29 Aug 2024
By Martyn Kendrick, Director for Scotland at Bank of Scotland Commercial Banking
Entrepreneurs are the heartbeat of Scotland. We have a rich heritage for innovation and entrepreneurial ambition. Home to some of the most thriving ecosystems in the world, it’s exciting to see startups and scale-ups thrive across the country.
Edinburgh, recently dubbed the ‘beacon of the UK startup scene,’ will soon host the new Edinburgh Innovation Hub, a prime spot for entrepreneurs to establish HQs and enhance research collaboration with the neighbouring Queen Margaret University. Meanwhile, Glasgow’s first Venture Studio programme, funded by the UK government, aims to help local founders transform innovative ideas into high-growth companies and bolster investment in the city.
Further north, Highland Council’s Business Gateway has spurred the creation of a record number of new businesses, while the Borders’ new multi-million-pound business centre in Hawick is providing fertile ground for startups to innovate and expand.
With World Entrepreneur Day on 21 August, it's a perfect moment to recognise how entrepreneurs are reshaping our economy and explore the resources available to help them overcome challenges and flourish.
Where to start?
Research from Bank of Scotland’s recent ‘Take the Leap’ campaign reveals that side-hustling Gen Zs across the UK are leading the charge, with 60% considering leaving their jobs to focus on their enterprises full-time.
However, this drive comes with challenges. High startup costs are a major concern, with more than half of Gen Zs (52%) and 40% of Millennials citing this as a significant barrier. What’s more, over a third (37%) of Gen Zs – the highest out of all generations surveyed - admit they are uncertain about the support available to them.
Supporting our entrepreneurs is vital for the economy. A YFM Equity Partners study last year showed Scottish founders generated £52 billion in revenue, driving job creation, growth, and sustainable business practices in the country.
Support translating to success
The role of institutions in supporting entrepreneurs cannot be overstated. Bank of Scotland provides essential support to help new business owners succeed. These include everything from crafting business plans to providing flexible loans, asset finance to cover equipment costs, overdrafts for additional funds, and invoice finance to maintain strong cash flow - all designed to support entrepreneurs at every stage of their journey.
One recent example of our business loans driving Scottish entrepreneurship, which comes in all forms, is Glasgow-based Lomond Fine Foods, a family-run food service wholesaler.
Owners Sam and Barbara Henderson started from humble beginnings, selling sandwiches from the back of a van. Thanks to a £3.5 million invoice finance package from the Bank, they’ve been able to expand their headquarters, double capacity, and are now on track to reach £90 million in sales, supplying major retailers like Tesco and Dunelm Mill with a selection of deli, seafood, and bakery products.
Breaking barriers
Bank of Scotland’s commitment to entrepreneurs is clear in both the essential support we provide and our efforts to ensure fairness and equal opportunities in entrepreneurship.
Equity in entrepreneurship is vital. Disabled entrepreneurs, for example, need business support services to be ‘radically simplified’ with the needs of disabled entrepreneurs at the forefront, including mentoring, networking, business training and guidance. In April 2023, we partnered with Small Business Britain to publish the Disability and Entrepreneurship Report, which inspired the Lilac Review - a government-backed initiative aimed at addressing barriers and improving opportunities for disabled business owners.
Supporting diverse entrepreneurs is also crucial for a thriving ecosystem. Programmes like Foundervine's ‘Immerse,’ backed by Bank of Scotland, have empowered over 2,000 innovators across the UK with mentorship support and bespoke resources.
Through all this, one thing remains clear: there is a strong drive to start a business in Scotland, and we are committed to empowering entrepreneurs from all backgrounds, helping them turn their dreams into successful, impactful ventures.
