Item 3 - FINAL REPORT Scoping The Private Sector Offer For Business Support

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP
MARCH 2012
Market Research Business Support Evaluations & Reviews Questionnaires Reports
GREATER BIRMINGHAM & SOLIHULL LOCAL ENTERPRISE PARTNERSHIP
SCOPING THE PRIVATE SECTOR BUSINESS SUPPORT OFFER - MARCH 2012 FINAL REPORT
WRITTEN BY: DEB BAKER AND JONATHAN ANDREW HAWTHORNES RESEARCH AND BUSINESS DEVELOPMENT LTD HAWTHORNES 30 LONG BRIDGE ROAD LICHFIELD WS14 9EN TEL: 01543 262725 MOB: 07785 246391 E: d.baker@hawthornesresearch.co.uk
All information contained here is subject to our Terms and Conditions and based on the best of our knowledge, sources, assumptions and provisos discussed with the client and noted in the report. Hawthornes Research and Business Development Ltd cannot accept any responsibility for the subsequent use of this material.
Deb Baker and Jonathan Andrew Hawthornes Research & Business Development Ltd
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Acknowledgements: The authors would like to thank all the organisations, individuals and businesses that gave of their time to be consulted for this research and other staff at Hawthornes Research and Business Development for their part in the research. They would also like to thank Jeff Marlow of the Southern Staffordshire Partnership for his guidance during the research and writing Appendix A :The Public Sector Business Support Offer. The findings and interpretations in this report are those of the authors and do not necessarily represent the view of GBSLEP.
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Table of Contents
Headlines Executive Summary Recommendations and Suggested Actions BACKGROUND AND CONTEXT A. Purpose and Focus of Work B. Definitions of Business Support Used C. Context of this Work D. Approach Adopted for this Work E. Outputs and Outcomes of this Scoping Work MAIN FINDINGS 1. SCOPING THE PRIVATE SECTOR BUSINESS SUPPORT OFFER 1.1 Business support delivery channels 1.2 Paying for business support 2. OVERVIEW OF BUSINESS SUPPORT BY DELIVERY SEGMENT 2.1 Core Public Sector Offer 2.2 Local Authorities 2.3 Higher Education Institutions 2.4 Further Education Institutions 2.5 Financial Institutions 2.6 Professional Services Sector 2.7 Trade Associations and Membership Organisations 2.8 Business Networking / Breakfast Clubs / Peer to Peer Support 2.9 Private Sector Businesses 2.10 Social Enterprises 3. REVIEW OF LOCAL ENTERPRISE PARTNERSHIPS 4. BUSINESS ASKS AND EXPECTATIONS OF SUPPORT PROVISION 4.1 Non-financial support sought by businesses 4.2 Sources of business support 4.3 Geographical coverage / local delivery 4.4 Stimulating engagement with funded, subsidised and full cost business support 4.5 Ease of access / route to entry 4.6 Gaps / needs / improvements 4.6 Duplication 5. PARTNERING 5.1 Introduction 5.2 Requirements 5.3 Opportunities 5.4 Issues APPENDICES APPENDIX A. The Public Sector Business Support Offer APPENDIX B. Review of LEP websites APPENDIX C. Consultees APPENDIX D. References APPENDIX E. Business Support Provider Contact Details (Separate working document) APPENDIX F. Business Support Provider Contact Details with Supplementary Data (Separate working document) Page 4 5 12 15 15 15 16 18 19 20 20 20 21 23 23 26 28 31 33 35 38 40 42 45 47 49 49 52 53 54 55 56 57 59 59 59 60 60 62 76 93 94
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HEADLINES a) Publicly funded business support has undergone its most radical change since the creation of the Business Link operator network in the mid 1990s with a move from face to face support towards primarily electronic support b) Business support is largely perceived to be publicly funded, rather than commercially led services offered through the private sector c) Businesses require absolute clarity around funded and non funded business support to enable them to plan effectively d) The Government expectation that the private sector will, in a systematic way step in to fill the void left by the public sector is not yet being realised. Very little altruistic business support is available and that which is available is often fragmented, not always accessible to all and not sustainable over the long term. In part, some of this altruistic support is funded by the public sector e.g. Web-fuelled Business e) Some private sector businesses have moved their support to be more available via the internet and social media platforms. Social media is being used increasingly as an enquiry route and for the informed amateur to recommend and signpost support viral (uncontrolled) marketing f) There is an increasingly commercially driven business support offer available from private sector businesses and organisations, professional services firms, education and voluntary sectors that needs harnessing g) The array of individual product offers does not make it clear to a business what they will get, what they need to do and if there are any costs or matched funding / time requirements involved h) The business support offer is often fragmented, confused and cluttered rather than duplicated if businesses are to access support there needs to be a de-cluttering of the offer i) It is not a question of telling businesses what they need and what is there, but allowing businesses to ask (sometimes with informed help) for what they require. There is a clear gap in support here that would allow a business to discuss their situation face to face with a business support professional who can then identify the support requirements and solutions in an unbiased way j) It was difficult, for even the researchers, to find the best route into some organisations to ascertain what business support offers were available, it is therefore hit and miss as to whether a business will find the support they require
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EXECUTIVE SUMMARY
This report reviews the public and private sector business support services that are available to companies in the Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP) area. The information is based on desk research, telephone and face to face consultations with key informed personnel and organisations involved in business support. Government has a clear expectation that the private sector will close the gap in the business support offer that exists following the removal of the Business Link Operator network, most notably a lack of face to face, locally delivered business diagnostics and guidance. The main objective of this research is to provide knowledge that the GBSLEP can use to determine what its response to the issue of private sector business support provision could be. This research and resultant strategic report is intended to be a working document, that will inform the GBSLEP strategy with regards to the local provision of business support services. It is envisaged that the information will be regularly reviewed and updated while the market continues to evolve.
Business Support Context The report reviews and sets the context for non-financial business support in England and Wales and the GBSLEP area - access to finance is covered in a separate piece of work. It notes that business support is designed to help to improve businesses (especially SMEs) performance and growth prospects through the provision of support services (in some instances perceived as business support if only being provided for free) that will be valued by business. For the purpose of this scoping work, business support encompasses the provision of business information, advice, consultancy, guidance and training at commercial rates or subsidised costs and / or for free where there has been funding or a corporate social responsibility (CSR) contribution. Government takes the view that locally provided business support services will be delivered through volunteer mentors and a broad range of private sector organisations to start up and established businesses, reducing the emphasis and reliance on publicly funded business support services. Ultimately it is assumed that private sector businesses will continue to develop and promote their support offer and charge commercial rates. The streamlined Government offer, primarily led by BIS, of the Business Link website and the Solutions for Business Portfolio will continue for the foreseeable future and the landscape will continue to be refined with occasional additional products offered by BIS and other government departments and non-departmental public bodies such as UKCES. Therefore a key question for the GBSLEP will be: Can sustainable, readily maintained, locally accessible and affordable business support be provided and delivered by the private sector with the strategic guidance and influence of the GBSLEP and its members or partners?
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Currently, a brief review of LEPs websites indicates that the business support help available through LEPs across the country varies widely in amount and focus. Review of business support delivery options The business support arena and offer is highly fragmented, complex and cluttered especially when viewed from the business end of the telescope. There is a multiplicity of providers, signposting, points of access, eligibility criteria, delivery mechanisms, products, organisations and individuals involved. To add to the confusion of what is available, to who and at what price, the ease of accessibility or use of the core public sector business support product is variable, To help clarify the offer and provision of business support while scoping the private sector business support offer ten delivery segments have been identified and defined: 1. Core public sector (BIS, UKTI) 2. Local authorities 3. Higher education institutions 4. Further education institutions 5. Financial institutions 6. Professional services 7. Trade associations & membership 8. Business network / breakfast club & peer to peer support 9. Private sector 10. Social Enterprise Partnerships (SEP) Part of this analysis was based on a review of some 250 different private sector initiatives and providers. A list of these and more detailed information about 70 of these is held in a separate working document that will require regular review and updating. Each of these segments will have some cross-trading, interactions and overlaps dependent on the type of support being offered, how it is funded / paid for and the resultant mode of delivery. It must also be explained that many of the private sector segments providing business support currently include those delivering fully funded products in some instances these may be highly dependent on funded work for their business success. Those providing business support on a purely commercial basis run into the thousands in their number (accountants, banks, training companies, HR consultants ..). Within each of these ten segments exists some specific specialisations as well as the ability to provide more generic forms of business support. The core public sector offer is run through BIS, the Governments lead department for business support and its website links to its and other core products (e.g. Business Links, Solutions for Business, Start up Britain,
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Manufacturing Advisory service and Coaching For Business; HMRC and DWP). Sector Skills Councils also provide some invaluable economic and market trend information. Local authorities provide varying levels of, and commitment to, business support as it is not a statutory requirement and thus does not feature highly in their performance indicators. Most authorities in the GBSLEP have allocated some resource for economic development and business engagement to encourage economic growth in their area. Signposting, usually through weblinks, to Government and any locally available business support resource is evident. Business support services available are also dependent on individual councils approach to the active and time consuming pursuit of external funding opportunities. Interactions between regulatory officers (e.g. planning and environmental health) includes some business support and generic advice (LBRO) although this is variable in quality and extent. Most of the local authorities have some involvement in Find it in and Think Local For business initiatives designed to strengthen local trading and partnerships. Higher education institutions (HEIs) are important in the GBSLEP with 4 universities and 2 university colleges represented on the Board plus another 7 HEIs in the wider region forming the Universities West Midlands network. All the HEIs claim to provide business support through a range of offers and initiatives either publicly funded (includes European money) or on a paid for basis. Anecdotally, businesses that work with universities gain from this be it knowledge, Research and Development or use of an intern. Universities are proud of their individual areas of expertise, teaching and provision of our future work-force. All have business facing activities though these are not always evident to the less informed businesses. All HEIs are different so it is not easy for businesses to identify where they go, for what and how they go about it this is not helped by HEIs having different names for their business facing faculties. A mutual lack of connectivity exists. Further education institutions (FEIs) traditionally provide a less expert focus than HEIs in their business support offer, their expertise being on supporting people into employment through vocational training for the over 16s, apprenticeships and up-skilling the local workforce often in partnership with larger employers. FEIs will reach out to businesses using their business engagement managers, though the main agenda here is to identify business needs and design related training offers that might be delivered at the college on or site. For a business attempting to ascertain a colleges business support offer and making direct contact to learn more, it can be a frustrating experience. Financial institutions, in particular banks, (within the GBSLEP is also ARC / BCRC whose prime focus is the provision of finance to local businesses unable to access this elsewhere) in addition to their normal banking facilities, generally offer incentives for new customers to include free banking for a period of time, on-line courses and information leaflets and access to a business manager or equivalent. Most have a specialised business banking unit but significant access to business support, other than pure finance,
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seems limited unless the bank has specialised in certain business or industry sectors even then advisors might signpost customers to specialist professionals on their approved list for commercially supplied business support. Banks and other financial institutions do sponsor business networks e.g. Everywoman, British Association of Women Entrepreneurs; and business support events such as exhibitions, seminars and training workshops being run by Chambers of Commerce and local authorities as part of their CSR and public relations strategy. Goldman Sachs is one of a small number of example of CSR initiatives highlighted in this segment as they are privately funding a programme to be delivered to 10,000 business nationwide. There are, not surprisingly, hundreds of professional services firms of all sizes in the GBSLEP area, and, while their core offer is in itself business support or a specific expertise and resource not always found in SMEs and larger businesses (accountancy, law, HR, architecture) their main product range does not appear accessible to in particular, the smaller business seeking more generic business support or help as to how to access this. Delivery of business support on behalf of even funded initiatives that the researchers were aware of was also difficult to identify bar through word of mouth. Professional services firms do sponsor subject specific seminars and prestigious events in the GBSLEP and provide indirect support in terms of provision of facilities to the LEP. Recent business engagement events on behalf of the GBSLEP highlighted the potential value of and under-utilisation of the plethora of trade associations, membership organisations and representative bodies that are available to businesses. These organisations exist at a national level, but deliver locally, or exist at a local level to provide targeted support to specific businesses. Examples include Chambers of Commerce, Federation of Small Businesses, British Retail Consortium, National Farmers Union (NFU) and the Engineering Employers Federation (EEF). Whilst all purport to offer business support, the accessibility of this support varies widely. Some organisations have excellent business facing web pages and local direct and telephone contact opportunities, others appear quite inaccessible to all but paid up members and businesses. Each organisation has its own membership or business community profile and remit but they also provide a breadth and wealth of information, advice and guidance for business, be it generic or very specialised. In addition to these private sector organisations (trade associations) are the sector skills councils and other government funded bodies providing information, advice and guidance to businesses. These are probably all under utilised as they are not always obvious on information portals, are fragmented and not always accessible on searches made by uninformed businesses. An almost overwhelming number of national and local business networking clubs and groups provide yet another form of business support to businesses in the GBSLEP area. This is usually in the form of referral marketing and peer to peer support with the anticipation of mutual trading and personal professional intervention or help. There are usually several
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networking opportunities available within every town, providing considerable choice to business people. Each group or club tends to have its own characteristics and membership profile and choice is often down to individual preferences, comfort zones and ways of working though some networks are more inclusive or exclusive than others. Regular networking meetings are supplemented by more ad-hoc arrangements such as Meet the Buyer events or Business Growth Shows. All the above organisations and firms are, together with private sector businesses, considered to be the future of business support, although currently there is very little overt altruistic support available, particularly from the (smaller) private sector businesses. For the purpose of this strategic research work only private businesses identified as funding or delivering a meaningful business support offer have been highlighted rather than listing the thousands of companies that might be classified as delivering business support activities e.g. tele-marketing, business and marketing planning, human resources and market research. Some individuals help other businesses in passing (peer to peer) and a tiny proportion of private businesses provide an amount of free mentoring or training which will also be used to raise their own profile in the market place. It was observed that the majority of private businesses providing or delivering business support, as perceived by business and defined earlier, are those that are working on funded initiatives either won through a competitive tendering process or based on funding they accessed to subsidise their business support delivery activities to reduce the cost to their end customers. The private sector is very active in promoting its offer, more so since the streamlining and reduction of publicly funded and provided business support activities. New businesses have also emerged from these routes promoting and using their knowledge and expertise gained, for example, at Business Link and Advantage West Midlands. The main offer comprises a mix of business advice, guidance and face to face support services, in some cases supported with online resource in the form of training and support videos, web content and social media. This latter move may make business support more affordable but again lead to a loss in the amount of face to face support accessed. Social enterprises are considered to be those organisations delivering business support activities on a not for profit basis. In many instances these organisations are heavily dependent upon public funding to support their service delivery offer. This does not, however, mean that those organisations will always deliver support to businesses that is free of charge at the point of delivery. However, any income generated is re-invested in the delivery of services to other companies. The business support offer available through social enterprises is not homogenous - the overall offer is dependent on the aims and objectives of each individual social enterprise or group. For example, Social Enterprise West Midlands provides support, including business support, to other Social Enterprises, whereas Business Enterprise
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Support will support all those seeking to start a business, whether that business is for profit or not for profit. In broad terms, these organisations are generally very accessible to businesses, but if those businesses who do approach these organisations are not eligible for support, they will usually be directed to more appropriate organisations. Although this segments offer is very different, from the outside looking in, the social enterprise sector would appear to be a mini-sector and economy in its own right, albeit one which trades with the private and public sector as such it earns a place in this scoping report. Business support needs A review of existing reports and commentary from business gives us a good idea of what businesses expect or ask of business support. Businesses in different stages of their life cycle have different needs and different levels of experience in sourcing support, making it difficult for some to pinpoint the support they truly need, its availability and source. Support sought ranges from information, advice and guidance (where to go for what) to more specific implementation questions, for example how do I start and what do I need to do to equipping a company for improvement or growth with business planning or market development plans and delivery skills. Additionally more mature businesses may seek help with writing and implementing business systems and processes, research and development (R & D), recruitment, investment and governance. The offer line appears to start with very generic information, tool kits and signposting, then leads to more topic specific support and guidance (or mentoring) and finally with the provision of quite specific or specialised, bespoke, support (consultancy, product development) which will be a more intense, focussed, potentially complex and costly activity. To work through this offer line requires increasing levels of knowledge, competence, time and resource. Given the less than clear business support offer and the fact that many business people will start their search for support or advice using the internet (and social media) which can often create more confusion around what is appropriate and available to them and their situation. The business support offer line does not necessarily match how business (people) seeking support behave, especially those with less experience of business itself or in seeking external support. Therefore the opportunity to discuss initially a question or potential need with an informed individual is important to help understand the need and determine what aspect of the business support offer line is needed and the best way to access any business support available at this juncture. This seems to be an increasingly large gap in provision of business support both in terms of the need to diagnose a need and clarifying the multitude of individual product offers making it clearer to a business what they will get, what they need to do and if there any costs or matched funding / time requirements involved.
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The research evidence base around the sources of business support used by businesses demonstrates there is no one source of information that is clearly favoured; businesses are using their accountants, dialogue with customers, suppliers, friends and family and the internet, drawing on a variety of sources to assist in their knowledge, thinking or decision making. There is also the suggestion that up to a third of SMEs would not know where to go for business support. The delivery mechanisms used for business support and information delivery also need to be tailored to the stage of development of the business and in some instances its market sector of operation. Accessibility of business support varies by supply segment. The multiplicity of individual product and service offers, providers and target business support client reduces any chance of making it clear to a business seeking support what they can get, what they need to do and what costs are involved. The less informed, start up and static businesses in particular are unlikely to be able to easily access the information, help or support they need without some guidance or interpretation of their ask and translation of the business support offer. No one seems to make it easy - finding support can be pot luck unless you are in the know. This puts the more vulnerable companies at risk of failure. We need to encourage businesses to learn ask for what they need rather than take what they are told is there or on display as the lack of overtly publicly available information on what is on sale will further deter businesses which would benefit from help accessing it. During the scoping exercise it proved difficult for the researchers to elicit detailed, or indeed any, information about business support offers from some of the segments or individual organisations actually involved in the provision or delivery of relevant initiatives. LEP engagement and partnering The rationale for the GBSLEP to partner with private sector suppliers of business support must be carefully considered. A series of key questions have been identified that need to be addressed by GBSLEP prior to a decision as to whether to partner or not, being taken. These include ascertaining exactly what the issues is that partnering might resolve and how partners would be selected and monitored. There are several reasons why it may prove beneficial to work in partnership with those private sector organisations delivering sustainable business support which is accessible to a wide audience. Such partnerships might help in the presentation of a cohesive package of business support services throughout the region and smooth the fragmented and cluttered market place. While there are a number of issues surrounding potential partnerships between GBSLEP and private sector organisations, the key ones would seem to be whether or not partnerships should be only with those supplying publicly funded services or not, what the advantages would be to partners and what would be the impact on take up by businesses within the GBSLEP area?
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RECOMMENDATIONS AND SUGGESTED ACTIONS Positioning GBSLEP must, prior to committing to any further action, address the following questions: What is the GBSLEP definition of business support? What is the role of the LEP in business support? Should LEPs be developing business support portals that have the potential to duplicate existing publicly funded services (such as www.businesslink.gov.uk)? If so, how? Can GBS LEP share a single portal with other, adjacent and neighbouring LEPs? Have businesses identified business support as a key requirement of LEPs, and if so at what level? How does GBSLEP know who is looking for support? It is suggested that LEP publicly funded partners are encouraged to provide coordinated feedback to inform the strategy, for example through the monitoring of enquiries. How will the LEP promote itself to businesses as a conduit to business support? It will only work if businesses perceive there to be a value. Can the LEP influence successive Governments to maintain continuity of offers and their branding? Cleansing the Support Offer 1. GBSLEP should aim to diminish, streamline and smooth the availability of support across the area through encouraging the reduction of geographic, eligibility and accessibility barriers facing businesses. For example, North Worcestershire is planning to de-fragment their offer to make it clear to businesses what is available, where and how it is delivered. 2. GBSLEP must smooth the offer but also help clarify what business support is or means and when / when not business support needs to be paid for at the point of delivery. 3. There is a need to ensure that (major) private sector initiatives (be they incorporate funding or not) are sustainable over the longer term, not just providing a brief free introduction as to what support might be there as seems to be the case for some of the initiatives. 4. Any partnering should perhaps seek to limit any duplication or fragmentation of the delivery of, in particular, funded support. 5. Consider developing a central co-ordinated repository of information with regards to support and advice what about libraries as local hubs? 6. The recommendations from the High Growth Business survey conducted by GBSLEP need to be considered alongside this report
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and the impact they may have on the GBSLEP future strategy for business support. 7. Develop a mechanism to improve the (equitable) identification of those businesses that need, and are receptive to, business support? Products are being developed without ascertaining the exact levels of demand. Communications 1. GBSLEP could utilise this research to develop an online support gateway, detailing how to access the different supply segments, what each does or can offer to businesses and in what types of circumstances a business might need to consider accessing support. 2. GBSLEP should consider mapping and tracking the changes in the BIS offer so that all involved in supplying and accessing business support understand what is available, what it is now called and who it is available to. 3. Part of the GBSLEP communication strategy could be to partner with BIS and other public sector bodies to develop cohesive communications that are focused at a local level. 4. Part of the GBSLEP strategy around communications should be to ensure that each local authority member is aware of the business support offering available throughout the GBSLEP area. 5. GBSLEP could gain by interacting with the various business networks and clubs throughout the region, using them as an additional communication platform to raise awareness of business support offers that may be available and delivery of seminars and training in a cost effective manner. Stimulating the Effective Use of Business Support 1. GBSLEP should consider stimulating the up-take of external paid for advice and act as a catalyst through the presentation of guidelines for finding trustworthy deliverers and determining the likely type(s) business support needed and its potential impact on the businesss success almost an educational programme. 2. Examine the provision of specific vs generic business support by type of business, sector or specialisation to better inform routes to entry for business support . 3. To reduce confusion, improve access and reduce the time taken for business to search for support on an easily found route to entry to each part of the offer line is required. GBSLEP might consider how funnelling of specialisation, generic need or sector specific enquiries
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can be simplified and refined this, together with a translator of the perceived business support need into a more specific and better defined requirement, could lead to a more effective and efficiently fulfilled business support offer. Partnering 1. An independent evaluation of the initiatives identified as best practice will enable GBSLEP to determine which ones best fit the GBSLEP strategy. 2. The HEIs links and excellent work with business needs to be harnessed and more clearly communicated to the business community. 3. The FEI segment offers GBSLEP the opportunity to work with businesses through workforce development, such as the take up of apprentices and up-skilling the workforce. It is recommended GBSLEP raise this opportunity with the FEIs. 4. GBSLEP should develop a working relationship with the banks and financial institutions to reduce the hit and miss nature of support offered, particularly to business start ups. 5. GBSLEP should work with the representative organisations for the professional services sector rather than with the plethora of individual practices that exist. 6. Trade Associations provide the LEP with an excellent opportunity to develop specialist business support, particularly with those in receipt of Government funding (directly or indirectly) such as the NISP who have offices in Birmingham. 7. To add value to this segment of provision it would make sense for the GBSLEP to ensure these associations understand how the LEP works and encourage Trade Associations to clarify specific business support offers and their accessibility. 8. GBSLEP must better understand the impact of the social enterprise economy on the area as a whole, determine how it may interact with this sector and decide how it can best engage the sector to enhance the GBSLEP area. The LEP must understand better how SEPs achieve their customer buy-in to their varied support offers. What lessons can the LEP learn from this and apply to the business support offer?
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BACKGROUND AND CONTEXT

