Small Businesses (Hansard, 13 June 1986)

§ Mr. Allan Stewart

Responsibility for small firms matters in Scotland lies with the Industry Department for Scotland with services also being provided by the Scottish Development Agency and the Highlands and Islands Development Board. In addition to providing a number of services specific to Scotland, the Department along with the SDA and HIDB monitors United Kingdom measures introduced by other Departments. The following Scottish measures have been introduced since May 1985 to benefit the small firms sector.

Government Assistance Promoters (GAP) Scheme

Launched in April 1986, the scheme is aimed at making small companies aware of the range of Government assistance 328W available and to help them benefit from that assistance. Like the Better Business Services (BBS) and Better Technical Services (BTS) Schemes, GAP has been introduced using finance from the European Regional Development Fund. Eleven experienced advisory organisations within Strathclyde and Tayside Regions have been appointed, and will be funded, to assist small companies in their area. There will be no charge for services.

Improved Advisory Services

In recognition of the need to improve advisory and information services to small firms, the SDA have introduced 2 new sources of data to their operations. First, the Agency's Small Firms Centres in Glasgow and Edinburgh have installed Strathclyde University's MIDAS (Micro Computer Industrial Development Assistance Scheme) Information Bank which provides detailed information of all schemes of assistance for small firms in Scotland; the data bank allows quick access to material requested by clients and monthly updating ensures that information on schemes of assistance is accurate. Second, the Agency published, in March 1986, a comprehensive guide for business advisors in Scotland: the "Financial Aid Guide" gathers together information on all the common grants, loans and incentives available to Scottish businesses. The Agency's local network of advice and assistance has also been improved by the opening of new small firms centres in Edinburgh and Stirling. Similarly the HIDB's local office network has been expanded with the opening of an office in Oban and four additional small business counsellors have been appointed in the HIDB area. In addition, the HIDB's business activity leaflets for small businesses were rationalised into a comprehensive advice brochure.

Information for small firms on the forms of assistance available from the Industry Department for Scotland was also improved during 1985 with the publication, in September. of a comprehensive Investment, Innovation and Technology and Export Assistance Handbook.

Local Enterprise Trusts

The range of assistance and support for small firms from Local Enterprise Trusts in Scotland continues to develop. Since May 1985 6 new Enterprise Trusts have been established bringing the total number in Scotland to 35. The Trusts arc funded through assistance from the private sector, the SDA and local authorities.

Enterprise Funds fir Youth (EFFY)

This pilot scheme, which is administered by four Enterprise Trusts and funded jointly by the Trusts and the SDA, completed its first year of operation during 1985. The scheme which provides loans of up £3,000 to new enterprises started by young people between the ages of 16 and 25, is being evaluated to consider its potential for wider application.

Programme for Rural Initiatives and Development (PRIDE)

The SDA introduced PRIDE during 1985 with approval of a first project in June. The scheme provides fixed asset funding as a catalyst to stimulate new small privately-led business initiatives which, like the Agency's DRAW (Development of Rural Area Workshops) scheme for small premises, will counter problems of unemployment and population decline in rural areas. During its first year, PRIDE has funded 16 projects with a total value approaching £6 million. £4–8 million of this funding came from the private sector with just under £ 1 million being contributed by the Agency.

Deregulation

The Scottish Office is working in tandem with Whitehall Departments in pursuing the deregulation initiative as outlined in the White Papers "Lifting the Burden" and "Building Businesses not Barriers". To date the principle measures taken have been in relation to simplification of planning procedures and building regulations.