Scottish Enterprise forecasts strong economic return from its investment
Scottish Enterprise has revealed spending plans which have the potential to generate an additional £2 billion for Scotland's economy by 2020.
The forecast is included in the agency's 2010-13 business plan, which was published today.
The plan sets out a range of activities and projects that Scottish Enterprise will deliver over the next three years to help accelerate economic recovery in Scotland and prepare for long-term growth.
An independent economic impact assessment on the plan highlights that for every pound Scottish Enterprise invests during 2010/11, an additional £8.80 will be generated for the Scottish economy, equating to an extra £2 billion for Scotland's Gross Value Added (GVA) by 2020.
In the next year, Scottish Enterprise will invest over £226 million in supporting Scotland's companies, sectors and the wider business environment. This includes:
- £98 million of direct business support
- £29 million to deliver specialist projects within key sectors such as life sciences, renewable energy and financial services.
- £98 million to develop the business environment, focusing on increasing the availability of risk capital for Scottish companies and improving Scotland's infrastructure to support key sectors
Scottish Enterprise chairman, Crawford Gillies, said: "In the next three years, we aim to play a key role in delivering long-term, sustainable growth for Scottish companies, in support of the government's wider economic strategy.
"This business plan maps out our priorities and shows where we will focus our efforts to ensure we have the greatest impact on accelerating economic recovery and creating a more globally competitive Scottish economy."
"We recognise that we can't achieve this impact on our own. With increasing budget pressures across the public sector in Scotland, we are looking to work in new ways with our partners to deliver more for less and truly have a transformational impact on Scotland's economy."
Lena Wilson, chief executive of Scottish Enterprise added: "We recognise the challenges our economy continues to face but we need to play to our strengths, maintain our ambition and really start to think about Scotland's economy in an international context.
"By putting in place the right support for our companies, our sectors and our business environment, we can remain responsive to the challenges while at the same time investing in the opportunities for growth."
The business plan details a number of activities to support economic growth over the next year, including:
- Support 500-650 companies to improve their operations and become more efficient through programmes such as the Scottish Manufacturing Advisory Service and Lean Management programme.
- Intensive hands-on support for at least 18 high-growth start-up companies, which have the potential to grow into £5 million businesses over the next three years.
- Attract at least 2400 high value jobs through inward investment to boost employment in Scotland's key sectors.
- Support for 700-800 companies to access new international markets, with up to 150 of those significantly increasing their international revenue as a result.
- Stimulate an additional £65- £75 million of business investment in research and development through the R&D grant programme.
- Support 400-550 companies to explore new ways of working through a range of innovation advice and support.
- attract more than double the contribution from the private sector in high impact business infrastructure projects compared with SE's own investment
•Achieve a ratio of at least 2:1 of private sector investment to SE's co-investment in Scottish companies.
Scottish Enterprise will also focus on identifying new and emerging opportunities on the global stage that will help to transform Scotland's economy.
Ms Wilson added: "We know that many of these opportunities will emerge in the key sectors where Scotland has world-leading strengths and existing competitive advantage.
"Our capability and unique resources in offshore wind, for example, means there is a huge prize for Scotland's economy if we are able to seize the opportunities that exist in this sector. There are similar opportunities across other sectors such as life sciences, digital media, financial services, food & drink and tourism.
"However, we are operating in a fast-moving global economy and clearly opportunities will arise in other sectors. The challenge for us is to be able to maintain our focus on the areas which will have most impact on the Scottish economy, while being agile enough to adapt to new opportunities as they emerge, and converting them into an economic return for Scotland."
Notes to Editors:
The budgets for 2011/12 and 2012/13 set out in the Scottish Enterprise Business Plan are provisional and will be subject to the completion of the Scottish Government's Spending Review.
The table below shows the forward projection of the GVA (net additional) impact that will result from our expenditure during 2010/11. The cumulative impact figures are measured in net present values terms.
Investment in support of:
2010/11 Expenditure (£m)
Cumulative
Net Present Impact
at Year 3
(£m)
Cumulative
Net Present Impact
at Year 5
(£m)
Cumulative
Net Present Impact
at Year 10 (£m)
Globally Competitive Companies
99
230
415
730
Globally Competitive Sectors
29
20
50
120
Globally Competitive Business Environment
98
140
360
1,150
Total
226
390
825
2,000
To download a full copy of the Scottish Enterprise Business Plan 20010-13, visit: www.scottish-enterprise.com/businessplan
For more information contact:
Neil McInnes
Scottish Enterprise
t:0131 313 6196
m:07881 517712
e: [email protected]
Laura Suárez
Scottish Enterprise
t:0141 228 2726
m:07747 007256
e: [email protected]
Scottish Enterprise is Scotland's main economic development agency. Working in partnership with industry, academia and the public sector, SE aims to help make Scotland a place where business can thrive and key industries can be competitive. Its focus is to help businesses grow, encourage greater innovation and create the right conditions for companies to access property, markets and finance to increase productivity and increase Scotland's ability to compete internationally.
Scottish Enterprise is working with the Scottish Government to adapt its business support to respond to the rapidly changing economic environment and contribute to the government's wider Economic Recovery Plan.
We have identified the following priorities, which we believe offer the biggest potential to accelerate Scotland's recovery:
Support companies to expand into new international markets
- Help companies to invest in innovation
- Encourage companies to invest in their business and their workforce
- Position Scotland as a highly competitive location for with overseas investors
•Work with Scotland's Industry Advisory Groups to deliver industry-led strategies, that identify and respond to global opportunities