THE appointment of Bob Keiller as the new chairman of Scottish Enterprise looks like good news for an organisation that has sometimes been in need of it. Mr Keiller is well liked and respected and has great experience of building and expanding businesses of his own. Most recently, he has been the chief executive of the energy services giant Wood Group. His CV makes him a natural choice for the new job.

In his first interview about the appointment, Mr Keiller said he looks at the job as a chance to put something back into the Scottish economy. He also said that, while Scottish Enterprise had been doing its job better, there was room for further improvement.

There are a number of areas where he could start. Scottish Enterprise does good work in attracting inward investment and promoting Scottish business abroad. The Scottish Investment Bank, which is part of Scottish Enterprise, has also just announced plans to invest up to £75million in growth businesses.

However, there are other areas where Scottish Enterprise has been less successful. It remains overly bureaucratic and management-heavy and large parts of the business community do not have much time for it, particularly small firms. Its focus has also been too narrow, with an over-emphasis on fast-growth businesses to the detriment of those that show longer term potential.

Mr Keiller will also be well aware of the damage that was done to Scottish Enterprise by the controversy caused by its chief executive Lena Wilson's well-paid non-executive directorship on the side. A few weeks ago, it was also revealed that companies in which Scottish Enterprise board directors have a stake have recently received more than £3.4million in financial support from the agency. The vast majority of the money went to businesses in which the quango's current chairman, Crawford Gillies, is a shareholder.

Among his other priorities, Mr Keiller will have to ensure that there is a clear delineation between his, and his staff's, work on behalf of the taxpayer and any question of personal gain. The good news is that, in taking on this challenge and the others that come with the new jon, he starts with an impressive track record and considerable support and good will.