Tag: SMEs

Boost to confidence for Scots following Help To Grow: Management Course


·       More than 300 Scottish SME leaders complete Help to Grow: Management Course

·       Recently published data1 from the Department for Business and Trade (DBT) reveals nine in 10 (91%) would recommend Help to Grow: Management to other business leaders

·       Scottish SMEs looking for support are encouraged to sign-up to next cohort

·       Edinburgh-based narrowboat operator doubles turnover after completing course

More than 300 business leaders across Scotland have now completed the Help to Grow: Management Course in a bid to strengthen resilience and innovation, according to new figures from the Department for Business and Trade. 

The 12-week Help to Grow: Management Course was founded in April 2021 to help business leaders and senior managers to increase resilience, innovation, and growth within their organisations. 

In Scotland, 320 SME leaders had finished the course by February 2023 across six Scottish business schools at University of Strathclyde, University of the West Scotland, Heriot-Watt University, Robert Gordon University and University of Stirling*. Throughout the UK, 3,340 people had completed the course across 52 UK business schools. 

Research2, published in May and undertaken by Ipsos, highlights the impact Help to Grow: Management has had on UK businesses. Seven in 10 (69%) report greater confidence in leading and managing their business while two thirds (66%) felt their leadership and management skills had improved. 

SME leaders across a variety of sectors have benefitted from taking part in the training including those in manufacturing, construction, professional services, scientific, and technical industries, and information and communication. Help to Grow: Management compromises four waves of three modules, 1-2-1 business mentoring, peer-learning and access to the Alumni Network.  

Encouragingly, six in 10 (61%) UK business leaders now have a better understanding of how to innovate their business model and are more aware of factors that drive business productivity and growth. Over nine in 10 (92%) say they have shared what they learned or gained with others in their business within six weeks of completing the programme. 

The advice given to help business leaders embrace working in a post-Covid era also resulted in almost four in five (78%) reporting improved employee engagement.  

Help to Grow: Management has supported leaders from often under-represented demographics. More than a fifth (17%) of participants identified as being from ethnic minority backgrounds, compared to 6% of all UK SME owners, whilst a third (34%) were women, compared to 24% of UK SME owners. A broad range of ages were also welcomed to the course with one in five aged between 50-65 and a quarter aged between 25-34.  

Report findings3 also showed that 91% of participants would recommend Help to Grow: Management to other business leaders.   

Clare Halliday, Managing Director of Refreshing Scotland Ltd, in Roslin, participated in the course at Strathclyde University Business School. She said: “I signed up for the Help to Grow: Management Course because I wanted to find out how to take my business forward.

“One of my biggest takeaways was that it taught me how to say no and offload customers that weren’t the right fit for us, and that’s a really difficult thing to do when you haven’t got a very big business.  

“It definitely made me brave and it’s paid off, in the full financial year since I did the course we have doubled Refreshing Scotland’s turnover.” 

Michael Hayman MBE, Chair, Small Business Charter, said: “The success of the UK’s SME sector is critical to the growth of the wider economy. The Help to Grow: Management Course is designed to directly benefit our vibrant SME sector, equipping today’s leaders and future leaders with the tools, knowledge and confidence to identify and lead change, innovation and growth.

“It’s also brilliant to see the course attracting a wider diversity of business leaders, something we want to continue embracing as the programme progresses.  

“We look forward to continuing to support business leaders across Scotland and the rest of the UK as they take the steps needed to introduce change that will help them for years to come.” 

Delivered by Small Business Charter-accredited business schools, the course is available in more than 50 locations across the UK with 90% of the fee participants pay covered by the government.  

The value of the programme continues long after participants have finished the course with the majority (86%) continuing to interact with other SME leaders outside of their firm through networking and informal discussions.  

Almost one in four (23%) also continue to be mentored by their Help to Grow: Management mentor while many are exploring further courses (67%), attending alumni events (59%) and gaining new accreditations (43%). 

*Scottish business schools that now offer the Help to Grow: Management Course include: 

·      Aberdeen Business School at Robert Gordon University;  

·      School of Business at University of Dundee; 

·      School of Business, Edinburgh Business School at Heriot-Watt University; 

·      School of Business & Creative Industries at University of the West of Scotland; 

·      Strathclyde Business School at University of Strathclyde; 

·      Stirling Management School at University of Stirling.

