Business Support Review
Perth and Kinross Council · 26 August 2026
Back to Economy and Infrastructure Committee — 26 August 2026 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee or Board: Economy and Infrastructure Committee Date of Meeting: 26 August 2026 Report Title: Business Support Review Report Number: 26/220 Report Author: Kirsty Easton, Business Growth Team Leader Organisational Lead: Serge Merone, Strategic Lead – Economy, Development and Planning ___________________________________________________________________ 1. Purpose 1.1 The purpose of this Report is to present the findings of a strategic review of business support services across Perth and Kinross and to seek approval for the future direction of business support services, including the preferred future delivery model for Business Gateway. 1.2 The review was undertaken in response to a decision of the Economy and Infrastructure Committee to review Business Gateway arrangements. Recognising that Business Gateway forms one element of a wider business support ecosystem, the review examined the effectiveness of business support provision across Perth and Kinross to ensure future decisions are informed by a comprehensive assessment of business needs, service performance and partnership working. 1.3 The review assessed the strength of the Perth and Kinross business base, the effectiveness of current business support interventions, the performance of funded business support services, and opportunities to strengthen future provision. It also considered the contribution of business support to wider Council priorities, including economic growth, entrepreneurship, Community Wealth Building and inclusive economic growth. 1.4 The report presents the findings of the review, identifies key strengths, opportunities and priorities for improvement, and sets out an evidence-based options appraisal for the future delivery of Business Gateway. 1.5 Sections 1. Purpose 2. Recommendation(s)
Page 2
3. Background/Context 4. Review Scope, Methodology and Assessment Criteria 5. The Perth and Kinross Business Base 6. The Business Support Landscape 7. Business Performance Data and Benchmarking 8. Business Survey Findings 9. Council-Led Business Support and Partnership Working 10. Funded business support services 11. Key Review Findings 12. Future delivery of Business Gateway 13. Future Focus 14. Conclusion 15. Impact and Value Assessment 16. Appendices 2. Recommendation(s) It is recommended that Committee: 2.1 Approves Option 4 – Continuation of the Regional Business Gateway Delivery Model with Enhanced Local Delivery Priorities as the Council’s preferred future delivery model, recognising that the Business Support Review found no evidence to support fundamental restructuring of the current regional delivery arrangements. 2.2 Agrees that Perth and Kinross Council continues to participate in the regional Business Gateway delivery model and works with Business Gateway, GrowBiz and wider local, regional and national partners to strengthen the business support ecosystem and deliver the priorities identified through this review. 2.3 Agrees that Perth and Kinross Council seeks greater integration of the activities delivered by GrowBiz and other partners into the regional Business Gateway delivery model to sustain and improve business support ecosystem throughout 2026/2027 and 2027/2028. 3. Background/Context 3.1 A strong, productive and resilient business base is fundamental to achieving sustainable economic growth across Perth and Kinross. Businesses create employment, drive innovation, support local supply chains, attract investment and contribute significantly to the wellbeing and prosperity of communities across both urban and rural areas. 3.2 The Tay Cities Regional Economic Strategy and Prospectus for Regional Growth (2025-2035) and Perth and Kinross Economic Action Plan (2025- 2030) identify business growth, entrepreneurship, innovation and investment as key priorities. Delivering these ambitions requires businesses of all sizes and sectors to have access to co-ordinated, responsive and effective business support throughout every stage of the business lifecycle.
Page 3
3.3 At its meeting on 27 August 2025, the Economy and Infrastructure Committee considered the Council Support to Businesses report (Report 25/211), which highlighted the broad range of support provided by the Council and recognised the importance of ensuring businesses experience a coordinated and business-friendly approach across Council services. As part of that report, the Committee agreed that officers undertake a review of Business Gateway contract arrangements and report back to this committee with recommendations on the future delivery of the service before the expiry of the current regional contract. 3.4 As part of this review, officers considered whether the existing Business Gateway delivery model continued to meet the needs of businesses and represented the most effective and efficient approach for the future. Given that Business Gateway operates as one element of a wider business support ecosystem, officers considered it appropriate to undertake a broader strategic review to ensure that any future recommendations were informed by a comprehensive assessment of business support provision across Perth and Kinross. 3.5 Businesses increasingly access support from a range of local, regional and national organisations and often engage with multiple providers throughout their business lifecycle. The review therefore examined how the business support ecosystem currently operates, its effectiveness in meeting business needs, and where opportunities exist to strengthen future business support provision. 3.6 Since the previous report, the business support landscape has continued to evolve. Businesses continue to face challenges associated with inflationary pressures, recruitment and skills shortages, digital transformation, changing consumer demand, the transition to net zero and wider economic uncertainty. At the same time, opportunities have emerged through increased regional collaboration, investment programmes and the Tay Cities Region Local Growth Fund. Against this backdrop, it was important to consider whether current business support arrangements remain fit for purpose and capable of responding to the evolving needs of businesses across Perth and Kinross. 3.7 The review sought to answer four key questions: • Does Perth and Kinross have a strong and effective business support ecosystem? • Are current business support interventions meeting the needs of businesses? • Where are the current strengths, gaps and future opportunities for business support? • What is the most appropriate future delivery model for Business Gateway? 3.8 These questions established the scope of the review and provided the framework against which the effectiveness of the current business support ecosystem and future Business Gateway delivery options were assessed. The review considered business support provided directly by Perth and Kinross Council, Business Gateway, GrowBiz and wider regional and national
