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Start-up business in Moray defy national statistics by thriving after three years

Moray Council's economic development committee chairman John Cowe believes Elgin is "on the up".
Moray Council's economic development committee chairman John Cowe believes Elgin is "on the up".

New businesses across Moray are finding more success than elsewhere in Scotland.

Fresh figures show 84% of ventures in the region are staying open more than three years – the national average is 68%.

And last night, businesses stressed they were not merely surviving – but thriving.

When the RAF pulled out of Kinloss five years ago, staff from the local Business Gateway put their efforts into encouraging start-ups.

And by carving out niche markets, or delivering services taken for granted in Aberdeen and Inverness, the entrepreneurs are continuing to buoy their local economy.

Hopeman ice cream firm Stew n Drew’s has now been trading for three years after two friends decided to quit their jobs to fulfil their childhood dreams.

Director Stewart Sutherland, a former accountant, said: “You don’t get any help from the banks in those first three years. It was a hard slog. That’s something that is the same all over the country.”

“In Moray there are a lot of companies that are good at standing out and doing something slightly different, the breweries are good examples of that.

“It’s been a gradual increase year-on-year for us but this year it’s just gone a bit mental.

“We got our product into a tea room in Pitlochry and it’s taken off. There are so many tourists there. Now we get calls from Dundee, Glasgow, all over. Word of mouth is still critical.”

In the last year, a total of 132 new firms opened up in Moray while 236 jobs were created by small and medium enterprises (SME).

In the coming days, Moray Council is due to start awarding loans of up to £100,000 for small firms to start up or expand as part of Business Loans Scotland.

And John Cowe, chairman of the authority’s economic development committee, revealed the region had already asked to increase its £230,000 quota if other regions struggle to spend theirs.

He said: “The Business Gateway team we have in Moray is the most successful in the north of Scotland.

“The new loans are intended to help firms get an idea off the ground or to help somebody start out. It’s something we’re keen to encourage because their success will encourage others. We’ve got

the demand to award them if other areas can’t.

“All you need to do is look at Batchen Street. Every shop there is now occupied, which is some turnaround from a year ago. Elgin is on the up.”

Sarah Holmes, owner of Elgin’s Pencil Me In on Batchen Street, opened a year ago and has already expanded with another store at Inverness Airport.

She said: “Moray is very good at offering different types of businesses, something you might get in Inverness or Aberdeen but not outside.

“There’s a growing demand for independent retailers outside of the retail parks. Younger customers want to come in and touch things and feel things.

“There’s some big business in Moray with the whisky industry and having people with disposable income in the area certainly helps too.”

In a report, Moray Council’s planning and economic development manager Gordon Sutherland said: “There are over 3,000 SMEs in Moray, many of which are classed as micro-enterprises of less than 10 employees. They are the life blood of the local economy from where growth must come.

“Business Gateway played a key role in supporting new business start-up following the closure of RAF Kinloss and is a key asset to help address economic shocks, such as business closure or changes in the local and national economy.”