Most of those in the business industry will pride themselves on the ability to navigate choppy waters and overcome obstacles. But today, our economy is at risk of the potential absence of new entrepreneurs and a risk-averse attitude to business emerging from the new generation.
Even the most confident people, including successful leaders, often have sleepless nights because of the fear of failure. However, a recent study has shed light on the hidden challenges facing Scotland’s aspiring entrepreneurs – and it’s no longer the case of a lack of confidence.
According to new research, the uncertainty caused by potential political and legislative changes is making aspiring business leaders feel too afraid to launch their own venture.
Over a third (34 per cent) of Scots said they have been put off from starting their own business due to uncertainty around changes in tax. Another 34 per cent are worried about changes in small business funding and 23 per cent fear changes in legislation and regulation with the potential entrance of a new UK government.
This is particularly saddening as it comes just months after Scotland stood out as the most entrepreneurial of the UK’s devolved nations, boasting a high number of well-established entrepreneurs.
Startups play a crucial role in driving innovation, creating jobs, and stimulating economic growth. For Scotland, they are particularly vital, as they contribute to the nation’s gross value added (GVA), the measure of the value of goods and services.
Startups are forecast to drive an impressive 8.4 per cent growth in GVA between 2023 and 2028, according to YFM and the Centre for Economics and Business Research. This growth not only enhances our country’s economic prosperity but also strengthens its position as a hub for innovation and entrepreneurship within the UK and beyond.
Let’s not skirt around the issue: starting a business in Scotland is no stroll along the Royal Mile. From funding fiascos to bureaucratic red tape thicker than fog, it’s a rocky road to entrepreneurial success. Of course, funding has long been a stumbling block for many startups, and the research corroborates this reality. While access to capital is crucial for turning ideas into viable businesses, the study suggests that traditional funding avenues may not always be accessible to all.
The data reflecting the impact of the ongoing cost-of-living crisis also paints a sobering picture. With 75 per cent of respondents delaying plans to start a business for fear of financial strain, it’s evident that the rise in daily expenses is a more pressing issue than pursuing entrepreneurial dreams. This delay not only affects individual ambitions but also has broader implications for Scotland’s entrepreneurial ecosystem and economic growth.
I have spoken previously about the urgent need for targeted support and resources to alleviate the financial burdens faced by aspiring entrepreneurs. Initiatives aimed at providing access to affordable financing options, mentorship programs, and financial literacy training could help mitigate these barriers and empower individuals to pursue their entrepreneurial aspirations despite the prevailing economic challenges.
Diversity and inclusion also come into sharp focus in the findings, highlighting the importance of fostering an entrepreneurial ecosystem that reflects Scotland’s population. Yet, the reality is that our country’s business landscape remains predominantly homogenous, with underrepresentation persisting among certain demographic groups. This lack of diversity not only stifles innovation but also perpetuates systemic inequalities within the entrepreneurial community.
What can be done to address these hidden barriers and unlock Scotland’s entrepreneurial potential? Firstly, there is a pressing need for greater awareness and acknowledgment of these challenges within the business community and beyond. By shining a spotlight on the hidden barriers facing aspiring entrepreneurs, we can begin to have meaningful conversations and work towards solutions that promote inclusivity and equal opportunity.
Many prospective entrepreneurs are undoubtedly weighing the potential impacts of looming political and economic shifts, particularly amidst the prospect of a change in government at Westminster and maybe at Holyrood too. I can only hope there will be clear guidance on matters like small business taxes, addressing late payments, and facilitating access to support services. Such clarity would enable budding entrepreneurs to chart their course more effectively, while instilling confidence in aspiring entrepreneurs to take the leap into business ownership.
Scotland launches into new space age
Shetland based SaxaVord Spaceport could launch a vertical rocket into orbit in a Scottish first. The Civil Aviation Authority (CAA) has given a ‘range licence’ to the Scots spaceport, so it can control sea and airspace during launch.
With 30 rockets scheduled for space in its first year, the SaxaVord Spaceport promises to elevate Scotland’s status in space exploration, but also to fuel economic growth. With the direct creation of 200 jobs, it presents a beacon of opportunity for local talent and a promising boost for the regional economy in the Northern Isles.
This is the latest piece of a complicated jigsaw of consents required to allow orbital launches from the isle of Unst in Shetland. It will also create a safe and clear path for potential rockets heading into space and prioritise the safety of people on the ground.
The busy skies over the north of Scotland are chock full of flight paths for many transatlantic carriers, so no fly zones would have to be put in place during the launch period.
The SaxaVord chief executive who runs the operation, Frank Strang, says Shetland is home to Western Europe’s only fully licenced vertical launch spaceport and says the team are “delighted”.
I think this exciting industry will serve as a source of inspiration for Scottish youth, igniting passions and aspirations to work in the realm of space science and technology. For children across Scotland the spaceports are a tangible symbol of possibility and potential.
It Made Me Laugh
Edinburgh fashion fans queue for Uniqlo launch
Fashion fans were out in force in Edinburgh, queuing to be first through the doors of the brand-new Uniqlo store.
The 1,400 sq metre store is spread across two floors, catering for men, women and children and is the first store from the Japanese fashion house to open in Scotland.
Stylish customers queued from 4am along Princes Street all the way up to Hanover Street in the capital, a sight not seen since shops reopened after the first wave of the Covid pandemic.
While it is easy to laugh at the lengths folk will go for a decent t-shirt, the positive impact the unit will have for the Edinburgh retail economy can’t be overestimated. I may have to swing by and pick up some new threads for the weekend.
It Made Me Weep
Lecht Ski Centre appeals for survival funding
The Lecht Ski Centre, a Highland snow sport destination, is facing the threat of closure.
Operators of the ski venue, located in the eastern Cairngorms and established in the 1970s, say a “dire” season of poor natural snowfall has forced them to launch a crowdfunding campaign to allow the centre to open next winter. The appeal is aiming to raise £35,000 through lift pass sales.
Snow sports are hugely important for Highland communities, attracting tourists and bolstering hospitality and retail sectors, so a permanent closure would be a real blow to the local economy.
Let’s hope that the community gets behind the campaign and the centre can continue to be a winter wonderland for generations to come.
