ONE of Scotland’s most successful entrepreneurs has warned too many large companies are run by “control freaks”.

Sir Brian Souter warned that these business leader, which he dubbed “emperors”, will lead to poor long-term growth as they are averse to risk, trying new things and disrupting traditional ways of doing things.

Speaking at the Institute of Chartered Accountants of Scotland conference at the Radisson Blu hotel in Glasgow Sir Brian suggested it was a shame there were not more entrepreneurs at the head of big firms.

He said: “Entrepreneurs have ideas bursting out of their heads, are creative and willing to take risks.”

However Sir Brian did admit the best leaders did need some qualities from an emperor, particularly in being able to make sure the structures of a business can hold up as it grows.

But the Stagecoach chairman went on to suggest the proliferation of emperors in senior roles will stunt the potential for faster economic growth and said: “The more emperors we have the more staid our growth will be for the longer term.”

Speaking more widely about the environment needed to foster more creative business people Sir Brian said “entrepreneurs need to be encouraged” and there needs to be a “fiscal system” to do that which is simpler than the one currently in place.

Sir Brian, who described himself to the audience as a serial entrepreneur, said changing social behaviour and the shift towards digital technology as among the biggest challenges facing the businesses he is involved in.

He cited the example of when he first started out in transport working as a bus conductor that most companies would not answer their phones to customers and nobody did any marketing.

Then he went on to indicate that 20 years from now people looking back will find it hard to believe that any large corporates chose not to engage with their customers using social media channels.

He said: “You either work out how to be part of it or you are going to be left behind. I do not know what the solutions are going to be yet.”

From the perspective of Souter Investments, the family’s private equity vehicle, Sir Brian said the prospects on digital were “how can we get a piece of this” and “what parts should we be investing in”.

Asked by the audience what he would do if he were to start again Sir Brian said: “If you have an interesting idea that you can take digital then that is where the smart money is.”

Questioned why he continues to be involved in business even though there is no financial need for him to be he said: “I just need to do this stuff and I still really get a kick out of it. I really like working with people.”

Earlier in the day ICAS chief executive Anton Colella called for business leaders to place ethical behaviour at the heart of what they do.

Mr Colella said individuals need to take more personal responsibility to rebuild customer trust in the wake of the wide range of corporate scandals seen in recent years.

He told delegates ICAS is launching a new initiative called The Power of One and is also proposing to add a moral courage principle to the body’s code of ethics.

He said: “Regulators, rules and codes of conduct can only achieve so much. For business to restore its reputation in the eyes of the public, we need leaders at every level, to stand up and be counted.

“That means taking personal responsibility and doing the right thing, especially when they encounter dubious or unethical behaviour.

“Corporate failure often begins with personal failure. Our aim is to place personal ethical behaviour as the number one priority for individuals.”

Asked about tough ethical dilemmas he had faced Sir Brian related one European franchise bid when the company was asked to give €1.4 million to a local transport commissioner and had to walk away as a result of being unwilling to do that.

He said you should “never compromise on honesty”.