The Scottish Government has unveiled a £2.5 million fund aimed at nurturing more young entrepreneurs as part of its draft Scottish Budget for 2026-27. The package sits within a record £45 million investment earmarked to drive innovation, enterprise and entrepreneurship across the country. Ministers say the measures are designed to back people and businesses at every stage of their journey, from first ideas through to high‑growth scaleups, with a particular focus on those from disadvantaged or under‑represented backgrounds.
Under the plans, further funding will be channelled into the Scottish Government’s Techscaler programme, which already has more than 1,900 members drawn from over 1,400 start-up and scale-up businesses. The initiative is intended to build Scotland’s tech ecosystem by giving founders access to mentoring, education and a peer community to help them grow globally competitive companies. Officials argue that strengthening this support infrastructure will help more young entrepreneurs turn early‑stage concepts into viable, investor‑ready enterprises.
The draft Budget also underpins the expansion of South of Scotland Enterprise’s Pathways Pre‑Start programme, highlighted during a visit by Deputy First Minister Kate Forbes to Galashiels. Following a successful pilot in 2024‑25, the programme’s second phase has already delivered specialist coaching to more than 700 existing or prospective founders, contributing to the creation of over 220 new businesses. By extending the scheme, the government aims to deepen the pipeline of early‑stage ventures emerging from communities across the South of Scotland and beyond.
Kate Forbes said the 2026‑27 Budget “continues our support for the innovation and entrepreneurial talent that is the backbone of any prosperous, growing economy”, stressing the government’s systematic work to build a joined‑up “pipeline of support” for business growth. She described Scotland as “one of Europe’s most dynamic start‑up economies, outpacing the UK”, and predicted that progress would accelerate as record funding is deployed to help founders start and scale their businesses. The emphasis, she added, is on creating the right conditions for entrepreneurial talent to develop, grow and prosper within Scotland rather than relocating elsewhere.
Scotland’s chief entrepreneur Ana Stewart welcomed the Budget as a step forward in the drive to make the country an “entrepreneurial nation”. She said further investment in proven programmes such as Pathways Pre‑Start and Scottish EDGE would help widen access to entrepreneurship and strengthen the foundations for those starting out. Stewart also underlined that a key priority is ensuring that founders are listened to and supported from start-up stage right through to scale‑up, so they have the backing they need “to start, scale and stay in Scotland.”
