A charity which has offered enterprise education to schools for decades has warned it faces closure after the Scottish government withdrew funding.
Young Enterprise (YE) Scotland said that its future is under immediate threat and that up to 31 jobs will be lost if no emergency funding is found.
The charity, which has run enterprise education in schools and colleges for more than 30 years, said that it had lost its full government grant, which provides most of its income.
Last year, YE Scotland worked with more than 18,000 school and college students, often through its Company Programme that introduces students aged 13-19 to “the realities of the world of work”.
‘Huge detrimental impact’ on Scottish education
Young Enterprise Scotland chief executive Emma Soanes said: “We are absolutely devastated that the future of Young Enterprise Scotland now seems untenable with the loss of our major income source.”
Ms Soanes said this would have a “huge detrimental impact on [YE Scotland staff], who now face redundancy”, but that it would also “impact massively on the national education landscape and the education of young people in Scotland”.
In the past three years, more than 1,000 students have gained a YE Scotland enterprise qualification (SCQF level 6, equivalent to Higher).
YE Scotland’s funding has historically come from a combination of a grant from the Scottish government, support from trusts and foundations and, to a lesser extent, the private sector.
The charity said that the government grant was significantly delayed for both 2022-23 and 2023-24. In July this year, YE Scotland said it was advised the grant process would cease with immediate effect and be replaced with a competitive process.
The Entrepreneurial Education Pathways Fund then opened in August, offering public and private sector organisations grants of up to £250,000 for new and innovative courses and projects aimed at young people.
It is understood that YE Scotland submitted five bids to the fund, none of which were successful.
Young Enterprise Scotland seeks emergency funds to survive
The charity is now seeking emergency financial support to survive in a reduced form.
YE Scotland chairman Andy Campbell, founder of the Scottish Space Network, said: “For over 30 years, Young Enterprise has delivered life-changing opportunities for young people in Scotland, myself included. We understand that government budgets can face challenges and delays, particularly in the current climate.”
Mr Campbell said the charity had “supported the government’s delays in funding” - continuing its work in order to “ensure our young people’s futures are not impacted” - which ultimately “were always addressed, with costs settled and accompanied by thanks and apologies”.
He said that “despite this constructive commitment, it now appears that future funding is to be withdrawn - which we can manage, albeit as a vastly smaller organisation and not delivering the vast majority of our current activity”.
Mr Campbell added: “However, critically it now seems that our historical outlays will remain unsettled, putting the entire organisation at risk of closure.
“Without emergency funding, the charity will be in a precarious situation, one that could have been avoided.”
The Scottish government said it was “in discussions with Young Enterprise Scotland”.
A government spokesperson said: “This year’s round of funding through the Entrepreneurial Education Pathways Fund is being awarded on a competitive basis for the first time. This is in alignment with wider entrepreneurial funding.
“All applications were assessed fairly against the criteria of the fund.”
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