Tag: wellbeing economy

Nature’s role in Scottish economy

Jobs and sectors dependent on sustainable natural world

Scotland’s natural assets contribute more than £40 billion to the economy and support around 260,000 jobs, according to new research. 

The Importance of Natural Capital to the Scottish Economy report highlights the vital economic contribution the natural world makes to Scotland and highlights the value of the ecosystems and the services they provide. 

Important industries such as agriculture, fishing and aquaculture, forestry, water, food and drink and renewables all rely upon the continued availability of high-quality natural resources. 

The research investigates the economic impact of natural capital, which is defined as “the renewable and non-renewable stocks of natural assets, including geology, soil, air, water and plants and animals that combine to yield a flow of benefits to people.” 

The Scottish Government conducted the research to provide the most up-to-date reflection of the true value of nature to the Scottish economy, as it is often undervalued or not included in economic assessments. 

The study demonstrates the link between the threats to Scotland’s economic performance, and the economic opportunity associated with increasing nature dependent sectors.

The Scottish Government’s National Strategy for Economic Transformation (NSET) makes clear that working with and investing in nature is a top priority of Scotland’s wellbeing economy.    

Speaking while visiting Blackthorn Salt in Ayrshire, which produces salt through filtering sea water, Rural Affairs Secretary Mairi Gougeon said:  “This research reinforces the vital role of our natural capital in supporting many of our vital industries – a connection that is often under-represented when we look at economic performance.

“Blackthorn Salt is an excellent example of a business that is dependent on natural capital, using sustainable, traditional methods to produce an exceptional products that provides jobs and can be found in kitchens across the country and beyond.

“The twin crises of climate change and nature loss are inextricably linked, nature offers some of the best ways to protect us from the worst impacts of climate change, so it is essential that we work with partners across the public sector and private investors to protect biodiversity and reduce our emissions as we support sustainable businesses utilising our incredible landscapes and ecosystems.”

NatureScot Chief Executive, Francesca Osowska said: “Nature is vital for our quality of life and that of future generations. In Scotland we are fortunate to have rich and varied landscapes and habitats, with individuals and businesses willing to step up to the challenge of stopping nature loss with hard work and investment.

“NatureScot is responding to this urgent need with leadership of vital programmes such as the £250m Peatland ACTION fund, the £65m Nature Restoration Fund and the innovative new Facility for Investment Ready Nature Scotland (FIRNS) which aims to both restore nature and benefit communities. “

Scottish Government pledges new deal for business

Working hand-in-hand with business

The voice of business is being heard at the heart of government, Wellbeing Economy Secretary Neil Gray has told industry leaders.

Addressing the Scottish Chambers of Commerce annual dinner in Glasgow, Mr Gray said he was committed to strengthening the partnership with business and consulting on policy.

He also acknowledged the need to tackle labour and skills shortages and confirmed the Scottish Government would update shortly on plans for the reform of lifelong education and skills training.

Mr Gray said: “Growth is fundamental to a vision for a wellbeing economy and business plays a crucial role in achieving that.

“The New Deal for Business Group aims to ensure businesses can navigate the policy development process. This will mean they can contribute more effectively, ensuring that informed choices are made by government around the timing, content and practical consequences of new policies.

“The voice of business is not just being listened to, it is being put at the heart of government. We have published an implementation plan on recommendations deriving from the New Deal Group and I am very conscious that, to keep earning your trust, I must deliver on it.

“This will not provide a solution to all policy issues or stop differences of opinion, but I hope it will ensure that operate on the basis of no surprises. Our policy should be informed by your expertise and your business planning should be informed by clear, early signals of policy.

“We continue to work with industry to develop our Talent Attraction and Migration Service and create the conditions to help business flourish and, in turn, drive economic growth that benefits all of society.”

Ecosytem Fund: Kickstarting new community businesses

Community groups can bid for grants to develop entrepreneurial ideas

A fund to help inspire more entrepreneurs to start or scale up their businesses has been relaunched.

The Ecosystem Fund is being widened this year to include initiatives encouraging young people to consider entrepreneurship from an early age. Applications providing access to support services for under-represented groups including women or those from disadvantaged areas will also be considered.

Community groups, non-profit making organisations, industry bodies, colleges and universities are amongst organisations invited to bid for funding to help boost entrepreneurial activity across Scotland. Grants of up to £50,000 will be available.

