Scotland's National Strategy for Economic Transformation Programme 1: Entrepreneurial People and Culture Equality Impact Assessment (Record and Results)

Stage 1: Framing

Results of framing exercise

The NSET and Programme 1 seek to ensure that any of the economic and entrepreneurial opportunities are accessible to the diversity of people across Scotland. Some of the actions of NSET Programme 1 target support for women and those who reside in areas of multiple deprivation.

The NSET is informed by a wide evidence base. In 2021, the Scottish Government established a new Advisory Council for Economic Transformation^[2], including industry representatives, trade unions, academics, and economist, to shape the strategy. It also engaged extensively with a wide range of stakeholders across Scotland, including through a semi-formal, 9-week consultation that received over 260 responses. At the time of the NSET publication, the Scottish Government also published an NSET Equality Position Statement^[3] which outlined the equality evidence that was considered during the production of NSET.

During the development of NSET, a number of Ministerial and official-led roundtables and meetings with equality and human rights stakeholders took place. These include:

• Ministerial engagements with the Women's Leadership Centre and the Poverty and Inequality Commission in June 2021;
• Equality and Human Rights roundtable with officials in September 2021;
• Equality and Human Rights roundtable with officials in November 2021;
• Equality and Human Rights Roundtable hosted by the Cabinet Secretary for Finance and the Economy in January 2022;
• Equality and Human Rights Roundtable hosted by the Cabinet Secretary for Finance and the Economy in May 2022;
• Meeting between DG Economy and the Equality and Human Rights Commission in August 2022.

The Stewart Review on gender in enterprise has involved extensive engagement with individual entrepreneurs as well as public, private and third sector organisations from education, investment and business support. Given the intersectional nature of many of the challenges the Review aims to address, this engagement has included discussions with minority ethnic business representatives.

Another piece of work that feeds into NSET Programme 1 and continues to consult stakeholders widely is the Scottish Tech Ecosystem Review (STER)^[4], commissioned by the Cabinet Secretary for Finance and the Economy in 2020 and written by Professor Mark Logan. STER is a blueprint to establish Scotland as a leading hub for tech start-ups. Industry and wider public sector engagement took place (and continues to take place) through a variety of means including the STER Advisory Board made up of Scotland's top entrepreneurs and tech leaders, and continues to take place through the Computing Science in Schools Working Group and Senior Steering Group which act as vehicles for consultation with a wide range of education stakeholders in Scotland. The Senior Steering Group is led by the Cabinet Secretary for Education and Skills and is comprised of senior leaders from the Scottish Qualifications Agency (SQA), Skills Development Scotland (SDS), Education Scotland (ES) and the Scottish Funding Council (SFD).

Policy Officials working on STER and NSET Programme 1 also continue to engage and consult with entrepreneurs and organisations representing and supporting people with Protected Characteristics. One of these organisations is Code Your Future, which supports people, including refugees, to gain the skills and networks necessary to progress in education and employment.

In terms of monitoring, NSET will publish an annual progress report from the NSET Delivery Board, which will include equalities monitoring.

Summary

For all the groups with Protected Characteristics, we do not have a full intersectional picture of what barriers these groups face in relation to entrepreneurship. The only exception is the Ana Stewart review on women's entrepreneurship which is looking to close knowledge gaps related to the experiences of women in entrepreneurship. We will, however, seek to close those gaps as we move forward.

Challenges in accessing entrepreneurial careers, which are shared by all groups with Protected Characteristics to different degrees, include: limited access to investment capital and networks of support, household poverty (making it harder for individuals to invest time in business activities which do not have the prospect of an immediate/regular secure financial return) and barriers to accessing training and education.

A particular opportunity within Programme 1 to support all the groups with Protected Characteristics is the action to support under-represented entrepreneurs. This action aims to:

Set targets and focus on providing access to support programmes from amongst the most under-represented groups, particularly women, those on low incomes and those without qualifications at further or higher education, including the six priority groups at greatest risk of child poverty. This would include the offer of financial support for those who are unable to afford time out from a full-time job or caring responsibilities to develop ideas. An early priority will be to deliver our commitment to review how we support more women into entrepreneurship^[5].

The groups mentioned in this action are not exhaustive and entrepreneurs from across the Protected Characteristics will therefore be considered to specifically consult as part of the most under-represented groups as well. This will be considered during the delivery and planning of this action.

