New research shows business and investment leaders are limiting Scotland's potential

Press release from the David Hume Institute

6th September 2021

The David Hume Institute is challenging business and investment leaders to embrace change to realise the benefits of greater diversity in top leadership roles.

Scotland’s leading independent think tank, the David Hume Institute, today publishes new research finding a shocking lack of diversity in the top 200 business and investment leaders, less than in previous sectors analysed by the Institute.

Faster growth in diversity at the top level is needed if Scotland is going to benefit from a wider spectrum of thought leadership to maximise the country’s ability to overcome challenges such as increasing  productivity, innovation and improving risk management.

The research analysed the leaders of top businesses, investment companies, angel investors and family businesses in Scotland. The analysis found: 

• There are still more leaders called John than there are female leaders (7% John and 5% female)

• One in four (26%) have held positions at four services companies (Accenture, EY, McKinsey, PwC)

• 2 out of 3 (65%) of investment company leaders attended an elite university with 1 in 5 of these attending Oxford or Cambridge.  This compares to 49% of Angel Investment leaders who attended an elite university.

• 9% of investment company leaders are female - falling behind the UK average (13%)

• 1 in 5 (20%) of angel investor leaders are female - higher gender diversity than others in the business sector

With 31% of the top business leaders also holding positions on other boards, this narrow pool of decision makers has significant influence beyond their own companies.  

Understanding the diversity of who is making investment decisions in Scotland is critical as access to capital is cited as one of the barriers for increasing entrepreneurs from female and minority backgrounds. 

The research also found

• Three out of ten (31%) top leaders have postgraduate qualifications with 39% of these are MBAs.  

Postgraduate education is becoming the norm for top leaders, so decision makers need to be mindful of who has access to postgraduate education if they want to reap the benefits of diversity of thought.

Susan Murray, director of the David Hume Institute, says:

“The David Hume Institute’s research clearly shows limited diversity of Scotland’s top business and investment leaders. Scotland needs its business leaders to not only champion diversity across their organisations.  They need to be open to more immediate change at the most senior level to reap the benefits of more diverse thinking now.

“Currently those with resources and connections are more able to reach the top.  This limits the pool of top decision makers meaning organisations are risking group-think.  Diversity of thought helps risk analysis, innovation and productivity.

“Every business leader must choose to prioritise diversity of thought as we recover from the pandemic if Scotland’s businesses are to increase productivity and resilience to future risks.  For Scotland to be in the Champions’ League for business and investment we need a more diverse squad.”