National charity faces closure with loss of up to 31 jobs

Long-standing enterprise and financial education programmes for schools and colleges to cease immediately as Young Enterprise Scotland denied Scottish Government support 

Young Enterprise Scotland, a national charity that has delivered enterprise education to schools and colleges for over 30 years, is now at risk of closing after the Scottish Government scrapped established grants and failed to follow through on funding assurances.

The national charity is facing closure due to the Scottish Government’s failure to honour funding assurances and last-minute changes to funding methods. 

YE Scotland, which develops entrepreneurial mindsets in young people and educators has been a crucial strategic delivery partner in supporting national ambitions in education and entrepreneurship. The organisation has lost its full Scottish Government grant, which accounts for the majority of its overall income. 

If no emergency funding can be sourced, the organisation will be forced to close. Thousands  of hours of practical learning to primary and secondary students in the circular economy,  teamwork, communication, financial planning, sales and marketing and more will be immediately wiped off the school week.

Students will no longer be able to complete the SCQF Level 6 qualification ‘higher’ in entrepreneurship and up to 31 jobs will be lost. 

Last year, YE Scotland supported over 18,000 school and college students through its enterprise programmes, including its flagship Company Programme, which many entrepreneurs credit with setting them on a successful business career. In the past three years, more than 1,000 students have gained a YE Scotland enterprise qualification (SCQF Level 6) to prepare them for further education, work and life. 

Young Enterprise Scotland Chief Executive Emma Soanes said: “We are absolutely devastated that the future of Young Enterprise Scotland now seems untenable with the loss of our major income source. 

“Not only will this have a huge detrimental impact on our dedicated staff team, who now face redundancy, but given our extensive reach across Scotland it will also impact massively on the national education landscape and the education of young people in Scotland of which our work played such a crucial role. 

“Failing to support this crucial stage of the entrepreneurial pipeline is entirely at odds with strategic priorities reflected in the Government’s National Strategy for Economic Transformation and the key recommendations of the Entrepreneurial Campus report.”

YE Scotland’s funding has historically come from a combination of a core continuity grant from the Scottish Government, an ongoing pipeline of support from Trusts and Foundations and, to a lesser extent, support from the private sector.

For both the financial years 2022/2023 and 2023/2024, the Scottish Government grant was significantly delayed. This was particularly so in the last financial year with the delay resulting in late submission of the charity’s audited accounts, directly impacting its ability to apply for additional funding. 

Over both years, the charity has supported the Scottish Government during their funding delays by continuing to deliver vital services in good faith. 

As a provider of education-based programmes that relies on onboarding schools ready for delivery at the start of the academic year, YE Scotland continued to work on delivering its programmes for 2024/25.

Given the charity’s long standing relationship with the Scottish Government, the experience of previous grant cycles and communications from government officials right up until May 2024 about the availability of funding, the charity  onboarded around 80% of the schools and colleges it would be working with for the coming year.

However, in July this year, YE Scotland was advised the grant process would now cease with immediate effect, replaced with a competitive process. The Entrepreneurial Education Fund subsequently opened in August, with no consideration being given to work already underway or any costs incurred up to that point. 

YE Scotland Chair, Dr Andy Campbell, who is founder of the Scottish Space Network, added: “For over 30 years, Young Enterprise has delivered life-changing opportunities for young people in Scotland, myself included.

“We understand that government budgets can face challenges and delays, particularly in the current climate. As a committed partner, the charity has historically supported the Government’s delays in funding, continuing delivery to ensure our young people’s futures are not impacted.

“Historically, these delays were always addressed, with costs settled and accompanied by thanks and apologies. However, despite this constructive commitment, it now appears that future funding is to be withdrawn — which we can manage, albeit as a vastly smaller organisation and not delivering the vast majority of our current activity. 

“However, critically it now seems that our historical outlays will remain unsettled putting the entire organisation at risk of closure. Without emergency funding, the charity will be in a precarious situation, one that could have been avoided. We are ready to engage with Ministers and officers, hopeful that our past support will be reciprocated.”   

The charity is seeking immediate emergency financial support to ensure the organisation can survive, albeit in a reduced capacity, maintaining YE Scotland’s crucial role in delivering enterprise education and supporting Scotland’s future entrepreneurial leaders.