A. Purpose and Focus of Work
Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP) is seeking to effectively identify, understand and collate the emerging private sector business support offer, following the Governments restructure of publicly funded business support services. The research conducted focused on the identification of both private and publicly funded business support services available to businesses and business start ups within the GBSLEP area. Through the research, a listing of the services, a brief description, identification of the suppliers of those services and clarity around their target audience has been completed, thereby enabling the LEP Business Support Group to better understand the spectrum of the current business support offer. Furthermore, the research sought to identify any elements of duplication that may lead to confusion amongst businesses, and similarly will make recommendations around the concept of co-ordinating activity where appropriate, to ensure the current level of provision is not diluted. B. Definitions of Business Support Used
There are many different definitions of business support. Before considering what the GBSLEP definition of private sector business support offer could be, it is important to recognise the strategic background against which this is set. The Government, in its strategy document Bigger, Better Business: Helping small firms start, grow and prosper states that the Government will focus its resources on improving small business performance and growth. That strategy document goes on to state: We will modernise the provision of online information so all businesses can access what they need, when they need it. We recognise that there are now many excellent private providers of business advice as well as business networks both online and offline. Governments role is not to duplicate this activity, but to intervene only where there is evident market failure. It is therefore clear that Government requires the private sector to step up to the challenge of providing business support services that are valued by businesses small and large alike. A typical definition of business support is used by Derby City Council, which defines business support as:
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Any publicly funded activity that benefits a business or potential business through a grant, subsidy, advice or other service. East Midlands Development Agency (EMDA) defined business support as: Any activity that supports the creation and survival of businesses, increases SME profitability and assists business development and growth. It incorporates information, advice, training and consultancy. Therefore, when seeking to define business support provided by the private sector it is fair to conclude that one or more of the following elements should be present and contribute to improving the business is some way: Business information Business advice Business consultancy Business training
Perceptions of business support from private sector businesses, and their requirements for business support services are identified further in Section 4 of this report. This study does NOT encompass access to grants or finance. Some businesses have (unrealistic) expectations that business support will enable them to gain access to grants and funding and that other support activities will be provided free of charge or at least subsidised. Whilst some services are subsidised there are a large number of companies that specialise in providing only financial advice and related services. To ensure this aspect of business support is also examined, a separate study has been commissioned by GBSLEP. C. Context of this Work
The GBSLEP area The GBSLEP encompasses a diverse rural and urban geographic area, is home to approximately 1.9 million people and contributes 36bn GVA to the economy. There are approximately 800,000 jobs within the area, which comprises: Birmingham & Solihull Southern Staffordshire Staffordshire) (Cannock, Lichfield, Tamworth, East
Northern Worcestershire (Redditch, Bromsgrove, Wyre Forest) targets, seeking to create the and enable businesses to create help achieve these challenging understands the private sector
The GBSLEP has established ambitious conditions to increase GVA by 30% by 2020 a further 100,000 private sector jobs. To targets, it is essential that the GBSLEP
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business support offer, and is able to shape and influence the nature of business support provision appropriately. Focus for business support in the future The nature and scope of publicly funded business support has undergone its most radical change since the creation of the Business Link network in the mid 1990s. The regional Business Link operator network ceased to exist in 2011, and the Business Link website (www.businesslink.gov.uk) was refreshed, content revised and links to other Government departments business support activity strengthened. This process of change will continue in future years, reflecting the different ways in which companies do business, and also taking into account a different philosophical approach on the part of Government to intervention in business. Known changes for the future include the further streamlining of over 200 Government funded business support activities and the inclusion of those streamlined activities into the Business Link portal. Government has the view that locally delivered business support services will be delivered through a combination of volunteer mentors and a broad range of private sector businesses to start-up and established businesses. This in turn, will reduce the emphasis and reliance on Government funded (and in turn local authority funded) business support services. Future business support will be led by businesses who understand the needs of other businesses, and whilst some of these services may be delivered free of charge, as part of the corporate social responsibility of such business support suppliers, there is an expectation that ultimately, companies will pay commercial rates for the support they receive. Therefore, the Governments view of business support provision for the future is: A streamlined, but wide reaching web portal (www.businesslink.gov.uk) will be supplemented by telephone access (for those primarily without internet access or who are unable to find information on the website). The Solutions for Business portfolio of services will be funded by Government, but largely delivered through private sector businesses or not for profit organisations. Funding through schemes such as the Regional Growth Fund will target specific job creating projects, rather than support programmes Private sector businesses will be encouraged to develop and promote a support offer that other businesses can access on a commercial basis (recognising that some larger professional services companies, financial institutions and others may offer some free at point of delivery support as part of their corporate social responsibilities)
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The Local Enterprise Partnership role will be to act strategically to identify and summarise the business support requirements of locally based companies, subsequently acting as a conduit to, rather than as a deliverer of, such support. To do this GBSLEP would have to refresh information on an ongoing basis and resource this a big ask.
Recent and likely changes in the business support landscape 2010 - 2013/14 encompass the already streamlined 200+ government funded activities into one gateway Business Link and the reduction one-to-one mentoring initiatives, with Business Link no longer delivering here. The key question for the GBSLEP is can sustainable, readily maintained, locally accessible and affordable business support be provided and delivered by the private sector with the strategic guidance and influence of the GBSLEP and its members or partners? D. Approach Adopted for this Work
Hawthornes Research & Business Development set out a clear and concise approach for the delivery of this project summarised as follows: identify the (private sector) delivery organisations operating in the national, the regional and the local market place provide relevant contact details, programme of activities, summaries of key benefits/opportunities to customers, costs and delivery mechanisms for each of the delivery organisations identify any synergies or potential duplication with publicly funded schemes brief assessment of the quality/impact of the programmes identified construct a partnering framework for the LEP identifying potential joint programme work collate all the separate research, analysis and recommendations into a summary report for presenting to the Business support sub group with elements more detailed in the appendices
The project methodology combined desk research, documentation reviews, consultation interviews and electronic questionnaires. In each of these processes, the knowledge of business support service availability was probed and business support providers and services identified. To gauge the private sector business support offer, it was essential to understand the publicly funded business support offer and how the private sector is integrated within the wider context of business support. To support the secondary research findings, consultations were undertaken with individuals, local authorities, educational institutions, trade and membership bodies, private sector providers and third sector organisations delivering business support in a not for profit environment to enhance this knowledge.
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E.
Outputs and Outcomes of this Scoping Work
The principal outcome from this Scoping the Private Sector Business Support Project is the knowledge for the GBSLEP to be able to gauge the current level of private sector business support and determine what its response to that should be; the primary output being the identification and summarisation of the types of business support services available. However, in isolation, this information would be of limited use to the GBSLEP Business Support Group. Therefore, it is supplemented with information relating to business support services available nationally and locally that are available to businesses operating in the GBSLEP area. It is important to note that in undertaking this project, we have adopted the approach of a business seeking support, and searched for support in that manner. There have been instances when individual consultations with support providers (both public and private sector) have revealed that they offer other services to those that initially prompted attention. If those services are not immediately obvious to a business, it is likely they will not pursue that supplier, and will move on to the next one. Therefore, whilst we have sought to develop a directory of meaningful private sector business support, we are unable to guarantee that we have been able to identify all such hidden business support services that may exist. The thousands of individual private sector organisations providing services that are or might be classified as business support are not included in this research. The report scopes the private and public sector support services that are available to businesses, highlights key aspects of good practice and interesting initiatives in each identified segment of business support provision and suggests how the GBSLEP might consider partnering with it. The report also reviews the business requirements of business support and makes recommendations for appropriate next steps. Within the report appendices, is a list of business support providers and their contact details and an outline description of selected business support offers including the nature of the activity and the source of the funding for the service. The appendices also detail the references used and details of consultees by organisation.
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MAIN FINDINGS
1. 1.1 SCOPING THE PRIVATE SECTOR BUSINESS SUPPORT OFFER Business support delivery channels
The research has very substantially demonstrated the complexity of the business support arena with its multiplicity of providers, signposting and access points, eligibility criteria (especially if funded or free), delivery mechanisms and delivery organisations or individuals. We have collected much of the array of information and business support offers available throughout the GBSLEP region from a number of sources but analysed and presented our findings from the business end of the telescope. Most businesses do not recognise or necessarily work within geographical, political or funding stream boundaries as part of their everyday activities, and, therefore seek support relevant to their needs and (usually) place and mode of working. To help clarify the offer and provision of business support while scoping the private sector business support offer we have defined ten delivery segments from this multiplicity of channels of provision. 11. Core public sector (BIS, UKTI) 12. Local authorities 13. Higher education institutions (HEI) 14. Further education institutions (FEI) 15. Financial institutions 16. Professional services 17. Trade associations & membership 18. Business network / breakfast club & peer to peer support 19. Private sector 20. Social Enterprise Partnerships (SEP) The matrix below further categorises these segments from the business support seekers viewpoint. Deliverer matrix
(Perceived as) Publicly funded Central Government BL, SfB, MAS, BIS initiatives, Enterprise Networks Local authorities, GBSLEP, LSPs, SSP, BEP, TL4B, Marketing Birmingham Universities and University Colleges Further Education Colleges Professional and supportive organisations Professional service accountants, lawyers Banks and other financial institutions Trade associations and membership bodies Networking based business clubs and peer to peer support Private sector (commercial) businesses Specialist private sector providers commercial and via funded activities General business support providers and individuals CSR/ pro-bono/ Sponsorship Social Enterprise Partnerships/ Community Voluntary Service Training providers
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1.2
Paying for business support
Some business support can be accessed free of charge FOR EXAMPLE , other support is on a paid for basis in some instances a mix of free provision and matched funding activity is available. Funding streams and payment protocols used by the delivering segments also vary in their size, target audience, simplicity / complexity and ultimate source. The matrix below highlights the current situation. Source Funding Identification
Government BIS Regional Growth Fund LEP capacity fund (2012/13) European ERDF ESF Local Authorities Direct BIDs TIF (2015-?) Government grants External funding e.g. Heritage / European Private Sponsorship Paid for by user in full Paid for by user match funding contributions
There is a distinction to be made between those organisations that fund and those that deliver funded business support. The PACEC 2005 report mapped the Small Business Service (SBS) services delivery chains and highlighted the following useful distinctions: Delivery organisation: Local Authorities (as a specialist agency not funder), Enterprise agencies, Chambers of Commerce Funding Organisations: RDAs, BLOs, Government Offices, LSC Focus of funding: workforce development, ICT, start-ups, marketing and international trade
We note this distinction as it raises the question: Should the GBSLEP examine the provision of specific vs generic business support by type of business, sector or specialisation to better inform routes to entry for business support or does this create further confusion and dilution around accessibility of business support despite the ideal of a single portal as a start point for local businesses and start-ups? Therefore, just because business support can be categorised by delivery organisation, funding stream and focus (ICT, International Trade etc), it does not mean that the LEP should necessarily utilise these categories in their future strategy. The over differentiation of business support may simply create confusion for businesses seeking support (either for the first time or for a new idea or initiative). Although the funding / delivery organisation may be important later in the process (as it may condition the exact relevance of the offer), initially businesses may only need the focus (ICT, start-up etc) to enter the support network.
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The following sections of this report examine, in brief, each segment of business support provision, describing the context, generic offer and highlighting key initiatives or business support offers. Suggestions for engagement with each are made. Ultimately we assess where gaps in provision and delivery might exist and look at the needs of businesses requiring or seeking to access support. We have identified and referenced some 250 different initiatives and providers. This list and more detailed information about 70 key private sector provision / providers where appropriate is held in a separate working document that will require regular review and updating. The absolute numbers are not statistically robust as there will be many more offers continually being put into the market place. To some extent the research is dependent upon individuals knowledge of what is out there this reflects the private businesses dilemma when seeking business support.
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2.
OVERVIEW OF BUSINESS SUPPORT BY DELIVERY SEGMENT
This section of the report summarises the business support offer available from each of the ten different business support provider groupings. It provides a brief overview of the offer from each segment and highlights issues around accessibility, examples of best practice and potential opportunities for engagement.
2.1
Core Public Sector Offer (Excluding Local Authorities)
Outline description and accessibility The Government delivers business improvement and support services through a number of channels, albeit reduced and streamlined in recent years. As a result of these changes, no central, guaranteed funding for local activity is available for the use by GBSLEP in the way Advantage West Midlands (AWM) and Business Link West Midlands (BLWM) used to operate. However, there are a number of national programmes of support either the continuation of existing initiatives OR the introduction of new schemes. These include the retention of the improved Business Link website, and dedicated telephone support, Manufacturing Advisory Service (MAS) and the soon to be funded Coaching for Business Growth. The integration of HMRC and DWP business support information into the Business Link website should not be overlooked. These latter national initiatives can be accessed by GBSLEP businesses through locally contracted deliverers. Some offers appear to be more akin to trade associations than a businesses perception of what the Government provides, for example Society of Motor Manufacturers and Traders (SMMT). The extent to which these then sign to points of access for specific chargeable or public funded provision by private sector businesses might be considered for further exploration. BIS is the Governments lead department for business support and its website provides links to Business Link and the (non-Government private sector sponsored) Start Up Britain campaign (which are seen as primary routes for general information for existing businesses). The ease of accessibility or use of the core public sector (Government) business support product is considered variable, particularly from the business end of the telescope. Obviously Business Link is accessible to anyone with internet access and who is familiar with navigating complex websites to secure appropriate information. However, the concern is that the less informed, start up or innovative business people are unlikely in many instances to be able to navigate through the site without help to understand or translate their need and implement this. For mentors and more informed businesses it is an excellent tool.
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The multitude of individual product offers does not make it clear to a business what they will get, what they need to do and if there are any costs or matched funding / time requirements involved. Accessibility appears more and more complex the more focused or bespoke the business support sought. Similarly the lack of clarity on financial implications adds to the complexity of accessing and benefiting from these offers. This situation is also reflective of much of the HEI, FEI and private sector business support offer in some instances exacerbated when these segments are delivering publicly funded support. Furthermore, businesses become confused by the almost constant re-naming and re-branding of Government funded initiatives, and this is a potential barrier to their accessibility and success. Also, if business engagement is intermittent, businesses may be seeking former, now no longer available, regrouped or re-branded, services. Offers The public sector offer line starts with a broad spectrum of information through to more specific advice and guidance to bespoke support. Examples of generic support include forums to toolkits through mentoring and consultant support to specialist input and provision. Some of the core public sector signposting is focused on the provision of access to finance support (funding and grants) to businesses rather than on specific business improvement advice and support. The full public sector offer is provided at Appendix B. Financial implications and funding The services provided are free at the point of initial access but costs start to be incurred the further along the offer line a company travels. (For example, the Coaching for High Growth initiative, that provides one to one specialist coaching, requires a client contribution if the company is successful in securing support through this service). There is often a lack of clarity as to exactly what support is provided and at what cost for some public sector business support offers, for example those within the Solutions for Business portfolio. Examples of good initiatives Taking a pragmatic view, the streamlining and regrouping of the plethora of Government business support offers is a mutually beneficial action. Although not yet launched, the Coaching for Business Growth service has the potential to become an example of a good initiative, based on past satisfaction from services such as BLWMs Transforming Business and the
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Mustard service, which had many of the components that are to be incorporated into Coaching for Business Growth. LEP engagement and partnering opportunities Across the core public offer there needs to be a higher or better level of communication as it is still a mystery to even the partially informed business. Part of the GBSLEP communication strategy could be to partner with BIS and other public sector bodies to develop cohesive communications that are focused at a local level. GBSLEP ought to consider engagement with those private sector delivery partner that have been selected to deliver the Coaching for Business Growth service within the area. This could enhance the value of the initiative in attracting the candidates who would most benefit from the support and in turn contribute to the GBSLEPs growth strategy. Another activity to be considered is mapping the core public sector offer from how it was to how it looks now e.g. re-branded name Vs previous name(s), how the streamlined offer came about what has been abolished but how the new offer accommodates this de-duplication of provision. Good and regular communication of this (dynamic) situation could help all involved in the business support advice, guidance and supply arena. It is not a question of telling businesses what they need and what is there but allowing businesses to ask (sometimes with informed help) for what they need. Appendix A provides full details of the public sector offer via the Business Link website, via BIS and partner agencies, and through the other public sector providers. As a range of third party organisations/ brands are leading on different aspects of the support they can also all be accessed via the BL website or their direct link e.g. grants for Research and Development can be accessed via www.innovateuk.org.uk; and the Manufacturing Advisory Service via www.mas.bis.gov.uk Appendix A provides detail of the sector specific support available via the BL website. There are 15 sectors where specific support is offered e.g. Automotive, Life Sciences, ICT, and links to external provision around some more bespoke sectors are available. Given the importance of automotive details of some 8 different support streams including the Low Carbon and Fuel Cells Centre of Excellence; and the Foresight Vehicle Programme are provided. This section also highlights offers of private sector support that are marketed via the Start Up Britain site. This is one of those offers that has had backing, support and endorsement from Government but is now completely funded by private sector sponsors developing a theme of further blurring the relationship between the public and private sector.
