SME Focus:After a long spell during which business leaders queued to criticise Scotland�s economic support regime, many seemed delighted to hear the Scottish Government unveil proposals for big changes to the Scottish Enterprise network on Wednesday.

AFTER a long spell during which business leaders queued to criticise Scotland's economic support regime, many seemed delighted to hear the Scottish Government unveil proposals for big changes to the Scottish Enterprise network on Wednesday.

The decision to introduce a streamlined system - in which 21 local enterprise companies will be replaced by five regional bodies, while Highlands and Islands Enterprise remains in place - won a warm welcome.

By putting promotion of small and medium-sized enterprises within the remit of local authorities, the Scottish National Party-led administration held out the promise of services becoming more responsive to local needs.

However, those who have been around long enough to remember past reforms to the economic support and local government systems will shudder at the thought of the dislocation that the transition could entail.

For people running businesses, the thought of having to wait while the people who are taking over responsibility for delivering support get up to speed is a scary prospect.

One seasoned observer, Bob Downes, a former director of Scottish Enterprise who is now head of BT Openreach in Scotland, was worried about an apparent lack of international focus in all the visionary talk.

The subject of this week's SME Focus, Kaye Taylor, is full of praise for Scottish Enterprise's support for her firm, which has developed a pioneering voucher technology that is winning admirers in some very select hotels. Her experience suggests that economics mean that the private sector may not be able or prepared to provide the support that SMEs need to start doing business in key overseas markets.

Name: Kaye Taylor.

Age: 37.

What is your business called? SK Chase.

Where is it based? We've just taken on new premises, a 4000 sq ft warehouse in Leith, Edinburgh. However, we're all over the UK at the moment and also just secured some ad hoc office premises in London.

What does it produce, what services does it offer? We sell gift experiences via www.

skchase.com on behalf of over 220 hotels and spas across the UK. As part of this, we offer these companies a comprehensive gift voucher service from the sale of the voucher, tracking it right through to redemption. We also handle all the fulfilment including packaging and posting, hence the requirement for a warehouse as we store uniquely branded presentation wallets and gift boxes for all our customers.

To whom does it sell? Our main business market is hotel operators who want the revenue of gift vouchers but don't want the hassle of operating them. We offer them initial training and a technology package which fits into their own website and allows them to maintain their own brand values, while SK Chase technology powers the transaction. Our consumer market is growing, and we have around 10,000 unique visitors a month to www.skchase.com. Most of our gift customers are time poor and need a last-minute gift which is a little different yet still personal. They spend anything from £10 to £10,000 and can browse over 1500 gift ideas. Interestingly, though, we also have a niche market in employee benefits which will see us supply companies such as Microsoft, Hewlett-Packard and Dell with a selection of employee benefits to the 400,000 registered users of the employee benefits service, My-Rewards.com. Employees can cash in points for spa treatments, activities, accommodation or breaks. It's really popular with employers and staff.

What is its turnover? £4.2m.

How many employees? Six.

When was it formed? In 2004. We actually started trading before my business partner Stephanie Wilson and I resigned from our jobs. Once we had decided we were going for it, we worked at nights and weekends in the early stages - with the full support from our employers, I should add.

Why did you take the plunge? We always had a notion of running our own business. We had worked with many entrepreneurs and loved the idea of not having a boss and having the freedom to be creative and instinctive. Having the full support of our employers at the time was a big help and we were open and honest about what our plans were.

What were you doing before you took the plunge? We were working in the sales and marketing team of the Town House Company a collection of boutique hotels in Edinburgh. We had a brainwave moment while we were both on a strategic pricing course in Brussels and, bizarrely, had the same idea at the very same moment. Immediately, we sensed that this idea could be right for us. Once we ran it past a few people, finessed it slightly and sharpened up on the technology, it really caught on and we couldn't wait to get started. We got lots of advice from people who had started up themselves, the bank, Edinburgh Chamber of Commerce and Scottish Enterprise. We pieced it all together and resigned about four months later, moving into business full-time. Peter Taylor, our boss at the Town House Company, remains a close adviser, which is a good thing as he's also my father in law. He immediately saw the potential and said we would be mad not to do it.