Business Secretary launches review to prevent small firms from being ripped off by larger companies

Comprehensive review into tackling late payments for small businesses announced by Business Secretary

  • Business Secretary Grant Shapps announces in-depth review into payment practices to prevent small firms from being ripped off by larger companies
  • aimed at ensuring small businesses across the UK receive the payments they deserve, with £23.4 billion currently owed in outstanding invoices
  • comes as the Small Business Saturday Campaign marks its 10th anniversary

Business Secretary Grant Shapps has today – Small Business Saturday – announced a comprehensive review into tackling late payments for small businesses, while urging large companies to pay their smaller suppliers promptly.

Small businesses routinely spend significant time and resources chasing late payments from businesses they supply which can lead to cash flow problems, putting their firms at risk and preventing them from growing. The majority of small businesses do not have large balance sheets and cannot accommodate long payment terms or delays to receiving payment within their cash flow cycle.

The Payment and Cash Flow review will scrutinise existing payment practices and the measures in place to make sure small firms are not ripped off by their larger clients – with over £23.4 billion currently owed in outstanding invoices to UK businesses.

The review will consider the progress made in specific sectors of the economy in combatting late payment and will also include an in-depth examination of current payment reporting regulations and the Prompt Payment Code.

In addition, the statutory review of the Small Business Commissioner will help to ensure that the UK has the right arrangements in place to best support small businesses.

Business Secretary Grant Shapps said: “The UK’s 5.5 million small businesses are an integral part not just of our economy, but of our communities too, and this government is firmly on their side.

“That many small firms are routinely paid late is intolerable and presents a real barrier to productivity, the creation of high-skilled jobs and ultimately economic growth.

“This review will allow us to build on the success we have had so far in curbing late payment, unshackling small businesses from this exploitative practice and creating a system that is fit for the future.

“While we crack on with this work, I also want to remind big businesses of their duty to ensure their smaller suppliers are paid promptly.”

The government is already demonstrating its own commitment to prompt payment through the Procurement Bill, which is currently being debated in Parliament. The legislation sets out the requirement for 30 day payment terms to apply in public sector supply chains which will help level the playing field for SMEs and encourage more businesses with smaller budgets to bid for public sector contracts

The announcement comes alongside the government’s support for Small Business Saturday – which celebrates small business successes and encourages consumers to support smaller firms in their area – with the Business Secretary out on a visit to his local high street in his Welwyn Hatfield constituency.

Also within the scope of the review is the role of technology-enabled accountancy platforms in tackling late payments and promoting a better understanding of prompt payment measures within the small business community.

The role of finance, particularly how major banks and innovative lenders can help small businesses manage their cashflow and identifying barriers to accessing finance will also be part of the review’s remit. The review will include a consultation on the payment reporting regulations, setting out specific proposals on renewal and improvement of these duties. 

The review of the Small Business Commissioner will consider both its role and effectiveness, drawing on the consultation on the Commissioner’s powers that was conducted in 2020.

The government is committed to supporting small businesses across the United Kingdom through a series of measures including the recently expanded Start Up Loans scheme which saw an additional 33,000 new loans made available to SMEs.

Small businesses have also benefited from the Energy Bill Relief Scheme which provides non-domestic customers with a discount on their gas and electricity bills in light of the rise in global energy prices.

As part of the Autumn Statement, the Chancellor announced a £13.6 billion package of support for business rate payers, including the £500 million Supporting Small Business scheme.

Analysis reveals the importance of SMEs to the British economy

  • Small and medium businesses dominate Hospitality industry, making up 68% of all businesses
  • Northern Ireland has the highest percentage of SMEs out of any region, at 29%
  • SMEs make up more than 25% of all businesses in the United Kingdom

New research has revealed how important small and medium enterprises are for the British economy, as businesses that employ between one and 249 employees contribute more than £2 trillion in turnover and employ 44% of the British workforce.

The study by marketing training hub School of Marketing analysed the latest ONS and government data on the number of small and medium enterprises in 2021 to see which regions and industries are powered the most by SMEs.

Analysis of the industries revealed that the Hospitality Industry has the highest proportion of SMEs out of any industry. Out of the 200,645 businesses operating in the industry, 140,050 are small or medium-sized, which equals roughly 69.8%. The Hospitality Industry is made up of accommodation and food services including hotels and restaurants.

