Mel Young – the founder of the Homeless World Cup and The Big Issue in Scotland – has been appointed as chair of sportscotland.

Young will replace current chair Louise Martin CBE on 1 June 2016, to begin a four-year stint lasting until 31 May 2020. He will be paid £230 (US$321, €291) per day for a 6.5 day commitment per month.

The appointment was announced by Scottish sports minister Jamie Hepburn. Hepburn said Young had a “proven track record of harnessing the power of sport and physical activity to bring about positive changes to society.”

“He understands that by encouraging people to take part in sport, we can help to improve people’s lives, particularly if they come from disadvantaged backgrounds,” he added.

After launching The Big Issue in Scotland in 1993, Young established the Homeless World Cup in 2001, with the inaugural tournament taking place in Graz, Austria in 2003. Earlier this month, Young and Hepburn announced that the tournament would be taking place in Glasgow in 2016.

Young, who has been the quango’s vice-chair for three years, said his experience on the board had given him a “strong understanding of the power of sport and its capability to improve people’s lives” in terms of health, developing social skills and encouraging inclusivity.

He also commended Martin, who has been sportscotland chair for eight years, as “an incredibly influential figure in Scottish sport who has done a terrific job”.

Former Commonwealth Games Scotland chair Martin added: “Mel has been heavily involved in a really exciting period for Scottish sport, which encompassed the London and Glasgow Games, and his understanding of Scottish sport’s system and partnership approach will prove invaluable to him.”

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