Joss Mitchell: It's in everyone's interest to support our entrepreneurs

SCOTLAND has a proud history of producing entrepreneurs who have the courage and the determination to push new business ideas that help drive the economy. But does the country still hold a real attraction for those willing to bet on their own drive and ambition?

A survey of 103 high achievers across Scotland commissioned by HSBC Private Bank Scotland showed the majority would still choose to establish their company here rather than elsewhere: 46 per cent would do so as soon as possible, while 22 per cent would wait until the economy had improved.

The most important factors in companies locating in Scotland were both personal and business. Quality of life was cited by 49 per cent and business tax rates were mentioned by 41 per cent. Lifestyle also came top when we asked how Scotland performed compared with other countries outside the UK. Quality of life was rated highly by 75 per cent of respondents, while 57 per cent chose the standard of our education and depth of our talent pool.

But while 43 per cent perceived Scotland as more attractive as a business base compared with England and Wales, 30 per cent said it was less attractive, and 26 per cent that there was no difference.

There was another sting in the tail. Those surveyed felt they were not given adequate support for their entrepreneurialism, both financially and in terms of encouragement.

Only 3 per cent believed that an entrepreneurial spirit was encouraged to a great extent, with 18 per cent saying it was not encouraged at all and 77 per cent saying it was only encouraged to some or a little extent.

Worryingly, 34 per cent thought there was less support for high earners in Scotland than in England or Wales, while only 2 per cent reckoned there was more.

When asked which one change was most important to make Scotland a more attractive place to establish a business, 48 per cent identified tax breaks, while 27 per cent called for a reduction in government bureaucracy.

The survey poses some fundamental questions that may need to be addressed if Scotland wants to capitalise on the experience and expertise that currently exists. The perceived lack of encouragement could be holding us back.

The issue of tax is clearly high on the agenda of those surveyed. When asked what needed to be done to improve support for high achievers in Scotland, 76 per cent chose tax breaks, 55 per cent asked for more attractive bank funding, 47 per cent called for a more supportive media and 31 per cent thought there had to be an improved financial structure.

This may be no surprise since those earning more than 150,000 are about to be hit by the new tax rate of 50 per cent – something that also concerns many commentators.

Leading think tank the Centre for Policy Studies argued that the 50 per cent higher rate of tax was "unfair, complex, inefficient and damaging", while the Centre for Economics and Business Research said as many as 25,000 businessmen could leave the country after the introduction of the new rate.

In light of this, however, it is interesting to note the survey revealed Scotland compared favourably with other countries on the "soft" personal factors such as culture, but not in terms of bureaucracy, taxes and labour costs. Scotland, it seems, has great reserves in terms of quality of life and its talent pool, but it appears to be lagging behind when it comes to encouragement for high achievers and high earners. This raises important questions about how we continue to make Scotland an attractive place to encourage business and make entrepreneurs feel welcome.

Those who took part in the survey had considerable experience of building private businesses – 93 had been involved in start-ups and 54 had experience of setting up businesses in new locations.

Scotland has a great tradition of supporting the young entrepreneur with the odds stacked against them. But this survey shows that perhaps greater attention and encouragement should be given to those who have a track record for job and wealth creation.

It shows strong endorsement for Scotland as a place to establish a business, and a willingness on the part of entrepreneurs to develop multiple businesses here. But clearly they feel they need more support. We do not want our entrepreneurs to think about taking themselves, their money and their businesses abroad.

• Joss Mitchell is director of HSBC Private Bank Scotland.