MORE investment in infrastructure is needed to encourage young people to remain in Scottish island communities, a survey carried out by the Federation of Small Businesses (FSB) has found.

A total of 275 small firms on Scotland’s islands took part in the research which found that, along with retaining young families, priorities included encouraging more young people to move to these areas, improving local transport infrastructure, providing more affordable housing, boosting tourism facilities and more access to superfast broadband.

Eighty-eight per cent of those surveyed believe they face challenges that mainland businesses do not. The results have been forwarded on to Holyrood’s Rural Economy Committee.

The findings come ahead of planned legislation that will devolve new powers to island authorities, announced earlier this year.

“The prosperity of a local place is intertwined with the ongoing success of its local business munity,” said David Richardson, the FSB’s development manager for the Highlands and Islands.

“While this rings true across the country, it is particularly the case for Scotland’s island communities.

“Our survey work shows, perhaps unsurprising, that addressing shortfalls in digital and transport infrastructure is a top priority for island firms.

“But – ahead of these problems – local businesses want to play a role in developing sustainable island communities. In our view, only with a successful local private sector can our islands succeed.”

Scotland’s three island councils are due to inherit greater powers over their jurisdiction and it is hoped this will allow them to better implement policy that creates a sustainable future by addressing the problems highlighted in the survey.

It also found that 13 per cent of island residents are self-employed, as opposed to the national average of seven per cent.

Scottish Labour’s rural affairs spokeswoman Rhoda Grant said the survey highlighted the problems many small businesses face in the island community, which mean they are “unable to compete on a level playing field with businesses on the mainland”.