THE venerable Merchant Company of Edinburgh is set to boost entrepreneurship in Scotland by providing cash to help hopefuls make their first move into business.
The company, which was granted a Royal Charter in 1681, is prepared to make awards from an enterprise fund it established to help develop the next generation of merchants.
The 500 members of the philanthropic company are drawn from the business community in the Edinburgh area.
However, former master Ian Watson said the launch of the fund reflected the perception the company had focused its energies on education and the care of the elderly in recent decades.
The company is best known for running the private Mary Erskine School and Stewarts Melville and George Watson’s colleges.
The enterprise fund provides an addition to an extensive list of business funding schemes in Scotland, which some critics claim is hard to navigate.
But the company believe it fills a gap in the market.
“As master I was keen to re-establish the link with business and to help people take the first step on the ladder,” said Mr Watson.
The company reckons the programme is unusual in offering non-repayable cash grants to people who are young in business, with as few conditions as possible.
It will support work on early stage proposals, with no fixed limit on the size of awards.
Recipients also get mentoring from experienced businesspeople, including members of the company.
The scheme is focused on people who are operating outside the well-established network linking businesses and financiers that major on sectors such as technology with older universities like Edinburgh and Glasgow.
When considering where to get applications from, the members who led work on the fund decided to work with Queen Margaret University and Edinburgh College. Many students at these are following vocational courses.
On its website the company says: “It is expected that supported businesses will be better businesses and consequently will contribute to the communities in which they are located by providing employment and assisting to regeneration.”
The first three recipients have worked with the Business Innovation Zone at Queen Margaret University.
The fund awarded £3,500 to Lauren Leisk who established a business that makes ready meals for people with dietary requirements, after suffering from Irritable Bowel Syndrome from a young age.
Ms Liesk used the money to buy a blast cooler for the West Lothian-based Fodilicious business.
The Yaiya venture founded by Jake Elliott-Hook of QMU and Edinburgh College’s Amy Ritchie, which is developing sustainable water bottles, won £500 support.
Mr Watson was appointed as mentor to Ross Brydon, who has developed the ShadowHills Drum Tuition app.
“Ian has done very well in driving me that little bit harder to get this app on the market, he has presented several avenues for progression and is as excited as I am about getting the service on the market,” said Mr Brydon.
The fund has been established with £60,000 contributions mostly from members of the company. Mr Watson hopes the pot can be increased to £100,000, with a view to funding awards from the interest earned on the capital.
The secretary of the Merchant Company, Gregor Murray, noted some of the funds it administers run into millions but started quite small. Mr Murray has worked in private equity.
Mr Watson said members of the company had been “incredibly impressed” by presentations made by beneficiaries.
The Merchant Company has 500 members drawn from 44 business sectors.
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