Burness Paull contributes to independent report aimed at building more globally competitive companies in Scotland

An independent report Scaling Scotland: Building the Engine for the Next 50 Years of Prosperity, which aims to support the development of more globally competitive companies in Scotland, has been published today.

The report, led by former Skyscanner executive Shane Corstorphine and a high-level panel, including Burness Paull chair Peter Lawson, has addressed what is increasingly recognised as a significant challenge for Scotland’s corporate sector – how to help more of the country’s most promising, ambitious startups grow into large, globally competitive companies.

Scotland is estimated to have around 1,500 scale-ups with revenues up to £5 million, with 280 in the £5-10m bracket, 250 between £10-50m, and just 85 with turnover of over £50 million.  The Scaling Scotland report, in line with data from the UK’s ScaleUp Institute, indicates that closing the scale-up gap could result in more than 100,000 high-value jobs and over £20 billion in additional annual company revenues.

The report, underpinned by in-depth interviews with more than 75 founders, business figures, and investors, says that Scotland must address four mutually reinforcing pillars – business capability, talent, funding, and market expansion and internationalisation – to break through Scotland’s scale-up barriers and unlock long-term growth.
  
Burness Paull chair Peter Lawson and independent consultant and business adviser Heleen Kist led on the funding pillar.

The report details 15 actionable recommendations which are mapped to the four pillars and include:

• the creation of a ‘Scottish Scale-Up Enablement Hub’ to consolidate a fragmented support system led by a blend of private and public sector leaders;
• concierge-style support for founders;
• attracting both returning Scots and international hires;
• ensuring boards have stronger scale-up experience; 
• reforming public co-investment and redirecting capital to highest potential companies; 
• expanding access to high-value growth capital (£3-10m);
• increasing venture debt deals and preserving greater equity for founders;
• creating a ‘scale-up lane’ in government to fast-track visas and procurement, and;
• commissioning a national growth culture report to set out a 10-20 year strategy to support the creation of world-leading companies.

Shane Corstorphine, chair of the Scottish Scale-up Panel, said: “Scotland’s entrepreneurial ecosystem is at an exciting and pivotal point, and the choices we make now will shape our economy, our communities, and our place in the world for the next 50 years. We can picture a Scotland where ambition is normal, not exceptional. A place where entrepreneurs are backed with the right talent, boards, and capital to compete confidently on the world stage.

“As things stand, our entrepreneurial landscape acts like a startup, whereas it needs to behave like a scaleup.  Much as a rapidly growing business must focus on strong leadership, strategy and outcomes, so must Scotland’s entrepreneurial community. Fundamentally, this must be driven by leaders in both the private and public sectors.”

Peter Lawson, chair at Burness Paull, added: “We are pleased to have contributed to this vital report and welcome its recommendations, which offer a clear roadmap for Scotland to build on its entrepreneurial heritage and ensure a greater number of the innovative early-stage businesses based here grow beyond the start-up phase into large companies competing at a global level. 

“Shane deserves huge credit for putting his drive, passion and considerable expertise into this report, which has the potential to be transformational for Scotland’s entrepreneurial ecosystem – with all the material benefits this would bring for the economy and wider society.”

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