The industry with the second-highest percentage of SMEs is Wholesale and Retail Trade. This industry, which also includes mechanic shops that repair motor vehicles and motorcycles, has more than 500,000 businesses, and more than four in ten (43%) are small or medium-sized.  

Real Estate Industry has the third-highest proportion of SMEs, with 35.4% of all enterprises having below 250 employees. The industry has 134,095 businesses operating in the UK, and 47,740 are small or medium-sized.

In fourth is the Agriculture, Forestry and Fishing Industry, which has more than 150,000 businesses running in the country, and roughly 50,000 (33%) are SMEs.

The industry counting the fifth-highest percentage of SMEs is Manufacturing, with 32% of the enterprises operating in this industry being small or medium-sized, which is 87,210 out of the 270,000 businesses.

The study also analysed each UK region and found that Northern Ireland has the highest proportion of SMEs in the UK. 123,705 businesses are operating in Northern Ireland, and 36,369 are small or medium enterprises, making up roughly 29.4% of all companies.

Scotland has the second-highest percentage of SMEs out of all the UK regions, with 27.7% of all businesses being SMEs. There are 342,045 companies in Scotland, and 94,746 have fewer than 250 employees.

The East Midlands is home to the third-highest proportion of SMEs, with 100,300 SMEs, making up 27.3% of the 367,400 businesses operating in the region.

North West England has the fourth-highest percentage of SMEs in the UK, with 26.7% of businesses operating in the area being small or medium-sized.

Wales is tied for fourth, as 26.7% of operating businesses in the country are SMEs. 55,373 out of the 207,390 enterprises in Wales have fewer than 250 employees.

The study also assessed the most in-demand skills for entry-level positions across a range of industries and found that Communication and Microsoft Office proficiency are the most commonly occurring skills on job adverts – both appear in 61% of the jobs that were analysed.

The third most in-demand skill is a High Attention to Detail, appearing in 44% of ads for entry-level positions. Finishing off the top five is a tie for fourth between Time-Management and Self-Motivated, both showing up on 39% of job adverts.

Commenting on the findings, Ritchie Mehta, CEO of School of Marketing said: “There are more than 1.4 million British companies which employ between one and 249 people, and combined they turn over a massive £2 trillion every year, which is 45% of total turnover from UK businesses.

“It’s essential that they are not only given the support to grow and continue making such an important contribution, but also that there is a skilled workforce able to help them deliver and adapt to the demands of an evolving economy.

“This data shows that when it comes to skills, there are some common themes that employers are looking for across a range of jobs, however in the current climate, budgets for training are likely to be cut, and the skills gap could widen.

“SME owners can take advantage of the Apprenticeship Levy scheme to bring in new staff or train current ones in digital and data-led programmes, with the vast majority of the training cost covered by the levy.”

The study was conducted by the School of Marketing, which offers leading digital and data marketing apprenticeships.

“Good businesses will fail, unless the government acts”

THE NATIONAL Chair for the Federation of Small Businesses Martin McTague has issued a stark prognosis for small businesses in the months ahead. 

He warned that rising energy prices and current business rates and tax will see many  businesses go under; which could have a major impact on the UK economy as 60% of the private sector workforce work for small businesses.

Speaking to GB News, Mr McTague said: “There’s a completely toxic mix, and that mix is very low cash reserves; I think the ONS figures said that that 40% of businesses are operating on less than three months worth of cash. 

“You’ve got very high taxation levels, the highest for 50 years. A massive slump in demand, and then if you build into that mix the fact that energy prices for some businesses are four or five times what they were previously. 

“Most businesses renew their contracts in October, and the quotes that I’ve seen from a lot of our members were alarming. In some cases their prices had gone from £23,000 a year up to £112,000 per year. One farmer I spoke to was seriously considering putting a generator on to power his operation because he couldn’t see how he could operate any other way.

“Now what we need, starting Monday I think, is a government that recognises that this is an urgent problem. And that a lot of good businesses will fail, unless they act. I think sometimes people treat it as if it’s something that you can separate out from consumer issues, whereas 60% of the private sector workforce work for SMEs. So that will be a major problem for lots of people.”