Page 4
partners. The review methodology and assessment framework are set out in Section 4. 4. Review Scope, Methodology and Assessment Criteria Review Scope 4.1 The review examined: • the strength and resilience of the Perth and Kinross business base; • business support delivered directly by Perth and Kinross Council; • Business Gateway performance and delivery arrangements; • GrowBiz performance and specialist business support; • the contribution of regional and national partners; • partnership working across the business support ecosystem; • business needs and customer experience; and • future opportunities to strengthen business support provision. 4.2 Review Methodology The review was undertaken in four stages. Discovery • mapping the current business support ecosystem; • identifying organisations delivering business support; and • reviewing respective roles, responsibilities and funding arrangements. Evidence Review Evidence was gathered from a range of quantitative and qualitative sources, including: • analysis of the Perth and Kinross business base; • Business Gateway performance information; • GrowBiz performance information; • business engagement activity undertaken by Perth and Kinross Council; • a Business Support Survey undertaken during 2026; • benchmarking against other Scottish local authorities using Scottish Local Authority Economic Development (SLAED) performance indicators; • consideration of business support delivery models across Scotland; and • wider economic intelligence and business performance data. 4.3 Stakeholder Engagement Engagement was undertaken with: • local businesses through the Business Support Survey; • local, regional and national business support partners; and • relevant Council services involved in supporting businesses.
Page 5
Assessment Evidence gathered through the review was assessed to identify: • strengths within the current business support ecosystem; • gaps and opportunities for improvement; • areas of duplication or overlap; • emerging business needs; • future priorities for business support; and • the most appropriate future delivery model for Business Gateway. 4.4 Assessment Criteria Business support arrangements and future delivery options were assessed against the following criteria: • strategic fit and alignment with local, regional and national economic priorities; • business performance and outcomes; • value for money; • customer experience and accessibility of support; • partnership working and collaboration; • contribution to entrepreneurship, inclusive economic growth and Community Wealth Building; and • future flexibility, deliverability and sustainability. The same assessment criteria informed the options appraisal presented in Section 12 and Appendix 3, ensuring the preferred option is supported by a consistent and evidence-based assessment framework. 5. The Perth and Kinross Business Base 5.1 Perth and Kinross has a diverse, resilient and entrepreneurial business base that makes a significant contribution to economic growth, employment and investment across the area. The local economy is home to more than 5,600 registered businesses, alongside a substantial number of sole traders and self-employed individuals operating across both urban and rural communities. 5.2 The area benefits from recognised strengths across several key growth sectors, including food and drink, tourism, financial and business services, creative and digital industries, energy transition and the circular economy. These sectors are central to the area's future economic development and are reflected in both the Perth and Kinross Economic Action Plan and wider growth and investment propositions. 5.3 Importantly, Perth and Kinross is not dependent on a single dominant industry. This sectoral diversity contributes to the resilience of the local economy, supports economic stability and creates opportunities for sustainable growth, innovation and investment across a broad range of sectors.
Page 6
5.4 Current business intelligence demonstrates the strength and growth potential of the local business base. 5.5 Key indicators include: • approximately 5,639 registered businesses, supported by a further estimated 6,900 sole traders and non-limited businesses; • 99.7% of registered businesses are SMEs (Small or Medium-sized Enterprises with fewer than 250 employees); • Only 0.3% are classified as large enterprises (250+ employees) • approximately 58% of businesses operate within rural areas, reflecting the importance of the rural economy to Perth and Kinross; • an average business age of 11.35 years, significantly higher than the UK average of around 8 years and good business survival rates after 3 years and 5 years of existence, indicating a relatively mature and established business base; • Strong business growth prospects, with Perth and Kinross ranked by Growth Flag as the highest performing local authority area in the UK for business growth potential both 2024 and 2025. Growth Flag analysis indicates that 11.4% of businesses are forecast to achieve growth of more than 20% over the next year, exceeding the UK average. Sources: Growth Flag, The State of Growth Report (2025); ONS UK Business Counts; Perth and Kinross Economic Action Plan Evidence Base (Invest in Perth Website) 5.6 Whilst overall business performance remains strong, analysis highlights both significant opportunities and emerging risks within the Perth and Kinross business base. 5.7 The evidence identifies a substantial cohort of businesses with strong growth potential, underlining the importance of policies and interventions that support SMEs productivity, innovation, scale-up and market expansion. At the same time, a smaller group of businesses are exhibiting signs of financial distress, reinforcing the need for targeted support that strengthens business resilience, adaptability and long-term sustainability. Review Findings 5.8 The review found that Perth and Kinross benefits from a strong, diverse and resilient business base characterised by high levels of entrepreneurial activity, above-average business survival rates and significant growth potential. The evidence demonstrates that the local economy is well positioned to support sustainable economic growth and compares favourably with national and comparator authority performance. 5.9 Whilst the overall business base performs strongly, the review identified opportunities to further strengthen support for businesses with high growth potential, improve productivity and innovation, and continue supporting business resilience in response to changing economic conditions.
