The Highlands and Islands is seeing a record rate of new business start-ups this year, Highlands and Islands Enterprise has reported.

In just six months a total of 371 people have received assistance from the enterprise network to start up in business, representing almost 85% of the target for the whole year, and on track to be a record for HIE.

The announcement was made today (Thursday 10th October) by HIE chief executive, Sandy Cumming, at the launch of the agency’s annual report for the year 2001/2002.

After outlining the results of last year, Mr Cumming said:  “The rate of business start-ups in the Highlands and Islands has consistently been greater than the Scottish average.  Only half way through the current financial year we are already seeing that lead extended with a record number of new businesses starting up. This is a clear sign of an area populated by confident, ambitious and enterprising people determined to make a success of their ventures.”

Mr Cumming said that the HIE vision for the Highlands and Islands continued to be of a future of high-earning, fast-learning communities whose economic success is rooted in knowledge, and that last year was very much one of laying the foundations for the achievement of that vision.

“We are now seeing far greater emphasis on quality career opportunities, as opposed to the seasonal highs and lows of the past”, he said.  “We have greater infrastructure in telecommunications and advanced use of technology.  We also have growing confidence among many communities, particularly those that have taken ownership of their land and their destinies.  These people now have more control of their prosperity and more commitment to the Highlands and Islands.”

Numbers of those taking up Modern Apprenticeships are also on the increase. This programme enables people of any age to take apprenticeships and receive a rate of pay for the job. 

The number for this year is approaching 1,900, which is the highest yet and to some extent reflects the extension of the scheme to those over 24.

Mr Cumming said that the publication of the initial census results had again highlighted the importance of population growth to the success of the area.  While the total population of the area had continued to grow, the agency was re-doubling its efforts to tackle population loss in the more fragile parts.   He welcomed the recent national recognition that population and economic growth were closely linked and stressed that more people living and working in the Highlands and Islands was a key aim for HIE and its partners.

Speaking about what lies ahead, Mr Cumming said the strategic priorities included improving transport links, provision of broadband technology access, development of the renewable energy sector and public sector jobs dispersal.

The list of major projects under progress include the UHI Millennium Institute, the redevelopment of the centre of Aviemore, the refurbishment of the Arnish Yard in Lewis, and the development of the European Marine Energy Centre in Orkney.

HIE chairman, Dr Jim Hunter, was optimistic about the current situation for the area and what lies ahead.  He said:  “There is no other region in the European Union that has had its prospects so dramatically improved in recent times as the Highlands and Islands.  And the potential ahead of us is huge. Today we have an expanding and diversifying economy, with encouraging population figures and record low unemployment rates.  Thanks to technological advances, it’s getting easier for us to have the sort of enterprise that used to be located far from here.  We are on the way to becoming one of the highest quality economies, with one of the highest quality societies in Europe.  Our future efforts for transport links, technology, renewable energy, jobs dispersal, the Inverness healthcare cluster, business innovation, the UHI, and for the European Capital of Culture bid, will contribute towards making that vision a reality.”

Last year’s highlights in HIE’s annual report include:

• Assistance in creating the equivalent of 1,893 full-time jobs through support programmes. 
  This included assistance for 444 new business ventures, 12 of which are in the growing e-business sector, creating the equivalent of 415 full-time jobs.
• 1,633 trainees taking part in Modern Apprenticeships, which enables people of any age to take up apprenticeships and at the same time receive a fair rate of pay for the job.
• development of ‘Get Ready for Work’, a programme designed specifically to assist those with additional needs
• Thirty-one projects, including the community purchase of Gigha, were approved from the Scottish Land Fund, which is administered on behalf of the Lottery’s New Opportunities Fund by HIE in partnership with Scottish Enterprise.
• 250 grants were approved, totalling £1.16m and helping to attract a further £6.3m from other sources.
• Eleven rural filling stations received upgrading assistance from the Scottish Executive’s rural petrol scheme, operated by the ten local enterprise companies, nine of these included provision of LPG.
• £52,000 in seedcorn grants was awarded as part of HIE’s contribution to the Iomart aig an Oir/Initiative at the Edge
• The HIE data centre in Benbecula opened, and now employs 19 people.
• Careers Scotland, the new all-age careers guidance service, was formed and welcomed into the HIE Network.
• Future Skills Scotland was launched, providing quality information on the labour market to further inform policy decisions.

HIE also published the strategy, A Smart Successful Scotland – The Highlands and Islands Dimension, which underpins all the agency’s work.

The full HIE annual report for last year, including a Gaelic version, is available on the agency’s website at www.hie.co.uk/report.htm