New multi-million government funding to make Scotland world-leading start-up hub

New multi-million government funding to make Scotland world-leading start-up hub

The Scottish Government has announced a series of measures to unleash start-up talent and bridge the gender gap in the entrepreneurial sector.

As part of the £15m allocated to the start-up economy in the draft Scottish Budget 2025/26, £4m will be invested in encouraging female entrepreneurs.

The funding will provide tailored support at the earliest stages of business creation, the government said.

Deputy First Minister Kate Forbes said: “This budget commitment demonstrates that the Scottish Government stands squarely behind this and future generations of business talent. I want everyone, from every walk of life, to feel encouraged and supported in taking the first steps on their entrepreneurial journey.”

The initiative contributes to the overall spending of £34.7m across entrepreneurship, innovation and social enterprise, which doubles the funds given for 2024/25.

The economic injection will also help create a new fund to further develop clusters in sectors such as life sciences, digital and advanced manufacturing as well as a new round of the Ecosystem Fund, designed to kickstart start-up activity.

The announcement comes a month after Mark Logan left his role as the Scottish Government’s chief entrepreneurial advisor, due to "draining" attacks from "right-wing" politicians.

Forbes told journalists she has not been "involved in any conversations" to replace Logan, adding that the government is focused on funding to increase the number of clusters of high growth innovative businesses and in supporting its flagship start-up accelerator programme, Techscaler.  

In 2022, Logan and fellow tech entrepreneur Ana Stewart were commissioned by Forbes to carry out a review into female entrepreneurship in Scotland.

The report found women faced significant barriers to kickstart start-up and recommended a raft of measures to bridge the gap such as integrating entrepreneurial education in Scottish schools.

Forbes announced the new funding during a visit to the Royal Bank of Scotland’s entrepreneur accelerator hub in Edinburgh, where she met this year’s winner of Scottish Government's Pathways Award, Gemma Stuart.

Stuart received a £100,000 fund for her start-up Gut Wealth, after winning the competition. The business sells a liquid food supplement to improve gut health, helping to boost immunity and relieve abdominal discomfort and bloating.

Forbes said: "A growing, thriving start-up ecosystem is vital to a strong and growing economy and I want to make Scotland the best place in the world for founders to launch and grow a start-up business.

"Taking a close steer from Ana Stewart and and Mark Logan’s report into encouraging more women start their own businesses, the Scottish Government and our partners are building an end-to-end support network to ensure entrepreneurs are helped at each stage of their journey. Gemma’s success story is one that we are can, must and will replicate."

The Deputy First Minister speaking to Scottish entrepreneur Gemma Stewart 

Stuart told journalists the funding will help her hire her first staff member and launch a second more affordable product into the market.

She said: "I have big ambitions to help people suffering with digestive ill-health to live life a bit more freely from the pain and shame of gut troubles. I’m proud to be scaling my business in Scotland as part of the thriving ecosystem here.

"In the last two years, I’ve accessed vital guidance and support from Business Gateway, Scottish Enterprise, AccelerateHER, RBS Accelerator and most recently Scottish EDGE to help me scale.

"I’ve built a strong network of founders and I'm especially grateful for the other female founders who have helped educate me on raising funds and shared opportunities."