Projects could include:

  • showcasing Scotland’s start-ups globally to attract talent, investment and strategic partners
  • networking events allowing founders, investors and partners to share expertise and foster connections
  • training, mentorship and identifying growth opportunities by providing funding for staff, equipment, meeting places or programmes for start ups
  • encouraging entrepreneurs who support fair work and environmental good practice to make a positive impact on communities
  • the promotion of learning and teaching in entrepreneurship
  • tackling barriers or discrimination preventing women and other social groups from accessing support

Wellbeing Economy Secretary Neil Gray said: “This expanded funding will build on Scotland’s international reputation as one of the best places in the UK to do business and help make an impact across the business community.

“Despite representing less than 1% of businesses, start-ups generate more than half the value of all small and medium-sized businesses. The fund will spark innovation while fulfilling our potential to nurture many more inventive new start-up companies and driving sustainable growth.

“We need to instil enthusiasm for business and entrepreneurship at all levels from an early age, which is why I encourage collaborative proposals from a wide range of sectors to enable connections and exchange of ideas. In so doing, we can help those who establish businesses to improve lives – such as advancing renewable energy technologies or creating apps that help tackle food waste.

“The Ecosystem Fund is an important step, but we must make further progress expanding entrepreneurial access and opportunity – ensuring that everyone, no matter their background, has the chance to fulfil their potential.

“Together we can remove barriers and open up access and opportunity to budding entrepreneurs across Scotland. By uniting the business community around this goal, we can create a wellbeing economy which is fair, green and growing.”

Chief Entrepreneur Mark Logan recommended measures to support new businesses in his August 2020 Scottish Technology Ecosystem Review.

Mr Logan said: “Just as it takes a village to raise a child, it takes a vibrant entrepreneurial ecosystem to raise a start-up.

“The Ecosystem Fund recognises and supports the vital enabling work of our ecosystem-building organisations. It will accelerate Scotland’s journey towards being an internationally recognised Start-up Nation.” 

www.scottish-enterprise.com/ecosystem-fund

Oxfam: Almost two-thirds of women’s working hours excluded from GDP

A staggering sixty-five per cent of women’s working hours are unpaid every week and excluded from official measures of economic activity, according to a new Oxfam report.  

Radical Pathways Beyond GDP highlights how unpaid care – which accounts for forty-five per cent of all adults’ working hours each week globally – is excluded from gross domestic product (GDP) calculations.

The discussion paper looks at how the over-reliance on GDP warps governments’ priorities. Women carry out the majority of unpaid care – nearly 90 billion hours a week.

There is a growing consensus among policymakers and institutions that GDP is no longer fit for purpose as the primary indicator of economic and social progress. 

By excluding many factors that contribute to the overall health of the economy and wider society, the metric steers policymakers towards priorities that are fuelling inequality, gender and racial injustice and climate breakdown. 

The report argues that transformative alternatives to GDP are urgently required and that narrowly defined growth should never be a primary objective or end goal.

The report cites a handful of countries which have made efforts to incorporate alternative approaches into the highest levels of national law and policy, including Scotland. 

But while the Scottish Government describes the transition towards a wellbeing economy as a “top priority”, Scotland’s journey beyond-GDP remains far from complete.  

Anam Parvez, Oxfam head of research and author of the report, said: “Women are being short-changed the world over, pushed deeper into time and income poverty. 

“To add insult to injury, the majority of their work is ignored by official statistics. 

“Unpaid care is a hidden subsidy to the global economy; without it the system would collapse.

“In an age of climate crisis, growing inequality and economic turmoil, there is a strong case that this outdated metric should no longer be the dominant compass guiding policy making. 

“It fails to distinguish whether economic activity is harming or benefitting people and the planet. 

“Government policies and budgets should be guided by a set of metrics that look at the whole picture, including closing the divide between the richest and the rest, instead of relentlessly pursuing growth for its own sake.”  

Scotland’s drive towards becoming a wellbeing economy is underpinned by its National Performance Framework and the eleven National Outcomes which sit within it, as well as by the linked Wellbeing Economy Monitor.  

However, care work is currently invisible within these, despite the Scottish Government saying the National Outcomes describe “the kind of Scotland it aims to create”. 

