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Chamber and committees

Question reference: S3O-04942

  • Asked by: Christina McKelvie, MSP for Central Scotland, Scottish National Party
  • Date lodged: 20 November 2008
  • Current status: Answered by Jim Mather on 20 November 2008

Question

To ask the Scottish Executive what action it is taking to support small businesses through the credit crunch.


Answer

The purpose of the Scottish Government is to increase sustainable economic growth. The changing economic climate has further increased the importance of ensuring that the right advice and support is readily available to firms. The actions we are taking under our Scottish Government economic recovery plan will help enable more business growth/start-ups “ especially important in the current economic climate.

For example, we are working to make the planning system an aid, not a barrier to economic growth; have developed an online portal to help small and medium-sized business access, and bid for government contracts, and aspire to the 10 day target of paying the bills of small businesses.

Business rates account for a higher proportion of costs for small businesses than they do for larger businesses, so reductions in business rates for smaller firms simply remove an element of competitive disadvantage that they suffer. We have already introduced measures to reduce business rates for our smallest businesses through the Small Business Bonus Scheme, which is benefiting tens of thousands of Scottish businesses.

In addition, firms across Scotland can access advice on cash flow and business efficiency issues from the Business Gateway website and where appropriate, direct from Scottish Enterprise and Highlands and Islands Enterprise.