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2.2.
Local Authorities
Outline description and accessibility Local authorities within the GBSLEP have varying levels of, and commitment to, providing business support. As business support is not a statutory requirement, it does not always feature highly in their performance indicators and involvement is often limited to interactions between regulatory officers (e.g. planning and health) and businesses requiring these services. Also, local authorities may not be an immediate front of mind potential source of business support, except in a regulatory context or by companies seeking inward investment opportunities. However, most of the authorities have allocated monies for economic development departments to encourage economic growth, business engagement and at least provide basic signposting to government or local resources where these exist. Those more active authorities are pursuing business support initiatives financed through successful bids (primarily European and formerly AWM). Authorities report differing numbers of calls from businesses seeking pure business support (rather than statutory issues) from a couple of calls each week to regular dialogue with key businesses and those who particularly seek engagement with the councils. In several cases, the detail of the caller, and the nature of the enquiry, are not always recorded and therefore it is difficult to assess the extent to which businesses seek information from authorities. Local authority websites are generally user friendly and searchable by businesses the importance of keeping web pages up to date is noted. Most have links to other websites such as Business Link, Think Local for Business, Find it etc. However, active business support and face to face interactions are less overt or accessible to the uninformed local business user. Those authorities with a number of initiatives for business support are, to some extent, reliant on their contracted deliverers e.g. colleges, Social Enterprise Partnerships (SEPs) and occasionally privately contracted suppliers of support to engage with businesses. This research revealed the suggestion by councils and businesses that finding business support can be pot luck unless you are in the know. Local authorities signpost unless they have specific initiatives within their authority. Offers One off grants (not always with a support offer attached) Telephone helpline Environmental health & planning regulation and advice Information about markets and other retail opportunities Property listings Directory listings of local businesses (online and hard copy) Events e.g. Meet the Buyers, Job Fairs (with FE), Training & Seminars
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Libraries Tender opportunities
Financial implications and funding There is a mix of free and chargeable offers to businesses provided by the local authorities, dependent on the nature of the service being delivered and the local authoritys approach to accessing funding and to the authoritys philosophy towards supporting local businesses. Some authorities provide grants, solely based on appropriate applications from businesses, others require businesses to contribute to services or grants through matched funding mostly in the form of cash rather than an in kind contribution. Specific business services such as food hygiene courses delivered through environmental health departments may be charged at full commercial rates. Some services are delivered to businesses with no charge involved; such activity is determined at a localised level. There is limited funding from local authorities for the provision of business support. One local authority respondent observed: Should councils fill the gap in support for micro-businesses? Examples of good initiatives There are several examples of good practice from within the local authority segment including: Think Local for Business Find it in Birmingham Birmingham City Councils High Growth Mentoring Scheme (delivered free of charge to the end user by Deloitte who are funded by the City Council) Solihull Metropolitan District Councils business support and training courses delivered through Balancing Business
LEP engagement and partnering opportunities The formation of GBSLEP has provided a good opportunity to engage across and within its representative local authorities, thereby providing the opportunity of a level playing field for the provision of joined up business support across the whole region. GBSLEP should consider partnering with local authorities to promote and enhance their strategic business support offers. Based upon our experience of business needs, identified in Section 4, those services that potentially add most value to customers include ease of access to tendering, for example Find It In and Think Local for Business.
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2.3
Higher Education Institutions (HEI)
Outline description and accessibility There are 4 universities and 2 university colleges in the GBSLEP area and they operate with 7 other institutions at a regional level as Universities West Midlands. This was established with the aim of fostering collaboration and building regional partnerships between HEIs to support economic, social and cultural wellbeing. A major facet of Universities West Midlands work is said to be around business engagement, in particular providing opportunities for businesses in the region for: Graduate internships Business improvement Workforce development Providing facilities
In addition most other universities which have a business school have opportunities which may be useful to businesses within the area Universities are proud of their individual areas of expertise, teaching and provision of our future work-force. All have business facing activities though these are not always evident to the less informed businesses. All HEIs are different so it is not easy for businesses to identify where they go, for what and how they go about it this is not helped by HEIs having different names for their business facing faculties. A mutual lack of connectivity exists. As one HEI respondent noted, You need to know someone, or have contacts, or have links in to take advantage of University business support. As a business searching for business support, the initial web-site visits and searches and telephone contact to the HEIs revealed limited information. For many businesses this might be the least obvious sector for business support; except perhaps for innovation or pure research. The lack of publicly available information may deter businesses from seeking support from this sector. It is only with prior experience of contacting an institution, or through access to an informed contact that the extent of support available to businesses becomes clear. Offers The University sector offers a range of support services to businesses. The key offers are highlighted below: Knowledge Transfer Partnerships (KTP) Graduate/ PhD researchers (often linked to the learning objectives when delivered for free) Specialist knowledge / expertise R & D facilities / provision
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Specialist R & D (e.g. developing new food products) Spin out businesses using university business village models Training / one off courses Business Schools Events linking businesses, for example Staffordshire Universitys Business Club Professional development Sourcing funding to assist with some of the above initiatives EREBUS (Engaging Research for Business Transformation) delivered through Aston University, Warwick University and Birmingham University
Financial implications and funding Higher Education Institutions may have European, national or locally funded schemes available that will provide business support services, for example the Niche Innovation Scheme that provides grant support to West Midlands SMEs within the niche vehicle sector to work with a HEI or research organisation on R&D or product development. There is very little provision from within this sector that is free of charge at the point of delivery. Some provision by lecturers and faculty staff is charged directly into their own business account, and thus could be classified as provision by a private business. Examples of good initiatives A number of best practice initiatives were identified through the research: Aston University Support for High Growth Businesses funded by Goldman Sachs Staffordshire Universitys For Business their one stop shop for all business enquiries into the University. Birmingham City University Birmingham Institute of Art and Design has some of its latest facilities available for hire. This incorporated a collaborative business networking group funded until March 2012. Birmingham City University KITTS through the Innovate for Advantage programme. Birmingham City University Consultancy partnership to help expand businesses, including SMEs Innovation Vouchers which aim to build links between Universities and SMEs through creating a demand led approach to supporting innovation.
LEP engagement and partnering opportunities There is an opportunity to maximise the potential for businesses to engage with the HEI sector, and to strengthen links through GBSLEP, through the development of a more structured and overt gateway to the sector, potentially using the Universities of the West Midlands network.
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If GBSLEP chose to partner with the HEI segment, this could raise awareness of the value that HEIs can potentially bring to businesses through their array of business support products. For example, initiatives that have the potential to add significantly to the areas economy, such as the Goldman Sachs service provided through Aston University, could be promoted more widely maximise their take-up. There are examples of Universities utilising private sector organisations to provide additional expert support, including Staffordshire Universitys Business Club.
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2.4.
Further Education Institutions (FEI)
Outline description and accessibility The Colleges of Further Education primarily provide education below degree level for over 16s. This includes work-based learning. Traditionally they have been associated with day release courses enabling those in employment to gain recognised qualifications relevant to their work. Increasingly they have become involved in delivering skills to the unemployed. Therefore business support could be considered to be largely indirect. Colleges see their role in relationships with businesses as having an impact on the economy through up-skilling which is important and supporting people into employment. There are specific demands from some employers (e.g. Toyota) that will not only be delivered at the College but also within the organisation. Good quality support for employers is indicated by the award of the Training Quality Standard. Contact from the potential student is usually through telephone calls, the internet and careers advisors/job centres. However the colleges have become far more pro-active, partly through open days but increasingly through having staff whose job is to make contact with businesses with the ultimate aim of recruiting more students. In the main the websites are very student orientated and frequently do not appear to offer much to businesses looking for help and support. Though many of the colleges have a unit classified as business development their number one priority frequently appears to be the development of the colleges business rather than directly helping individual businesses. For a business attempting to contact them it can be a frustrating experience extensions ringing out time after time, out of date out of office voicemail messages, and websites that give no clue as to what if anything is available in the way of help for businesses. Offers Further education establishments traditionally provide a less expert focus than their higher education counterparts but their expertise is in their focus on vocational training and apprenticeships relevant to the needs of businesses. They are also expert at ensuring businesses can obtain nationally recognised qualifications below degree level for their employees. Other offers include: Apprenticeships (brokering and support) Developing sustainable links with larger employers for example through developing bespoke training courses Assisting businesses in writing bids for funding for training Organisational needs analysis with the ultimate aim of selling workforce development solutions
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Financial implications and funding One of the main aims of colleges is to fill places on courses so as to maximise income so courses tend to be on a full cost basis. However, there are some national funding opportunities available for the unemployed and young people as well as some more local ones e.g. from Skills for Midlands Growth. Local private sector funding is rarely available. Again it is stated there is an array of funded training for businesses and their employees but this is not always specifically signposted or overtly publicised; perhaps this is due in part to the complex eligibility criteria to access such training. Examples of good initiatives Several examples within the further education sector have been identified: Partnerships with Weldability (publicly funded) and Toyota Burton College The Trinity Mirror Midlands Birmingham Post Regional Growth Fund (via BIS) managed by Bourneville College funding of 10,000 to 100,000 available to enterprises and entrepreneurs of SMEs and start-ups that are able to provide up to 50% match funding. Each business supported will be provided with a mentor, as well as skills and assessment training. NEW College has a downloadable business plan template for those seeking to start a business and for established businesses South Staffordshire College offer desk research and visit businesses to identify any organisational training needs that could then be delivered (and charged for) to meet the requirements of that business NEW College identified the Apprentice Training Agency for the West Midlands who support employers that wish to take on an apprentice but who are unable to do so in the current climate. The ATA acts as the employer for the apprentice and place them with the host employer. The host employer pays the ATA a fee for the apprentices services based on the wage agreed with the host and the ATA management fee.
LEP engagement and partnering opportunities Further education colleges are active in utilising a variety of media channels (press, radio, poster, advertising) to promote awareness of their services and open their doors to businesses. There is, however, no obvious sign-posting to further education establishments and the majority of these institutions appear to be selling to businesses, but it is hard for a business to know what support services to ask for. There is clear opportunity for GBSLEP to fill this gap. Additional partnering opportunities exist around the provision of apprentices to businesses which is highlighted as a need in section 4, and the provision of shared training at key business parks, industrial sites and Enterprise Zones.
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2.5
Financial Institutions
Outline description and accessibility These are defined as profit making organisations primarily involved in money management. Almost all of them have a High Street presence though the trend in recent years has been the growth of call centres not necessarily in the U.K. and internet banking. The call centres can be expected to deal with most of the issues an SME might have, though in practice the person at the first point of call may only have the information on the web site. The Banks will normally have a specialised business banking sector aimed at helping businesses. Santander also have a presence through the Post Offices/sub Post Office network. This research has primarily focused on banks as we are aware of a separate project looking at Access to Finance. It is evident that a number of Government led financial initiatives to stimulate growth are being channelled through venture capitalists and other investment and funding organisations e.g. Mercia Technology Seed Fund and BCRS. Several of these organisations do provide business support, but this is mutually dependent upon securing funding. Offers As well as the basic banking facilities there will usually be some incentives for new customers in particular free banking for a period of time and access to a Business Manger / Advisor / Mentor. Other items might appear attractive, such as the Free Start-Up Course which is actually some leaflets and mentoring. They may have advisors who specialise in specific business sectors and might also offer to signpost customers to specialist professionals on their approved panel. Banks and other financial institutions may sponsor events and workshops, such as Chamber of Commerce seminars, business start up workshops and trade shows. The banking industry has also collaborated with the Government to develop and launch the MentorsMe portal, which matches businesses with those individual volunteers seeking to offer mentoring support to companies. Financial implications and funding The Financial Institutions are in a good position to know what funding and grants are available and to signpost to these. However, they are commercial businesses and therefore not well known for giving money away and aim to maximise uptake of the services they have to offer! In some instances financial institutions are used by the Government as a vehicle to provide business support as part of their corporate social responsibility agenda.
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Examples of good initiatives There are several examples of good initiatives from this segment. The Lloyds SME Charter includes a commitment to run a programme of seminars nationwide to provide expert guidance and support for SMEs on subjects including starting up, employment, exporting, sustainability and finance, as well as specialist seminars for the healthcare, education and manufacturing sectors. They have also enhanced their on-line guidance and support to business customers on issues including starting up, sustainability, procurement opportunities and finance. The RBS Start-Up package offers not only a period of free business banking (in line with most other banks) in this case 2 years but also offers a free on-line business course. Goldman Sachs have established an initiative to support 10,000 small businesses nationwide (in partnership locally with Aston University). This is aimed at helping small businesses create jobs and to drive economic growth. It is designed to provide high quality practical support to the owners and leaders of established small businesses and social enterprises as they seek to grow. LEP engagement and partnering opportunities Banks have a clear remit around corporate social responsibility, and to this end, GBSLEP should seek to understand how the banks, regionally, aim to fulfil their corporate social responsibility obligations, forging appropriate partnerships where there is clear synergy with the LEPs strategic objectives. GBSLEP should not promote the core banking offer of one banking group over that of another. Instead, GBSLEP ought to consider focusing on the added value services provided by financial institutions, raising awareness and ensuring knowledge of initiatives such as Goldman Sachs 10,000 Small Businesses.
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2.6
Professional Services Sector
Outline description and accessibility This sector covers a multitude of professions, some of which a business is likely to need on a regular basis e.g. accountants and others which they may never need e.g. recruitment agencies. Access is usually initially by telephone after a recommendation, searching Yellow Pages or the internet. Some of these organisations are international and some just one person businesses even in the same sector e.g. accountancy. Advice on legal matters, patents, recruiting, logistics and ICT are but a few services which may be accessed. In undertaking this research, accessibility into this segments business support offer proved difficult, even where we knew that a service existed, unless a specific contact name was available. There was a reluctance on the part of several organisations to identify and articulate the business support services they provided (apart from their core commercial offering). In some instances, our researcher found a better approach was to target the public relations departments within these businesses, who were more likely to identify what business support they offered, in particular to SMEs. Offers The professional services sector offers: Professional advice, frequently on a one to one basis, but also through subject specific seminars (e.g. tax planning) and via their websites / emails. Sponsorship of events at which an expert speaker will impart knowledge relevant to the target business audience. High level business and leadership mentoring Access to business tools and peer group networks (primarily available to existing customers and high level specialists e.g. Gartner)
In addition, KPMG offer a Business Support Service, PWC are a sponsor of "Private Business Awards" and have a section that deals with private businesses and Ernst Young have "Accelerate" - free business workshops for young business leaders. Financial implications and funding The professional services sector is made up of commercial organisations and usually their services will have to paid for in full. However, these organisations may use part of their marketing budget to provide occasional free advice to existing customers and to potential customers, for example they may sponsor the AGM of a professional body at which they give a presentation on the latest developments in their field. In some instances it is implied that for certain business support offers there may be some funding available.
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Examples of good initiatives The few initiatives that stand out were run through the professional services representative bodies rather than by individual companies. Members of the Institute of Chartered Accountants in England and Wales (ICAEW) offer a Business Advice Service, which provides one hour of free business advice on how to overcome challenges faced by SMEs. This advice may cover: How to grow a business Securing loans, capital and finance Keeping staff and creating new jobs Meeting tax and regulatory requirements Export planning Planning for long term sustainable growth Debt management Legal issues
The majority of businesses who take advantage of this Business Advice Service are mostly likely to be seeking a new accountant, and as such, the scheme is basically an excellent marketing tool for ICAEW members who subscribe to the initiative. The Law Society, through 1,000 firms of solicitors gives 30 minutes free advice through its Lawyers for your business scheme. Advice can be sought on a range of legal issues including finance, taxes, employment law, contracts, company structures and health and safety. They also provide downloadable guides on Starting a business Employing staff Leased business premises Contracts with customers and suppliers Raising money for your business Structuring your business A guide to Health and Safety The A-Z guide of plain English business and financial terms
However, a small number of local or regional professional services firms are know to provide high quality seminars with little or no overt sales involved, for example, Keeleys Solicitors and The Chartwell Practice in Burton upon Trent and Birmingham. LEP engagement and partnering opportunities From a logistical perspective, there are so many professional organisations in the GBSLEP area that it would be extremely difficult to choose which organisations the LEP would wish to partner with, or develop relationships with. It is just as important to understand which would want to have links with
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GBSLEP for reasons other than commercial benefit or publicity. Therefore it may be appropriate to consider establishing links with national or regional bodies that represent each of these professions. It is interesting to note that our researcher was unable to identify relevant information regarding business support services offered by Deloitte, even though we know from other sources that they are delivering services in conjunction with Birmingham City Council. This raises the question, Ought the LEP to ascertain whether this is a reflection of the sectors strategy towards helping smaller businesses or an activity in need of awareness raising?