Encouragingly, Scottish Ministers are in the process of reviewing and refreshing the National Outcomes for the first time in five years.  

Campaigners, including Oxfam Scotland, are calling for the glaring omission on care to be addressed through the creation of a dedicated new National Outcome on Care. 

The A Scotland That Cares campaign is backed by over 60 organisations, including frontline care and health organisations, those representing unpaid carers and parents, and prominent anti-poverty charities and think tanks.  

Jamie Livingstone, head of Oxfam Scotland, said: “The Scottish Government accepts that traditional economic metrics like GDP are inadequate and that women’s contribution to the economy is persistently undervalued. 

“But while it talks a good game when it comes to measuring the things that really matter, now is the time for that rhetoric to be realised. 

“Without carers, Scotland’s communities and economy would grind to a halt yet they are virtually invisible in the Scottish Government’s vision for the country. Now is the time to right that wrong by ending the invisibility of care in Scotland’s wellbeing framework.  

“Ministers must capitalise on the opportunities presented by the refresh of its National Performance Framework and through the upcoming Wellbeing and Sustainable Development Bill to commit to, and then build, a truly caring wellbeing economy that puts people and planet above a blinkered pursuit of profit.”

Wellbeing Economy ‘makes sound business sense’

Wellbeing Economy Secretary Neil Gray has visited a company whose commitment to fair work and sustainability helped it survive the pandemic.

While at ACS Clothing near Glasgow, Mr Gray heard how a major creditor was so impressed with the business’s approach to fair work and environmental practices it agreed to convert a debt to equity – investing enough to ensure the firm could continue through the pandemic.

Then in the later stages of COVID 19, an ethical investor became aware of ACS’s reputation and also took a stake.

Now the sustainable fashion company is expanding to take on 20 new apprentices – four graduates and 16 modern apprentices across textile care and its warehouse operations.

Mr Gray said: “ACS Clothing is proof that fair work and sustainability make sound business sense.

“This imaginative and successful company captures what a wellbeing economy is all about – supporting a transition to net zero while practicing fair work principles such as paying the real Living Wage, listening to its workforce and offering apprenticeships and internships.

“In return its staff are incentivised, employee turnover is reduced and investors are increasingly attracted by its ethics and ethos.”

ACS Clothing’s Chief Operating Officer Anthony Burns said: “At the start of the pandemic, we faced significant financial strain, as suppliers demanded payment and customers halted orders, leading to a bleak outlook.

“However, our investment in circular business models, and our positive environmental and social impacts, were rewarded when Circularity Capital, a well-known Scottish ethical investment firm, invested significantly in our business.

“At ACS our commitment to fair work is not just a choice, but a responsibility we owe to our communities.

“It is the unwavering dedication to create environments where dignity, equality, and justice thrive, ensuring that every individual’s efforts are valued and rewarded without bias or exploitation.”

New Action Plan for Scotland’s social enterprises

Additional investment of more than £5 million

A new Social Enterprise Action Plan will offer increased support to the sector – boosting its potential for growth and putting the social enterprise model at the heart of Scotland’s recovery from the Coronavirus (COVID-19) pandemic.

The three year action plan demonstrates the Scottish Government’s commitment to social enterprise as a way of doing business for the common good and  to building a wellbeing economy.

Key investments include:

  • £2 million over three years to ensure that by 2024 every school child will have the opportunity to engage with a social enterprise project in their school career, introducing the benefits of the social enterprise model to young people
  • investing an additional £1.5 million to build on the successful programme of support offered through Adapt and Thrive, which helps community organisations wanting to diversify their income streams
  • investing £1.5 million to create a clear pipeline for social enterprises from conception to the international market, with a focus on ethical opportunities in emerging markets such as Africa and South East Asia

Cabinet Secretary for Communities and Local Government Aileen Campbell said: “I am delighted that we have today launched our new Social Enterprise Action Plan.

“As we move forward from the effects of COVID-19, we need to ensure that we build back in a way that helps us rebalance our economy and enables us to create a society that is free from inequalities and disadvantage.

“The Scottish Government wants to create a wellbeing economy that works for everyone. Social enterprises will be central to this work, demonstrating this ethos through conducting business with social purpose. The social enterprise model can also help us to deliver on our aim to protect the environment, ensuring a just transition to a net zero future.”

Social Enterprise Action Plan 2020