This item was published during the term of a previous administration that ended in April 2007
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Henry McLeish calls for culture change in Scottish economy
09/12/1999
Scotland needs a social and business culture that supports risk and welcomes the rewards that it brings, Henry McLeish, Minister for Enterprise and Lifelong Learning, said today.
In a speech to the Royal Bank of Scotland and Scottish Enterprise conference on the Scottish Economy in Glasgow, Mr McLeish also said that Government must meet the need for a new flexibility in the support delivered to business in Scotland.
He said:
"A snapshot of the structure of our employment shows the heavy industry that once dominated our economy now sits alongside manufacturing, construction, agriculture, energy supply industries and utilities, financial and business services, public services, retail and tourism - with nearly 200,000 people self employed. This is a modern economy.
"We must continue to break through the boundaries and embrace new ways of doing business such as e-business and the Internet.
"There is of course no single response to globalisation and Modernisation cuts across whole areas of society and the economy. Economic circumstances have been transformed - in a global market, the only givens are the location of the natural resources and the location of the customer. Everything else in the intervening chain is up for grabs. In the new global market, the successful player will win the game to fill in those job-creating and wealth-creating gaps.
"In the new global market, the name of the game is not asset-based manufacturing but added value.
"In the new global market, market share itself does not necessarily mean higher returns.
"Our future success or our failure will largely be dependent on our ability as a society to adapt: to change our attitudes and expectations, to be receptive to learning new skills; to be sceptical of claims that there is nothing new to be learned; nothing more to be done.
"So, while we already are used to the processes of change we need to be better placed to respond to the rapidly accelerating rates of change. Enormous challenges bring new opportunities. We must equip Scotland to grasp those opportunities.
"There is a new mood in Scotland, stemming from the establishment of the Scottish Parliament. In addition to the new Executive department of Enterprise and Lifelong Learning, there is a new parliamentary committee. We must grasp the opportunity to examine the responsiveness of our Enterprise Networks. Against the backdrop of their success, we must examine every appropriate model from across the world to see how best our institutional frameworks evolve to meet the needs of the 21st century. The creation of the new economy requires that we meet the need for a new flexibility in the support we deliver to businesses in Scotland.
"I want to say clearly that:
"The time has come for us to engage in this debate. The challenges and opportunities we face when matched with the renewed democracy of the Scottish Parliament demand that we embrace the debate about growing the new and existing businesses of Scotland for the next century.
"We must bring forward news structure that allow partnership and collaboration between Scotland's universities and industries. A nexus of commercialisation will be the engine that drives forward the knowledge economy in Scotland.
"We must examine whether the priorities of the existing enterprise network can be refocused to take forward the urgent regeneration of our cities and propel their future economic growth.
"We must renew our focus in bringing together and integrating our investments in training, employment and skills, tailoring them to the demands of the new economy.
"We must continue the work started in my department of mainstreaming tourism as crucial to the future economic success of Scotland.
"To achieve this we must work to change the culture of the relationships between Government, businesses and the Enterprise network. We must change our attitudes. We will not change them just by spending money or government help - although these will remain important and part of our agenda. More importantly we must change our culture to:
"Embrace risk and accept that not all our ventures will be successful.
"Promote enterpreneurship as generating growth and jobs. This must start in our schools and continue throughout our lives. Starting a business should be a realistic and desirable option for everybody in Scotland within a social and business culture that supports the risks and welcomes the rewards that it brings.
"Fully understand the dramatic changes that will be required as we roll out our agenda of lifelong learning. One set of skills will not be enough during the next century and we will all reskill. In the future learning skills, the ability to absorb new knowledge, will be the most important attributes of Scottish workers.
"All of this is urgent. I will bring forward work on all these topics early in the New Year and I ask that all of you here today get ready to work with me to speed this forward. We need to work together to keep Scotland competitive and secure a national advantage in the next century."
BACKGROUND
Mr McLeish was addressing over 100 business leaders and representatives of the enterprise networks at the Royal Bank of Scotland and Scottish Enterprise conference at the National Stadium at Hampden Park, Glasgow.
News Release: SE1617/1999
9 Dec 1999