Page 7
Key Conclusions 5.10 The findings demonstrate that the current business support ecosystem is supporting a strong and resilient business base. Future business support should therefore focus on building on these strengths by increasing support for entrepreneurship, innovation, investment, productivity and business scale- up, whilst continuing to provide accessible support for businesses at every stage of the business lifecycle. Business lifecycle 5.11 Maintaining a healthy and resilient business base requires support at every stage of the business lifecycle. This includes fostering entrepreneurship and business creation; supporting business start-up and survival; enabling early- stage growth; driving innovation, productivity and competitiveness; helping businesses to scale up, access new markets and export opportunities, and ensuring businesses have access to the skills, finance, premises and infrastructure needed to grow and mature. This is illustrated by the diagram below. Business Support, Inclusive Growth and Tackling Poverty 5.10 Business support is not solely about helping businesses succeed. It is also a key enabler of inclusive economic growth and supports the Council’s ambition of enabling everyone to live life well, free from poverty and inequality. Encouraging entrepreneurship and self-employment can create pathways for individuals to increase household income, develop new skills and secure sustainable livelihoods. Start-up support can be particularly valuable for people seeking flexible employment, those living in rural communities and individuals who may face barriers to more traditional routes into employment. 5.11 Supporting existing businesses to innovate, improve productivity and grow also contributes to inclusive growth by creating new jobs, strengthening local supply chains and increasing investment and expanding opportunities for local people within or accessible from the communities where they live. As businesses develop and mature, they generate employment opportunities across a wide range of sectors and skills levels, helping to build a stronger,
Page 8
more resilient and more inclusive local economy. This is particularly the case for anchor businesses and larger employers, which have the capacity to generate wider economic and social value through local procurement, workforce development, community wealth building approaches and investment in local supply chains. Review Findings 5.12 The review confirms that business support plays an important role not only in supporting business success, but also in delivering wider Council priorities, including inclusive economic growth, Community Wealth Building and tackling poverty through increased employment, entrepreneurship and local supply chain development. 6. The Business Support Landscape 6.1 Business support should not be viewed simply as a collection of individual services, but rather as a coordinated ecosystem of interventions that contributes to economic growth, business competitiveness, investment, employment, social inclusion and poverty reduction. 6.2 Businesses in Perth and Kinross can access support from a broad range of local, regional and national organisations, each providing different interventions at various stages of the business lifecycle. Collectively, these organisations form a comprehensive business support ecosystem, offering services ranging from entrepreneurship and start-up support through to business growth, innovation, skills development, investment readiness, exporting and specialist sector assistance. 6.3 A detailed overview of the current business support ecosystem, including the principal delivery partners, their respective roles and the support available to businesses, is provided in Appendix 1. Evidence 6.4 The review found that businesses frequently engage with multiple organisations as they grow and develop. Evidence gathered through the Business Support Survey, partner engagement and ecosystem mapping indicates that support organisations generally work well together and provide complementary services across the business lifecycle. 6.5 Whilst the breadth of support available is a significant strength, businesses reported that the overall landscape can sometimes be difficult to navigate. This does not reflect a lack of provision or unnecessary duplication of services. Rather, it highlights the importance of effective signposting, strong referral pathways and coordinated communication between providers to ensure businesses are directed to the right support at the right time. Review Findings 6.6 The review found that Perth and Kinross benefits from a comprehensive and well-established business support ecosystem. The respective roles of Perth
Page 9
and Kinross Council, Business Gateway, GrowBiz and national agencies are generally complementary, providing businesses with access to support throughout the business lifecycle. 6.7 The review found no evidence of significant duplication or structural gaps within the current business support ecosystem. Instead, the principal opportunity for improvement relates to making the existing ecosystem easier for businesses to understand and access through stronger partnership working, clearer customer journeys and improved referral arrangements. Key Conclusions 6.8 Future improvements should focus on stronger coordination, clearer customer journeys and enhanced referral pathways. 6.9 These findings also informed the subsequent assessment of future Business Gateway delivery options. As the review found no evidence of significant duplication or structural weaknesses within the current business support ecosystem, the options appraisal focused on identifying the delivery model best placed to strengthen existing arrangements rather than replace them. 7. Business Performance Data and Benchmarking 7.1 Business support performance was benchmarked using the SLAED Performance Framework and compared against Perth and Kinross’s Local Authority Family Group and the Scottish average. Indicator Perth & Kinross Family Group Scotland Business start-ups per 10,000 working-age population 50 44 51 Three-year business survival rate (born 2021 still active in 2024) 62.3% 58.4% 57.6% Five-year business survival rate (born 2019 still active in 2024) 47.3% NA 44% Business Gateway-supported start-ups still trading per annum 254 210 213 Business Gateway unique customer accounts per annum 1,809 1,440 1,584 * Councils in PKC’s ‘Local Authority Family Group’: East Ayrshire, East Lothian, Fife, Moray, North Ayrshire, South Ayrshire and Stirling Review Findings 7.2 The review found that Perth and Kinross performs strongly relative to comparable local authority areas and continues to outperform comparator
Page 10
