Billionaire Sir Tom Hunter puts his money where his mouth is to help Scotland's entrepreneurs

“It’s always been a cause that’s close to my heart, helping Scottish businesses to start and grow,” he said.

Alongside Sir Tom’s investment, Royal Bank of Scotland has contributed a further £2.5m in funding to Scot Edge. A total of £5.5m has been earmarked for fast-growth Scottish start-ups by 2017.

Scottish entrepreneurs can access up to £50,000 through Scot Edge, which also delivers free business support and mentoring. The programme, which was launched as a pure grant programme, is now a mix of a grant and a loan.

“We’re not wrapping the entrepreneur in lots of contracts,” insisted Sir Tom. “We’re saying please treat 50pc as a loan and if you’re successful pay it back and allow us to help another entrepreneur. It’s the same kind of honour-based lending that has been championed by Muhammad Yunus.”

Mr Yunus is the founder of Grameen Bank, which pioneered a peer-to-peer lending model in Bangladesh. “He is my business hero,” added Sir Tom.

“If your business fails, fair enough, you cant pay it back. But if it grows and flourishes then it is your duty to help the next entrepreneur in line.”

Launched in October 2012, Scot Edge has helped 69 businesses to date, creating 120 new jobs and boosting turnover at these businesses by £5m.

Sir Tom denied that the timing of his investment was meant to coincide with the upcoming Scottish referendum, which is due to take place on September 18. “I have said that I won’t tell anyone how I’m voting,” he said.

With less than a month to go to the crucial referendum on independence, research from the Forum of Private Business has found that over two thirds of Scottish small businesses would vote to remain part of the United Kingdom.

Its study, out today, showed that 53pc of firms polled see the referendum as a threat to Scotland’s economic growth. However, there has been a 4pc increase in those who view it as a positive opportunity to 21pc compared to last year. 26pc remain uncertain as to what a "Yes" or "No" vote would mean for their business.

more