Island businesses face unique challenges

Island businesses want younger local populations, and need decision-makers to tackle poor transport links and bad broadband, according to a survey of firms in the Western Isles and other islands.

Ahead of planned legislation aimed at giving island authorities 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."

A survey of more than 275 island firms indicated 88% of these businesses said that they faced challenges that their mainland rural competitors did not.

Their top priorities for action were, encouraging young people to stay on and young families to move in, upgraded local transport infrastructure, better access to superfast broadband, affordable housing and improving local facilities for tourists.

Survey results were gathered from Shetland, Orkney, the Western Isles, Skye and the Small Isles, the Argyll Isles and Arran.

In their submission, FSB highlights census data showing that 13% of Scottish island residents work for themselves, in comparison to a national average of 7%.

Scottish Government statistics also show that smaller firms account for four in five private sector jobs in remote and rural Scotland.

David Richardson, who is giving evidence to the Rural Economy committee this Wednesday (25 October 2017) 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 long-term success of island communities require their local private sectors to thrive, to power job creation, local growth and to retain and attract younger residents."

Island self-employed and small businesses face unique challenges

23 Oct 2017