Highlands and Islands Enterprise (HIE) was established as an Executive Non-Departmental Public Body (NDPB) through the Enterprise and New Towns (Scotland) Act 1990. Along with Scottish Enterprise, HIE and its local enterprise companies work to deliver economic development across Scotland. The prime role of HIE is to take all possible and appropriate operational action to meet the agreed strategic objectives of Smart, Successful Scotland, (the Scottish Government's Strategy document resulting from the Enterprise Networks Review in 2000).

As an NDPB, HIE is supervised by a Chairman and Board whose non-executive directors have collective responsibility for the control and management of the bodies. The Chairmen and non-executive directors are appointed by Scottish Ministers.

HIE's principal functions include: (i) preparing, concerting, promoting, assisting and undertaking measures for the economic and social development of the Highlands and Islands; (ii) enhancing skills and capacities relevant to employment in the Highlands and Islands and assisting persons to establish themselves as self-employed there; and (iii) furthering improvement of the environment of the Highlands and Islands.

HIE's activities include: provision of business support services, delivery of training and learning programmes, assistance for community and cultural projects and measures for environmental renewal. These activities are primarily delivered by 10 Local Enterprise Companies (LECs).

The LECs are companies limited by guarantee, wholly owned by HIE, with an independent board of directors, including representatives of private businesses in their areas, and members from each of the Local Authorities in the LEC area.

HIE's activities include support for the Arts and Creative Industries. In 1991, HIE set up Highlands and Islands Arts Ltd (HI~Arts) as a body to drive forward development in the arts and cultural sector across the region.