THE ENTERPRISE CULTURE
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• Scottish Enterprise is a government-funded body responsible for economic development and training throughout Scotland. Its direct investment arm, Scottish Development Finance, can provide equity from £50,000 to C500,000 for start-ups or expansion.
Senior investment executive Calum Paterson says Scottish Enterprise meets a funding gap in providing small to medium equity investments. Venture capitalists Find it as expensive to monitor a small investment as a large one so they would rather provide more money than less.
Paterson stresses that it is not "soft money"; investment is made against the likelihood of a good return. Finlay Guy was successful because its management team was regarded as capable of taking the business forward. "It has good customers in important sectors of the Scottish economy," says Paterson. A management buy-in to an established business is viewed as less risky than a start-up.
When Lothian Enterprise Board was set up five years ago it was funded by Lothian Regional Council. But as time passes it is expected to generate its own Funds from successful investments in the Lothian region. It is the only regional enterprise board in Scotland, covering an area which centres on Edinburgh and extends halfway to Glasgow. Investment director Kathy Greenwood says Finlay Guy is the first transport company to have received the board's help, but adds: "We have no prejudices against this sector."