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2.7
Trade Association and Membership Organisations
Outline description and accessibility There are numerous trade associations, membership organisations and representative bodies that are available to businesses in the GBSLEP area. These organisations exist at a national level, but deliver locally, or exist at a local level to provide targeted support to specific businesses. Examples include Chambers of Commerce, Federation of Small Businesses, British Retail Consortium, National Farmers Union (NFU) and the Engineering Employers Federation (EEF). Whilst all purport to offer business support, the accessibility of this support varies widely. Some organisations have excellent business facing web pages and local direct and telephone contact opportunities, others appear quite inaccessible to all but paid up members and businesses. Each organisation has its own membership or business community target profile, primary and secondary remits (e.g. lobbying), member services, promotion of its industry or sector through to generic business support: but on balance they provide a breadth and potential wealth of information, advice and guidance for businesses. In addition to these private sector organisations are the sector skills councils and other government funded bodies providing information, advice and guidance to businesses e.g. Carbon Trust, WRAP, Environment Agency and Natural England. These are probably all under utilised as they are not always obvious on information portals, are fragmented and not always accessible on searches made by uninformed businesses. Offers The offer from this group is wide ranging and includes: Lobbying Influencing Provision of industry reports Provision of business tool kits and topic notes Events Access to finance e.g. searching Business products e.g. insurance, reduced healthcare costs Training Accreditation against industry standards
Financial implications and funding It is difficult to separate out the multiple funding routes and degrees of dependence on membership subscriptions, commercial work, funding bids and the winning of public and private sector contracts. This is in part due to the commercial sensitivity of such an analysis as well as the complexity.
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Most bodies within this grouping operate as private businesses and charge commercial rates with member discounts unless specific activities are grant funded or sponsored by third party (e.g. professional services and banks) and / or government departments. Examples of good initiatives It is difficult to identify specific initiatives and cite them as being best practice, since each membership organisation and trade association has a different offer, is targeted at a slightly different audience and will seek to address the specific requirements of their membership. At a high level, some bodies have helpful websites that provide generic information that is relevant to all businesses, for example the Federation of Small Businesses and the National Farmers Union. Arguably, each membership driven organisation is offering initiatives that are valued by their members, otherwise they risk losing that membership and associated income. LEP engagement and partnering opportunities There is significant potential for the GBSLEP to engage and work with all these organisations to promote business support services that are relevant to the region. At the highest level, there is an element of duplication of information amongst all the trade and membership associations (as is also the case in the public and private sector offer). GBSLEP could take a proactive role in working with these organisations to harness their activities and provide a sectoral focus for business support. It is not just a matter of changing, improving or developing business support offers, but of raising businesses awareness and knowledge of the spectrum and foci available initially not the details but just where to look or who to contact for particular types of support. Trade Associations provide the LEP with an excellent opportunity to develop specialist business support, particularly those agencies in receipt of Government funding (directly or indirectly) such as the NISP who have offices in Birmingham. To add value to this segment of provision it would make sense for the GBSLEP to ensure these associations understand how the LEP works and encourage Trade Associations to clarify specific business support offers and their accessibility.
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2.8
Business Networking / Breakfast Clubs / Peer to Peer Support
Outline description and accessibility Business networking, referral marketing groups, business clubs and peer to peer support groups exist in a number of guises to provide businesses with the opportunity to meet their peers, interact, trade and learn from others experiences. There is an overwhelming number of business networks and business clubs from which business owners may benefit. These range from peer to peer support networks such as The Alternative Board and Academy of Chief Executives, through structured referral marketing networking groups such as BNI and Business for Breakfast, through to independent and informal or subject led business networking events with their own rules and modus operandii. Also delivering business networking opportunities are professional bodies, Chambers of Commerce, Federation of Small Businesses and other representative and industry groups. These networking opportunities exist across the whole of the GBSLEP area and there are usually several networking events available within every town, providing considerable choice to businesses. Regular networking events are supplemented by more ad-hoc arrangements such as Meet the Buyer events or Business Growth Shows. Networking groups are, by their nature, accessible to all and most are well publicised through both traditional routes, and also through the use of social media platforms. Offers It is true to state there is probably a networking event or organisation to cater for the specific needs of every business, be that meeting other business people, gaining peer support, generating leads and opportunities or learning about new legislation. Some business networking groups are sectorally based, others have one place per business type and some are open to all. Financial implications and funding The costs of this type of support vary considerably, dependent upon the level and nature of support provided. For example, monthly support from The Alternative Board could cost between 400 and 1,000 per month, dependent upon the package of support subscribed to. A referral marketing business network could cost in the region of 1,000 per annum (BNI). Alternatively, businesses can choose to attend networking opportunities on an ad-hoc basis, for example pre-registered attendees at Business Growth Shows can secure free access (exhibitors pay to promote their business). Cost structures usually include a joining fee, annual fee and a meeting fee the latter is normally required regardless of attendance or not.
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All opportunities offered in this category are charged at commercial rates. Examples of good initiatives Best practice is dependent upon the specific requirements, objectives and profile of each group. However, during the research, we noted particularly interesting networks: Construction industry focused support network Network of networks in Southern Staffordshire Academy of Chief Executives
Outside our region, the Yorkshire Mafia is extremely active across a variety of platforms in promoting and growing business opportunities for its members. In addition to regular networking opportunities, the Mafia hold an annual, high profile conference. LEP engagement and partnering opportunities There are many different organisations active in this area, and given the nature of their activities, the majority would be agreeable to some form of partnership linkage even if that extended solely to a link to their website. Most networking groups are very amenable to hosting public sector speakers to discuss business related initiatives and issues that may be of relevance to their membership and which they may be able to make good practical use of. GBSLEP could gain by interacting with the various networks throughout the region, using them as an additional communication platform to raise awareness of business support offers that may be available and delivery of seminars and training in a cost effective manner. The LEP must consider what its ideal network type is, and how it may interact with them for the mutual benefit of both this may be a role for the communications team rather than the business support team. The GBSLEP should consider exploring the Yorkshire Mafia concept in greater detail, which has proved to be an excellent profile and image raiser for businesses in Yorkshire, through discussions with the Yorkshire based LEPs. It is too early to state whether this initiative has had a perceived positive impact on that region, but it has certainly increased levels of inter-trading, thereby keeping wealth and jobs within the region.
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2.9
Private Sector Businesses
Outline description and accessibility There is very little altruistic business support available. The remit of this research was not to investigate every consultancy or similar organisation providing business support related services. The thousands of companies and organisations that could be classified as providing business support services, such as consultants, human resources, professional services, tele-marketing and training companies have not been listed. Upon initial investigation, there would appear to be proportionately very few private sector companies involved in delivering meaningful business support services to businesses in the GBS LEP area. Professional services firms and banks have been analysed separately to reflect businesses perceptions of these organisations. The private sector offer comprises a mix of business advice, guidance and face to face support services, frequently supported with online resource in the form of training and support videos, web content and social media. There are several offers from private sector organisations that appear to be very generous, and relevant to business needs, provided free of charge, or at heavily subsidised rates. Further investigation reveals that in several cases these services are receiving subsidy from the public sector, either from central Government or from local authority organisations. One respondent, when asked about non-chargeable services provided from private sector organisations stated quite unequivocally, There is no such thing as a free lunch There are three types of accessibility options: General business consultancy e.g. marketing (known business or search using a directory / Google) Specific business advice and support e.g. business growth or start up (this may be accessed through professional services firms, or they may have been found by a funded business support company seeking to deliver funded support services) Businesses that are actively looking for funded support and guidance (this may be searched for via the internet, word of mouth or through trade associations by those that have a good idea of what their needs are and what is available: those that do not have these search skills and knowledge become disadvantaged)
The private sector is very active and accessible across the social media platforms in promoting their services, using LinkedIn, Facebook, Twitter, YouTube and other relevant platforms.
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Offers The private sector offer can be broadly categorised as follows: Business information (e.g. generic business plan template) Business start up advice (e.g. how to research a business idea) Business mentoring (e.g. setting up processes and systems) Specialist consultancy (e.g. PERA), including support targeting growth companies that is subsidised through the public sector Business benchmarking (e.g. Winning Moves Benchmarking Index (available only through third party advisors)
Financial implications and funding Broadly speaking, there is a cost involved with business support delivered from within the private sector. Web based business information and start up advice is generally provided free of charge at the point of delivery, and often requires users to register in order to access information. Unless that information and content is being subsidised by the public sector, this then generally leads to further contact from those organisations to sell or up-sell other services. Within this segment, some businesses are almost wholly dependent upon public funding, delivering services on behalf of the public sector while others are providing business support as their core, commercial offer or occasionally as part of their corporate social responsibility. Some publicly funded support, such as Coaching for Business Growth, is subsidised, but still requires a contribution to the overall cost from the client. The non-publicly funded support is generally chargeable at full commercial rates, normally following an initial consultation / fact finding process. Examples of good initiatives There are several support services that have aspects that are good, but whether the whole initiative is good is a subjective decision. For example, some of the content on the Doug Richards School for Start-Ups will prove very helpful to new entrepreneurs, and even some well established businesses, but much of this content can also be found elsewhere. LEP engagement and partnering opportunities There is a need for GBSLEP to consider exactly how it defines private sector business support, from which some form of easily identifiable offer line can be developed to help businesses identify the most appropriate type of support required to meet their specific needs. There is a potential risk that partnering with the private sector deliverers, particularly for non publicly funded business support activity as that could be interpreted by businesses as an endorsement of them. Furthermore, this
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could detract from the impartiality of advice and assistance in identifying exactly what support is needed by businesses. Start Up Britain is a privately sponsored website giving information appropriate to those considering starting a business and signposting to other support. A brief search of the sponsors websites seems to have very little reference to this initiative. Similarly, the same was true of the Business in You website campaign launched in January 2012. There is a clear opportunity for GBSLEP to partner with this type of initiative to raise their profile (assuming sponsors wish to do this).
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2.10
Social Enterprises
Outline description and accessibility In this context, social enterprises are considered to be those organisations delivering business support activities on a not for profit basis. In many instances these organisations are heavily dependent upon public funding to support their service delivery offer. This does not, however, mean that those organisations will always deliver support to businesses that is free of charge at the point of delivery. However, any income generated is re-invested in the delivery of services to other companies. That funding also covers their overhead, salary and delivery costs. Examples of social enterprises include Business Enterprise Support, Staffordshire Business Innovation Centre, Groundwork, Social Enterprise West Midlands and the Birmingham & Solihull Social Economy Consortium and its network. In broad terms, these organisations are generally very accessible to businesses, but if those businesses who do approach these organisations are not eligible for support, they will usually be directed to more appropriate organisations. An example of this is demonstrated by Business Enterprise Support, who employ a number of Business Coaches whose primary remit is to identify individuals who are seeking to start and run a business. Where they meet businesses in need of support, they signpost to other organisations who can meet that need. Social enterprises have very quickly identified social media as an increasingly appropriate method of reaching out to its target audience, and the majority are extremely active in this area, utilising Twitter, YouTube, Facebook and other platforms. Offers The offer available through social enterprises is not homogenous, in fact, for each sector we have researched, this is the most fragmented. The overall offer is dependent on the aims and objectives of each individual social enterprise or group. For example, Social Enterprise West Midlands provides support, including business support, to other Social Enterprises, whereas Business Enterprise Support will support all those seeking to start a business, whether that business is for profit or not for profit. Although the offer is very different, from the outside looking in, the social enterprise sector would appear to be a mini-sector and economy in its own right, albeit one which trades with the private and public sector. Financial implications and funding Social enterprises are often heavily dependent on public funding, and recent reductions in funding and changed delivery mechanisms have encouraged
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social enterprises to look at their delivery methodologies and review their service provision. For example, a loss of funding has meant that Staffordshire Business Innovation Centre has had to cease providing Proof of Concept grants and business support to its customers. Social enterprises are treated differently to private businesses in terms of their access to public and other forms of funding. This can therefore make it more challenging for them to introduce new services because they are unable to have the funding to develop them. This further impacts on their ability to close the gap on them working more closely with the private sector. Examples of good initiatives The RBS SE 100 index was established by Social Enterprise magazine in partnership with the Royal Bank of Scotland and gathers robust information on the sector on an annual basis. The survey undertaken enables organisations to see how their growth and social impact compares to others in their marketplace and in the social enterprise arena as a whole. LEP engagement and partnering opportunities The social enterprise offer is fragmented, and a clear role for GBSLEP would be to understand the specific nature of the offer, declutter the offer to ensure it is easily understood by businesses and clarify how the social enterprise economy can be embraced, sit alongside the private sector economy and fit within the business support remit. GBSLEP must better understand the impact of the social enterprise economy on the area as a whole, determine how it may interact with this sector and decide how it can best engage the sector to enhance the GBSLEP area.
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3.
REVIEW OF LOCAL ENTERPRISE PARTNERSHIPS
This section of the report summarises the level of business support signposting that is available through the Local Enterprise Partnerships across the Country. Examples of best practice are summarised and further detail is given in Appendix C.
As part of the research project, Hawthornes Research and Business Development undertook a desk review of each Local Enterprise Partnership (LEP) within the country (as established in February 2012), to determine the level of business engagement and support being offered through each Partnership to businesses. The results of that research demonstrate a wide variance across the LEP network around business support provision. A significant number of Local Enterprise Partnerships make no reference to business support whatsoever, though it is acknowledged that this could be the result of those Partnerships being at an early stage of their formation and on-going development or alternatively, the result of LEPs adopting the position that their strategic focus will not currently incorporate the tactical delivery of business support services. One common theme that runs through a number of LEP strategic plans is the improvement of broadband and connectivity services for businesses in their areas to provide those businesses with competitive advantage, though this does not truly meet the definition of business support used for this research project. Several LEPs (Black Country, Coast to Capital and Greater Peterborough & Greater Cambridgeshire) provide links to business support websites including Business Link, HMRC, ACAS and Start-up Britain. Solent LEP has adopted a very different and innovative approach to business engagement. It is offering membership of the LEP to all businesses, for an annual membership fee starting at 50 for micro businesses rising to 3,000 for businesses employing over 250 staff. Membership benefits include representation, networking, information and advice and the opportunity to shape the delivery of business support. However, this model appears to compete almost head on with a number of business representative groups including the Chambers of Commerce and the Federation of Small Businesses and questions should be asked as to whether this is the true role of a Local Enterprise Partnership. Three Local Enterprise Partnerships have developed comprehensive business support signposting as an integral part of their website, these being: Oxfordshire York & North Yorkshire West of England
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Each has a different approach, for example West of England enables companies to search for support services either by sector, by the nature of the activity or the type of activity. The majority of services to which businesses are signposted are provided by the public sector, educational sector, not for profit sector or by private sector providers in receipt of public funding. Oxfordshire has developed eight business support categories ranging from Operations to Start-up, and provides web based signposting complemented by a telephone helpline and links to local authority economic development teams. York and North Yorkshire has adopted a similar approach, but with a more comprehensive site, focused on national and local initiatives and support services, including some from the private sector. In addition to these three LEPs, the Stoke and Staffordshire LEP has establishing a Business Support Helpline in February 2012 that operates six days per week, which is being delivered by North Staffordshire Chamber of Commerce and Staffordshire County Council. There is no online presence for this helpline and current linkages appear to be to public sector organisations or publicly funded services in the first instance. The variation in the nature of the business support offer from LEPs, and the different approaches to referencing business support raise some vital questions that must be addressed prior to any next steps being identified. What is the role of the LEP in business support? Should LEPs be developing business support portals that have the potential to duplicate existing publicly funded services (such as www.businesslink.gov.uk)? Have businesses identified business support as a key requirement to LEPs, and if so at what level?
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4.
BUSINESS ASKS AND EXPECTATIONS OF SUPPORT PROVISION
This section of the report identifies key business asks and expectations of business support. It looks at accessibility, gaps and duplication, providing useful background for the GBSLEP to determine an appropriate business support strategy.
4.1
Non-financial support sought by businesses
This section reviews and discusses the business requirement for business support, the information has been assimilated from reviewing a number of relevant reports, surveys and commentary from businesses within the GBSLEP region. This is a behavioural and qualitative review, not a quantitative analysis. The table below summarises the breadth of business support required. Table 1 Type of Support Sought by Businesses