averages across a number of key measures relating to business start-up activity, business survival and business support engagement. 7.3 The evidence indicates that the current business support ecosystem is contributing positively to the strength, resilience and growth of the local business base. Benchmarking also demonstrates that existing arrangements are delivering positive outcomes for businesses and compare favourably with both the Local Authority Family Group and Scotland as a whole. Key Conclusions 7.4 The benchmarking evidence provides assurance that the current business support ecosystem is performing effectively and supporting positive business outcomes. The review found no evidence that fundamental changes to existing business support arrangements are required on the basis of performance. Instead, future activity should focus on building on existing strengths, addressing identified opportunities for improvement and ensuring support continues to evolve in response to changing business needs. 7.5 Whilst benchmarking provides a valuable comparison of performance outcomes, it has been considered alongside business engagement, survey findings, service performance information and partner feedback to provide a balanced assessment of the effectiveness of current arrangements. 8. Business Survey Findings 8.1 To inform the review, Perth and Kinross Council undertook a Business Support Survey during 2026 to better understand business experiences, awareness of support services and future support requirements. Survey Overview 8.2 Twenty-five businesses responded, representing a range of sectors, locations and business sizes. 8.3 Whilst the sample size is relatively modest and should not be regarded as statistically representative of the wider business community, the findings provide valuable qualitative insight into business experiences, perceptions and future priorities. The survey findings have been considered alongside business engagement activity, partner discussions, benchmarking information and service performance data to inform the overall conclusions of the review. 8.4 Key findings include: • approximately two-thirds of respondents had accessed business support during the previous year; • Business Gateway and GrowBiz were the most frequently used funded services; • businesses valued one-to-one advice, mentoring and networking opportunities; • overall satisfaction with business support was positive;
Page 11
• businesses identified funding, business growth, digital support and networking as continuing priorities; • respondents highlighted opportunities to improve awareness of available support and simplify the customer journey. Review Findings 8.5 The review found that businesses recognise the breadth and quality of support available across Perth and Kinross and place particular importance on personalised advice delivered through trusted local organisations. The findings also reinforce the importance of maintaining accessible support throughout the business lifecycle. 8.6 Whilst the survey identified opportunities to improve awareness of available support and make the business support landscape easier to navigate, it did not identify significant gaps in provision and highlighted opportunities to improve awareness and navigation of support services. Key Conclusions 8.7 The survey findings suggest that future improvements should focus on strengthening communication, simplifying customer journeys and improving referral pathways between business support providers. These findings support the review's wider conclusion that future effort should concentrate on enhancing the effectiveness of the existing ecosystem rather than restructuring current delivery arrangements. 9. Council-Led Business Support and Partnership Working 9.1 Whilst funded business support services play an important role, Perth and Kinross Council also delivers a wide range of interventions that create the conditions for business start-up, growth, investment and long-term economic resilience. These include business intelligence and engagement, account management, inward investment, commercial property, infrastructure, planning and partnership working. Collectively, these activities support entrepreneurship, business growth, employment and inclusive economic development. Business Intelligence and Business Engagement 9.2 Understanding business needs is fundamental to effective support. The Council gathers intelligence through its CRM system, the Top 100 Business Programme, Business Lead Officers, Growth Flag analysis, business visits, surveys and ongoing engagement with businesses and partners. This helps identify opportunities and barriers to growth, informs economic priorities and ensures businesses are directed to the most appropriate support. The Council’s wider approach to business engagement is set out in the accompanying report “Council Support to Businesses” (Report 26/219).
Page 12
Council-wide Business Support 9.3 Businesses engage with a wide range of Council services, including Planning, Building Standards, Licensing, Environmental Health, Roads, Property Services, Procurement and Employability. The Council's Business Friendly Cross-Service Group helps coordinate support across services, improving responsiveness and creating a more business-friendly environment. Investment and Business Growth Interventions 9.4 The Council delivers a range of direct interventions to stimulate investment and business growth, including commercial property investment (eg Commercial Property Investment Programme), employment land development, inward investment activity (eg Angel’s Share investment programme), grants (eg Green Capital Grant, Beyond Scotland Market Development Grant), recruitment incentives and regeneration programmes. Between 2024 and 2026, these interventions supported more than 190 businesses and employers, created over 110 jobs, awarded more than £1.2 million in grant funding and leveraged almost £9 million of private sector investment. These investments play an important role in supporting productivity, innovation, job creation and business resilience. Partnership Working and Regional Collaboration 9.5 The Council works closely with Business Gateway, GrowBiz, Scottish Enterprise, Scottish Development International, Skills Development Scotland, VisitScotland, the Supplier Development Programme and local business organisations to provide coordinated support at various stages of the business lifecycle. 9.6 This partnership approach strengthens referral pathways, reduces duplication and improves access to specialist advice. Strategic leadership is provided through the Perth and Kinross Economic Partnership, while Invest in Perth remains the principal platform for promoting business support and investment opportunities. Review Findings 9.7 The review found that Perth and Kinross Council plays a significant leadership and coordination role within the wider business support ecosystem. In addition to delivering direct interventions, the Council brings together partners, facilitates referrals, supports investment and ensures that businesses can access a coordinated range of services throughout their lifecycle. 9.8 The review also found that partnership working is a key strength of the current model. Perth and Kinross Council, Business Gateway, GrowBiz and national agencies fulfil complementary roles and work collaboratively to provide businesses with access to specialist advice and support. This collaborative approach reduces the risk of duplication and enables businesses to benefit from a broader range of expertise than could be delivered by any single organisation.
