John Swinney unveils £7m support package for the voluntary sector

The measure will boost charities and social companies in Scotland who play an "important role" in creating jobs for vulnerable groups, he said yesterday.

The money will be split between two programmes aimed at helping enterprising organisations grow.

"Social enterprises, voluntary organisations and community organisations play an important part in Scottish society," the finance secretary said.

"They can deliver superb services - from creating employment opportunities to connecting with the most vulnerable people in our society.

"These two new programmes will work closely together to make sure that the organisations we fund benefit from appropriate business support.

"This complements the help available from economic development agencies in Scotland such as Scottish Enterprise, Highlands and Islands Enterprise and Business Gateway."

The 3m Just Enterprise programme will help provide business support to social entrepreneurs and third-sector organisations across Scotland. It will also bring about the creation of an online hub where organisations can go for support and assistance.

A further 4m will be provided through the Enterprise Growth Fund. This will see grants of between 25,000 and 200,000 awarded to third- sector organisations with the most sustainable and ambitious business plans.

Mr Swinney launched the programmes at the offices of Specialisterne in Glasgow, a social enterprise which trains people with autistic disorders.

The company is building the online access point for both programmes. "By investing in the third sector now and enhancing self-sufficiency, we can look forward to a future where these organisations play a full role in public sector reform," the cabinet secretary added.

Jim McFarlane, the managing director of operations at Scottish Enterprise, said the new programmes would help complement the services it already provides to growing social enterprises.

He added: "By encouraging and supporting the third sector, we can develop this part of our economy and strengthen Scotland's economic future."

Duncan Thorp, of the Scottish Social Enterprise Coalition, also welcomed the announcement, which he said will strengthen the sector. "The contract will help support our ambitious social enterprise entrepreneurs to build a stronger sector, delivering greater social and economic benefit for everyone," he added.

"We are also pleased about the new Enterprise Growth Fund, a much-needed boost for organisations that demonstrate potential for growth and sustainability.

"Social enterprise is certainly a vital tool in designing and delivering better public services, as we embark on a reform agenda."The Scottish Government said the contracts had been subject to an open procurement process. In both cases, third sector consortia have won the business.

Alison Hay, the Convention of Scottish Local Authorities (Cosla) spokeswoman on regeneration and sustainable development, said she looked forward to a "productive relationship" that will benefit Scotland's wider economy.

"Just Enterprise will provide a vital first step to those looking to set up or develop a social enterprise by assessing their specific needs," she added.

"Where appropriate, Business Gateway will provide further access to mainstream business development advice through its programme of business skills events, business information and Scotland-wide network of expert business advisers."