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.