Highlands and Islands Enterprise (HIE) has announced an award of £395,000 for the development of new business units on the Island of Tiree in Argyll, one of Scotland's most rural communities.

The £1.19m project, by Tiree Community Enterprise Limited, is expected to result in the creation of three new jobs on the island and support a further seven.

It follows a community survey in 2019, which highlighted the need for suitable premises to enable local businesses to grow and new businesses to be established.

Tiree is the most westerly of the Inner Hebridean islands off Scotland's west coast and, at four hours by ferry from Oban, is among the most remote communities in Scotland. As such, it faces challenges around retaining a resilient resident population.

TCEL was created in 2020 as a wholly owned subsidiary of Urras Thiriodh/Tiree Community Development Trust (TCDT) to deliver and manage large capital regeneration projects on the island.

Its first project was to secure a community fuel station, which is now fully operational and providing a valuable local service and generating income.

This latest initiative will create four light commercial business units in Crossapol, which is around three miles from Tiree's main settlement of Scarinish. Three of the units will be 40 square metres and one will be 60 square metres. All will be available on affordable leases.

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The units have been designed with environmental sustainability in mind, with high-grade insulation, air source heat pumps and roof-mounted south facing solar panels.

Confirming the HIE funding, area manager Morag Goodfellow, said: "Suitable business premises is essential to any local economy. This project by Tiree Community Enterprise will provide modern efficient premises for small businesses. It will stimulate more collaboration between businesses, which will likely lead to new economic opportunities and valuable rural employment.

"All of this helps strengthen community resilience and retain young economically active people in this very rural location. It will also generate income for TCEL and enable the group to progress other community projects that benefit the island. I'm delighted we are able to provide support and look forward to seeing the units completed."

Phyl Meyer, general manager of Urras Thiriodh/Tiree Community Development Trust, said: "Tiree has great need of modern, energy efficient commercial space for small business use. The community is particularly keen to support year-round work opportunities that will enhance the long-term sustainability of our economy and population, and that's where these new units will be targeted. We've had a lot of interest, and it's great to see how people are coming together to make joint proposals that will maximise the usage and benefit of each unit. We've had this project in our development plan for some years and are delighted with the support of HIE and our other funders at Argyll and Bute Council and Scottish Government to get them built."

Wellbeing Economy Secretary Neil Gray said: "We are well aware that remote, rural and islands communities face significant and unique challenges and the Scottish Government remains committed to addressing these challenges while harnessing the many new and existing opportunities that also exist.

"As well as creating new jobs, this funding will help to address the needs of local businesses and communities. I look forward to hearing about how businesses and residents in Tiree are benefitting from these units.

"The Scottish Government is listening to business and is committed to delivering a wellbeing economy with sustainability and fairness at its heart that allows business - and in turn society - to thrive."