“There are three key things I think we need to do starting Monday. The first will be to reverse the National Insurance increase, that was something that almost universally all small businesses disliked. 

“Then there is a serious problem with business rates, I think it’s time that the government doubled the small business rates relief, currently standing at less than £12,500 and could go up to £25,000. I think that would encourage a lot of small businesses, particularly in the North of England. 

“Then cut VAT to try and encourage demand. At a time when a lot of consumers are lacking confidence, you need to give them that bit of a push to get back in the shops.”

Five-minutes of fame for Scotland’s winning SMEs

  • Prize-winning SMEs to take the stage at Scotland’s national innovation summit
  • The Summit announces new keynote speaker, Mari-Anne Chiromo, Entrepreneur and Business Growth & Effectiveness Specialist

Three of Scotland’s most innovative SMEs have secured a global audience spot at the CAN DO Innovation Summit after entering a competition to appear on the events #SMEstage.

The successful candidates; FC Laboratories Ltd, Cheemia ReSET and Danu Robotics Ltd, will join a host of world-class speakers, addressing an audience of over 800 investors, academics, entrepreneurs and innovators at the third-annual event held virtually on 23rd February 2022.

The competition, open to all small and medium sized Scottish businesses, required applicants to submit a short video demonstrating how their business drives innovation that is creating solutions to society’s biggest challenges.

The three winners were chosen from a wide variety of high-quality submissions and will now claim their prize spot on the Summit’s SME stage and will also benefit from two days of support from an Innovation Specialist at Scottish Enterprise worth £2K to help take their idea to the next level.

This year’s virtual CAN DO Innovation Summit will connect start-ups and SMEs with leading innovators, entrepreneurs, and academics from across the globe to explore new opportunities that marry purpose and profitability. It will feature a speaker line-up of over 40 multi-sector SMEs and a range of innovation support agencies across 12 industry-led panel sessions.

Keynotes, panel discussions and live Q&A sessions will run throughout the day covering practical insights on how people power, combined with the right tech, as well as sustainable and inclusive business practices can accelerate and enable a smoother digital transformation journey for businesses.

Mari-Anne Chiromo, Entrepreneur and Business Growth & Effectiveness Specialist at Apple is the latest name to join the selection of world class keynotes speaking at the event.

Further speaker highlights on the day include:

  • Kate Forbes MSP, Scottish Government
  • Wade Davis, Feminist, Former NFL Player and Educator on gender, race, and orientation equality (consulted with Netflix, Google and Viacom)
  • Gayemarie Brown, Forbes Top 25 Futurist, plus many more.

Delegates from a range of sectors – from fintech and health to manufacturing and the creative industries – have already signed up to this year’s event looking to expand their networks, learn about progressive workplace cultures and business models, and make connections for innovative project collaborations.

Dr Laura Bell of the CAN DO Innovation Summit, said: “Recent social and economic changes have created unprecedented challenges for SMEs and we would encourage them to attend the CAN DO Innovation Summit to be part of our vision of making Scotland a world-leading entrepreneurial nation.

“This virtual focal point for business will help SMEs adopt new technologies, build progressive working cultures and access the right support for innovation-led recovery and growth. We have a wide selection of world-leading speakers lined up for the event, as well as interactive sessions which can benefit SMEs across all sectors.

“I’d like to thank our panel of judges for selecting three excellent winners to take their well-earned place in the spotlight at the summit on the #SMEstage. We look forward to welcoming many more SMEs on 23 February.”

The #SMEstage competition winners were selected by an independent panel of judges made up of Evelyn McDonald, CEO at Scottish EDGE, Enoch Adeyemi, CEO at Black Professionals Scotland and Colin Meager, Innovation Team Lead, Scottish Enterprise.

FC Laboratories Ltd, Cheemia ReSET and Danu Robotics Ltd will appear at the Summit at 4pm to showcase how they are building innovation into their daily practices.

Colin Meager said: “It’s inspiring to see that, despite the economic and societal challenges we are facing, there are a wealth of entrepreneurs and businesses in Scotland using digital transformation to develop new business models and more innovative products and services. 

“Winning the competition will give these businesses access to useful connections and support as well as linking them into invaluable practical support from Scottish Enterprise.”

