The Scottish Government’s economic development body is “past its sell by date” and should be scrapped, a St Andrews academic claims.
Professor Ross Brown believes Scottish Enterprise is “past its sell by date” and needs overhauled.
He believes it should be replaced with new institutions focused on entrepreneurship.
Mr Brown also suggests the abolition of the First Minister’s council of economic advisers.
Instead, he would like to see successful entrepreneurs and investors involved in a National Entrepreneurship Council.
Representatives of financial institutions and entrepreneurship policy experts should also be involved, he said.
Mr Brown said of Scottish Enterprise: “The mainstay of the business giving out grants to businesses I don’t think has been very effective.
“I think the business community would probably echo that sentiment.”
‘Uneasy relationship’
The paper, for Reform Scotland, also claims Scotland has an “uneasy relationship” with entrepreneurialism.
He points to “strategic and sophisticated” interventions by the Israeli government for developing their business sector.
Mr Brown said: “Israel is an interesting one. There are lessons we can learn.
“Some of their public policies have been very effective at developing the entrepreneurship in that country.”
Read our new paper by Professor Ross Brown on the need for Scotland to embrace a revolution in entrepreneurialism.https://t.co/VlqTJjVAkm
— reformscotland (@reformscotland) June 14, 2021
Mr Brown also wants to see women, immigrants and people with disabilities targeted to unlock their entrepreneurial power.
“Immigrants are much more likely to produce new businesses,” he said.
“Having a more inclusive immigration policy could be of benefit for Scotland.”
A revolution?
Mr Brown also believes that if Scotland were to gain independence, re-joining the European Union could be crucial.
Businesses may look to move from elsewhere in the UK to set up base in Scotland to allow them access to the EU market.
He said: “That could give Scotland an extra benefit that companies may relocate here from other parts of the UK.”
He said Scotland will need to “embrace a revolution in entrepreneurialism” if it is to thrive as independent country.
That will be particularly important as the country looks to find its feet during the Covid pandemic recovery, Mr Brown said.
Reform Scotland director Chris Deerin said Mr Brown’s proposals were for a “revolution” in the way Scotland supports its entrepreneurs.
“These are the people that can make the difference for Scotland, that create the jobs and pay the taxes that support our public services.
“They deserve better support.
“Our political culture needs to grow up and start appreciating the vital importance of the private sector.”
Mr Brown called on the Scottish Government to “lay the foundation” to help entrepreneurs.
Scottish Government business minister Ivan McKee said: “Since 2003, the agency has invested over £620 million in early stage businesses and that has helped promote £1.7 billion of investments.
“Scotland is now one of the most active areas in the UK for venture-backed firms.
“As the national development agency, Scottish Enterprise is responsible for delivering a significant, lasting effect on the Scottish economy, working with partners in the public and private sectors.”
He said support for entrepreneurs, start-ups and spin-outs remained “a key element” of Scottish Enterprise’s work.
The business minister adds: “It is making entrepreneurship more inclusive and widening participation from under-represented groups like women and young people.
“This is helping enable the economy’s sustainable recovery.”
