remarks, the committee’s report comes 10 years after the passage of business support, through business gateway, into the hands of local authorities. This is therefore a highly appropriate juncture at which to consider these matters.
The report’s findings bear open and frank discussion. I am pleased to have the opportunity—along with members from across the chamber—to contribute to that discussion this afternoon.
Supporting businesses effectively in Scotland is an absolute necessity. In particular, I am clear that small and medium-sized businesses are no less than the bedrock of the Scottish economy, given that they make up the overwhelming majority of Scotland’s business base. Their needs are in constant flux, changing due to pressures from outwith or within and in response to new conditions in which they find themselves operating.
It is therefore crucial that, in turn, our system of business support adapts to those changes, remaining responsive, appropriate and tailored to the needs of its users. That is essential for businesses to feel empowered to succeed and for our economy to flourish. Business gateway delivers a tremendously important service throughout Scotland. However, it simply cannot, as it operates today, be as responsive as businesses need it to be. I will take a moment to revisit the successes of business gateway and then I will build on that point.
As Gordon Lindhurst rightly said, there is a good story to be told. It is important that we properly acknowledge and reflect on the really effective support that business gateway provides every day.
Late last year, as part of small business Saturday, I visited Indeglås, which is a contractor and distributor of specialist glass products that is based in Cumbernauld in my constituency. It provides
“architects, designers and construction companies with advanced industry knowledge, providing solutions to transfer light to the heart of buildings”.
With support from business gateway, it has delivered award-winning campuses for Glasgow School of Art and the City of Glasgow College, along with a range of other impressive projects.
All the other finance and economy ministers have seen examples first hand, too. The Minister for Public Finance and Digital Economy, Kate Forbes, for example, visited Advantures in Inverness. It builds camper vans for rent that allow people to explore the Scottish Highlands in vehicles that are constructed from as many local and sustainable products as possible. To ensure that as many new customers as possible could reach its new website, it sought help from business gateway and received one-to-one digital boost support.
The Minister for Trade, Investment and Innovation, Ivan McKee, visited B-DACS, which is a family-run air conditioning and ventilation business. It operates throughout Scotland and has grown substantially over the past 15 years. It has won a number of accolades and employs more than 20 people as well as being a living wage employer. It received support from Glasgow City Council to develop a growth plan and workplace innovation funding to support staff development.
In March of this year, the Cabinet Secretary for Finance, Economy and Fair Work, Derek Mackay, paid a visit to Elevator UK in Aberdeen, which is a business gateway deliverer. I know that members of the committee also visited it, and, like those committee members, the cabinet secretary saw evidence of the collaborations that put Elevator UK and business gateway at the heart of the local business ecosystem.
Those are just some examples of the excellent outcomes that business support can yield for many users.
It is right to acknowledge the diligence, commitment and expertise of the many business gateway staff across Scotland. However, in doing so, we must also acknowledge that things can be improved. The Government’s attitude to improvement is embodied in that approach: it is right to recognise and celebrate good work, and there are reasons to be proud of that work, but we should never be so proud that opportunities to make things better are ignored.
We undertook the enterprise and skills review in 2016 on that basis: we acknowledged that there were issues and wished to address them. In the same way, the Economy, Energy and Fair Work Committee’s report raises a number of issues, which we readily acknowledge. We are here not to debate whether business support could be improved but how it can be best improved.
Adopting the spirit of collaboration is essential if we are to learn from the report and proceed in the right manner. I am pleased to say that we have already received supportive contributions and opened up productive dialogue with a number of partners on that basis. I cannot comment or respond for COSLA on the committee convener’s perspective on its response—I am sure that he will follow that up with COSLA. However, we have engaged with COSLA, and we have engaged, and always will engage, with the Federation of Small Businesses and with Scottish Chambers of Commerce and its local networks. The FSB has been clear and consistent in raising issues relating to transparency and accountability. Like the committee, the Government agrees that we need to address those issues in order for businesses to know where to go if things go wrong and to drive forward improvement.
Throughout the process, we must not lose sight of the pivotal role of local government. It is critical that local authorities remain key partners in the process, as they are close to many of the issues in their areas.
A collaborative approach is central to our existing policies on entrepreneurship and enterprise support, and that has already generated remarkable results. In that regard, I want to talk about the Scotland can do initiative, which Gordon Lindhurst mentioned. I say to him genuinely that, if the committee wants more details and any more information about that initiative, we will always be happy to provide that. The Scotland can do initiative embodies the principles of the collaborative approach. The platform was developed with our public, private and third sector partners, and it represents our shared ambition to become a world-leading entrepreneurial nation. It emphasises collaboration and champions an approach in which sustainable growth and innovation go hand in hand, bringing wider benefits to society.
The ethos that positive outcomes occur where partners work from common principles towards common goals underpins our work. We are joined by a thriving community of partners that are committed to improving the resources that are available to their peers. We look to that community to help develop and implement policy, and its energy and commitment have allowed us to deliver an enormous collective impact.
Members should make no mistake: that approach is paying off. Since the introduction of the Scotland can do initiative in 2013, the effectiveness of Scotland’s business support environment, as measured by the global entrepreneurship and development index, has risen from 13th in the world to fifth—ahead of all other parts of the United Kingdom. I fully believe that we can bring that energy and good will to bear on the committee’s recommendations.
Those developments speak to an attitude that is, I believe, shared by all of us in the chamber and by our partners. Identifying areas in which improvements can be made does not mean laying blame at anybody’s door. Instead, it is an opportunity to foster constructive and collaborative dialogue, and to explore together how the needs of Scotland’s businesses can best be met. Along with our agencies and wider partners, we are already committed to the work that is necessary to make that happen.
I hope that that engagement will continue in the chamber today as we exchange ideas about how best to improve business support. The debate is rightly one of the first steps. I look forward to hearing members’ speeches on getting on together with the work at hand.
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