Early Bird rates are available for a limited time. If you’re keen to attend the Summit but the cost would prevent you from attending, visit the CAN DO Innovation website for info on how to get access.

For more information on the event and to register, please visit: 

www.candoinnovation.scot

£150 million budget boost for Scottish small businesses

The Chancellor is expected to announce a new, £150 million fund to help thousands of small and medium sized enterprises in Scotland in tomorrow’s budget – building on the Government’s commitment to level up opportunities across the UK.

The fund will be delivered through the British Business Bank, working closely with local partners, and will help Scottish SMEs to invest and grow. It will build on the success of existing funds in other parts of the UK, which have been shown to support the creation of high-paying high productivity jobs and the upskilling of existing workforces.

Similar existing funds in England and Northern Ireland typically provide loans or invest in local companies – this can be recent start-ups looking to borrow smaller amounts to kickstart activity or established SMEs looking for larger investments to grow their business. Details on how businesses in Scotland can access the fund will be outlined in due course.

Chancellor Rishi Sunak said: “This fund will help thousands of small businesses in Scotland to make ideas a reality and grow their companies . I’m always impressed by the innovation and determination of SMEs and the UK government will continue to support businesses across the UK.”

Since the start of the pandemic the UK Government has spent £352 billion right across the UK on support measures. In Scotland this included protecting more than 900,000 jobs through the furlough scheme, £294 million in self-employment support, help for businesses and the procurement of vaccines.

In addition to the £150 million for Scotland, Wales will benefit from £130 million for a new fund and the British Business Bank will receive an additional £70 million to build on existing programmes in Northern Ireland.

15% of owner-managed businesses are still in survival mode

“11% reported that it is likely they will have to make redundancies in the next 3-6 months putting a potential 1.85 million jobs at risk across the UK”

Owner managed businesses coming out of the third lockdown are still struggling with the impact of Covid-19 and an uncertain economic outlook, according to the Association of Practising Accountants (APA):

  • 11% reported that it is likely they will have to make redundancies in the next 3-6 months putting a potential 1.85 million jobs at risk across the UK
  • 24% reported a negative or very negative impact on their business since the UK left the EU
  • 53% of respondents identified uncertain trading conditions as their biggest single challenge
  • 15% cited Brexit supply chain issues as their single biggest challenge

Nonetheless:

  • 84% of respondents reported that they were either confident or somewhat confident that they would be able to access the finance that they needed over the next 6 months with anecdotal evidence suggesting that the major banks were continuing to lend
  • Longer term 54% were more positive about their economic prospects outside the EU while 46% were less positive

The research among 435 owner managed businesses across the UK was carried out between April and May by the APA, a network of 17 leading business advisory firms who represent over 14,000 of these businesses.

Commenting on the findings APA Chairman Martin Muirhead said: “What is clear from our research is that a significant minority of owner managed businesses who have managed to pull through the last 12 months are still in survival mode with uncertain trading conditions being the biggest concern to a majority.

“Nonetheless there is also evidence to suggest that those businesses that have managed to weather the impact of Covid-19 are now more resilient and that existing and proposed Government support measures have generally been well received.

“Over the coming months it is vital that Government maintains a flexible and targeted approach to business support focusing resource on those sectors where there is the greatest need. Owner managed businesses form the backbone of the UK economy and need continued, targeted support as we emerge from this third lockdown.”

Winning SMEs to take the stage at national innovation summit

  • Three of Scotland’s most innovative SMEs secure a global audience at the CAN DO Innovation Summit with #SMEstage competition win
  • Further details of the Summit are released

Scotland’s CAN DO Innovation Summit takes place tomorrow and there’s still time to book your seat at the virtual event. The national event for innovation in business will be live from 8am on Wednesday 3 February.

The three winners of the competition, open to all small and medium sized Scottish businesses, were chosen from high-quality entrants who were asked to submit a short video demonstrating how they are building innovation into their daily practices.

The winners are rising stars from across Scotland – Edinburgh-based Scene Connect, Aberdeen-based Recycl8 and Edinburgh-based Space Intelligence. Getting a spot on the Summit’s SME stage gives the businesses exposure to a global online audience of over 800 investors, academics, entrepreneurs and innovators. 

The winners will also benefit from two days of support from an Innovation Specialist at Scottish Enterprise.

