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Top business agency disagrees with figures |
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A top business agency has criticised the recent figures on business start-ups published by the Committee of Scotland Clearing Banks (CSCB) which suggested that the number of start-ups had slumped by more than a quarter over the last year.
Business Enterprise Scotland (BES), the national association for Enterprise Trusts, expressed concern at the conclusions drawn from the statistics which seem to show that Scottish start ups fell by 26 per cent between 2008 and 2009.
The business organisation hit out at the report saying its members – who deliver start-up and SME support on behalf of local authorities - had reported “significantly increased interest” in starting a business during the period and emphasised there had been “no discernable decrease” in start-ups during that period.
Ronnie Smith, (above) executive director of BES, said that the data from the CSCB needs to be viewed in the proper context. “These figures are drawn from the recorded number of new accounts opened in the main clearing banks that currently operate in Scotland and other important factors need to be taken into consideration.
“These include the change of attitude in the banks who are CSCB members for lending, to new start businesses and the loss of confidence many SME’s and start-up clients have towards the banking sector following their role in the economic crisis.
“There has also been a growth of alternative sources of banking services and lending for start-ups such as credit unions, and the entry of some new entrants into the Scottish business banking sector – such as Barclays and Santander – should not be overlooked.”
The CSCB report refers particularly to significant drops in start-ups in the major cities in Scotland, but BES members who operate in these areas countered the suggestion that there was less interest in starting a business or that numbers had significantly fallen.
Joyce Duncan of the Aberdeen-based Enterprise North East Trust, said, “The past year has certainly seen some changes, but individuals continue to be influenced by either the drive of economic necessity or the desire to be entrepreneurial.
“As a result we’ve seen an increase of 15 per cent in enquiries for business start up advice this year and we’ve supported the creation of over 2,000 new businesses in Grampian and Tayside since March 2009, which is broadly comparable with the figures from the previous year”.
Tom McLaren, contracts director with the Glasgow-based GO Group, agreed with this trend. “Overall we believe the economic downturn is leading to more people looking at starting a business as an option – and “white collar” interest in particular is on the up.
“In Glasgow, we have seen a significant increase in enquiries and year on year, our actual start up figures have remained consistent at around 1,000 per year.”
Alasdair Kerr of Edinburgh Business Development & BG Lothian Consortium also said their figures had not shown any downturn. “Enquiries from clients for start-up and growth advice in Edinburgh & the Lothians are well ahead of last year. We are encouraged that these enquiries are converting into quality start-up and businesses with real growth prospects that will lead Scotland out of this challenging economic time” |