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Appendix 3 - Option Appraisal - Future Delivery of Business Gateway

Perth and Kinross Council · 26 August 2026
Back to Economy and Infrastructure Committee — 26 August 2026 and its agenda

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Appendix 3
Option Appraisal - Future Delivery of Business Gateway
Background
The Business Support Review concluded that Perth and Kinross benefits from a
strong, diverse and resilient business base supported by a mature and effective
business support ecosystem. Businesses have access to support throughout the
business lifecycle through Perth and Kinross Council, Business Gateway, GrowBiz,
Scottish Enterprise, Skills Development Scotland and other regional and national
partners.
The review found that:
• Perth and Kinross performs strongly in relation to business start-up activity,
business survival and business growth potential.
• Businesses value the personalised support, partnership working and breadth of
support available. 
• Business Gateway and GrowBiz fulfil complementary roles within the wider
business support ecosystem.
• There is no evidence that fundamental restructuring of existing business support
arrangements is required.
• The greatest opportunities for improvement lie in strengthening entrepreneurship,
inclusive enterprise, support for businesses with growth potential, integration,
partnership working, referral pathways and Community Wealth Building outcomes.
The appraisal therefore focuses on identifying the delivery model that best builds
upon existing strengths whilst addressing the opportunities identified through the
review.
Critical Success Factors
The review identified five critical success factors against which future Business
Gateway arrangements should be assessed.
Criteria Weighting
Strategic Fit and Alignment with Economic Priorities 25%
Business Performance and Outcomes 25%
Value for Money 20%
Entrepreneurship, Inclusive Growth and Community
Wealth Building (CWB) 15%
Partnership Working, Deliverability and Future Flexibility 15%
Total 100%

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Scoring Methodology
Score Description
5 Excellent
4 Good
3 Adequate
2 Weak
1 Poor 
Option 1 – Continue Existing Regional Business Gateway Delivery Model
Description
Perth and Kinross Council would continue to participate in the existing regional
Business Gateway contract and associated governance arrangements.
Assessment
The review found that the current model is performing well and provides a strong
universal business support offer. Business Gateway supported more than 1,270
businesses and 285 business starts during 2025/26, with Perth and Kinross
accounting for almost 40% of all business starts across the Tay Cities Region.
The option offers continuity, established governance arrangements, economies of
scale and low implementation risk. However, it largely maintains the status quo and
does not fully address opportunities identified through the review to strengthen
entrepreneurship, inclusive enterprise, Community Wealth Building and place-based
delivery.
Scoring
Criteria Score Weighted
Score
Strategic Fit 4 1.00
Business Performance and Outcomes 5 1.25
Value for Money 5 1.00
Entrepreneurship, Inclusive Growth and
CWB 3 0.45
Partnership, Deliverability and
Flexibility 4 0.60
Total  4.30
Overall Assessment: Strong performing, low-risk option that maintains current
success but offers limited additionality.

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Option 2 – Procure a Dedicated Perth and Kinross Business Gateway Service
Description
Perth and Kinross Council would withdraw from the regional arrangement and
undertake a procurement exercise to appoint a dedicated service provider solely for
Perth and Kinross.
Assessment
This option would provide greater local control over service delivery, specification
and priorities and could allow support to be tailored more closely to local
circumstances.
However, the review found no evidence that the existing regional model is
underperforming or that a dedicated local contract would deliver materially better
outcomes. The option would increase procurement and contract management costs,
reduce economies of scale and potentially weaken alignment with wider Tay Cities
initiatives and regional investment opportunities. 
Scoring
Criteria Score Weighted
Score
Strategic Fit 4 1.00
Business Performance and Outcomes 3 0.75
Value for Money 2 0.40
Entrepreneurship, Inclusive Growth and
CWB 4 0.60
Partnership, Deliverability and
Flexibility 2 0.30
Total  3.05 
Overall Assessment: Offers greater local flexibility but insufficient evidence of
additional benefits to justify increased cost and risk.
Option 3 – Bring Business Gateway In-House
Description
Perth and Kinross Council would become directly responsible for delivering Business
Gateway services.
Assessment
An in-house model would provide maximum control and enable closer integration
with wider Economic Development, Employability, Place and Investment functions.
However, implementation would require significant organisational change, including
staffing, governance, operational systems and potential TUPE considerations. The

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review found no evidence that current arrangements are failing or that an in-house
service would generate materially better outcomes than the existing model.
The option would also introduce the highest implementation risk and divert officer
time and resources away from business support delivery and economic growth
activities.
Scoring
Criteria Score Weighted
Score
Strategic Fit 4 1.00
Business Performance and Outcomes 3 0.75
Value for Money 1 0.20
Entrepreneurship, Inclusive Growth and
CWB 4 0.60
Partnership, Deliverability and
Flexibility 1 0.15
Total  2.70
Overall Assessment: Provides maximum local control but represents the highest-
risk and least cost-effective option.
Option 4 – Continuation of the Business Gateway Delivery Model with
enhanced local delivery priorities (Preferred Option)
Description
Perth and Kinross Council would retain participation in the existing regional Business
Gateway model whilst enhancing local business support activity through greater
integration of the activities currently delivered by GrowBiz and other delivery partners
into the regional model.
Business Gateway would continue to provide the core universal offer, including start-
up support, business growth advice, workshops, digital support and access to
national Business Gateway services. Local investment and commissioning activity
would increasingly focus on areas identified through the review as providing greatest
additionality and strategic value.
Key Areas of Focus
• Entrepreneurship and business creation.
• Youth entrepreneurship.
• Rural enterprise.
• Women's enterprise.
• Social enterprise and community enterprise.
• Inclusive enterprise and self-employment.