Page 13
Key Conclusions 9.9 The findings demonstrate that future improvements should build upon existing partnership arrangements rather than introduce fundamental structural change. Continued collaboration will be essential to maximise the opportunities presented through the Tay Cities Region Local Growth Fund and to ensure business support remains responsive to changing economic conditions and business needs. Future Opportunities and Regional Collaboration 9.10 The business support landscape will continue to evolve in response to changing economic conditions and business needs. Continued collaboration with local, regional and national partners will be essential to ensure businesses can access high-quality support. 9.11 The Tay Cities Region Local Growth Fund presents a significant opportunity to strengthen business support over the next two and a half years, with £2.385 million allocated to business growth, innovation, exporting, digital adoption, supply chain development, capital investment and net zero transition activity across the Tay Cities region. 9.12 Additional Tay Cities investment will support tourism and visitor economy initiatives, employer engagement and stronger links between businesses, skills providers and wider economic development partners. This investment provides an opportunity to review existing funded business support services. 10. Funded business support services Business Gateway delivered by Elevator 10.1 Business Gateway is the Council’s primary funded business support service for business start-up and early-stage growth. 10.2 The service is delivered regionally across Tay Cities Region through a procured contract funded centrally by the Scottish Government. Delivery forms part of the national Business Gateway framework coordinated through COSLA’s Business Gateway National Unit. Dundee City Council is the Lead Authority for the contract and there is a Memorandum of Understanding between Angus Council, Dundee City Council and Perth and Kinross Council. The regional contract value for 2026/27 is £1.2m and is delivered by Elevator. The current contract expires in March 2027, with an option to extend for a further year to March 2028. 10.3 Performance during 2025/26 remained strong. 10.4 Headline achievements include: • Perth and Kinross recorded 285 business start-ups, representing a 12.6% increase on the previous year. • Perth and Kinross was the only Tay Cities local authority to record an increase in business start-ups.
Page 14
• Perth and Kinross now accounts for almost 40% of all Business Gateway business starts across Tay Cities region. • Business Gateway supported over 1,270 businesses across Perth and Kinross through diverse activities such as networking events or training sessions. • Rural business start-up activity also continued to increase. 10.5 Business Gateway continues to perform well against national performance measures and provides an important entry point into the wider business support ecosystem. Through the national Business Gateway framework, businesses benefit from a consistent universal offer, whilst regional delivery enables services to be tailored to local priorities and circumstances. The chart below summarises the monthly Quality Assurance results based on customer feedback. The overall score incorporates responses relating to adviser satisfaction, enquiry handling, the local office experience, benefit outcomes and whether customers would recommend the service. Throughout the review period, customer satisfaction remained consistently high, providing further evidence of the quality and effectiveness of the service. 10.6 The Quality Assurance results demonstrate consistently high levels of customer satisfaction and provide additional assurance that Business Gateway is delivering a high-quality service. Whilst individual feedback identified opportunities for continuous improvement, the review found no recurring themes or systemic issues that would indicate concerns regarding overall service quality or performance. This evidence, together with contract performance information, benchmarking data and business feedback, supports the conclusion that Business Gateway continues to perform well and provides an effective universal business support service. GrowBiz 10.7 The Council also funds GrowBiz to provide specialist support for rural businesses, micro-businesses, social enterprises, creative industries and young entrepreneurs. 10.8 The contract value for 2026/27 is £140,000. During 2025/26, GrowBiz exceeded contractual targets. The GrowBiz Service Level Agreement (SLA) was agreed for 3 years and is due to be reviewed in March 2027. 10.9 Achievements include: • an increase in the number of businesses supported from 254 to 302 through diverse activities such as networking events;
Page 15
• Supporting 24 new businesses to start trading, alongside tailored mentoring and enterprise advice • expansion of the mentoring programme and peer support networks • increased engagement with schools and young entrepreneurs; • continued growth in support for food and drink businesses; • delivery of peer-to-peer learning and networking opportunities; • continued support for rural enterprise and community businesses. 10.10 The review found that GrowBiz provides a specialist offer focused primarily on rural businesses, micro-businesses, social enterprises, community enterprises and young entrepreneurs. This complements the wider business support ecosystem by providing targeted interventions alongside the universal business support available through Business Gateway and other delivery partners. The review also identified opportunities to strengthen coordination between universal and specialist business support, ensuring businesses experience a seamless customer journey and can access the most appropriate support at the right stage of their business lifecycle. Review Findings 10.11 The review found that Business Gateway and specialist business support provision fulfil distinct but complementary roles within the wider business support ecosystem. Business Gateway provides the Council’s principal universal business support service, supporting business start-up, early-stage growth and access to national programmes. Specialist provision provides additional targeted support for specific customer groups and business needs, strengthening the overall breadth of support available across Perth and Kinross. 