Airlink Group submission to Enterprise Committee
Business Growth Enquiry
01-06-2006
Enterprise and Culture Committee - Written Evidence
SUBMISSION FROM AIRLINK - SCOTLAND HOUSE
In February 2005 the very first Scotland House opened in Tallinn.
Scotland House was the brainchild of John McGlynn ( founder of
Airlink Group ) and is supported by some of Scotland’s
leading businessmen decided that they wanted to see a tailor
made support system in place to assist Scottish businesses develop
their business with Estonia. The concept is a very simple one
by business for business.
Already a good range of Scottish companies and educational establishments
are using the services of Scotland House to build up valuable
contacts and links and the wide range of services offered by
Scotland House provides a very cost effective and proven route
to building success in these rapidly developing markets. Scotland
House holds an extremely valuable database of information that
can be accessed by incoming Scottish companies. This information
was compiled with the assistance of several Scottish Estonian
companies who have been active in these markets for more than
ten years and can be used for introductions, product sourcing,
investment opportunities, sales or co-operation agreements to
name just a few of the “deals” that have been secured
already. Trained and well qualified staff can also use their
local knowledge and experience to “shortcut” many
issues greatly reducing the time involved in achieving successful
market entry as well as reducing the likelihood of mistakes.
To consider why Estonia was chosen for the first Scotland House
you must consider the relationship and history of our two countries.
Estonia and Scotland share many similarities. We are both small
Northern European countries, with large neighbours. Our people
pride themselves in the natural beauty of our nations and we
both understand the importance of national heritage in maintaining
strong cultural identities that is reflected in our language,
our love of music and art and in the history of our nations that
make us the peoples we are today.
We recognise the value of education, have experienced the enforced
emigration of some of our community, share common problems in
terms of a declining population and recognise that to succeed
in the modern world we must find markets outwith our own small
nations to sell the goods and services that we wish to offer.
We
both have relatively new Parliaments and our respective Government’s
are working closely together to try and rebuild the historic
links between our countries that were lost during the Second
World War and the subsequent occupation of Estonia.
The enlargement of the EU in May 2004 offers a springboard
to translate these hopes into reality. We have much to offer
each other. Estonia has knowledge and contacts and language skills
that could be of enormous value to Scottish companies in the
entrant countries from Eastern Europe, where the Scots have little
knowledge or experience. Conversely, Scotland has an excellent
record of exporting across the existing EU and has a good knowledge
about many of the existing EU markets where Estonians are only
beginning to develop interests. A co-operation agreement between
Scots and Estonian companies could offer both nations very exciting
new opportunities to develop new markets throughout the entire,
enlarged, European Union.
The Scots have a remarkable record in terms of innovation with
many of the world’s most useful products having been invented
in this small country. Estonia is now also developing many innovative
new products and services and has an advantage of a lower cost
base that makes the manufacturing of these new products an attractive
option in Estonia.
Estonia has already created the reputation of being one of the
most “business friendly” countries in the World and
was rated in 4th place in terms of having the most liberal business
climate in the World Competitiveness 2005 Yearbook. 0% Corporation
Tax on all re-invested profits has allowed Estonia to climb to
2nd place in terms of foreign direct investment per capita in
Eastern Europe. Over 30% of Estonians work in knowledge intensive
jobs, again a record in Eastern Europe that reflects the highly
skilled and well educated country it is. It was recently listed
as the 3rd most literate country in the world and Estonians have
excellent language skills with people speaking three or more
foreign languages not being uncommon. English is firmly established
as the main foreign business language and is widely spoken throughout
the country.
It is perhaps in IT that Estonia has a big lead on Scotland
and the rest of the UK. In Estonia over 98% of banking transactions
are electronic. Almost 70% of the population operate an internet
bank account. They have an E-Parliament with all government ministers
and MP’s getting all their information via the internet
and email, it is a truly paperless parliament. You can park your
car in Estonia by mobile phone, top it up by mobile if your meeting
is running late and what’s more this has been available
throughout the country for over 5 years!
The Scottish Club in Tallinn is probably the most prestigious
club in the country and counts among its members many of the
most important politicians and business people in the country
www.sotiklubi.ee and gives a very clear picture of the affinity
the Estonians feel towards the Scots. Their latest CD featured
the songs of Robert Burns translated into Estonian and recorded
by an Estonian band and sold out in a matter of weeks. A track
from this album recently featured on Radio Scotland and it is
probable some Scots never noticed the difference!
The Estonian Prime Minister visited Scotland in October 2004
and issued an open invitation for Scottish business to become
more involved in this go-ahead nation which has historic links
with Scotland and which is happy to re- open the door to the
Scottish business community. It was this most welcome invitation
that made the Scots rise to the challenge and launch Scotland
House.
John McGlynn
Chairman
Airlink Group
And Founder Member Scotland House
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