Age

Programme 1 will have significant positive impacts on young people (16-24) in particular as policies in this programme aim to support developing young people's entrepreneurial journeys. Examples of policies positively supporting young people access high-value careers in entrepreneurship include: embedding entrepreneurship in the Young Person's Guarantee, reviewing the apprenticeship system, creating a pathway to role models and promoting project-based entrepreneurial learning across the school and post-16 education curricula.

Although Programme 1 does not specifically target older people (55+), it makes a reference to supporting people from the most underrepresented groups. The TEA^[6] rate amongst people aged between 55-64 year-old is the lowest amongst the age groups at 6.6%^[7]. People in this group are also at particular risk of exclusion. Despite the general increase in internet access at home (42% in 2003; 93%^[8] in 2020)^[9], digital participation is generally lower among the older population and average internet use decreases with age^[10]. In addition, those aged over 50 face employment barriers in three key areas: communities, access to services and financial security^[11]. Ageism, exclusion and lack of willingness to recognise the skills and experience of the older workforce also present employment barriers for this group^[12].

During future development and delivery of policies, further consultations will be carried out with stakeholders to understand what type of support will be needed to attract and support younger entrepreneurs (16-25 years) and older entrepreneurs (55+). We will also discuss and consider with analysts how data gaps on entrepreneurship for these groups can be improved.

Disability

Actions in Programme 1 aim to promote equal opportunities and equality and have a scope to address barriers to access and positively impact disabled people. Therefore, we will engage with disabled people and groups as policies develop.

During stakeholder consultations, stakeholders suggested that the delivery of new, good, green jobs should be used to address the disability employment gap and be made available to disabled people and also other underrepresented groups.

Although not explicitly mentioned in NSET, an example of where accessibility has been considered in policy development is our national Tech Scaler network which is government backed and forms part of the Scottish Government's economic policy plans^[13]. Tech Scaler offers a platform for commercial education, enterprise advice and support both online and offline, ensuring that opportunities are available equally to anyone in Scotland regardless of individual circumstances or background. As Tech Scaler and the Pre-Scalers hubs mentioned in NSET are connected in aim, a similar approach will also be considered during the development and delivery of the Pre-Scaler hubs and any other physical infrastructure.

During future development and delivery of policies, further consultations will be carried out with stakeholders to understand what type of support will be needed to attract and support disabled entrepreneurs. We will also discuss and consider with analysts how data gaps on entrepreneurship and thes group can be improved.

Neurodiversity

We are discussing neurodiversity under a separate heading to include the experiences of different people as we recognise that not all neurodivergent people consider themselves to be disabled. At the same time, under the Equality Act 2010, neurodivergent conditions meet the legal definition of disability.

Research by SDS on Neurodiversity and Tech in Scotland (2020) found that 1 in 10 people in Scotland are neurodivergent and that there is also research indicating that people with Attention Deficit Hyperactivity Disorder (ADHD) and dyslexia in particular can display a specific strength for entrepreneurialism. The same research also points towards neurodivergent people showing particular strengths in creativity and innovation^[14].

During future development and delivery of policies, further consultations will be carried out with stakeholders to understand what type of support will be needed to attract and support neurodivergent entrepreneurs into entrepreneurial careers. We will also continue to draw on the expertise gathered by organisations such as SDS and discuss and consider with analysts how data gaps on entrepreneurship and this group can be improved.

Sex

The Global Entrepreneurship Monitor (2022) found that among TEA entrepreneurs, there remains a significant difference between males and females in terms of the extent to which "to earn a living because jobs are scarce" motivated the entrepreneurial activity^[15].

Within Programme 1 there are various workstreams underway to support more women into entrepreneurial careers and to support the upskilling of women.

Therefore, Programme 1 of the NSET is expected to have a positive impact on the ability for women to choose and advance a career in entrepreneurship.

The NSET recognises that there is a considerable gender gap in Scotland when it comes to entrepreneurship and part of the aims of the NSET are to bridge these structural and entrenched inequalities.

In particular, the Ana Stewart review of women's entrepreneurship in Scotland will provide strong support, data and recommendations to ensure more women and girls are supported in continuing and able to start their entrepreneurship journeys. The review will inform the design and delivery of policies in this area.

Pregnancy and maternity

Actions in Programme 1 aim to promote equal opportunities and equality and have scope to positively impact those who are pregnant and those caring for children (most of whom identify as women).

During NSET consultation stakeholders emphasised the importance of unpaid care and the care sector for gender equality, and more broadly as part of the foundation economy in many communities across Scotland. Stakeholders called for the care sector to be reflected in the strategy as a priority and strategic sector, and, with women being more likely to take unpaid leave to care for children than men, they highlighted that action on affordable childcare was critical for a gender-equal economic recovery.

