Enterprise Fellowships helping Scotland's technology businesses succeed

Recent independent evaluation of the Enterprise Fellowship programme has found that technology businesses started by Enterprise Fellows have a high survival rate, a high average annual turnover increase (an average of 53 per cent) and attract a high level of external investment.  

The evaluation was unveiled at the programme’s 10th anniversary event held last night at the Mitchell Library, Glasgow.  Also launched at the event was the programme’s first ever series of photographic portraits of Enterprise Fellows.

The 19 creative photographs were commissioned to demonstrate the breadth of businesses created by Fellows, capturing the essences of their business ideas and the ‘faces’ behind the ideas. It is intended that the portraits will form part of a touring exhibition appearing at Scottish universities, alongside the Entrepreneurial Exchange’s Hall of Fame ‘Portraits of Inspiration’.

Photographs are available for publication from Ruth Andrew. Please see media contacts below to arrange.

The Enterprise Fellowship programme, funded by Scottish Enterprise and delivered by the Royal Society of Edinburgh, is designed to recognise the importance of developing individuals’ business skills to become the driving force behind that business.

The programme helps academic researchers develop spin-out businesses from a science or technology idea, providing direct support to academic researchers during the early stages of their business ideas.  Fellows receive 12 months of salary funding, business training, professional mentoring and introductions to legal, financial and business networks.  

To be considered for an Enterprise Fellowship, candidates must demonstrate their technology-based business idea and its market potential.  The application process is highly competitive, with short-listed candidates presenting their idea to a selection panel comprising some of Scotland’s leading entrepreneurs and academics.

The 76 Fellowships awarded since the start of the programme in 1997 have resulted in the incorporation of 44 companies, 35 of which are currently trading with a further 9 which are preparing to trade. Eighty per cent of trading companies have been doing so for more than a year.

The combined turnover of these trading companies was projected at more than £7 million in 2006. These businesses range from yacht sail design, to cleaning systems for the oil and gas industry and a platform technology for pest disease management.

These early stage businesses have also successfully secured equity investment, with Enterprise Fellowship businesses collectively raising over £70 million during 2001 to 2006.  Private sector investment accounts for £62 million of this, with 95 per cent coming from venture capitalists into these early stage businesses.  

Scottish Enterprise has invested £4 million to date in the Enterprise Fellowships, equating to a private sector leverage of over £15 for every £1 of public sector investment.

The research, conducted by Ernst & Young LLP and Oxford Economics, examined the financial and economic performance of businesses established by Enterprise Felllows between 1997 and 2006.

Margaret McGarry, senior director of knowledge transfer industries at Scottish Enterprise comments, “As Scotland’s enterprise, innovation and investment agency, Scottish Enterprise has a major role to maximise Scotland’s innovation.

“Our Enterprise Fellows demonstrate the entrepreneurial spirit needed to create a viable business from a research idea. What we offer is support to develop their business skills, plus money-can’t-buy introductions to mentors, potential collaborators, investors and other specialists to help get their business off the ground.

“The innovative products and services developed by our Fellows represent fresh, feasible business ideas which are already making a positive impact on the Scottish economy. We need more researchers with great business ideas and a burning ambition to make these ideas a reality as these are our future Enterprise Fellows.”

Chair of the RSE's Enterprise Fellowships Management Group, Mr Edward Cunningham said, “The successes highlighted in this Ernst and Young review are a great credit to the achievements of our Enterprise Fellows. Thirty five trading businesses, 220 new jobs in Scotland and £70 million of investment testify to the value of this partnership programme.

“Celebrating the tenth year of Enterprise Fellowships, the RSE is delighted to be working with Scottish Enterprise and these top emerging entrepreneurs, helping to turn the best ideas into thriving businesses in Scotland. The challenge for the Society and our partner, Scottish Enterprise, in managing Enterprise Fellowships into the future, is that we realise the potential that exists and thereby demonstrate, beyond all doubt, that entrepreneurship is alive in Scotland.”

Stuart Brown
The Royal Society of Edinburgh
Tel. 0131 240 5000 / 077 11 710 249
mail: sbrown@royalsoced.org.uk