How enterprise is being stifled

IN emphasising the supply of finance as a constraint on developing an entrepreneurial Scotland (“Warning of funding gap impact on firms”, Herald Business, August 27) Professor Colin Mason is I fear, tilting at the wrong windmill.

More important is the lack of effective demand for investment. This is influenced by a number of factors. First, there is a leadership deficit. Our research confirms that Scottish executives are relatively lacking in those skills – innovation, adaptability, crisis management and decision making – associated with effectiveness and business growth.

Secondly, there is a skills deficit. Scottish executives have less international experience than their peers, notably in areas like international sales, marketing and business development.

Thirdly, there is an aspirational deficit. Not all businesses with the potential to grow are run by entrepreneurs and management teams who want to grow: what is right and good for the individual may not be good for the country.

Until these issues are addressed, increasing the supply of investment finance will remain a solution to the wrong problem. Professor Richard Harrison, Professor of Entrepreneurship and Innovation Co-director, Centre for Strategic Leadership, University of Edinburgh Business School, 29 Buccleuch Place, Edinburgh.