Meet the Business Units

Now that Ionad Iomairt Thiriodh is open, we’ve gathered up some of the most frequently asked questions and put the answers in one place!

Why did you build Business Units, and not housing?

We know as well as anyone that Tiree is in desperate need of more housing – which is why we’re progressing with a Housing Development in Scarinish, along with other housing projects, and why it remains our number one priority for the coming years.

The reason why this site was not developed into housing is a simple one: we received funding to build Business Units, not housing. The funding was available for this project alone, and we identified a way to develop the land for community benefit with comparatively little cost to the Trust (more on this in the next few questions).

Although they don’t address the housing need, the Business Units do contribute positively to economic growth and entrepreneurship in Tiree, and pick up on important concerns that were raised in the Community Development Plan by both businesses and residents. We think they will make life in Tiree better, and that is what – on a very simple level – the Trust is all about.

Why did you spend 1.2 million?

Because that was what it cost. Building anything from a small extension to a big housing development costs vastly more in Tiree than it does elsewhere.

The large bill reflects a significant project with many moving parts, including complex ground and site works, high energy efficiency, solar generation, and adherence to strict air-tightness tests. And that’s what we asked for, because we wanted a high-performing, durable structure that could withstand Tiree winds and storms, and requires little maintenance. When you factor in planning, professional fees, the rising cost of building materials, delivery fees to Tiree, and delays because of weather, we think the price tag starts to make a bit more sense.

If it wasn’t a priority compared to housing, why did you spend so much on the project?

In short, we didn’t. Or at least, the Trust didn’t.

Most of the project was funded externally – by Highlands and Islands Enterprise (HIE), Argyll & Bute Council, and the Scottish Government, which we are immensely grateful for. Without their involvement, the project would never have happened, which is pretty devastating, because it means that these sorts of projects are ultimately not viable without significant funding. This makes the mere existence of Business Units in Tiree an even bigger achievement.

We’re still waiting for final figures, but at the end of the day, the Trust expects to have contributed around £131,000 in direct funding to the project, from funds generated by Tilley and general Trust funding. We think that this contribution (£131,000 out of £1.2 million) is a pretty good balance to strike, and represents a great return on our investment, with a smaller cost to the community. 

We are enormously grateful to our funders for their support – in particular HIE. There are a lot of islands out there who wish they could build commercial business units for that amount of money – and we had to make a case that Tiree was a worthy recipient of this funding.

Again, this funding was only available for the Business Unit project. It wasn’t as if funders approached us to invest in housing, and we decided to use that money on Business Units instead. The money was there for this project, and this project alone.

You’ve mentioned that the Business Units are going to benefit the Tiree economy and the wider business landscape – but there are only four tenants. How does this provide benefits beyond these four businesses?

The opportunity to apply for a business unit was open to any Tiree-based business or individual. The process was always going to be competitive and because we only have four units, we were always going to have only four tenants. But these tenants will likely change over time – some might outgrow their current premises, or change their business model – and new opportunities will open up for businesses in the future.

Moreover, providing high-quality business premises in Tiree will provide a lot of new services and opportunities for Tiree residents. Our first tenants include a hairdresser, an office space, a creative social enterprise, and an art space. Between these organisations this represents a real improvement to the social and economic landscape in Tiree.

We used an island-based contractor to build the units, so a fair percentage of the overall cost of the project stayed on the island during the construction both through direct employment and through the extra revenue many local businesses generated throughout the build. 

It also shows to the wider world – including Scottish Government and the Local Authority – that Tiree is a place that can support major capital projects, a place of entrepreneurial activity and investment. We have high hopes that there are other projects we can develop to further support the business community – as we have done with this project, and in the past with the community-owned harbours. One of these new projects is providing support to Crofters – another vital part of the Tiree economy.

How did you choose the tenants? It seems like there’s quite a few similar businesses – why didn’t you pick a more diverse group of businesses?

Simply put, because these are the types of business which applied.

Nearly 20 businesses expressed interest in a unit at an early stage of the project – but the number of applications was, in the end, much lower.

Despite this, we had a great pool of applicants from both established and new businesses alike, and we went through a competitive ranking process with a scoring panel that comprised a variety of community stakeholders outside of the Trust.

We scored businesses not just on their economic potential and ability to generate jobs, but also on their social and community contribution, as this is an important part of life in Tiree, ensuring it is not just economically but also socially viable.

How else was the Trust involved?

To secure over £1m of external funding to deliver a project takes a huge amount of time and commitment over a long period. It doesn’t just appear out of thin air at the first time of asking! Staff have spent a long time building relationships and showing funders that we are able to deliver big projects.

This sort of development is only possible because we have the income from Tilley that allows us to employ the staff needed to bid for financial support and manage the project. There are a huge number of moving parts in any project like this – and the project management doesn’t end now the units are built. The Trust is the landlord, with all the responsibilities that brings. We also have volunteers who committed a lot of time to the project, including on the TCEL board and the original working group – and we are immensely grateful to them as well.

Lastly, one of the main reasons that we can commit to providing the balance of the funding – the thing that makes these developments viable – is that we have income from Tilley. That puts us in a very fortunate position. These business units are a great example of how income from Tilley continues to help develop valuable community assets.

Do you have another question about the Business Units that we haven’t answered? Email rhoda@tireetrust.org.uk and we’ll post the question and the answer (anonymously) on this page.