Chamber and committees

The provisional poundage figure I announced on 8 December was calculated to keep the total tax burden the same in real terms for Scottish businesses. The proposed higher Scottish poundage results from an expected smaller increase in rateable value in Scotland than in England, the system has been designed to achieve a neutral effect overall.

The average increase was 32 per cent.

Funding of £12 million is being provided under the Business Growth Fund over three years (£3 million in 1999-2000; £4 million in 2000-01; £5 million in 2001-02), for loans between £20,000 and £100,000. These funds have been allocated to both Scottish Enterprise and Highlands and Islands Enterprise who are responsible for the administration of the scheme. £2 million has already been committed under the Fund. A decision on whether to extend the funding beyond the initial three years will be made towards the end of that period following a review of the impact of the scheme.Small companies can face difficulties in raising sufficient funding due to their size and risk profile. The Business Growth Fund seeks to address this by providing assistance to businesses which are commercially viable and have growth potential, but which are unable to access sufficient funding from established sources.

The public sector currently provides, or contributes to, a range of small business finance schemes in circumstances where a discernible market failure can be identified. Most recently we established the £12 million Business Growth Fund to provide loans to small businesses with potentially viable proposals but unable to access sufficient funds from established sources - for example because of a lack of sufficient security or a limited track record. Some £2 million in loans has already been offered under the scheme and we will be evaluating its success in meeting this perceived gap in the funding market.The need for additional funding measures to support small business is kept under constant review. I remain to be convinced however that a case has been made for wider loan funding at below market rates, which may simply serve to displace existing private sector funding with no overall economic benefit.

Yes.

There is no single indicator available to measure the number of new businesses created in Scotland. The Scottish Executive uses a number of indicators including VAT registration, New Business Statistics data produced jointly by Scottish Enterprise, Highlands and Islands Enterprise and the Committee of Scottish Clearing Bankers, and the Scottish Executive's own Annual Corporate Sector Analysis.

Wider national economic performance is likely to be the main determinant of trends in small business creation and the prospects for the Scottish economy remain good. However we have also been working closely with Scottish Enterprise and Highlands and Islands Enterprise to improve the availability, consistency and quality of support for people wishing to start a business.

A number of positive measures are in hand: improvements to the Scottish Enterprise Network through the establishment, from April, of a single brand in the network and new programmes on start-up and small business support; work by Scottish Enterprise to review the Business Birth Rate Strategy to further encourage entrepreneurship and start-ups - including from non-traditional sources, like women and youth; and the continuation of local events under the Personal Enterprise Campaign. We have also set increased targets for number of start-ups assisted by the Enterprise Network, and are working to improve the availability of web site based business support. New start-ups with growth potential also have access to support from the £12 million Business Growth Fund and, from April, to our new national mentoring scheme - Business Mentoring Scotland.This represents a significant contribution by the Scottish Executive to improve Scotland's performance in business creation.

This information is not held centrally.

The latest estimates available for the number and size of businesses in Scotland are for November 1998. At that time there were an estimated 299,110 enterprises operating in Scotland. Of these, 293,705 were small enterprises (0-49 employees), 3,275 were medium-sized enterprises (50-249 employees) and 2,130 were large enterprises (250+ employees).Further details are available in a Government Statistical Service News Release which was published on Wednesday 26 January 2000. A copy is available in SPICe.The Scottish Executive does not make statistical projections for the number of businesses operating in Scotland in future years.

The Scottish Executive believes that corporate venturing can bring significant benefits to both small businesses and their larger corporate partners, and we want to encourage the establishment of more such relationships in Scotland. The Executive therefore fully supports the UK Government's commitment to introduce corporate venturing tax incentives in this year's Finance Bill and we have asked Scottish Enterprise to consider specific initiatives to help stimulate a culture of corporate venturing in Scotland.