10.12 Performance information, benchmarking data, business survey findings and partner engagement demonstrate that the current model is delivering positive outcomes for businesses. The review found no evidence that the existing regional Business Gateway delivery model is underperforming or that withdrawing from the regional arrangement would improve business outcomes, represent better value for money or strengthen the wider business support ecosystem. Instead, the evidence indicates that the greatest opportunities for improvement lie in strengthening integration, referral pathways and targeting local investment towards areas of greatest additionality and strategic value. This reflects the wider findings of the review and informs the preferred future delivery model considered in Section 12. Key Conclusions 10.13 The review concludes that future Business Gateway commissioning and partnership arrangements should continue to provide a strong universal business support offer whilst ensuring that local investment is increasingly focused on specialist interventions that deliver the greatest additionality and strategic value. This includes strengthening entrepreneurship, inclusive enterprise, rural enterprise, support for businesses with high growth potential, Community Wealth Building outcomes, improved referral pathways and enhanced collaboration across the wider business support ecosystem. The review therefore supports greater integration of specialist business support
Page 16
activity with the core Business Gateway offer, whilst retaining flexibility for future commissioning and partnership discussions. 11. Key Review Findings 11.1 This review considered the strength of the Perth and Kinross business base, the effectiveness of the wider business support ecosystem, the contribution of Council-led interventions, the performance of funded business support services and the future needs of businesses across Perth and Kinross. The evidence has been assessed against the review framework and provides a clear basis for determining the preferred future delivery model for Business Gateway. 11.2 Key Review Findings Review Theme Key Findings Implications for Future Business Support Business Base Perth and Kinross has a strong, diverse and resilient business base with above-average business survival rates and significant growth potential. Continue supporting entrepreneurship, productivity, innovation and business growth. Business Support Ecosystem Businesses benefit from a comprehensive business support ecosystem delivered through Perth and Kinross Council, Business Gateway, GrowBiz and national partners. Maintain the existing ecosystem whilst strengthening collaboration and coordination. Business Performance Benchmarking and performance information demonstrate positive outcomes and compare favourably with similar local authority areas. Build on existing strengths rather than fundamentally restructuring current arrangements. Business Survey Businesses value personalised support but identified opportunities to improve awareness and navigation of services. Improve customer journeys, communications and referral pathways. Council-led Support The Council plays a key leadership, coordination and investment role within the business support ecosystem. Continue strengthening partnership working and place-based economic development. Funded Business Support Business Gateway and GrowBiz provide complementary services and are delivering positive outcomes for businesses. Strengthen integration and local delivery priorities whilst retaining the strengths of the current model. 11.3 Overall, the review found that Perth and Kinross benefits from a strong and resilient business base. No significant structural gaps or unnecessary duplication of services were identified. Instead, the principal opportunities for improvement relate to strengthening collaboration between delivery partners, improving awareness of available support, enhancing referral pathways and increasing targeted support for entrepreneurship, inclusive enterprise and businesses with high growth potential. 11.4 Importantly, the review found no evidence that fundamental restructuring of the business support ecosystem or withdrawal from the existing regional Business Gateway delivery model would improve business outcomes, represent better value for money or strengthen the overall effectiveness of
Page 17
business support provision. Instead, the evidence supports building on the strengths of the current arrangements through enhanced local delivery priorities, stronger partnership working and continued regional collaboration. 11.5 These findings informed the assessment of future Business Gateway delivery options set out in Section 12. The options appraisal considered which delivery model is best placed to build upon the strengths identified through the review, address the opportunities for improvement and deliver the greatest long-term benefit for businesses and the wider Perth and Kinross economy. 12. Future delivery of Business Gateway Option Appraisal 12.1 As requested by Committee, the review considered a range of options for the future delivery of Business Gateway services. In doing so, the appraisal considered not only the performance of Business Gateway itself, but also the findings of the wider Business Support Review, including the strength of the Perth and Kinross business base, the effectiveness of the wider business support ecosystem, the activities delivered by GrowBiz and other delivery partners, future opportunities arising through the Tay Cities Region Local Growth Fund, and the Council's ambitions for entrepreneurship, Community Wealth Building and inclusive economic growth. 12.2 The review concluded that Perth and Kinross benefits from a strong and well- established business support ecosystem. Businesses have access to support throughout the business lifecycle and existing arrangements are delivering positive outcomes in relation to business start-up, business survival, business growth and business engagement. The review found no evidence that fundamental restructuring of business support arrangements is required. Instead, the greatest opportunities for improvement lie in strengthening integration, partnership working, entrepreneurship, inclusive enterprise activity, referral pathways and support for businesses with growth potential. 12.3 Four delivery options were therefore assessed against the following criteria: • Strategic Fit and Alignment with Economic Priorities; • Business Performance and Outcomes; • Value for Money; • Entrepreneurship, Inclusive Growth and Community Wealth Building; and • Partnership Working, Deliverability and Future Flexibility. 12.4 A detailed appraisal is provided in Appendix 3. The overall assessment is summarised below. Option Summary Overall Assessment Option 1 Continue regional model Strong performing option but limited additionality Option 2 Procure dedicated Perth and Kinross service Greater flexibility but increased cost and risk
