Seventeen made redundant at Young Enterprise Scotland after funding blow

Seventeen employees at a charity which delivers enterprise education to young people have been made redundant after the organisation failed to secure Scottish Government funding.

Young Enterprise (YE) Scotland had initially warned in October that it was facing closure after losing its full government grant, which accounted for the majority of its overall income.

The charity has been granted emergency funding of £285,000 which covers its existing costs for this financial year, which YE Scotland said would enable it to avoid closure.

But the organisation, which has delivered enterprise education to schools and colleges for more than 30 years, will now operate on a significantly reduced staff team of no more than 12 people.

Losing our major income source has been an enormously unsettling and upsetting time for everyone involved

Young Enterprise Scotland chief executive Emma Soanes said: “It is a huge relief that we have been able to avoid a complete closure of Young Enterprise Scotland and we are grateful to the Scottish Government for providing us with emergency funding which prevented our worst-case scenario becoming reality.

“Sadly, however, this will provide little consolation to the 17 valued members of our team who have lost their jobs just weeks before Christmas.

“Losing our major income source has been an enormously unsettling and upsetting time for everyone involved, and while we try to remain positive, there is no doubt there will be challenging times ahead as we refocus and prioritise what programmes we deliver within schools and colleges on such a reduced staff model.”

She added: “We will definitely be engaging our own entrepreneurial mindsets in the coming weeks and months as we reposition ourselves within the education ecosystem and continue with our commitment to deliver financial and enterprise education from primary one and early years, right through to S6.”

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.

In July this year, YE Scotland said it was advised the grant process would cease with immediate effect, and be replaced with a competitive process.

The Entrepreneurial Education Pathways Fund subsequently opened in August, offering public and private sector organisations grants of up to £250,000 to deliver new and innovative courses and projects to young people.

YE Scotland bids to the fund were not successful.

Last year, YE Scotland supported more than 18,000 school and college students through its enterprise programmes, including its flagship Company Programme, which many entrepreneurs credit with setting them on a successful business career.

In the past three years, more than 1,000 students have gained a YE Scotland enterprise qualification (SCQF Level 6) to prepare them for further education, work and life.

A Scottish Government spokesperson said: “This will obviously be a concerning time for all employees impacted and their families.

“The Scottish Government has engaged with Young Enterprise Scotland to try to mitigate the impact of their financial situation, including awarding £285,000 towards the two previously funded projects to ensure the organisation’s continued viability.”