How did you raise the start-up funding? We only needed £25,000, which we managed to put together from loans and Scottish Enterprise funding. Fundraising was easier than I thought, probably because everyone saw the potential and the idea was really innovative and has such potential for growth.

What was your biggest break? There are three moments of equal importance. Our first was securing Gleneagles Hotel as a customer. They were already successful with their own vouchers but our technology improved a tiresome process into something very simple and allowed them to increase the variety of gifts on offer. This has significantly increased their voucher revenue. Signing up The Ritz in London was also a big celebration as it was our first big break into a major London hotel and it is such an iconic brand, synonymous with everything we were trying to achieve in the luxury hotels market. The deal was similar to Gleneagles, our technology improved the process and allowed them to increase the number of gift experiences on sale. More recently, our deal with The Automobile Association (The AA) is our biggest breakthrough to date. Effectively, SK Chase technology will be actively sold by the AA as a benefit to their 8000 members. It also means we gain website traffic through links to www.theaa.com, which receives four million unique visitors a month. This will really take our business to the next level as it will increase our presence in the marketplace. It also helps with the launch of a new brand to target the mid-range, family hotels market which we're now working on.

What was your worst moment? Early last year, we turned down an international deal with a chain of 220 hotels worldwide. We were gutted at the time because we thought we were turning down a major breakthrough. But in hindsight, we simply weren't ready. I know it was the right thing to do and allowed us to concentrate on developing our business the UK. It was a very mature decision and marked the start of a more considered approach to our ambitious growth.

What do you most enjoy about running the business? Firstly - being creative. The business we have is so scaleable and has so many opportunities, it excites me every day. SK Chase has so much potential, it's incredible. There are no limits and our ambitions are sky-high. We want to be the world's leading provider of gift vouchers; it's as simple as that for us. At a daily level, being able to trust your instincts and make decisions on gut feeling is wonderful and very liberating. It's such a change from many years spent as employees when a gut feeling just won't cut it when it comes to making decisions and getting approval from the boss. Thrilling moments happen every day, especially when I notice the major brands coming on board as customers. I had an amazing moment when I noticed that Innocent Drinks had bought some vouchers and I thought, wow, I love them. I can't believe that they bought from us. It's still such a rush.

What do you least enjoy? Figures and finances, which are handled brilliantly by my business partner Steph. We're a good team as we complement each other very well. There is no competition for jobs as we naturally veer towards certain sides of the business. If we morphed, we would be an exceptional individual.

What is your biggest bugbear? Not being able to grow fast enough. I can be impatient.

What are your ambitions for the firm? To become synonymous with gift vouchers and the definitive website for gift vouchers in the UK.

What are your five top priorities? To reach £500,000 net profit within two years; to gain in market share - we currently have around 15% of the five-star hotel market but we're gaining ground very quickly; to launch a new brand targeting mid-market hotels; to secure more distribution partnerships; to diversify into other service areas.

What single thing would most help? Dr Who's Tardis.

What could the Westminster Government and/or the Scottish Government do that would most help? SK Chase has received tremendous help from Scottish Enterprise, and I hope that in the current considerations, the same opportunities for fast-growing technology companies continue. I'm also conscious that the Scottish government has presented some interesting ideas for Scotland but our business is growing across the UK so I would like more opportunities for assistance breaking into markets in England, Wales and Europe. We're globally ambitious but banking is a problem area. I would also like to see more pressure on the banks to create a true multi-currency platform for international trading. At the moment, we would like to trade in euros but as an SME it's too risky to face all the costs of converting currencies. Banks should be supplying an end-to-end, multi- currency platform, but unfortunately many of their systems are archaic and there is probably an insufficient business case for them to create it. The absence of a true international trading capability creates a barrier to our international growth. We could do it much sooner if the right system was in place.

How do you relax? Yoga, walking to work and a massage every Tuesday at 5pm.

What was the most valuable lesson you've learned? Trust your instincts.