Branding Scotland as an attractive destination for inward investment has never been more important – but that’s not easy with no end in sight to political and economic uncertainty.
Businesses have been reviewing their strategies for a post-Brexit world, and as we close in on 31st October, there is the added possibility of a second Scottish independence referendum.
Yet there remains incredible potential for businesses in Scotland to grow with the right strategic investment. Certain factors need to be considered and, more importantly, implemented if Scottish businesses are to appear as attractive investment targets on the international stage.
A stable economy
Scotland relies on international trading relationships to export Scottish products all over the world every day, such as our £5.5 billion whisky industry. Whatever the outcome of Brexit is, it will have serious implications for Scottish businesses which have already faced a challenging first half to 2019.
Prolonged uncertainty is unattractive to foreign investors, so balancing a stable economy is going to be critical to attract foreign investment. Protecting trade relationships and adapting to change will be key for Scottish businesses to continue to grow and for Scotland to present a trusted economy to the world.
Government backing
A government position that not only supports, but actively encourages inward investment will be vital for Scottish SMEs to get the international economic funding they need to thrive.
The Scottish Government is already making considerable steps to show the world’s largest economies that Scotland is ready and open for business. Trade missions and exhibitions are enhancing Scotland’s profile and connecting SMEs with their potential customers and suppliers in international markets. Tapping into the full potential of these partnerships, and emphasising the positive impact government initiatives can have for potential investors, will be more important now than ever before.
Private and public sector collaboration
Innovation in the private sector is vital for Scottish businesses to remain competitive. Collaboration between the private and public sectors allows Scottish businesses to access a broader range of skills, talent and resources to deliver innovative products and services to competitive global markets. A cohesive network of collaborative working has the ability to make a real difference to local communities by establishing a stable local economy and ecosystem.
A clear vision for the future
Businesses need to think beyond the Brexit outcome and prepare by having a clear strategy so that they are ready for various political outcomes, whether it is Brexit or a second Scottish independence referendum.
In times of such uncertainty, it is easy for businesses to forget the qualities and strengths that make them attractive prospects for investment in the first place. There is undoubtedly turbulence ahead for the economy – this is to be expected when such important political change occurs. Maintaining business growth across our various industries is essential to make sure the Scottish economy is on as sure a footing as possible. Beyond that, Scottish small and mid-market businesses must not allow themselves to become casualties of political uncertainty: rather they must remain attractive to foreign investment so we can continue to grow as a nation.
Iain Young is a partner and the head of the corporate growth sector at law firm Morton Fraser
