Funding boosts job creation

European funding of more than £4.7 million is being invested in initiatives to support small and medium enterprises (SMEs) and the creation of 580 new jobs across Scotland.

On a visit to life sciences company Biopta, First Minister Alex Salmond said that the new allocations from the European Regional Development Fund (ERDF) will strengthen Scotland's economic recovery by investing in programmes that offer advice and assistance to new and small businesses across Scotland.

The growth of Biopta - a company that tests the efficacy and safety of drugs for the pharmaceutical industry using ethically sourced human tissue - has been aided by previous investments from the ERDF supported Scottish Enterprise Scottish Co-investment Fund. Biopta was spun out of Glasgow Caledonian University in 2002 and currently employs 18 staff in the West of Scotland.

The projects receiving a share of the £4.7 million funding allocation are:

• Support for Young Innovative Enterprises (YIE) - the Scottish Enterprise project aims to assist 15 young technology companies with selective grant funding. The project will make use of specialists and seasoned entrepreneurs with industry expertise to advise clients on management teams, fund raising and access to markets
• Advanced Entrepreneurial & Pre Incubation Support - the project will provide entrepreneurial training and support by linking businesses to universities that can assist their development. The project will aim to provide financial support to 87 enterprises potentially resulting in 352 new business start ups 
• Enterprise@DC - the Dundee College programme will work to increase the number of people from the city's poorest communities to explore, and to start, their own businesses through providing facilities and expertise in areas such as IT, e-commerce and marketing. It aims to create 150 new business start ups and increase the turnover of supported enterprises

First Minister Alex Salmond said:

"The Scottish Government is using all economic levers at our command to support businesses through the downturn and towards sustainable economic growth.

"This announcement of more than £4.7 million European funding will deliver quality support and advice services for business growth which will benefit around 500 companies and potentially create 580 jobs. The three funded projects will focus on encouraging and developing ambitious entrepreneurs and businesses, and I am confident that they will help to support the creation of many more Scottish success stories, like Biopta, which benefited from an ERDF funded initiative.

"It is important that our small businesses have access to support and advice, particularly in this challenging economic climate, so that they can realise their potential, seize opportunities, expand, invest and contribute to Scotland's sustainable economic growth.

"This new investment will build on the package of measures successfully introduced by this Government to support enterprise across Scotland. Our Small Business Bonus will save small businesses an estimated #100 million this year and our comprehensive apprenticeship support programme is working to ensure that Scotland's workforce has the skills and experience required to secure investment and deliver success.

"Our Economic Recovery Plan has directly supported up to 15,000 jobs in the Scottish economy and this further investment will build on our efforts towards ensuring entrepreneurs and businesses across Scotland can realise their ambitions, achieve their potential and play a key role in Scotland's future economic success."

CEO of Biopta, Dr David Bunton, said:

"Biopta has previously received support through the Co-Investment fund, most recently in 2008. This funding was critical to the growth of the company in three key areas: development and production of our unique perfusion myograph instrument, which now creates revenue as part of our service business; expansion of our established tissue supply network throughout the UK and beyond; and creation of an internal Research and Development team, focussed on developing new services for our clients. We are delighted this support will continue to be available to other small businesses."

Chief Executive of Scottish Enterprise, Lena Wilson, said:

"Scotland has an excellent track record of attracting European funding to develop new projects and support young and ambitious Scottish companies like Biopta. The additional funding announced today will help deliver even more support to companies across Scotland to grow their businesses and become more competitive."