Page 18
Option 3 Bring service in-house Maximum control but highest implementation risk Option 4 Retain regional model with enhanced local priorities Preferred option - strongest overall balance of performance, value for money and strategic fit Preferred Option 12.5 The review concludes that Option 4 – Continuation of Business Gateway delivery model with enhanced local delivery priorities is the preferred option for the future delivery of Business Gateway services. 12.6 Under this option, Perth and Kinross Council would continue to participate in the existing regional Business Gateway delivery model whilst strengthening local delivery priorities through greater integration of specialist business support activity currently delivered by GrowBiz and other delivery partners. Business Gateway would continue to provide the core universal business support offer, including business start-up support, growth advice, workshops, digital support and access to national Business Gateway services. 12.7 Local investment and partnership activity would increasingly focus on areas identified through the review as providing the greatest additionality and strategic value, including: • entrepreneurship and business creation; • youth entrepreneurship; • rural enterprise; • women's enterprise; • social enterprise and community enterprise; • inclusive enterprise and self-employment; • mentoring and peer support; • Community Wealth Building outcomes; • place-based enterprise activity; • support for businesses with high growth potential; and • strengthened referral pathways across the business support ecosystem. Why Option 4 is Preferred 12.8 Option 4 achieved the highest overall appraisal score because it best reflects the findings of the Business Support Review. It retains the strengths of the existing regional Business Gateway model whilst directly responding to the opportunities identified through the review, particularly around entrepreneurship, inclusive enterprise, Community Wealth Building, partnership working and targeted local investment. 12.9 The option: • retains a high-performing Business Gateway service that is delivering positive outcomes for businesses across Perth and Kinross; • builds upon established regional partnerships and economies of scale; • recognises and strengthens the activities currently delivered by GrowBiz within the wider business support ecosystem;
Page 19
• aligns strongly with the Perth and Kinross Economic Action Plan, Tay Cities Regional Economic Strategy and Community Wealth Building ambitions; • supports inclusive economic growth and anti-poverty objectives through increased focus on entrepreneurship and inclusive enterprise; • provides flexibility to respond to emerging business needs and opportunities arising through the Tay Cities Region Local Growth Fund; and • avoids the cost, complexity and implementation risks associated with procuring a separate service or bringing delivery in-house. 12.10 Whilst Option 1 performs strongly and would be a credible option, Option 4 was preferred as it provides a mechanism to address the principal opportunities identified by the review, particularly around entrepreneurship, inclusive enterprise, Community Wealth Building and support for growth businesses. Financial and Risk Implications 12.11 The preferred option can be delivered within existing approved budgets and does not require the procurement of a new service or the establishment of an in-house delivery model. It therefore avoids the mobilisation, staffing, governance and transition costs associated with alternative options. Enhanced activity will be achieved primarily through refocusing existing resources, strengthening integration and collaboration between delivery partners and maximising external funding opportunities, including the Tay Cities Region Local Growth Fund. 12.12 The primary objective is improved outcomes and targeting rather than budget savings, although future commissioning discussions could identify efficiencies or opportunities to redirect investment toward local priorities including GrowBiz current funding allocations into the Business Gateway regional delivery model. 12.13 The principal risks relate to ensuring effective collaboration between delivery partners and maintaining alignment between regional Business Gateway arrangements and local priorities. These risks are considered low to medium and can be mitigated through existing governance arrangements, regular performance monitoring, strengthened referral pathways and continued partnership working between Perth and Kinross Council, Business Gateway and other partners. Conclusion 12.14 Having considered the evidence gathered through the Business Support Review, the performance of existing services, benchmarking information, business engagement activity and future economic development opportunities, officers conclude that retaining the regional Business Gateway model while enhancing local partnership delivery represents the most effective and proportionate approach. 12.15 The preferred option retains the strengths and value for money of the existing model whilst providing greater focus on entrepreneurship, inclusive enterprise, Community Wealth Building and support for growth businesses. It therefore
Page 20