This year’s CAN DO Innovation Summit, a headline event of the VentureFest Scotland festival of innovation, has been carefully crafted to support Scottish SMEs to build innovation-led recovery, resilience and sustainable growth after recent national and global challenges. It will feature a speaker line-up of over 40 multi-sector SMEs and a range of innovation support agencies across 12 industry-led panel sessions. 

Panel discussions and live Q&A sessions will run throughout the day covering the following themes: Journey to a Sustainable Future; Recovery & Resilience; Workplace Culture; Advance manufacturing & Digitisation; MedTech/Health Innovation.

Speaker highlights on the day will include world class keynotes: Lolita Jackson, Special Advisor for Climate Policy and Programs, in New York City’s Mayor’s Office; Ivan McKee, the Scottish Minister for Trade, Investment and Innovation; Craig Foster, Art Director at Pixar Animation Studios; Chloe Demrovsky, the youngest and first female chief executive to oversee and expand the Disaster Recovery Institute’s international network; Dyan Finkhousen, founder and CEO of Shoshin Works in the US and John Reid, CEO of the National Manufacturing Institute Scotland (NMIS).

It has never been more important for business to be agile and creative – and over 800 delegates have already signed up to this year’s event, from Scotland, the UK and beyond. They have given a range of reasons for getting involved, including aiming to make new connections; wanting to learn about progressive workplace practices and hoping to learn how new technologies can help them tackle business challenges. 

Enabling connections is a key objective of the Summit, at a time when networking can be difficult in a virtual world. With multiple opportunities to connect with new people, share knowledge and ideas and explore opportunities for partnership, the Summit makes it easier than ever to spark new connections online.

Delegates can meet innovation leaders, support agencies, investors, entrepreneurs and academics through live Q&As, speed networking, 1:1s in the Delegate Hub, drop-in sessions and the Summit’s virtual Support Village.

Dr Laura Bell of the CAN DO Innovation Summit, said: “Recent events have created huge challenges for SMEs, who will now be critical to tackling the economic and societal challenges we are facing. This year’s Summit has been carefully crafted to help SMEs explore opportunities to develop new and better business models and to drive sustainable competitive advantage. 

“Our virtual focal point for business will help SMEs adopt new technologies, build progressive working cultures and access the right support for innovation-led recovery and growth. We have a wide selection of world-leading experts and local talent lined up to speak at the event, as well as interactive sessions which can benefit SMEs across all sectors.

“I’d also like to thank our panel of judges for selecting three excellent winners to take their well-earned place in the spotlight at the Summit on the #SMEstage. We look forward to welcoming many more SMEs on 3 February.”

The #SMEstage competition winners were selected by an independent panel of judges made up of senior representatives from Scottish EDGE, Innovate UK and Scottish Enterprise.

The winners will have their moment in the spotlight at the Summit at 3.45pm when they will showcase how they are building innovation into their daily practices.

Evelyn McDonald said: “Judging the #SMEstage competition was a great way to start the year as it reminded us all that despite the challenges we are currently facing there are a wealth of entrepreneurs and businesses in Scotland creating new technologies to enable innovation led recovery and growth. 

“Winning the competition will give the businesses access to a wide audience which will hopefully bring useful connections and support as well as linking them into invaluable support from Scottish Enterprise.”

This is the second Summit, following a successful inaugural event in Glasgow, and is the first time it has been held virtually.

For more information on the event please visit: www.candoinnovation.scot

Delegates can register for free here: 

https://www.registerforevent.co.uk/candoinnovationsummit/

Winning SMEs to take the stage at Scotland’s national innovation summit

  • Three of Scotland’s most innovative SMEs secure a global audience at the CAN DO Innovation Summit with #SMEstage competition win
  • Further details of the Summit released

With Scotland’s CAN DO Innovation Summit fast-approaching, the winners of its #SME stage competition are today unveiled, as further details of the programme for the virtual event on 3 February are announced.

The three winners of the competition, open to all small and medium sized Scottish businesses, were chosen from high-quality entrants who were asked to submit a short video demonstrating how they are building innovation into their daily practices.

The winners are rising stars from across Scotland – Edinburgh-based Scene Connect, Aberdeen-based Recycl8 and Edinburgh-based Space Intelligence. Getting a spot on the Summit’s SME stage gives the businesses exposure to a global online audience of over 800 investors, academics, entrepreneurs and innovators. 

