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Strategic direction to the Enterprise Networks and an enterprise strategy for Scotland
the spatial dimension - realising the potential of all our places
The objective is economic growth, which, by exploiting opportunities, contributes to regional development and reduced disparities.
City regions and rural development
The Enterprise Networks will explicitly consider the spatial aspects of economic development in taking forward their promotion of business growth, skills development and global connections.
Scotland's cities are vital to driving the overall economic health of Scotland. Cities represent the focal point for people, production of goods and services, technology development and retail as well as leisure and recreation. If sufficiently attractive, successful and diverse, our cities can draw and retain creative, productive people. The growth of Scotland's economy therefore depends on creating and promoting vibrant, diverse and attractive places which offer a quality environment for living, studying, working and trading.
While cities provide a focal point, they must also interact with their surrounding areas. Cities need the supply of people which come into them to work and spend but they must also be able to export goods and services out to their wider regions. The effective operation of local economies, labour and housing markets depends on the interrelationship between the cities and their regions and the infrastructure which connects them. Sustainable cities need thriving regions and, in turn, the success of the national economy depends on the economic competitiveness of our city regions.
Our city regions do not exist in isolation. They are diverse - geographically, culturally and socially - but, in a global setting, they are not large in scale. The connections between city regions must be exploited and their strengths combined to enable Scotland to compete effectively in a global environment.
Scotland, and many of its city regions, include substantial rural areas which can, and do, contribute to Scotland's economic growth. General business support services and training must be provided on an equitable basis throughout Scotland and businesses and individuals must have every opportunity to fulfil their potential whether they live in Aberdeen or Annan. Equally, there are factors of particular relevance to the rural context, such as those relating to remoteness, scarcity of population and out-migration, which may require additional or different types of assistance to businesses in rural areas. Some areas, especially in the Highlands and Islands, have weak links to city regions and will have particular development needs. Through Iomairt aig an Oir/Initiative at the Edge, the HIE network will continue to work with its partners to address the specific issues facing the most fragile communities.
Regeneration
Regeneration happens when an area affected by, for example, industrial decline, dereliction, poor housing and limited economic activity is transformed for the better in a sustainable manner. Many elements contribute to this, including, but not limited to, physical infrastructure investment, increased business activity and employment, improved housing and stronger communities. Regeneration can drive growth by allowing areas to realise their economic potential through greater business activity, increased employment rates, higher incomes and reduced unemployment. The public sector may need to intervene to stimulate private sector investment and secure regeneration. A co-ordinated approach is needed across a range of interventions to ensure:
- provision of appropriate infrastructure and development of commercial and industrial property
- improved skills and employability
- better neighbourhoods
- investment in community development
- good quality public services
Successful regeneration projects are characterised by clear leadership, strong partnerships, robust delivery mechanisms and effective community involvement. The Networks will have a leading role in large scale projects and will play an important supporting role in smaller community regeneration projects alongside Communities Scotland. In order to ensure clarity in their respective roles, a memorandum of understanding between the organisations will be developed. The Networks' contribution will vary depending on the project but may include: development of the overall regeneration strategy; setting up delivery vehicles; remediation of vacant and derelict land; provision of industrial and commercial property; skills development, including access to employment opportunities, and place marketing.
Strengthening communities
Particularly in more sparsely populated or disadvantaged communities, the economic development process needs to embrace capacity building within communities, enabling people to realise the conditions that will foster growth.
In the Scottish Enterprise area, Communities Scotland has the lead role in community capacity building. In the Highlands and Islands, Communities Scotland works alongside HIE on capacity building. HIE, which has a wider remit than Scottish Enterprise in this aspect, also pursues various other priorities under its strengthening communities role including:
- investment in community assets such as land ownership, infrastructure, energy and services
- development of community strengths, leadership and confidence
- enhancement of the quality of environment, Gaelic and arts development
In addressing these priorities, HIE benefits from its long term experience and its dispersed network with staff based right across its area. In recognition of this, HIE and Communities Scotland are developing a framework agreement which avoids duplication of effort and uses the skills of each organisation to best advantage. Communities in some rural parts of the SEn area face similar issues to those in the HIE area. SEn and Communities Scotland will be expected to learn from experience in the Highlands and Islands when working to strengthen these communities.
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