Scottish Enterprise’s Fellowship programme generates £51 million follow-on investment
Enterprise Fellows participating in a Scottish Enterprise programme have gone on to create 61 companies which, over the last five years, have collectively raised in excess of £51million follow-on funding for their companies, of which more than £42million is from the private sector.
The Enterprise Fellowship programme, funded by Scottish Enterprise and delivered jointly with the Royal Society of Edinburgh, translates Scottish research into new businesses based in Scotland by helping academic researchers to develop new growth companies from a science or technology idea. The programme recognises the importance of developing an individual’s business skills in helping them become a successful driving force behind the companies they go on to form.
Scottish Enterprise has invested £5.5 million in the Enterprise Fellowship programme since its launch in 1997. For every £1 of taxpayer’s money, the Enterprise Fellowship programme is currently leveraging more than £9 in follow-on investment. As well as attracting a high level of external investment, the combined turnover of the Fellows’ trading companies is estimated at more than £9 million per year at present. Businesses range from those involved in tidal energy generation and safety systems for the oil and gas industry, to communication systems for sufferers of Alzheimer’s.
The average survival rate for Enterprise Fellows’ companies which are five years old or more is 64% compared to the most recent Scottish Government figure of 52.6% for start-ups in Scotland. Furthermore, £10.9 million of the total investment in the programme (£5.5 million of which is private sector investment) has taken place over the last two years, during extremely challenging economic conditions.
Dr Eleanor Mitchell, director of commercialisation, Scottish Enterprise, said: “Scotland has a strong track record in the creation of new start-up technology companies, and Scottish Enterprise provides various support mechanisms to assist in their growth and development towards companies of scale.
“Our Enterprise Fellows demonstrate the entrepreneurial spirit needed to create a thriving 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 businesses off the ground. By creating a pipeline of innovative, new businesses capable of growing and becoming world leaders in their fields, we can build a stronger Scottish economy.”
Edward Cunningham, Royal Society of Edinburgh Chairman of the selection panel, said: “This is a fantastic opportunity for academic researchers to acquire the skills and expertise needed to successfully grow their businesses. To date 93 Fellows have completed the programme, with our 100th Fellowship just awarded. These 93 Fellows have played a key role in forming 81 companies, 61 of which are actively trading, showing just how effective the programme is in creating new Scottish companies.”
Alison Blackwell was supported through the Fellowship Programme to form her company Advanced Pest Solutions. The company provides a range of high-tech solutions to pest and disease problems and is probably most famous for its Midge Forecast in Scotland and new repellent product for 2010, Smidge. It currently employs five people and has recently secured an industrial investment to take its biocontrol technology to the next stage of development.
Alison said: “The Enterprise Fellowship was what really started to take things forward. It helped take my business skills to a new level and perhaps more importantly, helped me make invaluable industry contacts. That kind of support is second to none – there’s nothing else like it. I really can’t shout loud enough about just how much of a difference you’ll see in your business by taking part in the Fellowship.”
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 of some of Scotland’s leading entrepreneurs and academics. Only candidates with the best ideas and the best chance of a commercial outcome receive an Enterprise Fellowship.
The next closing date for applications is 12th November. The application form, guidelines and regulations are available on the Royal Society of Edinburgh website.