The winners will also benefit from two days of support from an Innovation Specialist at Scottish Enterprise.

This year’s CAN DO Innovation Summit, a headline event of the VentureFest Scotland festival of innovation, has been carefully crafted to support Scottish SMEs to build innovation-led recovery, resilience and sustainable growth after recent national and global challenges. 

It will feature a speaker line-up of over 40 multi-sector SMEs and a range of innovation support agencies across 12 industry-led panel sessions. 

Panel discussions and live Q&A sessions will run throughout the day covering the following themes: Journey to a Sustainable Future; Recovery & Resilience; Workplace Culture; Advance manufacturing & Digitisation; MedTech/Health Innovation.

Speaker highlights on the day will include world class keynotes: Lolita Jackson, Special Advisor for Climate Policy and Programs in New York City’s Mayor’s Office; Ivan McKee, the Scottish Minister for Trade, Investment and Innovation; Craig Foster, Art Director at Pixar Animation Studios; Chloe Demrovsky, the youngest and first female chief executive to oversee and expand the Disaster Recovery Institute’s international network; Dyan Finkhousen, founder and CEO of Shoshin Works in the US and John Reid, CEO of the National Manufacturing Institute Scotland (NMIS).

It has never been more important for business to be agile and creative – and over 800 delegates have already signed up to this year’s event, from Scotland, the UK and beyond.

They have given a range of reasons for getting involved, including aiming to make new connections; wanting to learn about progressive workplace practices and hoping to learn how new technologies can help them tackle business challenges. 

Enabling connections is a key objective of the Summit, at a time when networking can be difficult in a virtual world. With multiple opportunities to connect with new people, share knowledge and ideas and explore opportunities for partnership, the Summit makes it easier than ever to spark new connections online.

Delegates can meet innovation leaders, support agencies, investors, entrepreneurs and academics through live Q&As, speed networking, 1:1s in the Delegate Hub, drop-in sessions and the Summit’s virtual Support Village.

Dr Laura Bell of the CAN DO Innovation Summit, said: “Recent events have created huge challenges for SMEs, who will now be critical to tackling the economic and societal challenges we are facing. This year’s Summit has been carefully crafted to help SMEs explore opportunities to develop new and better business models and to drive sustainable competitive advantage. 

“Our virtual focal point for business will help SMEs adopt new technologies, build progressive working cultures and access the right support for innovation-led recovery and growth. We have a wide selection of world-leading experts and local talent lined up to speak at the event, as well as interactive sessions which can benefit SMEs across all sectors.

“I’d also like to thank our panel of judges for selecting three excellent winners to take their well-earned place in the spotlight at the Summit on the #SMEstage. We look forward to welcoming many more SMEs on 3 February.”

The #SMEstage competition winners were selected by an independent panel of judges made up of senior representatives from Scottish EDGE, Innovate UK and Scottish Enterprise.

The winners will have their moment in the spotlight at the Summit at 3.45pm when they will showcase how they are building innovation into their daily practices.

Evelyn McDonald said: “Judging the #SMEstage competition was a great way to start the year as it reminded us all that despite the challenges we are currently facing there are a wealth of entrepreneurs and businesses in Scotland creating new technologies to enable innovation led recovery and growth. 

“Winning the competition will give the businesses access to a wide audience which will hopefully bring useful connections and support as well as linking them into invaluable support from Scottish Enterprise.”

This is the second Summit, following a successful inaugural event in Glasgow, and is the first time it has been held virtually.

For more information on the event please visit: www.candoinnovation.scot

Delegates can register for free here: https://www.registerforevent.co.uk/candoinnovationsummit/

Over 54,000 Scottish SMEs fear closure from second UK lockdown

An estimated 35,070 Scottish SME*s (small and medium-sized enterprises) say it is likely their business will close permanently in the next 12 months as a result of the coronavirus crisis, with this figure rising to 54,776 in the event that a second national lockdown is introduced, according to a recent survey by Virgin Money*.

The research is reported in the latest Virgin Money Business Pulse, which provides a comprehensive insight into the performance of the UK’s SMEs and the environment in which they operate.