Generic Subject Government signposting, information & guidance Start up support Specific Deliverables Where to go for what? Generic business skills General advice Ideas but lack of business planning Market research Intellectual Property & Patents / Protection Face to face guidance Skills & Employability Transport Land Affordable housing Finance understanding and how to access Lack of expertise in business & planning Business re-engineering Business diversification Market development Growing businesses more receptive to advice than static Mentoring Need for IAG, currently rely on Coaching for Growth etc; few seek advice prior to accessing finance or loans Management, CRM, facilities How to find appropriate tenders How to complete tender documents Cashflow, planning, unpick the real financial needs and issues Partnerships, larger SMEs Recognised standards, what is required? How to obtain? Help to obtain. Cont
Equipping businesses for growth
New product development / R & D Business development, marketing planning and strategy Diagnostic tool & support Investment readiness Processes & systems Commissioning and tendering Financial Management Legal & governance Quality & accreditation
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Generic Subject Regulations & compliance Succession planning Exporting Procurement Partnership collaboration Training support Premises Human resources, recruitment & employment skills Information collation
Specific Deliverables What & how Issue raised by accountants but also procurement professionals Access to new markets Technical questions Industry supply chain development How to secure suppliers effectively Industry supply chain development, trading Apprenticeships Availability Suitability Doing it properly, legislative procedures Economic Data Trends & market reviews VAT, company status etc
Taxation
The following is an extract from research undertaken for the Stoke & North Staffordshire LEP in April 2011 which identified business support requirements from a survey of 120 businesses. This expands on some of the areas of non-financial support highlighted within the table above and sets the context for its delivery:
Access to Finance It is clear that many businesses are struggling to secure funding and there is informal evidence to suggest that banks are not providing the lending required by businesses, either to support working capital requirements or growth needs. Feedback from those businesses participating has highlighted that it is not equity investment that is required, but working capital to fund growth or longer term loans for investment in new plant and equipment. The levels of finance required by businesses may often not be significant amounts (between 10,000 and 50,000), but nevertheless would make a considerable difference to the prospects of those businesses. Interestingly, the businesses providing the feedback above, considered themselves to be businesses that had the potential to grow further and increase their overall profitability. It was also highlighted under access to finance that many businesses are now struggling to secure Export Credit Insurance at rates that are appropriate to their business or the level of contract required. Where businesses are unable to secure insurance for new customers, they are seriously considering whether to enter into business arrangements with those customers, which in turn may hold back their growth prospects. Businesses have also highlighted concerns around Discount Invoicing, where terms have been amended from 90% of invoice value to as low as 60% in some instances. Again, this has serious implications for many businesses and will prevent them from doing business profitably. Business Planning In all cases, those businesses that stated they required assistance with business planning were those businesses that required financial support and it is therefore clear that those businesses have recognised a clear need to have some formal business plans in place to attempt to secure appropriate finance for their businesses.
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There was very little evident demand from businesses that were not seeking finance for support in developing business plans. Recruitment Focusing specifically on the recruitment of apprentices, businesses have cited a lack of apparent clarity as to what support is available to them, and who from, but from those businesses responding to the survey, there was clearly an appetite to recruit apprentices into their businesses. It was further noted that whilst businesses were interested in apprentices, their preference is for apprentices aged 18 and over, rather than school leavers at the age of 16. Service Accessibility One of the key observations made by almost every respondent to the survey is that a plethora of different information sources for business information, advice and support exist. However, there is no single, central point of information, thus leaving businesses confused and often unaware of information or support that is appropriate and relevant to their business. There is a general recognition that the Business Link website is good, containing detailed information across a number of business areas, but that it, too, does not contain details of all information and support activity that is available, particularly at a local level. Therefore, there is a perception amongst many of the businesses that responded that they are unaware of the support that may be available to them, and as such they may be missing out on information that is available to those in the know. Face to Face Support The majority of businesses responding stated that they are able to access information through websites (though they did not always know which websites to access), and most tend to use the internet when searching for information their networks are not able to provide. As a result, they particularly value being able to discuss business issues with impartial advisers who can assist them to qualify the information they have and help the owner / manager determine the relevance of that information to their business. As part of this feedback, it was observed by a number of businesses that they preferred to build a relationship with one person, as that enabled them to build a valuable long term coaching and mentoring relationship. Planning and Regulatory Advice Several businesses stated they find it difficult to navigate the maze of planning and other regulatory / legislative requirements that impact upon their business. Their requirement is for pro-active, easy to understand information, with the ability to discuss issues in a nonconfrontational manner. For planning applications, this often relates to pre-planning application advice and support, rather than guidance once the planning application has been submitted. Again, businesses cited a requirement to be able to discuss their issues and ways in which they conform with guidance and legal requirements without the immediate threat of enforcement action, ideally in a face to face, supportive environment. The feedback in this area would suggest that whilst local authorities have made some changes to the way in which they deliver such advice, they are not yet perceived to be as business friendly as they would like, and there were anecdotal instances provided to suggest that local authorities have got much further to travel in this area. Supplying the Public Sector Several businesses cited they would like to supply the public sector but are not sure how to break into the sector. There is an apparent in-built fear of tendering, and a lack of consistency amongst public sector organisation in their approach to working with small businesses.
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Businesses have stated that they have attempted to speak to procurement teams, but with little success, thus reinforcing the impression that for smaller businesses, supplying the public sector is not a realistic option. Those businesses that have secured contracts with the public sector through competitive tender comment that some of the documentation required is overly bureaucratic, and not always appropriate to smaller businesses.
4.2
Sources of business support
The research evidence base around the sources of business support used by businesses demonstrates there is no one source of information that is clearly favoured; businesses draw upon information from a variety of sources to assist in their thinking and development. The FSB survey, which represents primarily micro businesses, demonstrates that for these businesses, publicly funded business support is not necessarily the first port of call. It is, however, clear from the SQW research that the internet is a source of information for almost all businesses. Both surveys demonstrated that businesses actively seek to discuss business with customers, supplier and their peer group. Paid for business support is mainly in the form of accountancy and indirectly, banks. It is evident from the SQW research that the delivery of business support may need to be tailored to the stage of development the business has reached. Table 2 FSB Voice of Small Business Report February 2012
Source BASE Accountant Customers Suppliers FSB Bank Family / Friends Government funded Other trade association Informal networks Solicitors Local government funded Big Business University / College EU Funded Micro Business* 8,001 % 73 76 70 62 61 38 36 34 34 25 23 22 15 11 Small Business* 2.036 % 83 78 77 64 77 33 44 43 30 44 32 33 20 16
*Micro businesses are defined as those employing nine or fewer staff, whilst small businesses employ ten or more.
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Table 3 SQW Research into Business Supports Online and Offline Delivery Channels November 2010
How often have you used the following sources of information or advice over the last 2 years to inform the way you manage or develop your business? % of respondents answering frequently or occasionally by age of business Source BASE Internet Press, TV or Radio Events, workshops, seminars, conferences Discussions with customers, suppliers or other business contacts Membership organisations & trade bodies Discussions with Business Link Discussions with other government funded services Advice from professionals e.g. accountants, banks, solicitors & consultants Friends & family Pre-Start / Less than 3 yrs 109 % 96 49 66 90 63 88 37 76 89 3 10 yrs 104 % 95 52 82 98 71 83 47 88 85 11 or more yrs 114 % 93 56 71 95 77 77 26 83 76
4.3
Geographical coverage / local delivery
Whilst there is a considerable amount of business support available across the GBSLEP region, from the public, private, education, professional firms and voluntary sectors, it is not necessarily easy for businesses to pinpoint the support that may be available specifically to them. This situation is exacerbated or indeed improved dependent upon the location of relevant or appropriate deliverers of support as in some instances businesses prefer to deal with organisations that are just down the road. Having identified the business support available, businesses must then ensure they are located within the correct geographic area to access publicly funded business support and subsequently ensure they meet varied eligibility criteria for public sector support schemes. This may be a facet of current business support that the GBSLEP might be able to diminish over a period of time. It should, arguably, be more straightforward to access locally delivered support from private sector organisations. This is broadly true where the business is paying commercial rates for business support. However, when it comes to private sector delivered support that is (to some extent) publicly funded, then examples of hidden support were identified - that is where services are available in a geographic locality or under certain eligibility criteria but are not widely publicised for example a business support offer in Birmingham did not appear to be widely promoted. Feedback from respondents on this issue includes:
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There are inconsistent models of support across the region. LA respondent. There is a low awareness of any local opportunities or sources. This is not helped by the fact that different areas tend to have a different profile of people and start up ideas and rates of start up. LA respondent 4.4 Stimulating engagement with funded, subsidised and full cost business support
We have explored business support offers, delivery channels and accessibility and it is evident that there is always likely to be a mix of business support available to businesses. The balance of that support in terms of public and private sector delivery and funding will fluctuate over time. In this context GBSLEP needs to consider the implications of paid for and free at point of access business support. The SQW Research into Business Supports Online and Offline Delivery Channels November 2010 prepared for the Department of Business, Innovation and Skills (BIS) indicated that those using publicly funded support were more likely to engage with a wider range and structures of information and advice than others a personal relationship with advisors is considered important for these businesses. Larger companies are more likely to use and pay for professional advisors rather than be signposted as happens to smaller companies (using Business Link). Some previous Business Link face to face clients are potentially willing to pay for future face to face support. There is still a high reliance on public sector backed investments and business support initiatives. Start ups and younger businesses are thought to be the most vulnerable and least able to find or trust appropriate support and least able or willing to pay for this. But growing businesses that are used to funded support might also be at risk of failure of becoming static and / or less profitable if this were suddenly reduced. The offer line for businesses commences with very generic information and signposting to other slightly less generic information, most likely to be accessed by less experienced individuals and then leads into more topic specific support and guidance this is often delivered through events and seminars and is more likely to be accessed by businesses trading for over three years than start ups (SQW research). Finally the offer line will be providing quite specific or specialised support which is more intense, complex and costly and therefore less likely to be accessed by immature businesses and those at risk of financial failure. It may be necessary for GBSLEP to consider stimulating the up-take of external paid for advice and act as a catalyst through the presentation of
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guidelines for finding trustworthy deliverers who themselves are also commercially affected by the forces of supply and demand almost an educational programme. GBSLEP must not forget to promote the existing BiS tools and ensure their accessibility to all businesses. (Though it is not the role for GBSLEP to endorse individual companies, it is a strategic aim to stimulate and support the growth of the local economy and identified key sectors for the generation of wealth and employment). 4.5 Ease of access / route to entry
Identifying business support that is appropriate and relevant to the perceived needs of businesses can be a daunting prospect, especially for those who have not used support services in the past. Many businesses will commence their search using the Internet, which can often create more confusion for the business around what is appropriate and available to them. If it is not immediately apparent what support is available, many businesses may not continue their search, or will search in an alternative way, such as by asking peers, trade networks or professional bodies. Business Link (and Solutions for Business) is not necessarily the first website that businesses will look for, though it may be the first website they find. This is a very detailed source of information, though it is not wholly comprehensive as it does not always contain locally focused information. Businesses may not always understand the information and next steps required of them as a result of their visit to that site. It would appear that there is limited awareness of the alternatives to Business Link (website or organisation) as the SQW survey referenced earlier in this report found that one third of SME businesses would not know where to go for business support. Accessing private sector businesses, banks and social enterprises is not necessarily any less complex than the experience of accessing public sector support. Information about the support offer is not always available and there were examples within the banks in particular of a complete lack of knowledge of services available. In one attempted interview undertaken as part of this research, a large, regionally based professional services firm declined to participate and did not provide any information about the support offer we know to be available from them on their website. It is a hugely complicated landscape and businesses cannot afford the time and effort to trawl and look. While businesses can use the web if they are web savvy, there are too many portals. There is a need to translate the BIS / Business Link offers into a product that businesses can use, link into and understand. Quite often, businesses are not really clear on what is wanted or needed at the initial enquiry / search phase, hence the need for personal guidance or help. If my experience of contacting - or attempting to contact - these organisations (Universities & Further Education Colleges) for
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business advice is typical, I would say don't bother. The only exception was University of Birmingham, who were very professional, kept to agreed timescales and did seem to be genuinely concerned to help businesses. Burton College make a good show but are limited in depth. There is no excuse for a person's telephone to ring out on 4 different days, unanswered for more than 3 minutes each time before I gave up. There is no excuse for a Voicemail message to say they are away days after they say they will be back. 4.6 Gaps / needs / improvements
From our analysis of the business support arena, the one element of business support that now appears to be missing overall is the availability of an impartial, transparent and independent diagnosis of the business and its needs. Historically provided by the Business Link Operator network to the SME market, this service was considered a valuable element of the overall support offer, providing businesses with a diagnostic and identifying actual, rather than perceived, business needs. However, previous research evaluating business diagnostic and support has indicated the need for the diagnosis / use of diagnostic tools to be conducted by one individual or organisation but that the delivery of support on priorities ought to be sourced from other organisations and not the one undertaking the diagnosis. The current business support offer often sees the business diagnose their own need and sometimes progress directly to a solution provider be that public or private sector. There is no impartial assessment of the need identified by the business owner, who in many instances can be too close to the business to make such an assessment. The private sector has a product or service to sell, and they will seek to sell that to the business. This is also true of other suppliers in the market, including the public sector the key difference being that there may be no financial transaction involved. It is highly likely that the solution being delivered in this scenario will be of benefit to the business, but whether it is the most beneficial solution to assist a business seeking to grow is sometimes unknown. To reduce confusion, improve access and reduce the time taken for businesses to search for support an easily found route to entry is required the route taken needs to consider specialisation, generic need or specific industry sector being accessed. Alongside this, our research has highlighted the need for translation of the perceived support need into a more specific and better defined need that can be fulfilled. This is sometimes not directly reflective of the initial ask. Comments received during our research highlighting this include:
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Lack of communication there is no readily available conduit between businesses and universities despite HEIs being a good source of information and funding. If I was in a business looking for advice/help I would see the biggest gap as being for some impartial face to face advice, or at least speaking to someone locally, who could signpost me in the right direction. From the GBSLEP point of view I don't think I would be happy with setting up an "approved suppliers" list, though that would appear to be what some banks are doing, or to give contact details for the representative bodies for each sector, but again I am not sure that would be satisfactory. I like your idea of using the libraries but then there would be funding issues. 4.7. Duplication
Despite, or because of, the diverse nature of business support and options available, numerous portals, web links and other sources of information are created by well intentioned suppliers and organisations. Each potentially duplicates other offers, but simultaneously confuses, fragments and dilutes the impact and ease of access to each offer. Clearly in a competitive market place, the private sector and trade bodies will continue to promote their own offers, that is the very nature of business and there is little that can be done to affect this position. In some cases, duplication represents healthy competition and should not be discouraged. However, there is a need to be more co-ordinated, cohesive, clear and concise about the offer available from the public sector, social enterprise and education sector to reduce the overall level of confusion. We do need to be mindful that some of these organisations will duplicate services due to geographic boundaries for example, and although not necessarily in direct competition, in some instances will certainly be competing to attract businesses to their locality rather than directing them to others. The streamlined BIS Solutions for Business portfolio has gone some way towards reducing duplication within central government support, but there remains a lot of progress still to be made. There is a risk that the BIS message will become fragmented as Ministers and other Government officials endorse and promote private sector business support offers and in some cases provide financial support to those offers. Such fragmentation can lead to reduced levels of engagement with businesses, which is counterproductive and goes against the aim of business support. A specific example of duplication of activity is MentorsMe which provides businesses with the opportunity to benefit from an impartial mentor, who may assist the business or individual to achieve their corporate and personal objectives. The Coaching for Business Growth offer provides business coaches to those companies with the aspiration and ability to achieve stretching growth objectives. From a business perspective, many
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entrepreneurs may perceive these two services to be very similar, as they may not understand the nuances between the two initiatives. However, the review of the central Government and local authority business support provision has not identified significant direct duplication with the private sector offer. What has happened is that due to the major overhaul of business support provision and the removal of funding leading to a reduction in free support, businesses are confused about what is available to them.
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5.
PARTNERING
This section of the report summarises the requirements that will be placed on the Greater Birmingham and Solihull LEP should it seek to partner with any private sector suppliers of business support services. Partnering, by its nature, contains inherent risks that the LEP will have to address prior to any arrangements being agreed. Some suggestions for partnering and engagement have been made in section 2 Overview of Business Support by Delivery Segment.
5.1
Introduction
As part of the research brief, a requirement was to identify any potential partnering opportunities and to identify any best practice within the business support network. This section of the report focuses on partnering and the opportunities that may exist for the LEP to partner with providers of business support. Our research into the activities of other Local Enterprise Partnerships demonstrates that of those that have developed web based directories or signposting for business support, very few make any reference to business support initiatives that are delivered by the private sector, unless there is a publicly funded element to that support. 5.2 Requirements