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• Mentoring and peer support.
• Community Wealth Building outcomes.
• Place-based enterprise activity.
• Businesses with high growth potential.
• Stronger referral pathways across the business support ecosystem.
• Alignment with Tay Cities Region Local Growth Fund opportunities.
Assessment
The review found that the principal opportunity for improvement lies not in
restructuring Business Gateway, but in strengthening integration and the wider
business support ecosystem and targeting local investment towards areas where it
can achieve the greatest economic and social impact.
This option recognises the complementary activities currently delivered by Business
Gateway and GrowBiz. Business Gateway provides a high-performing universal
business support service, whilst GrowBiz delivers specialist support focused on rural
businesses, micro-businesses, social enterprises, young entrepreneurs and
community enterprises. Together, these activities provide a broader and more
inclusive offer across the business support ecosystem. 
The option directly addresses the key findings of the review by:
• retaining a proven and cost-effective Business Gateway service;
• strengthening entrepreneurship and inclusive enterprise activity;
• supporting Community Wealth Building objectives;
• enhancing support for growth businesses and priority sectors;
• improving integration and partnership working and referral pathways;
• maximising future Local Growth Fund opportunities; and
• maintaining flexibility to respond to changing business needs.
Scoring
Criteria Score Weighted
Score
Strategic Fit 5 1.25
Business Performance and Outcomes 5 1.25
Value for Money 4 0.80
Entrepreneurship, Inclusive Growth and
CWB 5 0.75
Partnership, Deliverability and
Flexibility 5 0.75

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Criteria Score Weighted
Score
Total  4.80 
Overall Assessment: Best reflects the findings of the Business Support Review
and provides the strongest balance of performance, value for money, integration,
partnership working, inclusivity, flexibility and strategic alignment. 
Options Summary
Option Total
Score
Option 4 – Continuation of Business Gateway Regional
Delivery Model with enhanced local delivery priorities 4.80
Option 1 – Continue Existing Regional Business Gateway
Delivery Model 4.30
Option 2 – Procure a Dedicated Perth and Kinross Business
Gateway Service 3.05
Option 3 – Bring Business Gateway In-House 2.70 
Preferred Option
The review concludes that Option 4 – Continuation of Business Gateway
Regional Delivery Model with enhanced local delivery priorities is the preferred
option.
This option retains the strengths, performance and value for money of the existing
Business Gateway model whilst directly responding to the key opportunities
identified through the review. It enables Perth and Kinross Council and its partners to
focus resources on entrepreneurship, inclusive enterprise, Community Wealth
Building, support for growth businesses and targeted local interventions, whilst
maintaining continuity, regional collaboration and low implementation risk. 
Accordingly, Option 4 is considered the option most likely to maximise economic and
social value for Perth and Kinross over the period of the next Business Gateway
contract. 
Option 4 is not risk-free and that its higher score reflects a judgement that the
benefits outweigh the risks. A high-level risk appraisal is provided below:

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Risks of Option 4 – Continuation of Business Gateway Regional Delivery
Model with enhanced local delivery priorities
Risk Potential Impact Mitigation
Dependence on
partner alignment
Success relies on effective
integration of activities currently
delivered by Growbiz and other
partners into the Business
Gateway regional delivery model. If
priorities diverge, benefits may not
be realised.
Formal review of partnership
arrangements, revised
specifications, regular
performance reviews and
agreed outcomes.
Limited influence
over core
Business Gateway
contract
The Council remains part of a
regional contract and cannot
unilaterally redesign all aspects of
the service.
Continue active engagement
through governance
arrangements, procurement
and specifications design and
contract management
processes.
Benefits may take
time to emerge
Improvements in entrepreneurship,
inclusive enterprise and community
wealth building may take longer to
measure than traditional Business
Gateway outputs.
Develop clear performance
indicators and annual review
arrangements.
Potential overlap
between providers
Increased partnership working
could create duplication or
confusion if roles are not clearly
defined.
Strengthen specifications,
referral pathways, customer
journeys and responsibilities
across partners.
Funding
uncertainty
Elements of enhanced activity may
rely on future Local Growth Fund
or Council’s funding or other
external funding opportunities.
Prioritise activities within
existing budgets and leverage
external funding where
available.
Reputational risk
If enhanced partnership working
does not deliver additional
outcomes.
Robust monitoring and
reporting against agreed
outcomes. 
Overall Risk Assessment
Low to Medium Risk
The option retains an existing high-performing service and therefore avoids the
significant implementation risks associated with Options 2 and 3. Most risks relate to
achieving the additional benefits of enhanced integration and collaboration rather
than maintaining existing service performance.