Across the UK as a whole, the survey, which was conducted in early September, revealed that almost one million SMEs fear they could close if there was a second lockdown. Two-thirds (66%) of SMEs said their profits were lower in April because of COVID-19 disruptions, including 21% whose profits took a hit of more than 50%. 

Despite lockdown restrictions easing over the summer months, 64% of profits SMEs’ profits over the past 30 days decreased due to coronavirus-related disruption, compared to expected profits for this period prior to the outbreak of the pandemic. 55% of these businesses believe it will take more than six months for profits to recover to pre-lockdown levels.

Underlining the continuing precarious situation for SMEs, 17% of businesses say it is very likely or somewhat likely they will be forced to close permanently in the next 12 months.  This number rises to almost a quarter (24%) when considered in the context of a potential second national lockdown, similar to that seen in March and April.

A key turning point for SMEs will be the closure of the Coronavirus Job Retention Scheme at the end of October.  42% of SMEs (excluding sole traders) expect their workforce to be smaller in December than it is in September. The new Job Support Scheme coming into force on 1 November is less generous than the furlough scheme, and so represents a significant withdrawal of fiscal stimulus.

However, the survey also uncovers some positives, with 15% of SMEs stating their profits were unaffected during lockdown and 10% noting their profits were higher, as demand for specific products, such as food and PPE, increased. 

In addition, the lockdown has prompted almost a quarter (23%) of SMEs to update their strategy, 21% to reshape their vision, and 12% have improved existing products and services.

The Virgin Money Business Pulse covers the first half of 2020, which captures the start of the COVID-19 crisis. 

The scale of the challenges experienced by SMEs is reflected in the Virgin Money Business Pulse, which fell to its lowest ever level of 32.9 in the second quarter of 2020. 

This was driven by record-low scores in the revenue, GDP and capacity indicators, although gains were made in the business costs and lending indicators.

Rock bottom commodity prices and falling wages have provided some relief to SMEs in the form of declining business costs.  Similarly, government-backed loans as part of the fiscal response to the pandemic, led to a record jump in SMEs’ borrowing, which has improved the lending indicator.

Elsewhere in the Virgin Money Business Pulse, the new Regional Rebalancing Tracker, which records regional economic inequalities in the UK, reveals the economic divide between London and the South East and the rest of the UK has continued to widen in the past six years. 

Scores are calculated based on a region’s convergence to the level of economic prosperity and opportunity in London and the South East.  The tracker reached a record low of 38.6 points in Q2 2020, with the lowest levels of convergence in the North East of England and the East Midlands.

Scotland’s individual Regional Rebalancing score was 37.6 in Q2 2020, with a weak rate of business creation weighing on the overall score. Productivity in Scotland is, however, the highest in the UK outside of London and the South East.

It is estimated that in 2020, workers in London and the South East generated on average £37.69 per hour worked. In Scotland, the corresponding figure is £30.13. This means that for every pound of output generated by workers in London and the South East, workers in Scotland generate an estimated 80 pence in the same amount of time.

Gavin Opperman, group business director at Virgin Money, said: “The results make for sober reading, but they are unsurprising given the extraordinary disruption of the last six months. 

“The COVID-19 pandemic has caused the deepest recession on record and recovery is slow, despite the national GDP figures regaining ground.  The UK’s SMEs have experienced unprecedented strain, with sales and profits affected by workplace closures, supply chain disruption, diminished productivity and declining household incomes.

“Despite the pickup in economic activity in the summer months, businesses are by no means out of the woods.  As we head into the autumn and winter months with newly introduced restrictions, the next six months will be critical for many businesses. 

“SMEs have shown tremendous resilience and innovation this year, with some excellent examples of creativity to pivot business models and maintain operations.  But there is no doubt there are tough times ahead.

“On a brighter note, the pandemic may offer SMEs the chance to continue longer-term with the new and more flexible work patterns the pandemic necessitated, helping to rebalance the spread of wealth and opportunity across the country.

“We will continue to focus on how we can best support the businesses we work with. The future is always hard to predict, perhaps more so now than ever, but we will aim to be the best partner we can be as the UK navigates through the economic recovery from the pandemic”.

*Calculated by The Centre for Economics and Business Research (CEBR), with research conducted by Censuswide from 04/09/20 to 07/09/20, with 501 SME decision makers

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Continue reading Supporting our small businesses: Holyrood Committee launches survey