Exclusive:SNP cut leaves 'absolutely devastated' Scottish charity facing closure in blow for 18,000 pupils a year

Redundancy notices have been issued to all 31 staff at Young Enterprise Scotland, with bosses saying they are “absolutely devastated” that its future “now seems untenable”.

The charity blamed the Scottish Government’s failure to honour financial assurances as well as changes to funding methods.

The redundancies come after it had five bids for grants rejected under a new funding model launched by Economy Secretary Kate Forbes this summer.

The news came at a time when preparations for Young Enterprise school and college programmes for this year were already at an advanced stage.

Last night, business leaders expressed “shock” at the potential closure, and called for a solution to save the charity and its programmes.

Young Enterprise Scotland (YE Scotland) supported more than 18,000 school and college students last year through its programmes, including its flagship Company Programme, which many industry leaders credit with sparking their interest in a career in business.

Around 2,000 pupils from S5 and S6 take part in the Company Programme each year, starting up their own student firm, before running through the key milestones of developing an idea, conducting market research, creating the product or service, promoting that product and ultimately trading it.

Over the past three years, about 1,000 of these pupils have gone on to complete an SCQF Level 6 qualification run by YE Scotland in entrepreneurship, the same level as a Higher. These initiatives and others will now be axed unless emergency funding can be found.

The charity said it would mean thousands of hours of practical learning to primary and secondary students in the circular economy, teamwork, communication, financial planning, sales and marketing and more will be immediately wiped off the school week.

Young Enterprise Scotland chief executive Emma Soanes said: “We are absolutely devastated that the future of Young Enterprise Scotland now seems untenable with the loss of our major income source.

“Not only will this have a huge detrimental impact on our dedicated staff team, who now face redundancy, but given our extensive reach across Scotland it will also impact massively on the national education landscape and the education of young people in Scotland of which our work played such a crucial role.

“Failing to support this crucial stage of the entrepreneurial pipeline is entirely at odds with strategic priorities reflected in the Government’s National Strategy for Economic Transformation and the key recommendations of the Entrepreneurial Campus report.”

YE Scotland’s funding has historically come from a combination of a core continuity grant from the Scottish Government, an ongoing pipeline of support from trusts and foundations and, to a lesser extent, support from the private sector.

The grant from the Government has varied over the years, but has typically been between £450,000 and £550,000. Last year it was around £486,000.

The charity, which is giving up its office in Rouken Glen in East Renfrewshire, said the money was delayed in both the 2022/23 and 2023/24 financial years.

In the last financial year, the delay resulted in late submission of the charity’s audited accounts, directly impacting its ability to apply for additional funding.

Up until May this year, based on the historic relationship and positive noises from Government officials about the availability of funding, the charity continued its preparations with schools and colleges for the coming academic year.

However, YE Scotland said it was advised in July the grants would stop with immediate effect, to be replaced with a competitive process. The charity said no consideration had been given to work already under way or any costs incurred up to that point.

Ms Forbes, the deputy first minister, then announced in August the creation of the Entrepreneurial Education Pathways Fund, that would offer public and private sector organisations grants of up to £250,000 to deliver new and innovative courses and projects to under-18s.

It is understood YE Scotland submitted five bids which have all been rejected, leaving the charity close to collapse.

Dr Andy Campbell, YE Scotland chair and founder of the Scottish Space Network, said: “For over 30 years, Young Enterprise has delivered life-changing opportunities for young people in Scotland, myself included.

“We understand that Government budgets can face challenges and delays, particularly in the current climate. As a committed partner, the charity has historically supported the Government’s delays in funding, continuing delivery to ensure our young people’s futures are not impacted.

“Historically, these delays were always addressed, with costs settled and accompanied by thanks and apologies. However, despite this constructive commitment, it now appears that future funding is to be withdrawn - which we can manage, albeit as a vastly smaller organisation and not delivering the vast majority of our current activity.

“However, critically it now seems that our historical outlays will remain unsettled, putting the entire organisation at risk of closure.

“Without emergency funding, the charity will be in a precarious situation, one that could have been avoided. We are ready to engage with ministers and officers, hopeful that our past support will be reciprocated.”

The charity said it was seeking immediate emergency financial support to ensure the organisation could survive in a reduced capacity.

Dr Liz Cameron CBE, director and chief executive of Scottish Chambers of Commerce, said: “Young Enterprise Scotland have played an important part in helping young people understand how to start-up a business and the development of the skills required to work within a team. 

“We understand there are many tough budget decisions ahead for governments, but investing in the next generation of entrepreneurs is critical for our economy. This news will come as a shock to many, and we hope that a solution can be found to continue this essential investment in the future of our talent.”

It is understood the Government insists Young Enterprise Scotland was first informed in 2022 that this year’s fund would be allocated through a competitive process. An announcement about the successful applicants is expected to be made soon.

A Scottish Government spokesperson said: “This year’s round of funding through the Entrepreneurial Education Pathways Fund is being awarded on a competitive basis for the first time. This is in alignment with wider entrepreneurial funding.

“All applications were assessed fairly against the criteria of the fund. The Scottish Government is currently in discussions with Young Enterprise Scotland.”