Research and stakeholder engagement has shown that pregnant people and parents (women in particular) and households with a single earner struggle more with cashflow and the resources and time to start an entrepreneurial career.

In addition, job safety will be important for many people, including those in the most precarious situations. Therefore, to advance equality of opportunity, the NSET Programme 1 commits to providing access to support programmes to those from the most under-represented groups, particularly women, those on low incomes and those without qualifications at further or higher education. This would be delivered through the offer of financial support for those who are unable to afford time out from a full-time job or caring responsibilities, to develop ideas to start a business.

During future development and delivery of policies, further consultations will be carried out with stakeholders to understand what type of support is needed to attract and support pregnant entrepreneurs and entrepreneurs caring for children (most of whom are women). We will also discuss and consider with analysts how data gaps on entrepreneurship and this group can be improved.

Gender reassignment

Actions in Programme 1 aim to promote equal opportunities and equality and have scope to address barriers to access and positively impact transgender people and entrepreneurs.

Although data on transgender people is scarce, the NSET has collected data that suggests trans students experience harassment and discrimination at Higher Education (HE) institutions and, for some, this has a significant negative impact on their studies, future plans and skills^[16].

During future development and delivery of policies, further consultations will be carried out with stakeholders to understand what type of support is needed to attract and support transgender entrepreneurs. We will also discuss and consider with analysts how data gaps on entrepreneurship and this group can be improved.

Sexual Orientation

Actions in Programme 1 aim to promote equal opportunities and equality and have scope to address barriers to access and positively impact LGBT+ people and entrepreneurs.

Whilst attitudes towards lesbian, gay and bisexual people have become more positive over the past decade in Scotland, they continue to face a range of inequalities and disadvantage across a number of areas and settings including employment, healthcare and education.

Compared to heterosexual adults, lesbian, gay, bisexual or other adults were more likely to be younger, live in deprived areas, report bad general health, be unemployed and have a degree^[17].

During future development and delivery of policies, further consultations will be carried out with stakeholders to understand what type of support is needed to attract and support LGBT+ entrepreneurs.

Race

Actions in Programme 1 aim to promote equal opportunities and equality and have scope to positively impact people from minority ethnic backgrounds.

Poverty rates for people in minority ethnic households are higher than for the general population in Scotland and minority ethnic people are more likely to be in relative poverty after housing costs^[18].

Minority ethnic families are also most at risk of child poverty (38% of children in minority ethnic families were in relative poverty in 2017-20 compared to 24% of all children in Scotland), and families from some minority ethnic groups are more likely to have three or more children, putting them at higher risk of child poverty^[19].

Some minority ethnic households are also more likely to live in the most deprived areas in Scotland compared to white Scottish/British households^[20].

Analysis by ethnicity shows a TEA rate of 15.5%^[21] amongst Scotland's non-white population, which is higher than for the general population at 9.2% in 2021. For some, however, entrepreneurial activity may be partly undertaken as a result of discrimination in the labour market.

Consultation with stakeholders highlighted that there is a lack of representation of ethnic minorities in policy-making processes and that black and minority ethnic business owners, whilst very seldom included, have a substantial footprint across Scotland. They emphasised that diversity needs to be harnessed across Scotland's business community and that diversity must be valued in order to drive innovation and deliver revenue growth.

During future development and delivery of policies, further consultations will be carried out with stakeholders to understand what type of support is needed to attract and support minority ethnic entrepreneurs.

Religion or belief

Actions in Programme 1 aim to promote equal opportunities and equality and have scope to address barriers to access and positively impact people of different religions or beliefs.

We know that some religions are at more risk of discrimination. In 2015-17, relative poverty rates were considerably higher for Muslim adults (52%) compared to adults overall (18%).

There is relatively limited data on religion and entrepreneurship for Scotland. Therefore, during future development and delivery of policies, further consultations should be carried out with stakeholders to understand what type of support will be needed to attract and support people of different religions or beliefs into entrepreneurship.

Marriage and Civil Partnership

This has been considered but is not seen as applicable as EQIAs within the Scottish Government does not require assessment against the Protected Characteristic of Marriage and Civil Partnership unless the policy or practice relates to work, for example HR policies and practices.

Extent/Level of EQIA required

Following the framing exercise, there is a need to carry out project-level EQIAs for each of the four projects as the policies are developed and delivered. This is because the four projects tackle distinctively different areas of entrepreneurialism and because all of the policies are still in development meaning there is a need to capture specific impacts as the policies progress. Timelines will be made available alongside updated delivery plans.