A new ScaleupScotland scheme launched by the Hunter Foundation late last month has come in for criticism due to its prohibitive entry fee and lack of female mentorship.
ScaleupScotland2.0 is focused on those businesses potentially able to achieve more than £100m in turnover, offering strategic support - estimated to be valued in excess of £50,000 - to an initial cohort of 12.
However, the programme requires a contribution of £10,000 per business 'towards costs'.
Entrepreneurs undertaking masterclasses and dinners as part of the programme include Sir Tom Hunter, Lord Willie Haughey, Mark Beaumont, Chris van der Kuyl CBE, Calum Smeaton and Theo Paphitis - but only one woman, Ooni pizza oven co-founder Darina Garland.
Hannah Fisher, founder at Tongue In Peat and co-founder at The Start-Up Drinks Lab, said that she was planning to apply for the programme, but was "shocked to see that businesses were to pay £10,000 to be part of it".
She commented: "If you want to remove barriers for small businesses to quickly scale, do not charge them such a high fee to learn, as it's counter productive.
"Apparently the fee is to cover costs, but can I suggest that if the subconscious objective is actually to ensure full programme commitment from the entrepreneurs, there are other non financial ways to do this."
Caroline Laurenson, who is also the managing director of TL Tech Smart Home Solutions and a non-executive director at Inspire PTL, commented that while she's all for more business innovation support, it's "just a shame that many will be excluded due to the requirement for companies to pay £10,000 to be part of the programme".
She noted that the existing ScaleupScotland programme that is signposted for companies which are unsuccessful with the new programme also needs £1m of revenue to be eligible. "Given the average business turnover in Scotland is less than this, who is the programme supporting," Laurenson added.
"If we keep fixating on unicorns, we're missing a huge opportunity as a country, as we have so many amazing businesses in Scotland that add value way beyond turnover."
Elsewhere in LinkedIn comments underneath Insider's article, Purpose HR managing partner Lisa Thomson said that while it looks like an excellent opportunity for businesses selected to participate, "the lack of diversity in the masterclass speaker list is disappointing".
Julia Brown, chair at Nodus Oncology and a director at Myosin, agreed that it "would be nice to see a bit more diversity in this group of advisors", suggesting that Women's Enterprise Scotland could help.
Claire McLaren, Liberal Democrat councillor for Strathtay, added that while it was a "wonderful concept", there is "shocking male domination of the stage".
She also commented: "On reading through the list of names not only was it so male dominated, but also the accomplishment of success within business was measured in millions created.
"The economy of Scotland requires employment creation and not that solely of a lower pay/semi-skilled level, combined with a greater recognition of social issues."
In response, the Hunter Foundation's chief executive Ewan Hunter said: “The start-up ecosystem in Scotland is incredibly well supported, so ScaleUp 2.0 is specifically aimed at the scale-up gap in the market – those incredibly ambitious entrepreneurs already running £20m+ valuation or turnover businesses, that plan to grow to £100m+.
"Businesses with £20m+ turnover or valuation are unlikely to see the £10,000 contribution as a barrier and we have not had any direct queries or requests regarding the contribution.“
As for the female representation criticisms, he stated: “We continue to work with our partners to address gender balance within the programme, both encouraging female entrepreneurs to participate and in our guest speaker line-up.
“Scotland has very few business leaders, and even fewer female led businesses, turning over and exiting £100m+ businesses, and that’s exactly what this programme aims to address.
“We appreciate the support the programme’s launch has received to date and will continue to work with partners to ensure our programme and its content are as representative and accessible as possible to the intended audience.
“We will also continue to signpost wider support opportunities, including our own alternative programmes, to those who apply and don’t secure a place.”
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