'We will do more with less' says SE's chief

SCOTTISH Enterprise has pledged to do "more with less" today as it unveiled its new four-year business plan.

This year, the enterprise agency will have 332 million to invest in the economy, an improvement on last year's 284m budget, but which also includes management of the 43m regional selective assistance (RSA) funding pot, formerly managed directly by government.

Lena Wilson, chief executive of Scottish Enterprise, said the agency's grant-in-aid budget was about 10 per cent less than in the previous year.

She said: "Businesses are facing the challenge of achieving more with less and that is exactly what Scottish Enterprise is doing.

"In these times of public sector finance difficulties, it is quite right to ask me to deliver more for less."

The enterprise agency's "five-point plan" for economic growth will focus its spending on encouraging export activity and research and development (R&D), as well as supporting firms in the renewable energy industry.

This year, the agency will begin to roll out 10m of the 55m Scottish Loan Fund, as well as make 25m available through its co-investment fund, and an additional 22.5m in R&D grants such as Smart and R&D plus.

These funds are now under the umbrella of the so-called Scottish Investment Bank (SIB), which is still trying to raise further private sector funds.

Much of the firm's direct funding will be directed at firms planning to grow or establish exports.

"That investment capital is absolutely directed at unlocking the international potential of companies in key sectors, the whole thing is really aligned," said Wilson.

Almost half of the agency's budget in 2011-12 - 140.8m - will be spent on "supporting globally competitive business", including RSA grants, with almost 30m to be spent on support staff costs in this area.

Scottish Enterprise has also allocated 55.3m for infrastructure projects, including 20m for the recently announced International Technology Renewable Zone in Glasgow.

Wilson said she had taken on board criticism levelled at Scottish Enterprise by the economy, energy and tourism committee at Holyrood this month as part of its review of Scotland's enterprise network.

She said she was "very pleased" with the committee's report - and while there was "loads of opinion" there was little evidence-based criticism of the agency.

"They said don't go changing things and institutions so early, we were only reformed in 2007," said Wilson.

"They also said the broad direction of focus on growth is exactly what the country should be doing. They applauded our investment in renewables and they supported lots of things we were doing."

But she added that the body would continue to look beyond its 2,000-strong stable of high-growth firms, saying: "What I do accept from the committee is we need to make absolutely sure there aren't more growth companies out there that should be working with us."