EDGE helps generate more than 850 jobs - Ekos findings

Businesses that have received support from Scotland’s biggest business funding competition have helped generate more than 850 jobs and a GVA of £67.9 million.

An independent analysis of past winners of Scottish EDGE suggests that the funding competition generates a return for the public sector of £7.30 to £8.50 in net additional GVA for every £1 of public sector investment and a cost per net additional job of £9,000 to £12,000.

Scottish EDGE was founded in 2013 and provides funding to high growth potential early-stage business. It is supported by the Hunter Foundation, Royal Bank of Scotland, the Scottish Government and Scottish Enterprise. As well as direct cash funding, EDGE winners benefit from training and support from its carefully selected partner organisations.

In addition to forecasting the economic impact of participants, the study, carried out by Ekos and facilitated by the Hunter Foundation, also looked at Scottish EDGE’s performance as a service provider. Of the 129 founders who participated in the study, 94% stated that the organisation had exceeded expectations, and 96% claimed that EDGE was instrumental in helping start-up the business.

The report also suggested a strong survival rate for EDGE winning businesses with 100% still trading one year after an EDGE win, 85% after three years and 77% after 5 years. In eight years of operation, over £16m in grants and loans has been awarded, with only a 6.2% default rate.

Scottish EDGE was further found to make a strong and measurable contribution to relevant economic development, innovation and enterprise policy priorities, including Scotland’s Economic Strategy, Scotland Can Do and Scottish Enterprise’s Strategic Framework Building Scotland’s Future.

Commenting on the report, Sir Tom Hunter said:

“Early-stage, high growth businesses will play a vital role in rebuilding our economy and driving employment opportunities. The businesses that come through EDGE grow faster with less risk because EDGE is not just about money, but the embedded support on offer and I’m delighted the findings of the Ekos Report reflect this.”

An executive summary and complete Ekos report can be viewed at scottishedge.com/impact.