Budget cuts and funding changes mean it has lost its £480,000 core grant
A closure-threatened charity has blamed the Scottish Government for failing to honour financial assurances while changing the way it issues funds.
Young Enterprise Scotland helped more than 18,000 school and college students last year on a mission to create enterprise and financial education.
Now the 30 year-old charity is facing closing its doors for good and has issued all its 31 staff with redundancy notices.
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.”
The charity’s pioneering Company Programme has received praise from industry leaders for preparing young people for a career in business.
Around 2,000 pupils from S5 and S6 are enlisted each year, where they establish a company before developing it and building the business to trade.
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.
Last year the organisation received a grant of £486,000 from the government; however, it was told in July the grants would stop and instead be subject to a competitive process.
This is despite the charity spending a significant sum in preparation for the next school year.
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.”
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.”