Greater Birmingham and Solihull Local Enterprise Partnership must carefully consider whether partnering arrangements with private sector suppliers of business support services is relevant and appropriate to the overall strategic objectives of the LEP. GBSLEP must carefully consider its rationale for entering into partnerships with providers of business support, addressing a series of questions prior to reaching a decision: What is the issue that the LEP is seeking to resolve through partnership working? Do all partners have a clear and shared vision of the benefits of working collaboratively? How will the partnerships be monitored and evaluated? How will the quality of those organisations with which the LEP is seeking to partner with be measured? Do all partners know what their role will be, what resources will be required, what reporting arrangements will be required and what time will be required on a day to day basis? What partnership documentation (service level agreements, partnership frameworks, contracts) are required?
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There are several reasons why it may prove beneficial to work in partnership with private sector business support providers or organisations: To ensure there is a more cohesive package of business support services to companies and individuals seeking to start businesses in the GBSLEP area than is available now. To minimise the impact of the fragmented delivery of business support services available, thereby reducing the confusion arising from the cluttered business support offer that presently exists. To effectively understand what support is available to businesses and by implication therefore, to identify gaps in provision and seek solutions to those gaps. To constantly review the business support offer available and understand the needs of businesses, to prevent future gaps in business support from arising. 5.3 Opportunities
From the research conducted, there appears to be a split in the opinion of the private sector in relation to potential partnering with the LEP. The majority of business networking and peer to peer groups would appear to be amendable to some form of limited partnering arrangement, most notably through some form of website linkages. There is not, on the whole, an appetite from this sector to develop any formal partnering work, unless there are opportunities to establish funded groups or networks that operate within the existing guidelines of those networks. In some instances, our researchers found that private sector professional services suppliers did not appear to want any formal partnering with the LEP, to the extent they were unwilling to engage in the research. Other private sector suppliers were either ambivalent about, or not in favour of, partnership working, citing time commitment and bureaucracy as potential barriers. A formal paid for contract would be a different matter. It must be noted however, that the private sector organisations do not necessarily understand the Local Enterprise Partnerships or their remit. Private sector organisations that are in receipt of public funding were happy to develop some form of linkage between GBSLEP and the initiatives they are delivering. Their rationale for this is that all forms of promotion may be helpful to their successful delivery of such services. 5.4 Issues
GBSLEP must take into account, and fully address, several considerations before embarking upon any form of business support partnering activity: How will the LEP determine which private sector suppliers it engages with, and more importantly, which suppliers it does not engage with? What form will the partnering take? What will the LEP offer to those organisations with which it partners?
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What is the quality of the organisation with which the LEP proposes to partner? How is that quality ensured by the LEP? What added value does the LEP gain by partnering? What will the benefits be, to the LEP and to the private sector partner? Is there a demand from private sector providers of business support to partner with LEPs? Why? What do those organisations seek to achieve through the partnering arrangement? How does the LEP overcome the perception of endorsement of those suppliers that it partners with?
Despite the potential problems of linking with organisations in any of the sectors researched, i.e. how do you choose and on what basis are you recommending that organisation and how do you monitor their quality, there are two sectors where all organisations are already assessed and ranked, and indeed individual departments are also assessed and ranked, and that information is in the public domain. Those organisations are the HEIs and the FEIs.
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APPENDICES
APPENDIX A. APPENDIX B. APPENDIX C. APPENDIX D. APPENDIX E. The Public Sector Business Support Offer Review of LEP websites Consultees References Business Support Provider Contact Details (Separate working document) Business Support Provider Contact Details with Supplementary data (Separate working document)
APPENDIX F.
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APPENDIX A.
The Public Sector Business Support Offer
Summary The Government has reviewed how it delivers business improvement and support services and a series of changes have been implemented. As part of these changes the regional Business Link advisory service, Business Link West Midlands closed at the end of November 2011, and the Regional Development Agency Advantage West Midlands will close this year. However the national Business Link website will remain and has become the main tool for generic business support. The past three years have seen the content of 175 government websites move to www.businesslink.gov.uk adding over 100 interactive tools and 2,000 guides. On the site you can access information and advice against 13 themes from finance, through IT and e commerce, to buying/selling a business; and against 8 sectors including manufacturing and construction. It provides bespoke advice and support for start ups, and for established businesses. For established businesses there is the growth and improvement service which focuses on 4 key areas planning for growth (business plans, legal info, standards), people and assets, (staff, premises) options for growth, (new products, exporting, more from existing customers) finance, (managing costs, improving cash flow, finance for growth) with a fifth link to a resource library from which you can access a basic diagnostic tool to source business support; and finance, videos, article and online discussions; and a business tool finder which accesses 70 plus tools from across different government departments. In addition to this the streamlined Solutions for Business portfolio of business support products came on line from April of this year. There are 13 product areas in this portfolio and more information including contact detail are provided further on. The areas of support include collaborative R and D, help getting into export markets, advice on options for accessing and securing finance, loans and equity investment, and specialist support for manufacturing related issues. The national support is comprehensive and the BL website has been designed to provide multiple routes to accessing the support a business requires. Some may argue that without the intervention of intermediaries the BL site and offer could appear to complicated and confusing to access easily. This is a challenge for the LEP and its partners to whom businesses are likely to turn to first for clarification and guidance. This appendix provides the full details of the offer via the BL website, via BIS and its partner agencies, and through the other public sector providers. As a range of third party organisations/brands are leading on different aspects of the support they can all be accessed via the BL website or their direct link e.g. grants for Rand D can be accessed via www.innovateuk.org.uk; and the Manufacturing Advisory Service via www.mas.bis.gov.uk This appendix also provides detail of the specific sector support available via the BL website. There are 15 sectors where specific support is offered
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(Automotive, Life Sciences, ICT etc), and links to external provision around some more bespoke sectors. Given the importance of automotive the appendix provides details of some 8 different support streams including the Low Carbon and Fuel Cells Centre of Excellence; and the Foresight Vehicle Programme. This section also highlights those offers of private sector support that are marketed via the Start Up Britain site. SUB is one of those offers that has had backing, support and endorsement from Government but is now completely funded by private sector sponsors developing a theme of further blurring the relationship between the public and private sector. Whilst overtly commercial there were nevertheless some 80 offers of support from the private sector . Background The Government has reviewed how it delivers business improvement and support services and a series of changes have been implemented. As part of these changes the regional Business Link advisory service, Business Link West Midlands closed at the end of November 2011, and the Regional Development Agency Advantage West Midlands will close this year. However the national Business Link website will remain and will become the main tool for generic business support. The past three years have seen the content of 175 government websites move to www.businesslink.gov.uk adding over 100 interactive tools and 2,000 guides. In addition to this the streamlined Solutions for Business portfolio of business support products came on line from April of this year. There are 13 product areas in this portfolio and more information including contact detail are provided further on. The areas of support include collaborative R and D, help getting into export markets, advice on options for accessing and securing finance, loans and equity investment, and specialist support for manufacturing related issues. Local Enterprise Partnerships were established toward the end of 2010 with a remit to support economic development. There was no proscription or standard model for LEPs laid down by Government (as distinct from some of the statutory roles of RDAs and Business Links) with strategies and priorities very much locally driven. Another significant difference, arguably the biggest, is resource Advantage West Midlands and Business Link West Midlands were centrally funded whilst the LEPs receive no core funding from Government. To put this into perspective the Business Link West Midlands budget was c18M, and across the UK the budget was 170M. However there are a number of national programmes of support that are either continuing with Government funding or are being introduced over the coming months. These include the existing Manufacturing Advisory Service, and the soon to be launched national Business Coaching for Growth programme the latter with an estimated 180M national budget and designed to support those firms with the potential for significant growth. Details of the nationally funded programme are given further on.
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In the future Local enterprise partnerships may chose to work with the products in the Solutions for Business portfolio 'Solutions for Business Local Enterprise Partnerships Good Practice Guide' (PDF, 88 Kb) through enhancing them at the local level. A key plank of Government policy on business support is to encourage delivery direct from the private sector. As a result there will be an increasing array of support offered from national organisations such as Yell, Rymans, and also from national and regional accountancy and legal practices. The Department for Business, Innovation and Skills The Department for Business, Innovation and Skills is the governments lead department for business support (BIS) and is focused on sustained growth and higher skills. It identifies a range of partner agencies that it works with and through Capital for Enterprise - CfEL delivers and manages Governments financial interventions in the SME sector, applying knowledge and understanding of SMEs and the financing environment in which they operate. Design Council to strengthen and support the economy by inspiring and enabling the best use of design Higher Education Funding Council for England - provides advice to the Secretary of State on the funding needs of higher education; and to distribute available funds Local Better Regulation Office aims to reduce burdens on business without compromising regulatory outcomes. The Small Firms Consultation Database is an opportunity for small firms to influence new and amended regulations at an early stage, by providing feedback on their potential impact. BIS's Enterprise Directorate, on policy officials' behalf, will contact owners and managers of small and medium-sized enterprises (SMEs) who have agreed to be contacted and are listed in the database. Small firms wishing to be consulted can submit their details by downloading the attached Word document and sending it by email to regulation@bis.gsi.gov.uk. Small firms database application form (June 2011) (DOC, 276 Kb) Research Councils UK - is a strategic partnership between the seven UK Research Councils to enable them to enhance the overall impact and effectiveness of their research, training and innovation activities, contributing to the delivery of the Governments objectives for science and innovation The R&D Tax Credits, the Technology Programme and other R&D Support Products have all been introduced by Government as practical solutions designed to help companies fulfill their R&D aspirations.
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A number of the products are particularly relevant to business Research & Development &Innovation. Collaborative R&D: grant to businesses working together and with the knowledge base to develop and exploit new ideas; Networking for innovation: supports businesses to build relationships with knowledge base institutions to develop and exploit new ideas; Knowledge Transfer Partnerships: grant to enable the placement of a recently qualified person in a business, or the exchange of staff between businesses and knowledge base institutions; Low Carbon Energy Demonstration: finance to assist a range of demonstration activity in order to commercially exploit R&D in low carbon energy generating technology; Smart (formerly known as 'Grant for Research and Development'): finance to assist a business to develop and exploit new ideas; Innovation advice and guidance: this product aims to provide businesses with expert knowledge and highly specialised, technical and advanced skills, enabling them to innovate and improve performance. Technology Strategy Board - Research, development and exploitation of science, technology and new ideas for the benefit of those engaged in business activities, to increase economic growth and improve quality of life Smart Smart (previously known as Grant for Research and Development) is a Technology Strategy Board scheme offering funding to small and mediumsized enterprises (SMEs) to engage in R&D projects in the strategically important areas of science, engineering and technology, from which successful new products, processes and services could emerge. The Smart scheme will support R&D projects which offer potentially significant rewards and could stimulate UK economic growth. In contrast to the Collaborative R&D programme, Smart funding is available to single companies. It uses the European definition of SME. Three types of grant are available: Proof of market Proof of concept Development of prototype Smart scheme batch assessment dates in FY2012/13, view details here Any UK SME working in any sector may apply; applications are accepted on a rolling basis for assessment by independent experts. Smart replaces the Grant for R&D scheme previously offered by regional development agencies.
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Proof of market grant This grant enables companies to assess the commercial viability of a project, through: market research market testing and competitor analysis intellectual property position initial planning to take the project to commercialisation, including assessing costs, timescales and funding requirements. Projects will last up to 9 months, have a maximum grant of 25k, and up to 60% of total project costs may be funded. Proof of concept grant SMEs may use this grant to explore the technical feasibility and commercial potential of a new technology, product or process, including: initial feasibility studies basic prototyping specialist testing and/or demonstration to provide basic proof of technical feasibility intellectual property protection investigation of production and assembly options. It also includes pre-clinical research studies for healthcare technologies and medicines, including target identification and validation. Projects will last up to 18 months, have a maximum grant of 100k, and up to 60% of total project costs may be funded. Development of prototype grant This funding is used by companies to develop a technologically innovative product, service or industrial process, and can include projects such as: small demonstrators intellectual property protection trials and testing, including clinical market testing. Projects will last up to 2 years and have a maximum grant of 250k; up to 35% of total project costs for medium enterprises, or up to 45% for small and micro enterprises, may be funded. Further information - All pre start-ups, start-ups, and small and medium-sized businesses from all sectors across the UK may apply for the Smart programme. In future we may also run themed competitions using the Smart scheme, aligned with our priority investment areas. Further information including full guidance for applicants is available http://www.innovateuk.org/content/competition/smart.ashx UKTI - is a non-ministerial Government Department which work closely with both the Foreign and Commonwealth Office and the Department for Business, Innovation and Skills
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Sector Support The site identifies 15 key sectors where it offers support, and provides links to support for some 14 further and more bespoke sectors. The main sectors include Automotive; Life Sciences; professional and Business Services; and ICT. For many these is limited direct support other than participating in Forums etc but for the automotive sector a range of support is offered including SMMT Industry Forum Tel: 0121 717 6600 Web: www.industryforum.co.uk/ SMMT Industry Forum is a world unique collaboration between international vehicle manufacturers and component suppliers. Created by the motor industry for the motor industry, its aim is to develop and sustain world-leading competitiveness in the UK based vehicle and components industry. Industry Forum has created a number of programmes based around a common approach which enable a company in any part of the supply chain to make real measurable improvements in Quality, Cost and Delivery, while also improving partnership with its customers. The National Skills Academy for Manufacturing Tel: 0121 717 6610 Web: www.nsa-m.co.uk World class manufacturing requires world class skills. This is the key driver behind the National Skills Academy for Manufacturing. With employers firmly in the driving seat, NSAM is creating a centre of excellence to tackle the skills priorities of the UK manufacturing sector. NSAM exists to develop world class training products and provision for UK manufacturing. To meet this objective employers and employer groups are at the heart of their product development process. VIPER Tel: 0207 215 1968 VIPER was established in 2003 by the DTIs [now BIS] Automotive Unit to provide a one stop policy shop for the automotive sector. Representatives of a cross-section of the industry (including all the major vehicle manufacturers) are brought together on a regular basis with officials from across Whitehall. VIPER monitors the policy formulation process in the UK and Europe, scanning the horizon to ensure industry is engaged in all relevant aspects of policy development, facilitating detailed discussion on key subjects at all stages of the policy formulation and implementation process Low Carbon Vehicle Partnership Tel. +44 020 7304 7040 Web: www.lowcvp.org.uk LowCVP is an action and advisory group established in January 2003 to take the lead in accelerating the shift to clean, low carbon vehicles and fuels in the UK. It is a partnership of organisations from the automotive and fuel industries, academia, environmental non-governmental organisations and
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other stakeholders who are working together with Government. The objectives are set out in the Governments Powering Future Vehicles Strategy which defines low carbon targets for 10% of new car sales and 20% of new buses in the UK by 2012 in support of the UKs commitment to the Kyoto Protocol. Foresight Vehicle Programme Tel: 0845 009 3838 Web: www.foresightvehicle.org.uk The sharing of this expertise, through knowledge transfer, is crucial to the industry as a whole. Industry, academia and the Government have come together to create Foresight Vehicle, the UKs prime knowledge transfer network for automotive applications, seeking to identify critical technologies for sustainable road transport. Foresight Vehicle is now administered by the SMMT. Cenex - The Low Carbon and Fuel Cells Centre of Excellence Tel: 01509 635 750 Web: www.cenex.co.uk Established in April 2005 and jointly funded by industry and BERR [now BIS], Cenex is helping to build a competitive advantage for the automotive industry in the UK through the shift to a low carbon economy. Its activities will assist UK companies developing low carbon automotive technologies to bring these to market, and showcase the UKs expertise to encourage inward investment. innovITS - the Centre of Excellence for intelligent transport systems Tel: 01865 338012 Web: www.innovits.com Also established in April 2005, innovITS vision is to coordinate the UKs validation of new and innovative Intelligent Transport Systems (ITS) as a catalyst to building world-class products and services that enable the UK ITS industry to compete globally. Innovation Platforms BIS Contact telephone: 0207 215 1957 Web: Innovation Platforms Innovation Platforms are a new way of working for Government and business. Each focusing on a specific area of opportunity, innovation platforms are designed to: address major policy and societal challenges, bring together Government stakeholders and funders, engage with business and the research community to identify appropriate action, and align policy, regulation and government procurement in support of innovative solutions. Through this approach, Innovation Platforms aim to deliver a step change in UK performance, in the quality of public services and the ability of UK businesses to provide solutions for the global marketplace. There are currently two Innovation Platforms with specific relevance to the Automotive Sector: Intelligent Transport Systems and Services and Low Carbon Vehicles. Further details can be found at the Innovation Platforms pages of the BIS website.
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For the Manufacturing sector the bespoke Manufacturing Advisory Service (MAS) has been retained. It helps small and medium sized manufacturing firms achieve big improvements in their productivity and competitiveness by providing direct access to manufacturing experts who provide professional advice and practical, hands-on support. Since its inception in 2002, MAS has dealt with over 170,000 technical enquiries from manufacturers, carried out nearly 36,000 detailed manufacturing reviews with over 13,250 going on to supported implementation projects resulting in cost savings and increased sales worth over 750m. In addition to detailed advice on operational efficiency MAS also offers: assistance in applying lean techniques across their whole enterprise assistance in developing a medium to long term manufacturing strategy assistance in finding supplies, services or equipment assistance to companies who want to improve their resource efficiency assistance to companies developing and/or introducing new products assistance to companies for working within a supply base or with supply chains a programme of visits to best practice exemplars MAS is designed to help manufacturers streamline processes, reduce waste, become more energy efficient and generally improve and grow the business. Help is available from highly skilled advisors regardless of the size of the business. They all have 'hands-on' experience of both shop floor working and management skills. They will work with the business and the workforce to ensure the business is run in the best way possible and the initial services are FREE to Small & Medium sized manufacturers and for these businesses they also offer grants if they decide you need more specific help - Subsidised Consultancy Support for SMEs - MAS can provide up to 50% of the cost of an expert to help you improve s business, at two different levels:

Up to 1,000 and 50% subsidy towards basic improvement projects Step-Change up to 3,000 and 50% subsidy towards more complex projects
Manufacturers seeking help can also contact the service direct via the national helpline number, 0845 658 9600 or via advice@mymas.org. A programme of support events are also available on the website Mentoring Support BIS are facilitating the development of a wide network of business mentors. Through www.mentorsme.co.uk, sponsored by the British Bankers Association, businesses can access and learn from other experienced business people. Government is also investing 1.8m to fund Get Mentoring. This initiative will recruit and train 15,000 volunteer mentors from the small, medium and micro business community who will be accessible through www.mentorsme.co.uk. Over 3,000 business people have already stepped forward. Volunteers can register for free training via www.getmentoring.org. The BIS website provides links to BL and to Start Up Britain.
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BUSINESS LINK Business Link is government's online resource for businesses. It contains essential information, support and services for business. Business Link is the first place to go to find guidance on regulations and to access government services. It also has a number of useful online tools, calculators, and best practice case studies and videos; and provides access to funding options, as well as wider support. On the site you can access information and advice against 13 themes from finance, through IT and e commerce, to buying/selling a business; and against 8 sectors including manufacturing and construction. It provides bespoke advice and support for start ups, and for established businesses. For established businesses there is the growth and improvement service which focuses on 4 key areas planning for growth (business plans, legal info, standards), people and assets, (staff, premises) options for growth, (new products, exporting, more from existing customers) finance, (managing costs, improving cash flow, finance for growth) with a fifth link to a resource library from which you can access a basic diagnostic tool to source business support; and finance, videos, article and online discussions; and a business tool finder which accesses 70 plus tools from across different government departments. For Business Start Ups the My New Business site provides people in the stages of starting their business with what they need to know to get off the ground and plan for future success. The site also allows a range of business activities such as PAYE, VAT returns and business incorporation to be carried out online. The site carries a series of practical case studies to support the themed and sector based advice www.businesslink.gov.uk START UP BRITAIN On the latter site there are over 80 offers from private sector companies listed, along with a further 5 main sponsors. You can upload your own offers onto the Start Up Britain market place. StartUp Britain is a national campaign by entrepreneurs for entrepreneurs, harnessing the expertise and passion of Britains leading businesspeople to celebrate, inspire and accelerate enterprise in the UK. The campaign was founded by eight entrepreneurs and launched on 28th March 2011 by the Prime Minister, with the full support of the Chancellor and HM Government, although it is completely funded by private-sector sponsors. AXA, Dell, Intuit, PayPal, and X.Commerce There is a Start Up Local page which allows you to find out what is going in your town or region, and allows you become a Start Up Local champion. A roll out of activities across the country is planned for this year. Joel Graham Blake is identified as the Champion for Birmingham who has a mission to create a cohesive and connected hub platform, that drives a holistic and collaborative level of enterprise support. He is the Founder of The DEN an exclusive members-only personal support club for small business owners and Founder of Cultiv8 Solutions, a diversity management consultancy for growing
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organisations. At just 31 years old, he is one of the country's youngest certified Corporate Governance practioners, the UKs first ever National Diversity Advisor for Golf, a business mentor for Aston Business School, Chair of the Birmingham CSR Summit Network and a Non - Executive Director of national arts centre, The Drum t only start a business but gain the individual support that they need to maximise their potential Rosemary Barnfield is identified as the champion for south Staffordshire After their launch last year they launched Marketing and Tech4StartUp Britain Weeks, providing a week's worth of free events for start-ups. Over 3000 people either attended or watched the events live. Their Summer Bus Tour took us on a 1236-mile journey across the country, providing direct access to the support start-up and growing businesses need most. Over 2500 people boarded the bus to receive advice from experts and successful entrepreneurs. 190 Start Up Local campaigns are underway and the Start Up Saturday campaign was targeted at women run by Enterpise Nation on a monthly basis in London through 2011. The Start Up Britain Enterprise Calendar went live in January and lists dozens of events each week, with for example some 80 events listed for the last week of March already. The national coverage, and sheer volume of events means a need to filter at the local level. Solutions for Business remains identified as the Governments streamlined portfolio of business support products accessible via Business Link. 1) From November 2011 the Business Link website will be your primary support service providing information, advice and toolkits to help start up, improve and grow your business. www.businesslink.gov.uk It is a significantly enhanced version of the site that was previously run through Business Link West Midlands (which closes at the end of November 2011) and advice on navigating the site is available via a national helpline 0845 600 9 006. 2) The Department for Business, Innovation and Skills has launched a monthly newsletter about new and improved services government is developing to support business people. To get the newsletter sign up here http://www.bis.gov.uk/site/connect/newsletters/bis-bulletin 3) To access mentoring support a brand new web portal, www.mentorsme.co.uk has been set up The new web portal will help people starting and growing a business, or thinking about doing so, by enabling them to access the mentoring help they need. Set up by the UKs five largest high street banks, the portal will offer support on a range of issues faced by businesses, from finance to marketing to HR. In addition StartUp Britain is a national campaign to encourage more people to start a business and support existing businesses to grow
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4) Solutions for Business is the governments streamlined portfolio of business support products accessible via Business Link. The Solutions for Business Portfolio provides a range of publicly funded products and services designed to help Businesses to identify and overcome key challenges as they grow, providing the assistance they need to improve when they need it most. The new SfB portfolio contains 13 products which will focus on helping business meet their aspirations and improve. http://www.bis.gov.uk/policies/enterprise-and-business-support/solutions-forbusiness-simplified-business-support Over the coming months a number of products from the old portfolio will continue to be available through Business Link. The list overleaf represents products that are currently available and will be updated as the transition to the new portfolio takes place. Collaborative Research and Development www.innovateuk.org/ designed to assist the industrial and research communities to work together on R&D projects in strategically important areas of science, engineering and technology - from which successful new products, processes and services can emerge. Designing Demand www.designcouncil.org.uk/ourwork/Support/Designing-Demand If you are an SME, with the potential for high growth, you can get up to 10 days of design and innovation focused mentoring over 6-18 months.
Finance for Business www.businesslink.gov.uk Loans up to 250,000, equity investment up to 2 million (two-thirds public supplemented by a minimum one third private investment) and mezzanine arrangements across the spectrum. Grant for Research and Development www.innovateuk.org aims to help SMEs carry out research and development work on technologically innovative products and processes. Helping Your Business Grow Internationally www.ukti.gov.uk Structured help to prepare your company to start exporting, to improve your companys exporting capabilities and to help you enter new export markets. High Growth Coaching www.businesslink.org.uk If you are an SME, with the potential for high growth, you can get up to 10 days of business coaching over 6-18 months. Improving Your Resource Efficiency www.businesslink.org.uk Resource efficiency tools, guides, case studies and advice through websites; On-site support through local and regional programmes; Loans and grants;
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Specialist advice on specific resource efficiency topics and queries through a telephone helpline. Knowledge Transfer Partnerships www.ktponline.org.uk You will be able to access knowledge and skills from the UK Knowledge Base (Further and Higher Education Institutions or research organisations) for use in the strategic development of their business. Knowledge Transfer Partnerships (KTPs) are a tried and tested method of enabling companies to obtain knowledge, technology or skills which they consider to be of strategic competitive importance, from the further/higher education sector or from a research and technology organisation. The knowledge sought is embedded into the company through a project or projects undertaken by a good quality individual recruited for the purpose to work in the company. Knowledge Transfer Partnerships enable companies to identify the most appropriate source for the knowledge or capability they are seeking from within the UK's knowledge base (universities, colleges or research organisations). The application for funding is made through the KTP website to the KTP Programme Office. Applications are approved by the Technology Strategy Board on behalf of the organisations funding Knowledge Transfer Partnerships. Government contributes towards the knowledge base partners' cost of participation, whilst the company makes up the balance of the project cost. Visit the KTP website at www.ktponline.org.uk for more information or details of an adviser in your area. You can also call the KTP information line on 0870 190 2829 Catapults - a network of world-leading technology and innovation centres, called Catapults, to transform the UKs capability for innovation in specific technology areas and help drive future economic growth. The first Catapult, in high value manufacturing, opened for business in October 2011, less than a year after Prime Minister David Cameron announced the 200m+ technology and innovation centre programme. Two more Catapults, in cell therapy and offshore renewable energy are on schedule to open by summer 2012. The Catapults in Space Applications, and Connected Digital Economy, both announced in January 2012 and due to open in Autumn 2012, brings the total of Catapults announced so far to five. Catapult centers can create a critical mass for business and research innovation by focusing on a specific technology where there is a potentially large global market and a significant UK capability. These centers will be an important part of the UK's innovation system, making a major long-term contribution to UK economic growth. They will allow businesses to access equipment and expertise that would otherwise be out of reach, as well as conducting their own in-house R&D. They will also help businesses access new funding streams and point them towards the potential of emerging technologies. The new investment will further bridge the gap between universities and businesses, helping to commercialise the outputs of Britain's world-class research base. The Catapults will also complement and link with the other programmes which the Technology Strategy Board already manages to promote collaboration between
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universities and business, and to drive innovation and find commercial opportunities for new technology and ideas. Manufacturing Advisory Service www.mas.bis.gov.uk Manufacturing companies can get specialist support with manufacturing related issues such as: lean processes, supply chain performance, shop floor control and innovation in manufacturing. Networking for Innovation https://ktn.innovateuk.org/web/quest/home Businesses can access single over-arching national networks in specific fields of technology or business application. Networks for Innovation bring together people from businesses, universities, and research, finance and technology organisations to stimulate innovation through knowledge transfer. Rural Development Programme www.rdpenetwork.org.uk If you are farmer, forester or landowner or are a business located in a rural area you may be able to get grant funding support to improve the competitiveness and environmental sustainability of your business. Different elements of the product have specific eligibility criteria. Understanding Finance www.businesslink.gov.uk for Business Free advice and support from specialist advisors to ensure that you understand your options for getting the money you need to start and grow a business. Work Place Training, Including Apprenticeships www.apprenticeships.org.uk A range of support is available through the skills system to help improve the performance and increase the productivity of your firm. The product is made up of three parts; Apprenticeships; other Work-based training and SME Management and Leadership. As an employer you can get support to employ an apprentice or to enroll existing employees on an Apprenticeship. Support is also available for your employees to undertake other vocational training, although there some eligibility requirements by age, qualification level and company size which need to be met.
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APPENDIX B.
Review of LEP websites
OXFORDSHIRE LOCAL ENTERPRISE PARTNERSHIP http://www.oxfordshirelep.org.uk/wps/wcm/connect/micro/LEP/Programmes/L EP+-+KP+-+05+Business+support+matrix Oxfordshire LEP has established its own online Oxfordshire Business Support Service that also has a telephone helpline and links to the local authority economic development teams. The Service has identified eight key categories of support: Operations Growth Funding People Network / Groups Environment Start Up Staying Legal Each of these topic areas then breaks down into further specialist subject matter and links to appropriate sources of information and help. Although the Service states it links to specialist not for profit organisations, there are services detailed that are delivered by the private sector, and are therefore profit making organisations (4Networking being one such example). The web based service is clearly laid out, logical and provides businesses with a step by step approach to tackling issues they face. Included within the website, are testimonials from businesses though these appear to be from LEP Board Members in the first instance. For each business discipline, a range of further questions are posed: Operations o Who can help me with IT? OxOnline Business Link o How do I become more energy efficient? Energy Savings Trust National Industrial Symbiosis Programme Carbon Trust Environmental Information Exchange (Oxford Brookes Uni) Business Link o How do I reduce my waste and impact on the environment? WRAP Retrader National Industrial Symbiosis Programme Centre for Remanufacturing and Reuse
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o o
Environmental Information Exchange (Oxford Brookes Uni) Climate South East Edie.net (Environmental Data Interactive Exchange) online resource published by Faversham House Group Oxford Wood Recycling Business Link Where can I find specific advice on manufacturing? Manufacturing Advisory Service Technology Strategy Board Where can I find a list of business property in Oxfordshire? West Oxfordshire South / East Oxfordshire North Oxfordshire Oxford City South / West Oxfordshire (all link to local authority websites) What specialist advice is available for my business? I am looking for specific advice on manufacturing Manufacturing Advisory Service Technology Strategy Board I am looking for specific advice on social enterprises Cooperative Futures I am looking for specific advice on construction Construction Skills Chartered Institute of Builders Construction Industry Council I am looking for specific advice on rural businesses Lantra Oxfordshire Rural Community Council I am looking for specific advice on energy issues United Sustainable Energy Agency Energy Savings Trust Environmental Information Exchange Thames Valley Energy Climate South East Trading Standards I am looking for specific advice on transport and logistics Business Link Where can I find information on business regulation I am looking for advice on local regulatory issues Oxfordshire County Council Cherwell District Council Oxford City Council South Oxfordshire District Council Vale of the White Horse District Council West Oxfordshire District Council I am looking for general information on national regulatory issues
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ACAS Tax / Payroll / Company Information (Business Link) Health & Safety (Health & Safety Executive) HMRC Trading Standards Records you need to keep (Business Link) o Where can I find information on sales and marketing Business Link o I need help buying or selling my business Business Link Growth o Where can I find help on exporting UKTI China-Britain Business Council HMRC Oxfordshire International Trade Forum Business Link o Which organisations can help me with an innovative idea or grow my company Oxford Innovation Business Link Technology Strategy Board Oxford Brookes University Said Business School o What sector specific advice is available to help me grow my company I need specific advice for manufacturers Technology Strategy Board Manufacturing Advisory Service I need specific advice for social enterprises Cooperative Futures Plunkett Foundation (national) Oxfordshire Rural Community Council I need specific advice for construction issues Construction Skills Chartered Institute of Builders Construction Industry Council South East Centre for Built Environment I need specific advice for rural businesses Lantra Oxfordshire Rural Community Council I need to find new premises Local Authority websites o Who can mentor me to help me grow my business Oxford Business Mentoring MentorsMe Oxford Brookes University
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Henley Management College LeaderShape (private sector) o Who can help me with research and development Oxford University Consulting Oxford Brookes University Business Link o Who can provide help on Intellectual Property Isis Technology Transfer (wholly owned by Oxford University) Business Link Funding o What local grants are available for my business Sustainable Transport Leader (Rural Projects) o How do I go about finding tendering opportunities Contracts Finder South East Business Portal o Where can I find information and advice on finance, loans and grants Finance South East Business Link Oxfordshire County Council Oxfordshire Community Foundation Thames Valley Investment Network Olympic Opportunities Oxford Early Investments Oxford Investment Opportunity Network Fredericks Oxfordshire People o Who can offer me support on migrant workers? I need general information and advice on migrant workers myUKinfo.com (cross government initiative) Who can help my staff improve their English language skills Oxford & Cherwell Valley College Abingdon and Witney College Ethnic Minority Business Service (Oxfordshire) o Are there any specific business support organisations for women? Oxfordshire Womens Forum Prowess The Athena Network o Where can I find training for my staff? Business Link Oxford & Cherwell Valley College Abingdon and Witney College Oxford Brookes University Said Business School Sector Skills Councils Tourism South East
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ACAS o Where can I find help with recruitment issues? I would like to find out more about Knowledge Partnerships Oxford Brookes University Oxford University Job Centre Plus Job Clubs for people looking for work North Oxfordshire West Oxfordshire o What advice and information is out there regarding redundancy issues? Chartered Management Institute Next Step ACAS HMRC Business Link Job Clubs o Is there any funding available for training? Direct.gov Skills Funding Agency ACAS o Is there any coaching or mentoring available for me or my staff? Oxfordshire Business Enterprises LeaderShape Oxford Business Mentoring MentorsMe Oxford Brookes University Henley Management College YooDoo (private sector) o I need information regarding employing staff Business Link Networks / Groups o I want to meet like minded people, are there any local networks? Oxfordshire Womens Forum The Oxford Business Network Witney Business Breakfast Wantage & District Business Breakfast Club Bicester Business Breakfast Club Faringdon Business Breakfast 4Networking Oxfordshire Meet and Mingle Network 729 Club Chipping Norton Social Media Club The Late Breakfast Club The Athena Network Ladies & Gentlemen Who Lunch Chippy Lippys Biznet Ladies Who Latte