offers the strongest overall fit with the Council's economic development priorities and the future needs of businesses across Perth and Kinross. 13. Future Focus 13.1 The review has identified a strong and well-established business support ecosystem across Perth and Kinross, with a broad range of services available to businesses at different stages of development. Opportunities for improvement relate primarily to enhancing coordination, visibility and navigation of existing support rather than introducing significant structural change. 13.2 On this basis, the preferred approach is to build on existing strengths by strengthening collaboration between partners, improving referral pathways and ensuring businesses can access the right support at the right time. 13.3 The key priorities for future business support activity are: • increasing entrepreneurship, self-employment and business creation, particularly amongst young people, women, rural communities and under- represented groups; • strengthening support for businesses with high growth potential, including those seeking to improve productivity, innovate, access new markets and scale up; • enhancing inclusive enterprise activity and maximising the contribution business support can make to tackling poverty and promoting inclusive economic growth; • supporting the delivery of Community Wealth Building objectives through place-based approach, local enterprise development, supply chain growth and local wealth retention; • improving awareness of available support and creating clearer customer journeys across the business support ecosystem; • strengthening referral pathways and collaboration between Business Gateway, Perth and Kinross Council, national agencies and wider partners; • maximising opportunities arising from the Tay Cities Region Local Growth Fund and other regional and national investment programmes; • continuing to develop business intelligence and proactive engagement to better understand emerging business needs and opportunities; and • ensuring support remains responsive to changing economic conditions, technological change, workforce challenges and the transition to net zero. 13.4 The preferred option identified through the Business Gateway appraisal provides a strong foundation for delivering these priorities. By retaining the existing regional Business Gateway model whilst enhancing local partnership activity and targeted interventions, Perth and Kinross will be well placed to support entrepreneurship, business growth, innovation, investment and inclusive economic growth over the coming years. 13.5 These priorities will inform future discussions with current Business Gateway operator, GrowBiz and other partners and will be reflected in future service planning, commissioning arrangements and performance monitoring. These
Page 21
discussions would take place throughout 2026/2027 and 2027/2028. Particular emphasis will be placed on ensuring that local investment is targeted towards areas where it can deliver the greatest additionality and contribute most effectively to the ambitions of the Perth and Kinross Economic Action Plan and wider Council priorities. 13.6 The following table provides a high-level mapping of key priorities for future business support activity and partners: Opportunity Area Organisation Future Focus Business start-up and early growth Rural businesses/ inclusive Business Gateway Operator(s) Increase entrepreneurship activity at idea and early start-ups stages, strengthen rural delivery and inclusive enterprise, start-ups and early growth stages with targeted place-based approach Scale-up / High- growth businesses Business Gateway Operator(s) / PKC / Scottish Enterprise Greater focus on account management and scale-up support Skills Skills Development Scotland / UHI Perth/PKC Strengthen employer engagement Innovation Scottish Enterprise / Universities / Research institutions (eg James Hutton Institute) Increase awareness and referrals Finance PKC Grants / Angel’s Share / Public and Private finance Improve investment readiness and private investment Property PKC (Commercial Property Investment Programme) / Private sector Continue delivery of employment land and business units Net Zero Clean Growth Axis (PKC and partners) Increase business engagement and private investment Export Scottish Development International Increase targeted export Community Wealth Building PKC / anchor employers Generate wider economic and social value through local procurement, workforce development, community wealth building approaches and investment in local supply chains.
Page 22
14. Conclusion 14.1 Perth and Kinross benefits from a strong, diverse and resilient business base supported by a comprehensive business support ecosystem delivered through Perth and Kinross Council, Business Gateway, GrowBiz and a range of regional and national partners. Collectively, these organisations provide support throughout the business lifecycle and make an important contribution to entrepreneurship, business growth, innovation, investment and employment. 14.2 The review demonstrates that existing business support arrangements are performing well. Benchmarking data, business engagement, survey feedback and service performance information indicate that businesses value the breadth of support available and that Perth and Kinross compares favourably with similar local authority areas across a range of measures including business start-up activity, business survival and business growth potential. 14.3 The review found no evidence that fundamental restructuring of the business support ecosystem is required. Instead, the evidence supports a continued focus on strengthening integration, partnership working, improving awareness of existing support, enhancing referral pathways, increasing support for entrepreneurship and inclusive enterprise activity, and targeting interventions towards businesses and sectors with the greatest growth potential. 14.4 Having considered the available evidence and the options appraisal, the review concludes that Option 4 – Continuation of Business Gateway Regional Delivery Model with enhanced local delivery priorities represents the most effective future delivery arrangement for Business Gateway services. This option retains the strengths and value for money of the existing regional Business Gateway model whilst providing greater focus on entrepreneurship, inclusive enterprise, Community Wealth Building, support for high-growth businesses and stronger partnership working across the wider business support ecosystem. The preferred option builds upon, rather than replaces, existing arrangements. 14.5 Accordingly, the report recommends that Perth and Kinross Council continues to participate in the regional Business Gateway delivery model whilst seeking greater integration of activities delivered by GrowBiz and other partners into the regional Business Gateway delivery model to sustain and improve business support ecosystem and deliver a coordinated programme of interventions that supports businesses at every stage of their journey and contributes to sustainable and inclusive economic growth across Perth and Kinross. 15. Impact and Value Assessment 15.1 Link to IVA - Business_Support_Review.pdf 16. Appendices 16.1 Appendix 1 - Business Support Landscape
Page 23
16.2 Appendix 2 - Business Support Survey 16.3 Appendix 3 - Option Appraisal - Future Delivery of Business Gateway