Strategic direction to the Enterprise Networks and an enterprise strategy for Scotland
the approach: success through partnership
Many in the public and private sectors have expressed their support for the approach set out in A Smart, Successful Scotland. This is both welcome and, indeed, essential. First, it is businesses that will produce the goods and services that deliver growth. Secondly, insofar as the public sector can support and facilitate enterprise, Scottish Enterprise (SEn) and Highlands & Islands Enterprise (HIE) cannot deliver the priorities identified in SSS in isolation. They must understand the complex environment in which they operate and work in partnership in order to maximise the impact of their interventions.
This direction is therefore now clearly presented as an enterprise strategy for Scotland, which can only be achieved in partnership.
Working in partnership plays to Scotland's strengths, not least in terms of scale. It allows resources, financial and otherwise, to be pooled and can enable contributions from other sources to be more effectively levered in. Partnership working can take many forms: formal partnerships established for a particular, time-limited initiative or ongoing co-operation. Formal partnerships should be created in circumstances where they are necessary for delivery purposes, to exploit a specific opportunity or because the solution to a complex issue demands it. They are not intended simply to bring organisations together.
Working in partnership is not easy. It requires investment and commitment from all partners. The most successful partnerships operate in a spirit of trust, respect and collaboration, where the contribution of every partner is acknowledged and valued. Individual organisations have a responsibility to deliver their own objectives as agreed through the partnership. Local Economic Forums provide an example of how effective partnership working can contribute to delivery. However, partnerships will not work if they are dominated by the agenda or culture of a single organisation. Moreover, partnerships in which the Enterprise Networks are involved will not necessarily always be led by them.
Effective leadership within a partnership is also vital in fostering clarity of responsibilities and objectives.
Partnership working
Scotland benefits from a range of organisations who can contribute to, and who need to work together to achieve, economic and community development. They cannot all be listed here but include:
Business organisations - Business organisations must inform the design of business support and support for developing skills. The Enterprise Networks need to maintain a close dialogue with our national representative bodies and with business networking organisations, taking advantage of their perspective alongside the Networks' own direct contact with companies.
Local authorities - Local authorities are key players in all aspects of local economic development, including development planning, and invest heavily in infrastructure, education and place development, as well as providing direct support services to business. Local Economic Forums (LEFs) provide an existing and effective mechanism for Local Enterprise Companies (LECs) and Councils to work together and with other organisations to provide improved local business services. The Forums are the mechanism for delivering the local economic development dimension of Community Planning.
Higher & Further Education establishments, including the Scottish Funding Councils - An efficient labour market requires a balance between skills demand and supply. Effective communication with the higher and further education sectors will help ensure that the supply of skills emerging from educational establishments meets the needs of growing businesses, as well as broader education objectives - delivering real benefits for Scotland from the record investment in our universities and colleges. The sector also plays an important role in attracting and retaining talent to Scotland. Maximising the impact of research & development and commercialisation activities will require joint working, with account taken of A Science Strategy for Scotland. In the Highlands and Islands, the University of the Highlands and Islands Millennium Institute, in particular, has a key role in delivering research and development.
Skills organisations - The close correlation between productivity and workforce skills requires a sound understanding of employer demand and where any gaps or shortages occur. The Sector Skills Councils can provide this and, through joint working with Futureskills Scotland (part of the Enterprise Networks), promote a shared knowledge and understanding of labour market intelligence and how it may be used to identify opportunities for skills development and address any failures. Learndirect Scotland can help companies and individuals identify and access suitable training while Investors in People promotes the benefits of doing just that.
Communities Scotland - Affordable housing and attractive, competitive places are crucial to retaining and attracting people and investment to Scotland. Where economic development initiatives involve community capacity building and regeneration, Communities Scotland will be an important partner.
Trade unions - Trade unions promote and provide expertise on developing good workplace practices, which help to encourage a well motivated and productive workforce. Unions also play a pivotal role in encouraging and supporting the skills development of their members. Their links into businesses, both in Scotland and abroad, offer valuable opportunities to create new opportunities for Scottish businesses.
Infrastructure providers - High quality infrastructure is essential in supporting and creating opportunities for economic growth. The Enterprise Networks need to influence and work with public and private sector infrastructure providers to maximise the economic impact from infrastructure investment.
Social Economy Partnerships, voluntary sector organisations - The social economy in Scotland has seen significant growth in recent years with an increasing number of social economy organisations achieving high turnover and employing large numbers of people. Proper engagement by the Networks with this sector will ensure that social economy organisations with growth potential are identified early and offered the appropriate business support services that will enable them to realise that potential. Communities Scotland will lead the Futurebuilders Scotland programme to extend and strengthen the role of the social economy whilst encouraging financial sustainability in the sector. The Enterprise Networks will contribute to this through providing advice to those involved in developing the sector.
Equality organisations - Discrimination, both direct and indirect, and occupational segregation based on gender, race, age and other factors inhibit, Scotland's ability to capitalise on its talent pool and create a flexible and responsive workforce. This is particularly the case given the demographic challenges Scotland faces. Key organisations in this field include the Equal Opportunities Commission, the Commission for Racial Equality, the Disability Rights Commission and the proposed Commission for Equality and Human Rights.
VisitScotland integrated tourism network - Tourism is an important sector of the Scottish economy, indeed is absolutely vital to some local economies. Joint working in areas such as skills, product and infrastructure development and business productivity will promote further growth and create opportunities to promote Scotland as an excellent place to live, work, study and do business, as well as visit.
Cultural organisations - Organisations, such as the Scottish Arts Council, can contribute to skills development by involving all ages in activities to boost creativity and confidence. Working with cultural organisations can help to nurture creative activities and to attract both talent and mobile international investment.
Scottish Executive - Scotland's devolved government is a direct deliverer of a number of business support mechanisms in the fields of innovation and investment support. The Executive and the Enterprise Networks must work in partnership to ensure a coherent overall package of support aligned with A Smart, Successful Scotland.
UK Government Departments - In seeking to maximise the impact of our human capital, and raise the levels of economic activity in Scotland, Ministers and the Executive will maintain contact with a range of UK Departments. For the Enterprise Networks, the Department of Work and Pensions and JobCentre Plus, in particular, are important partners. In supporting business, synergy must be achieved with, for example, the UK wide activities of the Department of Trade and Industry and the Treasury.
The above is not a complete list of partner organisations nor are they listed in order of importance. Different types of activity may require different organisations to be involved at various stages. What is certain is that if we are to meet the challenges set out under each of the priorities in SSS then it is vital that the Enterprise Networks are able to harness the expertise of others and work enthusiastically and effectively in partnership. They will, as required by statute, be full participants in Community Planning.
The Executive will ensure that the role of its NDPBs (non-Departmental Public Bodies) and agencies in contributing to SSS is reflected in strategic guidance and corporate plans.