Tackling island business problems will deliver community prosperity

Scotland’s island businesses want younger local populations, and need decision-makers to tackle poor transport links and bad broadband, according to a survey of firms from Arran to Unst.

Ahead of planned legislation, aimed at giving islands new powers, the Federation of Small Businesses (FSB) in Scotland has called on politicians and officials to address these problems.

In a submission to an influential Holyrood committee, the small business campaign group makes the case that healthy local business communities are vital to Scotland’s 93 inhabited islands’ continued success.

David Richardson, the FSB’s development manager for the Highlands and Islands said: ‘The prosperity of a local place is intertwined with the ongoing success of its local business community. While this rings true across the country, it is particularly the case for Scotland’s island communities.

‘Our survey work shows, perhaps unsurprising, that addressing shortfalls in digital and transport infrastructure is a top priority for island firms. But – ahead of these problems – local businesses want to play a role in developing sustainable island communities. In our view, only with a successful local private sector can our islands succeed.’

The FSB’s submission to the Scottish Parliament’s Rural Economy and Connectivity Committee reveals the results of a survey of more than 275 island firms carried out in September.

According to the research, nine in 10 (88 per cent) of these businesses said that they faced challenges that their mainland rural competitors did not. Further, asked to identify their top priorities for action, island businesses identified: encouraging young people to stay on and young families to move in; improving local transport infrastructure; improving access to superfast broadband; delivering more affordable housing and improving local facilities for tourists. Survey results were gathered from islands including Arran, Shetland, Orkney, the Western Isles, Skye and the Small Isles and the Argyll Isles, including Bute.

In their submission, FSB highlights census data showing that 13 per cent of Scottish island residents work for themselves, in comparison to a national average of 7 per cent. Scottish Government statistics also show that smaller firms account for four in five private sector jobs in remote and rural Scotland.

David Richardson, who gave evidence to the rural economy committee on Wednesday said: ‘Micro businesses and the self-employed are vitally important to island economies. But our research shows that one in five islands business owners has considered moving to the mainland.

‘To state the obvious, the success of island communities require their local private sectors to thrive, to power job creation, local growth and to retain and attract younger residents.’