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Oxfordshire Town Chamber Network Business Biscotti BRX Witney Oxfordshire Rural Community Council Oxford Professionals Network o Who are the bigger organisations membership or otherwise that I could consult? CBI Institute of Directors Thames Valley Chamber of Commerce Oxfordshire Town Chamber Network Federation of Small Businesses Oxfordshire Business First Oxfordshire City Region LEP o Are there any networks for social enterprises? Cooperative Futures o Where can I find specific groups concerning science and technology? Oxfordshire Bioscience Network Science Oxford Networks Science Vale UK Environment o How do I reduce my waste and impact on the environment? Re-trader Centre for Re-Manufacturing and Re-Growth Carbon Trust National Industrial Symbiosis Network WRAP Environmental Information Exchange Oxford Wood Recycling Business Link o How do I become more energy efficient? National Industrial Symbiosis Network Environmental Information Exchange Carbon Trust Energy Savings Trust Business Link Start Up o Where can I find help to start my business? Business Link Oxford Business Mentors Fredericks Oxfordshire YooDoo CBI Shell Livewire Thames Valley Chamber of Commerce Oxfordshire Town Chamber Network Oxfordshire Business Enterprises Ethnic Business Minority Services o Is there any specific start up help for women?
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Oxfordshire Business Womens Forum Prowess The Athena Network o Can anyone provide mentoring or coaching to help me start my business? Oxfordshire Business Enterprises Oxford Business Mentors Oxford Brookes University Henley Management College YooDoo Business Boffins Princes Trust MentorsMe o Where can I find specialist start up help for my type of business? Manufacturing Advisory Service HMRC UKBioTechnet o Where can I find premises in Oxfordshire? West Oxfordshire South / East Oxfordshire North Oxfordshire Oxford City South / West Oxfordshire (all link to local authority websites) Staying Legal o Where can I find answers to questions on local rules and regulations such as licencing, planning etc? Oxfordshire County Council Cherwell District Council Oxford City Council South Oxfordshire District Council Vale of the White Horse District Council West Oxfordshire District Council o Where can I find answers to all of my questions on the red tape concerned with running a business? ACAS Tax / payroll / company information (links to Business Link) Trading Standards Health & Safety (links to HSE) Business Link HMRC
MARCH 2012
STOKE & STAFFORDSHIRE LOCAL ENTERPRISE PARTNERSHIP http://www.stokestaffslep.org.uk/news/new-business-support-helpline-forstoke-on-trent-and-staffordshi1/ Stoke & Staffordshire LEP has established its own business support telephone helpline 0300 111 8002 that operates six days per week. The service is being piloted initially for a period of six months commencing in February 2012. There is no internet presence and no indication within the press release whether or not the Helpline will be referring businesses to private sector organisations for support. In addition to the Helpline, the website links to the following: Staffordshire Means Business (Staffordshire County Council Business Support Page) Affordable Office & Workspace in Staffordshire (Staffordshire County Council) Destination Management Partnership Local Enterprise Partnership Matters North Staffordshire Chamber of Commerce Birmingham Chamber of Commerce Welcome to the Stoke on Trent Region (Make it Stoke on Trent inward investment) Welcome to the Hothouse Principle (managed workspace) The JET Service (Jobs, Employment, Training in North Staffordshire) The Start Up Programme (delivered by YMCA) EPIC Housing (employment & skills programme) The Fit for Work Programme (Stoke PCT) Enterprise Coaching Programme (Business Enterprise Support) Test Trading Programme (Business Initiative) Get Britain Working (DWP) National Links are: Innovation Launch Pad (Cabinet Office) Start Up Britain
MARCH 2012
WEST OF ENGLAND LOCAL ENTERPRISE PARTNERSHIP http://www.businessnavigator.org.uk/ The West of England LEP has developed a Business Navigator website to provide support to local businesses. This website is very comprehensive and companies are able to search for support based on their industry sector, type of support activity required and the nature of their enquiry. At present, the site details 38 different services that are available to businesses, focusing mainly on locally available services, or links to local delivery for national services (such as UKTI). The website also includes a business forum where individuals are able to post specific questions for support and receive appropriate responses. The events section of the website is extremely comprehensive and includes both public and private sector partner events. The Business Navigator enables companies to search for sectoral support within the following sectors: Aerospace, defence and advanced engineering Agriculture, food & drink Biotechnology, medical and chemical Construction and development Creative Energy, resources and low carbon industries Finance, insurance and professional services Micro-electronics Retail, distribution and consumer products Social enterprise Software and IT Tourism, leisure other Alternatively, companies can search by activity: 1 to 1 advice and guidance Events Mentoring Networking Premises and facilities Training and skills Other Finally, companies can search by type of enquiry: Buy or sell a business Create, innovate and protect Employment and skills Environment and efficiency Finance and grants Grow a business International trade
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IT & E-commerce Premises and property Sales and marketing Starting up Tax, payroll and company information Workplace, health and safety Other
The website details a total of 38 organisation that may provide support to businesses in the West of England area: Bath & North East Somerset Council Bath Digital Bath Ventures Innovation Centre BCS (British Computing Society) Bristol Branch Bath & Bristol Business Enterprise Network Biomedical iNET BRAVE Enterprise (Bristol) Bristol City Council Bristol Enterprise Development Fund Bristol Media Business West Chambers of Commerce Co-operative Development Agency County Land & Business Association Creative Bath Creative Industries iNET Design Programme EEF South West Enterprise Europe Network South West Environmental Technologies iNET Federation of Small Businesses Institution of Engineering and Technology Institute of Directors Low Carbon South West Microelectronics iNET North Somerset Council North Somerset Enterprise Agency Outset Bristol (business start up) Pervasive Media Studio SETsquared Bristol Silicon South West Solutions for Business South Gloucestershire Council South West Founders (high tech start up) South West Screen UK Trade & Investment South West UWE Ventures West of England Aerospace Forum
MARCH 2012
YORK, NORTH YORKSHIRE & EAST RIDING LOCAL ENTERPRISE PARTNERSHIP http://www.businessinspiredgrowth.com/ This Local Enterprise Partnership has developed an extremely comprehensive website to focus on business support for all sectors of the Yorkshire business economy. The home page is extremely busy and may put off some from progressing, however the specific business support sections include: Support Finance Property Intelligence Regulation Networks Each then has detailed information so for example, the Support page subdivides into: Starting a business Growing a business Agri-food Technology The site also incorporates a LinkedIn Group, active Twitter feed, Blog and News section. Although busy, the website offers the following: Support o Starting a Business Business Link StartUp Mentoring 1-1 Advice 1 many advice Finance Business Planning Tool Online training tool being developed in conjunction with the banks, to be available shortly on the website Legislation & Regulation HMRC Trading Standards Local Authorities (Harrogate referenced) Peer Support Property Technology Market Research o Growing a Business Business Link Growth
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Coaching for Growth Mentoring 1-2 Advice 1 many Advice Finance Skilled Workforce New Customers / Markets Innovation Efficiency Legislation & Regulation Peer Support Property Market Research o LEP Support for Agri-Food Get set to Grow Innovation in agri-food o Technology Finance o Sources of Finance Rural Development Programme for England ERDF Fund Finance Yorkshire Business Enterprise Fund Yorkshire Association of Business Angels Key Fund for Social Enterprise The Charity Bank CO2 Sense Property o Commercial Property Available Harrogate York East Riding Scarborough Ryedale Craven Richmondshire Hambleton Selby Intelligence o Economic Intelligence o Research Regulation o HMRC o Trading Standards o Local Councils Networks o Build North Yorkshire o Creative North Yorkshire o Delicious Yorkshire o Enterprise Europe Network in Yorkshire
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o o o o o o o o o o o o
Federation of Small Businesses North Yorkshire Region Festivals North Yorkshire Forward Ladies Leeds, York & North Yorkshire Chamber of Commerce Richmond Business Network SCY Innovation Yorkshire Mafia Welcome to Yorkshire Women in Rural Enterprise York Professionals Young Enterprise Your Consortium Limited (voluntary sector support)
OTHER LEPS Black Country LEP The Black Country LEP offer a generic website only, with business support being signposted to ACAS and to Business Link. Cheshire & Warrington LEP The Cheshire & Warrington LEP focuses on the economic overview of the area, inward investment opportunities and the visitor economy. There does not appear to be a dedicated business support offer available to businesses. Coast to Capital LEP Coast to Capital LEP covers the geographic area from Gatwick Airport and Croydon to Brighton and Hove. Known as the Gatwick diamond there is a clear business focus to this LEP. Their business support offer comprises links to the Business Link website, BIS website, Sussex Enterprise, Start Up Britain and the Cadia Business Association which is specific to the geographical area. Cornwall & Isles of Scilly LEP The Cornwall & Isles of Scilly LEP has produced a downloadable PDF which features on its website, detailing all business support currently available (as at November 2011) to companies in the area. Those services only relate to publicly funded services. Coventry & Warwickshire LEP The LEP in this area appears to have an active focus on business support, but information on the support available is scattered across its website, rather than being listed in one central point, therefore making it difficult for businesses to easily access the support available to them. The information detailed is fairly basic and focuses on the main national support available to businesses. Cumbria LEP Cumbria LEP does not have a clear business support focus within its website, rather it focuses on the mechanics of the Board and the partnership.
MARCH 2012
Derby, Derbyshire, Nottingham & Nottinghamshire LEP (D2N2) The LEP has a limited business support offer available, though Enterprise and Innovation is the only LEP Board theme detailed on the website. Business support is provided through links to national websites (Business Link, Start Up Britain etc), though there is a lot of out of date detail around their Regional Growth Fund bid submission from October 2011. Dorset LEP The Dorset LEP is still in start up phase, scheduled to launch in April 2012. As such it does not yet have a web presence (most details are contained within the local authority websites), but there is a statement of intent to provide fast broadband connectivity for businesses and an indication that rural enterprises will be supported. Enterprise M3 Unsurprisingly, Enterprise M3 covers the areas of Basingstoke, East Hampshire, New Forest, Winchester in Hampshire and Guildford and Woking in Surrey the M3 corridor. At present there is no detail of any type of business support or other initiative offered by this LEP, which it is assumed is still in its infancy. Gloucestershire LEP Gloucestershire LEP does not yet have a dedicated website, but is promoted through www.gfirst.co.uk the inward investment website for the area. This LEP is also campaigning to secure fast broadband connectivity within the County. Greater Birmingham & Solihull LEP The GBS LEP website focuses on the LEP as a grouping, there is no clear focus for businesses approaching the website seeking support of any description. The home page images do however, provide the impression of a strong business ethos. Greater Cambridge & Greater Peterborough LEP This LEP has very little emphasis on business support, the only clear signposting is to HMRC, MentorsMe and Business Link. Greater Lincolnshire LEP Greater Lincolnshire is a relatively young LEP and offers little signposting advice or guidance to businesses on its website. Greater Manchester LEP Given the title of New Economy, there is little evidence of any business support related signposting or guidance through the Greater Manchester LEP. It is clear the LEP s part of a wider approach to the economic development of the Manchester area, rather than a standalone activity. Heart of the South West LEP Covering the Devon and Somerset area, this LEP recognises it is at the start of a journey and therefore does not have a fully detailed offer for the private
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sector at this stage. Their three priorities are job creation, productivity and earnings but there is no detailed substance beneath their objectives for these three priority areas. Hertfordshire LEP Hertfordshire LEP makes no real reference to business support through its website, but as with many other LEPs is clearly focusing on improving broadband services. Humber LEP Humber LEP is in its embryonic stages of formation, and the website is presently focused on the Enterprise Zone secured for the area. Lancashire LEP Very little detail beyond the initial proposal submitted to establish the LEP is available from Lancashire. Leeds City Region LEP The areas LEP is part of the wider Leeds City Region activity. Business, Innovation & Skills support detailed through their website (which is Leeds City Region specific) focuses solely on advice and support available through the areas local educational establishments. Leicester and Leicestershire LEP Leicester and Leicestershire LEP has developed a Better Business for All campaign, comprising four key strands: Advice & support Culture & Competency Communication & Co-ordination Better Partnerships At present, there appears to be little specific substance behind these themes, save for a list of partner organisations involved in the development of the LEP. Liverpool City Region The LEP here is part of the broader City Region activity. It was intended to become an integral element of The Mersey Partnership, but these plans appear to have stalled. There is no clearly available information on business support. London LEP There appears to be little information presently available about the focus and direction of this LEP. New Anglia LEP New Anglia LEP states that it will be a co-ordinator and enabler of business support across Norfolk and Suffolk and will create a business support website which will act as: A central signpost for all government business information Business support services, locally List of quality assured business support providers
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The website does not yet appear to have been developed. North Eastern LEP Northamptonshire LEP The Northamptonshire Enterprise Partnership has a well developed website, containing details of several locally based services. It would appear that the Enterprise Partnership is well established, and was the bidding vehicle for LEP status. The LEP focus is around innovation, social enterprise, events and business angels. Sheffield City Region Sheffield City Region does not have a specific business support focus, rather it has developed a number of sector groups which have been recognised for their potential to drive productivity growth in the region. There is no detail within the website as to what business support services might be available to businesses in the area. Solent LEP Solent LEP has adopted an innovative approach to business engagement. It is offering membership of the LEP to all businesses, for an annual membership fee starting at 50 for micro businesses rising to 3,000 for businesses employing over 250 staff. Membership benefits include representation, networking, information and advice and the opportunity to shape the delivery of business support. This model would appear to compete almost head on with a number of business representative groups including the Chambers of Commerce and the Federation of Small Businesses. South East LEP The South East LEP sees itself as a leadership organisation, acting as advocates for the area it serves and providing an enabling role. It does not detail any business support information that may be available to businesses. South East Midlands LEP Covering an area from Northamptonshire across to the Cherwell Valley and South through Bedfordshire, Luton and Aylesbury this LEP has focused business support so far on the support services that are available from HMRC. There is limited information provided by the LEP on business start up activity in Northamptonshire but it is clear that this is an area still developing its business support offer. Swindon and Wiltshire LEP Using the brand Forward Swindon, there is a very limited business support offer available from this LEP. It is evident from the website that this is an area that will be further developed, but at present the information provided is restricted to events, overseas trading and finance. Business start up signposting is also delivered through the website.
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Tees Valley LEP Clearly at embryonic stage there is no information contained within the Tees Valley LEP to suggest that business support is part of their portfolio. Thames Valley Berkshire LEP As with several other LEPs, there is limited information available to suggest that Thames Valley Berkshire LEP will be proactively signposting business support services to businesses. The Marches LEP Initially, The Marches LEP appears to be focusing on Access to Finance, but has indicated that it will be further developing business support signposting, and potential services, in future months. Launched in June 2011, the LEP has already started to focus on procurement and other issues impacting local businesses. Worcestershire LEP Worcestershire LEP does not as yet appear to have a particularly focused business support signposting offer and does not highlight future plans in that area.
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APPENDIX C.
Consultees
HEI Birmingham City University University of Birmingham University of Hertfordshire Staffordshire University Aston University FEI Birmingham Metropolitan College Bournville College Burton College NEW College SEPs Groundwork West Midlands BSSEC FINANCIAL Santander Lloyds RBS PROFESSIONALS only indirect contact achieved PINSENT MASONS BDO KPMG WRAGGE PWC LOCAL AUTHORITIES Tamworth and Lichfield Birmingham City Council East Staffordshire Cannock North Worcestershire Solihull Staffordshire County Council PUBLIC SECTOR PROVISION Manufacturing Advisory Service Southern Staffordshire Partnership PRIVATE BUSINESSES Winning Moves Arvada Marketing North Staffs Chamber of Commerce Federation of Small Businesses LMI Simon Tullit
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APPENDIX D. GWE survey
References
SQW Research into Business Supports Online and Offline Delivery Channels November 2010 ACCA 2005 Private sector solutions BiS and LEP Event slides BiS UK Innovation Policy Business Growth Fund Event slides FSB Alt+Finance PACEC Mapping SBS Services and Funding Chains 2005 Understanding the Resilience of the Southern Staffordshire Economy, CLES 2010 FSB Voice of Small Business Report February 2012 Hawthornes Research and Business Development Business Engagement in Tamworth and Lichfield, 2010 LBRO Regulation and Growth

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SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

Market Research Business Support Evaluations & Reviews Questionnaires Reports

GREATER BIRMINGHAM & SOLIHULL LOCAL ENTERPRISE PARTNERSHIP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

BACKGROUND AND CONTEXT

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

Outputs and Outcomes of this Scoping Work

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

Paying for business support

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

OVERVIEW OF BUSINESS SUPPORT BY DELIVERY SEGMENT

Core Public Sector Offer (Excluding Local Authorities)

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

Libraries Tender opportunities

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

Higher Education Institutions (HEI)

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

Further Education Institutions (FEI)

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

Professional Services Sector

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

Trade Association and Membership Organisations

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

Business Networking / Breakfast Clubs / Peer to Peer Support

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP

Private Sector Businesses

SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP