evaluation of wnf projects
TRANSCRIPT
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FinalReport
EvaluationofWorking
NeighbourhoodsFund
Projects
BirminghamCityCouncilMarch2011
CONSULTINGINPLACE
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FinalReport
EvaluationofWorking
NeighbourhoodsFund
Projects
BirminghamCityCouncil
March2011
CONSULTINGINPLACE
LONDON
GilmooraHouse
5761MortimerStreet
London
W1W8HS
T:02030085539
BRADFORD
BradfordDesignExchange
34PeckoverStreet
LittleGermany
BradfordBD15BD
T:01274743600
BIRMINGHAMOFFICE
WellingtonHouse
3134WaterlooStreet
Birmingham
B25TJ
T:01212625111
www.consultinginplace.com
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TABLEOFCONTENTS
ExecutiveSummary i1. Introduction 12. BackgroundtoprojectsandWNF 33. StimulatingDemand 54. RetailDevelopmentProgramme 245. FinditinBirmingham 376. Conclusionsandrecommendations 52
LISTOFFIGURES
Figure1.1:Beneficiarysurveysamplesizes 2Figure3.1:SourceofinformationonBDGandHighGrowth 12Figure3.2:PerformanceofStimulatingDemandprojectstrandagainsttargets 14Figure3.3:Additionalityfactorestimates 14Figure
3.4:
Turnover
metrics
for
BDG
beneficiaries
15
Figure3.5:NetadditionalGVA 16Figure3.6:NetadditionalGVAaccountingforpersistenceeffects 16Figure3.7:TurnovermetricsforHighGrowthbeneficiaries 17Figure3.8:NetadditionalGVA 17Figure3.9:NetadditionalGVAaccountingforpersistenceeffects 17Figure3.10:JobscreatedandsafeguardedBDG 18Figure3.11:JobscreatedandsafeguardedHighGrowth 18Figure3.12:SectorofBDGbeneficiaries 19Figure3.13:SectorofHighGrowthbeneficiaries 19Figure3.14:MainimpactsofBDGandHighGrowthsupport 20Figure3.15:ImpactofBDGandHighGrowthonreducingeffectsofrecession 20Figure
3.16:
Future
uptake
of
business
support
22
Figure4.1:HowRDPbeneficiariesheardabouttheproject 29Figure4.2:Originaltargetsandactualoutputs(toendofFeb2011) 30Figure4.3:Additionalityfactorestimates 30Figure4.4:TurnovermetricsforRDPbeneficiaries 31Figure4.5:NetadditionalGVA 32Figure4.6:NetadditionalGVAaccountingforpersistenceeffects 32Figure4.7:Jobssafeguardedandcreated 33Figure4.8:MainimpactofsupportonRDPbeneficiaries 33
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Figure4.9:ImpactofRDPonreducingeffectsofrecession 34Figure4.10:WhatwouldhavehappenedtothebusinesswithouttheRDP 34Figure5.1:RegistrationsontheFiiBsite 39Figure5.2:HowrespondentswereintroducedtoFiiB 41Figure5.3:Eventsinterestinganduseful 43Figure5.4:SalesgeneratedthroughFiiB 46Figure5.5:Possiblesourcesoffuturefunding 49
LISTOFAPPENDICES
AppendixI:Projectcasestudies
AppendixII:Stakeholdersconsulted
AppendixIII:Fullbeneficiarysurveyresults
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ExecutiveSummary
1.1 Introductionandmethodology
In2010,ConsultingInplacewascommissionedbyBirminghamCityCouncilto
evaluatethreebusinesssupportprojectsfundedbytheWorkingNeighbourhoods
Fund(WNF)anddeliveredbytheCouncil.Thethreeprojectswere:
StimulatingDemandaprojectconsistingoffourprojectstrandsallaimedatbusinessesinBirmingham:agrantsprogramme;theprovisionofengagement,
diagnosticandbusinessplanningsupport;ahighgrowthbusinessdevelopment
programme;andaprojectdesignedtoincreasetheuseofsocialmediaby
businesses
RetailDevelopmentProgrammeaprojectofferingfinancialassistancetonewandexistingindependentretailerslookingtosetuporexpandinBirmingham,or
relocatetothecity
FinditinBirminghamawebsitetoprovideasingleportalofinformationonnewsand
events,
business
support
services
and
business
opportunities
for
Birmingham
basedcompanies
TheevaluationtookplacebetweenSeptember2010andMarch2011andinvolved
thefollowingactivities:
Surveys:wespoketo103beneficiariesfromStimulatingDemand,52fromtheRDPand621fromFinditinBirmingham,usingacombinationoftelephoneinterviews
andesurveys.Wealsosurveyedasampleofnonbeneficiariesinordertoprovidea
controlgroupofbusinessesnotreceivingsupport
Stakeholderinterviews:interviewswithprojectmanagers,deliverypartnersandother
stakeholders
involved
in
the
projects
Documentanddatareview:areviewofprojectdocumentation,includingproposalforms,managementreportsandprojectoutputdata,aswellasreviewingthetools
andmaterialsusedinthemarketinganddelivery
Casestudies:fourindepthcasestudiesofbusinessesthatbenefittedfromeachoftheprojects.ThesecanbefoundinAppendixI.
1.2 Keyfindings
1.2.1 StimulatingDemand
TheStimulatingDemandprojectconsistedoffourdifferentprojectstrands:Business
DevelopmentGrants(BDG)(offeringfinancialassistancetoBirminghambusinesses);
Engagement,diagnosticandbusinessplanningsupport(designedtounderpinthe
BDGprojectstrand);HighGrowth(mentoringandbusinessdevelopmentsupportfor
potentialhighgrowthbusinesses);andWeb2.0Presence(promotingtheuseof
socialmediatoolsbybusinesses).Theevaluationfocussedonthefirstthreeproject
strands.
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TheStimulatingDemandprojectwasbuiltontriedandtestedmodelsofsupport,
whichcontributedtoitssuccessfuldelivery.Theprojectwaswellmanaged,which
includedregularcommunicationwiththedeliverypartnerswhowereinvolvedinall
aspectsoftheproject.Theprojectofferedahighqualityofservice,withthequality
ofthespeakersandtheknowledgeofmentorsinHighGrowthpraisedasbeing
particularlynoteworthy.
TheBDGprojectstrandexceededitstargetsforthenumberofbusinesssupported.
TheHighGrowthprojectstrandachieveditstargetofsupporting90businesses,with
manyofthemreceivinginexcessofthetargeted15hoursofsupport,withsome
receiving5060hoursoverthelifetimeoftheproject.
Theevidencecollectedthroughourbeneficiarysurveyallowsustocalculatethe
impactoftheBDGandHighGrowthintermsofadditionalGVAandemployment.
Theheadlinefiguresforthisare:
BDG Accountingforpersistenceeffects,i.e.thelongtermimpactsofthesupport,totaladditional
GVA
of
5.15m
Forevery1ofBDGspend,immediatebenefitsof2.52weregenerated.Forevery1ofBDGspend,11.64ofadditionalbenefitsweregenerated,including
persistenceeffects.
Almost170jobsweresafeguardedandover160jobscreatedasaresultofthesupportreceivedfromtheBDGproject
HighGrowth Accountingforpersistenceeffects,totaladditionalGVAofaround2.25m Includingthesepersistenceeffects,forevery1ofHighGrowthspend,4.57ofadditional
benefits
were
generated
Almost60jobsweresafeguardedand75jobscreatedasaresultofthesupportfromtheHighGrowthproject
AnumberofotherimpactsoftheStimulatingDemandprojectwereevidenced
throughourresearch.Theseincludedimprovedbusinessstrategies,safeguarding
businessesagainsttherecession,theacceleratedgrowthofbusinessesandthe
increasedlikelihoodoffutureuptakeofbusinesssupport.
1.2.2 RetailDevelopmentProgramme
Theaim
of
the
Retail
Development
Programme
(RDP)
was
to
support
existing
independentretailersandattractnewindependentbrandstoBirmingham.The
projectprovidedfinancialassistancethroughgrantsofbetween2,500and10,000
foravarietyofpurposes,frommarketingtoshopfitting.
Theevidencefromourevaluationshowsthattheprojectmetarealneedfor
independentretailersinBirmingham,asretailwasasectorthatwasrarelytargeted
forsupport.Thedemandfortheprojectwasevidencedthroughthehighnumberof
enquiriesandapplicationsreceived.Oneofthekeyaspectsofthedeliverymodel
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wasthedecentralisationofdelivery,withpromotionoftheprojectandtheprovision
ofsupportandguidancebeingdevolvedtolocallevels.Theprojectofficerswere
commendedbybeneficiariesfortheirhelpfulnessandsupport,particularlytheir
visitstothebusinesses.Theprojectasawholewasrunwell;itshowedflexibility
whentheapplicationprocesswassimplifiedinresponsetofeedbackfrom
businesses,andtheappraisalprocesswasnotedbystakeholdersasbeinghighly
efficient.
TheRDPexceededitstargetsforthenumberofbusinessessupported.Theproject
almostmetitstargetsforthenumberofnewbusinesscreatedandprivatesector
moneyleveragedin,onlyfallingslightlyshort.
Theevidencecollectedthroughourbeneficiarysurveyallowsustocalculatethe
impactoftheRDPintermsofadditionalGVAandemployment.Theheadlinefigures
forthisare:
Accountingforpersistenceeffects,i.e.thelongtermimpactsofthesupport,totaladditionalGVAof1.95m
Includingthesepersistenceeffects,forevery1ofRDPspend,2.30ofadditionalbenefitsweregenerated
Over310jobsweresafeguardedandalmost230jobscreatedasaresultofthesupportfromtheRDP
OtherimpactsoftheRDPincludedincreasedaccesstonewmarkets,improved
confidenceintheCouncilamongretailbusinesses,safeguardingagainstthe
recession,theprovisionofavaluablesourceoffinanceandtheregenerationoflocal
towncentres.
1.2.3 FinditinBirmingham
ThisprojectinvolvedthelaunchoftheFinditinBirmingham(FiiB)websitein2010
toprovideasingleportalofinformationonnewsandevents,businesssupport
servicesandbusinessopportunitiesforBirminghambasedcompanies.Theproject
alsoinvolvedtheprovisionofanumberofbusinessengagementevents,which
includednetworkingbreakfastmeetings,workshopsandthemedevents
Akeytothesuccessofthisprojectwasthemarketingandpromotionattheinitial
stagesandthroughouttheprojectslifetime.Astheinitiativewasbuiltonanexisting
model,FinditinSandwell,thiswasthemainsourcefromwhichbeneficiariesheard
aboutFiiB.Anumberofpromotionalactivitieswereundertaken,thesuccessof
whichisevidencedbythefactthatFiiBattractedmorethandoubleitsoriginaltarget
ofregistered
members.
However,
akey
issue
faced
by
the
project
was
the
engagementofCouncildepartmentsinusingthesitetoposttenderopportunities;
despiteconcertedeffortsfromtheprojectteamtopromoteit,thetakeupofthe
initiativebytheCouncilitselfwasnotashighasanticipated.Theprojectwaswell
managed,withthepartnershipbetweentheCouncilanddeliveryagentbeing
particularlyeffective,andbothpartiesclearontheirrolesandresponsibilities.
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Theevidencecollectedfrombeneficiariesandstakeholderssuggestsanumberof
impactsthatthisprojecthashad.Theseimpactsareasfollows(notethatGVA
calculationswerenotjudgedpossiblewiththisproject):
IncreasedsalesandleadgenerationanumberofbusinessesreportedbeingsuccessfulinleadgenerationorsecuringsalesthroughFiiB.Oursurveyindicated
that1.2m
of
work
had
been
won
through
FiiB
Improvedlocalsupplychainaswellasimprovingthesupplychainthroughanincreasednumberofpublicandprivatesectoropportunitiesbeingavailabletolocal
businesses,FiiBalsoimprovedsupplychainlinksthroughbusinessesusingthesiteto
findlocalsuppliers
Increasednetworkingopportunitiesthiswasthemainimpactoftheprojectmostreportedbybeneficiaries,whofeltthattheeventsinparticularprovidedavaluable
sourceofnetworkingopportunities
Improvedproduct/marketknowledgetheeventswerealsosuccessfulinimprovingbeneficiariesknowledgeoftheproductstheyofferedandthemarkets
theyworkedin,aswellasimprovingknowledgeofpotentialfutureopportunities
Anotherpotentialimpactidentifiedwasgreaterefficiencyandvalueformoneyfor
theCouncil,asawiderrangeofbusinessestenderingforworkwouldleadtomore
competitivequotes;thiswasconsideredtobemoreofalongtermimpact,andonly
iftheuseofthesitebyCouncilstaffincreased.
1.3 Conclusionsandrecommendations
Despitethedifferingnatureofthedeliveryofthethreeprojects,onecommon
themeamongthemisthesuccessoftheirdeliveryandtheimpactthattheyhave
beenshowntohavehadonbusinessesinBirmingham.Themainimpactsare
realisedintheadditionalGVAandemploymentgeneratedasaresultofthesupport
received.Lookingattheprojectsasawhole,wecalculatethat:
Includingpersistenceeffects,i.e.thelongtermimpactsofsupport,StimulatingDemandandtheRDPgeneratedalmost10madditionalGVA
ThesupportfromStimulatingDemandandtheRDPledtoapproximately540jobsbeingsafeguardedandover465jobscreated
Inadditiontoconclusionsrelevanttotheindividualprojects,anumberofcommon
issuesbetweenthethreeprojectsalsoarosefromtheresearchundertaken.These
aresummarisedinthediagramoverleaf:
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Commonissuesbetweentheprojects
Recommendations
WeunderstandthattheCouncilisexploringwaysinwhichtheseorverysimilar
projectsmightbecontinuedinfuture.Theimpactevidencefromthisevaluation
suggeststhattheyarejustifiedindoingso,giventhesuccessthattheseprojects
havehad.Thefollowingrecommendationsarethereforedesignedtohelpimprove
theeffectivenessoftheseandsimilarprojectsthatmaybedeliveredinfuture.
RecommendationOne:Themarketingofthesetypesofprojectstobusinesseshasbeenbestachievedthroughnetworks,informalcontactsandwordofmouth.Large
scalemarketingcampaignsarenotnecessarilyrequired.
RecommendationTwo:TheCouncilshouldusethereturnoninvestmentfiguresandjobcreationfiguresfromthisevaluationbothtomarketitsfuturebusinesssupport
projectsandprogrammes,andalsotohighlighttobusinessesthepotentialbenefits
ofprofessionalbusinesssupportavailablethroughtheopenmarket.
RecommendationThree:TheCouncilshouldcontinuetopursuetheirpolicyofbuildingbusinesssupportinterventionsonmodelsthathavealreadyproved
effectiveinpractice,asFinditinBirminghamwasbuiltonFinditinSandwell,
BusinessDevelopmentGrantswasbuiltonBusinessSupportforCreativeIndustries
andHighGrowthwasbuiltonEnterpriseCity.
RecommendationFour:WiththeLocalEnterprisePartnerships(LEPs)nowformed,theCouncilshouldconsiderextendingthedeliveryoftheseprojectsacrosstheLEP;
theeconomies
of
scale
achieved
through
doing
this
may
help
to
further
improve
the
costeffectivenessoftheseprojects.
RecommendationFive:Aswithanybusinesssupportprogrammepartorfullyfundedbythetaxpayer,theultimateaimshouldbetoprovethevalueofbusiness
supportandencouragethesupportedbusinessestoaccessfuturesupportfromthe
openmarket.
Common
issues
Successin
engagingwith
beneficiaries
Goodlevels
of
partnership
working
Useof
specialist
resources
Buildingon
existing
modelsof
delivery
Longterm
impactsof
support
Responding
to
beneficiaries
needs
Commitment
ofproject
teamsand
delivery
partners
Linkages
between
project
strands
Common
issues
Successin
engagingwith
beneficiaries
Goodlevels
of
partnership
working
Useof
specialist
resources
Buildingon
existing
modelsof
delivery
Longterm
impactsof
support
Responding
to
beneficiaries
needs
Commitment
ofproject
teamsand
delivery
partners
Linkages
between
project
strands
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RecommendationSix:ForFinditinBirminghamtotrulybeeffective,allCouncildepartmentsneedtoadoptacommonapproachtousingitasaprocurement
channel.
RecommendationSeven:OnceFinditinBirminghamisestablishedasthemainportalforCouncilprocurement,theCouncilshouldsecurethelongterm
sustainabilityoftheproject. Thereisnointrinsicreasonwhytheprojectmustbe
deliveredby
the
Council
in
the
long
term.
Once
it
has
an
established
reputation
as
beingacentralrepositoryforprocurementopportunities,businessesshouldbe
willingtocontributetothecostsofitsdelivery.
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1. Introduction
1.1 Introductiontoevaluation
In2010,ConsultingInplacewascommissionedbyBirminghamCityCouncilto
evaluatethreebusinesssupportprojectsfundedbytheWorkingNeighbourhoods
Fund(WNF)andbeingdeliveredbytheCouncil.ThethreeprojectswereStimulating
DemandforMainstreamBusinessSupport(hereafterknownasStimulating
Demand);theRetailDevelopmentProgramme(RDP);andFinditinBirmingham.
Thescopeoftheevaluationwastoassesstheeffectivenessofthethreeprojectsin
thefollowingareas:
Strategiccontext Initialconceptandmodel Deliveryarrangements Projectandfinancialmanagement Partnershiparrangements Projectlinkages Marketingandprofile Netimpactandvalueformoneyindicators Lessonslearntandrecommendationsforthefuture
TheevaluationwascarriedoutfromSeptember2010toMarch2011.Inadditionto
thisfinalevaluationreport,wehavealsoproducedfourindepthcasestudiesof
businessesthathavebenefittedfromeachoftheprojects.Thesereportscanbe
foundinAppendixI.
1.2 Methodology
Wedevelopedanoverarchingmethodologyforthisevaluation,whilerecognisingthatvariationsinthemethodologywouldoccurdependentonthenatureofthe
individualprojects.Duetothenatureofthisevaluation,eachprojectwasassigned
anevaluationleadfromtheevaluationteam,withtheprojectdirectorofthe
evaluationoverseeingtheapproachandapplicationofallthree.
Theactivitiesundertakenforthisevaluationaredescribedindetailbelow:
Reviewofprojectdocumentationandmaterialsusedwereviewedprojectproposalforms,managementreports,marketingmaterialandplans,promotional
materials,applicationsforms(forStimulatingDemandandRDP)andanyother
projectdocumentationproduced.
Stakeholderinterviewswefirstofallconductedinterviewswiththethreeprojectmanagersoftheindividualprojects.Wealsoundertookstakeholderinterviewswith
othermembersoftheprojectteams,membersofstakeholdergroupsanddelivery
partners.ForFinditinBirminghamwealsoconductedinterviewswithusersofthe
projectwithintheCouncil.Afulllistofstakeholdersconsultedcanbefoundin
AppendixII.
Consultationswithbeneficiariesandnonbeneficiariesweusedamixedmethodapproachtoconductingsurveyswithbeneficiariesoftheprojects.Themainmethod
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usedwastelephone,conductedbyourmarketresearchpartnersResearchand
MarketingGroup.Othermethodsusedincludedanesurveyandemailsurveys.We
alsocarriedoutasurveyofnonbeneficiariesinordertoprovideacontrolgroupof
businessesthatdidnotreceivesupport.Moredetailsonthesurveysamplesizes
achievedandmethodsusedcanbefoundinFigure1.1.
Figure1.1:
Beneficiary
survey
sample
sizes
Project Numberof
beneficiaries
consulted
Confidence
intervalat
95%level*
Methodofconsultationused
StimulatingDemand:
Business
DevelopmentGrants
49 +/ 9.6% Allsurveyswerecarriedoutby
telephoneinNov/Dec2010
HighGrowth
54 +/ 8.5% 44surveyswerecarriedoutby
telephoneinNov/Dec2010.The
remaining10wereselfcompleted
byemailthroughaboostersurvey
inFeb2011
RetailDevelopment
Programme
52 +/ 9.7% Allsurveyswerecarriedoutby
telephoneinNov/Dec2010
Finditin
Birmingham
621 +/ 3.9% 551surveyswerecarriedout
throughanesurveyinNov/Dec
2010.70surveyswerecarriedout
bytelephoneinNov/Dec2010
duringtheotherbeneficiary
surveysconductedforthis
evaluation
Nonbeneficiaries53 N/A Allsurveyswerecarriedoutby
telephoneinNov/Dec2010
*Note:Thismeanshowconfidentwecanbethattheanswergivenbythesamplerepresentsthetrueanswerof
thepopulation,
i.e.
for
any
given
survey
answer
we
can
be
95%
confident
that
the
whole
population
would
say
the
same,plusorminusthevariancefigureshown.
ThefullanalysisofthesurveyresultscanbefoundinAppendixIII.
Casestudiesweundertookfourcasestudiesaspartofthisevaluation,oneforeachofthefollowingprojects:BusinessDevelopmentGrantsandHighGrowth(both
partofStimulatingDemand),RetailDevelopmentProgrammeandFinditin
Birmingham.Thecasestudiesinvolvedamemberoftheevaluationteamvisitingthe
casestudybusinessattheirpremises,andthecasestudyreportsfocusonthe
supportreceivedthroughtheprojectsandtheimpactithadonthebusinesses.
Analysisofsurveydataandprojectoutputdatawecarriedoutafullanalysisofthe
survey
data
in
order
to
form
the
basis
of
our
findings
on
the
impact
that
the
projectshavehad.Thisincludesafullimpactandvalueformoneyassessment.We
alsoanalysedprojectoutputdataforallthreeprojects.
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2. BackgroundtoprojectsandWNF
2.1 Overviewofthreeprojects
Presentedbelowarebriefdetailsofthethreeprojectswhichformthefocusofthis
evaluation.Moredetailedexplanationsoftheaims,objectivesanddeliveryofthe
projectsareprovidedinsections3,4and5.
StimulatingDemandaprojectprovidingaccesstograntsandbusinessadviceforSMEsinBirmingham.Thisprojectconsistedoffourstrands,includingBusiness
DevelopmentGrants(BDG),offeringsupportof2,500tohelpbusinessesidentify
newmarketopportunitiesforproductsorservices(feasibilitygrant)andupto
6,000tohelpbusinessessetup,consolidateorexpand(spacegrant).Underpinning
thisstrandwasastrandthatinvolvedatwodaypackageofsupportfromBusiness
Linkprovidingsomeengagementandfilteringsupport.Inadditiontothefinancial
assistanceandadvicetherewasalsoaHighGrowthelementtotheproject,where
businessescouldaccessmentoringandsupporttohelpdeveloptheirbusiness.The
fourthstrandwasasmallpieceofworkwithDigitalBirmingham,aDigital
ChampionpromotingtheuseofITandsocialmediainbusinesses.
RetailDevelopmentProgramme(RDP)aprojectofferingfinancialassistancetonewandexistingindependentretailerslookingtosetuporexpandinBirmingham,
orrelocateintothecity.Thegrantsawarded,ofvaluesbetween2,500and
10,000,couldbeusedforavarietyofpurposes,suchasmarketing,fascia
improvements,installationandequipment.
FinditinBirminghamaprojectinvolvingthelaunchofawebsitein2010toprovideasingleportalofinformationonnewsandevents,businesssupportservices
andbusinessopportunitiesforBirminghambasedcompanies.Theprojectworked
towardsboostingthelocaleconomybyhelpingbusinessestodevelopskills,access
supportandaccessthelatestopportunities,aswellasprovidingnetworking
opportunitiesthrough
the
hosting
of
business
events.
2.2 WNFprogrammeinBirmingham
TheWorkingNeighbourhoodsFund(WNF)ispartoftheAreaBasedGrantallocation
madefromcentralgovernmentandwasroutedthroughtheLocalStrategic
Partnership,BeBirmingham,withBirminghamCityCouncilactingastheaccountable
body.Intotal114millionwasoriginallyallocatedtothecityfrom2008to2011,
whichinturnwasallocatedtoanumberofthemedactivityareas,deliveredthrough
strategicthemedboards.
The
largest
single
allocation
made
was
to
the
Birmingham
Economic
Development
Partnership(BEDP);thisallocationwasoriginally61million,howeveritwasthen
reducedtoaround45millionduetobudgetcuts.Themajorityofthismoneywas
managedthroughtheEmploymentStrategyGroup(ESG)andwasaimedattackling
worklessnessinthecity.TheremainderwasmanagedthroughtheBusiness
EnterpriseInnovationandInwardInvestmentGroup(BEII),andwasaimedat
increasingthecityseconomicoutputandproductivity,aswellasmitigatingagainst
theimpactsoftherecessiononthebusinesscommunity.
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Thethreeprojectsthatarethesubjectofthisevaluationweredeliveredunderthe
BEIIstream.TheRetailDevelopmentProgrammeandFinditinBirminghamformed
partofthe5.3millionrecessionpackage,whichwasdevelopedtohelpbusinesses
andresidentscopewiththeimpactoftherecession,particularlybyimproving
businessesaccesstofinancethroughtheprovisionofloans.StimulatingDemand
formedpartofthe5.7millionOutcome2package;thispackagewasaimedat
addressingOutcome
2of
the
Local
Area
Agreement
(LAA),
namely
to
increase
the
cityseconomicoutputandproductivitythroughexpansionofkeygrowthsectors,
greaterenterpriseandinnovationinhighvalueaddedactivity.
2.3 Backgroundcontext
Theenvironmentinwhichthesethreeprojectshavebeendeliveredhaschanged
significantlyovertheirlifetime. Whentheprojectswerebeingdevelopedthe
countrywasexperiencingthedeepestrecessionsincetheSecondWorldWar.
Althoughthenationasawholesufferedfromthenegativeimpactsoftherecession,
BirminghamwasoneoftheworstaffectedareasintheUK.Oneofthemainreasons
forestablishingthesethreeprojectswastohelpbusinessessurvivetheimpactsof
therecession.
Linked
to
this
was
the
need
to
ensure
that
Birmingham
City
Council
anditspartnersfosteredacultureofenterpriseandinnovationthatsupported
businessgrowth,inparticularinhightechnologyandhighaddedvaluesectors.1Asa
result,the31minvestment,enterpriseandemploymentpackageofsupportwas
developed,aimedatbothstartupandexistingSMEs,andjointlyfundedby
BirminghamCityCouncil,WNFandtheEuropeanRegionalDevelopmentFund
(ERDF).
AlthoughtheUKofficiallyemergedfromtherecessioninlate2009,thechallengesof
theeconomicdownturnremainforbusinessesandcommunitiesalike.The
continuedeffectsoftherecessionarelikelytohavenegativelyimpactedonthe
confidenceandabilityofbusinessestosurviveandgrow,particularlyinthecaseof
small
and
medium
sized
enterprises.
This
makes
any
support
received,
particularly
in
theformoffinancialassistance,greatlyappreciatedbybusinesses.
SincetheformationofthecoalitiongovernmentinMay2010,thepolicyand
deliverylandscapehaschangeddramatically.Twoofthemainprovidersofbusiness
supportinBirminghamandtheWestMidlandsaresoontobeabolished,withthe
imminentclosureofBusinessLinkandAdvantageWestMidlands.Responsibilities
fortheprovisionoflocalbusinesssupportareduetoliewithindividuallocal
authoritiesandthenewlyformedLocalEnterprisePartnerships(LEPs).Thefunding
forpublicsectorledbusinesssupportwillbeprimarilycentredaroundlocalplayers
andtheRegionalGrowthFund,whichmakesfundingavailablebutonacompetitive
basis.Withthecityslowlyrecoveringfromthedownturn,asignificantreductionin
localgovernmentspending,andagovernmentwithdrawalfromlargeareasof
businesssupport,itismoreimportantthanevertoprovethelevelsofneedand
potentialimpactsofanyproposedbusinesssupportsolutions.WiththeWNF
fundingcomingtoanendinMarch2011,thesechangestobusinesssupportfunding
allholdimportantconsequencesforunderstandinghowthefutureprovisionof
projectssuchastheoneswehaveevaluatedwillbefundedandhowtheywillalign
withnewstrategiesinrelationtobusinesssupport.
1BirminghamLocalAreaAgreement20082011:WorkingtogetherforabetterBirmingham,April2009,BeBirmingham
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3. StimulatingDemand
3.1 Backgroundtoproject
TheStimulatingDemandprojectwasmadeupoffourseparateprojectstrands.
Thesestrandswere:
BusinessDevelopmentGrants(BDG)thisprojectstrandofferedtwogrants,onecalledthefeasibilitygrantandtheothercalledthespacegrant.Thefeasibilitygrant,
whichprovidedassistanceof2,500,wasdesignedforidentifyingnewmarket
opportunitiesforproductandservicesfromneworexistingbusinesses.Thespace
grant,whichprovidedassistanceofupto6,000,wasdesignedtohelpnewor
existingbusinessessetup,consolidateorexpand.
Engagement,diagnosticandbusinessplanningsupportthisprojectstrandwhichwasdeliveredbyBusinessLinkWestMidlands(BLWM)wasdesignedtocomplement
theBDGstrandthroughtheofferofuptotwodaysfreesupporttoassistBDG
applicantsintheirapplications,andalsofreediagnosticsupportforbusinesses
whereappropriate.
HighGrowthprogrammethisstrandoftheprojectofferedfreementoringandbusinessdevelopmentthroughacombinationofworkshops,peergroupsessions
andonetoonementoringforbusinessesinBirminghamidentifiedashavinghigh
growthpotential.
Web2.0Presencethisprojectstrand,deliveredbyDigitalBirmingham,involvedtwoelements;thefirst,theprovisionofanumberofseminarsandworkshopsfor
businessesandthesecondtheappointmentofaDigitalChampiontoprovideone
toonesupporttobusinesses,bothwiththeaimofpromotingtheuseofsocial
mediatoolsinbusinesses.
3.1.1 Aimsand
objectives
TheoverallaimoftheStimulatingDemandpackageofbusinesssupportwasto
stimulateenterprise,developnewmarketopportunities,encourageinvestment,
fostersurvival/consolidation,createnewjobs,safeguardexistingjobsandfacilitate
growthwithinbusinessesinBirmingham.
ThespecificobjectivesoftheStimulatingDemandprojectwereto:
ImprovetheperformanceofbusinessesinBirminghamthroughtheprovisionofgrantfunding
Createnewbusinesses Safeguardjobsandcreatenewjobs ProvidementoringsupportforhighgrowthbusinesseswithinAWMspriority
clusters
Developinterestinusingtheinternetamongstawiderangeofsmallandmediumenterprises
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ThewholepackageofsupportaimedtocontributetothefollowingWNFoutcomes
toincreasethecityseconomicoutputandproductivity;toprovideenterprise
supportforgrowingbusinesses;tocreatenewenterprisesandforthemtobe
tradingforatleastoneyear;toincreaseselfemployment;andtoimproveaccessto
finance.
3.1.2 Deliverymodel
Astwoofthefourprojectstrandsarecloselylinked(BDGandengagement,
diagnosticandbusinessplanningsupport)wewilllinkthesetwostrandstogether
whentalkingaboutthedeliverymodel,whereastheothertwostrandswillbe
discussedonastandalonebasis.
BDGandBusinessLinksupport
ThesetwoprojectstrandsweredeliveredbyapartnershipoftheBirminghamCity
CouncilsBusinessDevelopmentandInnovationteamandBusinessLinkWest
Midlands.Theprovisionoftargetedengagementactivities,diagnosticandbusiness
planning
support
by
Business
Link
was
designed
to
underpin
the
BDG
project
strand.
Inparticular,theservicesthatBusinessLinkofferedwere:
Afocussedengagementcampaigntorecruitbusinessesintothebusinesssupportinfrastructure,particularlythosethatwerepreviouslynotengaged,referringthem
toappropriatebusinesssupportservicesincludingtheBDGproject
Uptotwodaysofadditionalbusinessadvisersupporttoenablebusinessestodevelopappropriatebusinessandactionplansthatsupportedtheirgrowth
potential,andtosupportthemwiththeirBDGapplication
TheBDGgrantsbothofferedassistanceequivalentto75%ofeligibleexpenditure
costsfornewbusinesses(tradingforsixmonthsorless)ortheequivalentof50%of
eligibleexpenditurecostsforexistingbusinesses(tradingformorethansixmonths).Thefeasibilitygrantwasdesignedtoidentifynewmarketopportunitiesforproducts
andservicesthroughactivitiesincludingtheassessmentofthemarketforanew
productorservice,designandproductionofaportfolioortheundertakingofa
promotionalcampaign.Thespacegrantwasdesignedtobespentoncostsincluding
rentsandratesforthefirst12months(forstartupbusinessesonly),physical
relocationtonewpremises,telephone,fax,broadbandconnectionsandcabling,
installationofheatingandelectric,businesssignage,cardsandletterheads,
professionalfeesandcapitalequipment(maximumof1,000).
TheBDGprojectstrandwasdesignedtostartactivityinSeptember2009,finishingin
March2011;however,slightdelaysmeantthattheprojectdidnotstartuntil
November2009.
The
project
originally
aimed
to
support
247
businesses,
with
180
businessesthroughthefeasibilitygrantand67throughthespacegrant,howeverit
wasclearthatsomebusinesseswouldtakeupbothgrantsandthereforethetotal
numberofindividualbusinesssupportedwouldbelowerthan247.Itwasalsothe
aimthat50newbusinessesand50jobswouldbecreated.However,theBDG
projectstrandlost150,000fromitsbudgetwhencutsweremadetotheWNF
programme.Thisreducedthetargetoutputsforthisstrandto62businesses
supportedthroughfeasibilitygrantsand57businessessupportedthroughspace
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grants.Thetargetsforjobcreationandbusinesscreationoutputsremainedthe
same.
HighGrowthprogramme
TheHighGrowthprogrammewasbasedonthemodelfortheEnterpriseCityHigh
Growthprogramme,
an
ERDF
funded
programme
that
was
delivered
through
apartnershipofBirminghamCityCouncil,DeloitteLLP(hereaftercalledDeloitte)and
theAcademyforChiefExecutives.TheEnterpriseCityprogrammetookplacein2008
and2009,andanapplicationwassubmittedbytheCouncilforERDFfundingto
continuethedeliveryofthisprogramme.However,whileawaitingapprovalforthe
ERDFfunding,theHighGrowthprojectstrandwasdeveloped,securingWNF
funding.Acompetitivetenderprocesswasundertakentosecurethedeliveryagent
fortheHighGrowthprojectstrand,withDeloitteandtheAcademyforChief
Executivesbeingthesuccessfulbidders.
ThefeaturesoftheHighGrowthprojectstrandincluded:
High
growth
engagement
events
held
around
Birmingham
to
encourage
businesses
toembarkuponlongterm,transformationalchangewithintheirbusiness
Businessesandindividualsreceivedsubsidisedcoachingandmentoring,tailoredpeergrouplearning,specialistbusinesssupport,bespokecoachingand
opportunitiestolearnfromandnetworkwithbusinessleaders
Theprogrammewasavailabletostartupandexistingbusinessestosupportidentifiedgrowthenhancingpotential.
Theprojectaimedtosupport90businessesoveritslifetime,providingeachwitha
minimumof15hourssupport,andinparticularlookedtoextendthemainstream
modelofsupporttodisadvantagedcommunitiesandtotargetethnicminority
ownedor
managed
businesses,
which
demonstrated
growth
potential.
Web2.0Presence
ThisprojectstrandwasdeliveredbyDigitalBirminghaminpartnershipwith
BirminghamCityUniversity.Thereweretwomainfeaturesofthisprojectstrand:
Theprovisionofaseriesofseminarsandnetworkspromotingtheuseofsocialmediatoolsinbusiness.Theseeventswereaimedatsmallbusinessesfromavariety
ofsectorsandincludedguestspeakers,promotionalvideosandopportunitiesto
discussanyqueriesovertheuseofsocialmedia.TheseeventswereledbyDigital
Birmingham.
TheappointmentofaDigitalChampionfromBirminghamCityUniversitytoproduceabusinesscaseforthefuturegrowthindigitalservicesandcreateawebpresence
tofacilitateshowcasingandvirtualnetworking.Thiswebsitewasdesignedto
identifybestpracticeandtolinkbusinessestogether.ThisDigitalChampionalso
aimedtoprovideonetoonesupportto16businessesinBirmingham,providingup
to5daysofsupportinimprovingthecapabilityandcapacityofbusinessestouse
socialmediatools.
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3.2 Findings
ThisevaluationconcentratesontheBDG,BusinessLinkandHighGrowthproject
strandsoftheStimulatingDemandproject,astheWeb2.0presenceprojectstrand
wasdeliveredbyDigitalBirmingham.Thereforethefindingsandimpactsfocuson
thefirstthreeprojectstrands,althoughanyfindingsrelatingtoWeb2.0Presence
arealso
reported
where
relevant.
3.2.1 Rationalefortheproject
TheStimulatingDemandprojectwasdesignedtoprovideacomprehensivepackage
ofsupportforthedevelopment,survival,andgrowthofbusinesseswithinthe
Birminghamarea.Astheoriginalprojectproposalstates,BirminghamandtheWest
Midlandshavehistoricallyexperiencedlowerlevelsofproductivity,employmentand
businessgrowthcomparedtootherareasoftheUK.Itwasreportedintheoriginal
projectproposalthat:
OutputperheadintheWestMidlandsregionis89%oftheUKaverage,whichequates
to
aproductivity
gap
of
some
10
billion
UnemploymentinBirminghamhadrisenrapidlyandwasatitshighestlevelforoveradecadeat11.7%(March2009)
ThenumberofVATregisteredbusinessesinBirminghamwasrelativelylowcomparedtothesizeofitsworkingagedpopulationandnewlyregistered
businesseswerestillmorelikelytofailquickly
ItwasidentifiedthatthefutureeconomiccompetitivenessofBirminghamwas
dependentonfosteringacultureofenterprisethatsupportedbusinessgrowth,and
thereforeitwasvitalthatBirminghamCityCouncilprovidedtheclimatethatis
requiredforSMEstobesuccessful.
Theresearchundertakenforthisevaluationhasshownthefollowingevidencethat
theprojectwasaddressinganeed:
ContinuationofasuccessfulmodelasstatedpreviouslytheHighGrowthprojectstrandwasbasedontheEnterpriseCityHighGrowthprogramme,andwasdesigned
tofillthegapleftinhighgrowthsupportwhiletheEnterpriseCityprogrammewas
notrunning.AnindependentevaluationofEnterpriseCity2concludedthatthe
programmehadbeenverysuccessfulandachievedanumberoftangibleoutcomes,
thereforetheHighGrowthprojectstrandmetaneedinprovidingaproven
successfulmodelofsupporttoSMEsinBirmingham.
HighnumberofenquiriestheBDGprojectstrandexperiencedahighlevelofenquiries
from
businesses
for
both
the
space
and
feasibility
grants.
This
demonstratedthedemandfortheproject.Thetwodifferenttypesofgrantalsomet
aneedinthatbusinessesinourbeneficiaryandnonbeneficiarysurveysstatedthat
theyneededthegrantforavarietyofreasons,fromrelocation/refurbishmentand
marketingtostartinguptheirbusiness.Theneedforthisprojectstrandwasalso
demonstratedthroughthefactthatmostoftheBDGnonbeneficiariesdidnot
2EvaluationStudyoftheEnterpriseCityHighGrowthProgramme20082009,UniversityofBirmingham
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managetofindthesupporttheywerelookingforthroughtheBDGprojectstrand
fromothersources.
However,althoughthenumbersofbusinessesengagingintheprojectwerehigh
enoughtoshowtherewasasignificantlevelofdemandfortheprojectstrands,the
needfortheprojectwasbasedonthefactthatthreeoftheprojectstrandswere
basedon
previous
models
of
support
(see
section
3.2.2
below)
that
had
been
successfullyusedinthepast,notonanyspecificneedsidentifiedfortheseproject
strands.
3.2.2 Areviewofthedeliverymodel
Theevidencegatheredduringthisevaluationhashighlightedanumberofissues
relatingtothedeliveryoftheStimulatingDemandproject.Thedifferentissues
raisedbythestakeholdersandbeneficiariescanbegroupedunderthefollowing
themes:useofexistingdeliverymodelsandpartnerships;projectlinkages;capacity
issues;qualityofservicesprovided;andmanagementandreporting.
Useof
existing
delivery
models
and
partnerships
Twoofthefourprojectstrandswerebasedonexistingprojectsthathadusedsimilar
deliverymodels;theBDGprojectstrandwasbasedontheBusinessSupportfor
CreativeIndustriesproject3andtheHighGrowthprojectstrandbasedonthe
EnterpriseCityprogramme.Anecdotalevidencefromstakeholderssuggeststhatthis
wasakeyelementinthesmoothdeliveryoftheseprojectsastheyusedtriedand
testedmodelsofdelivery.
InthecaseoftheHighGrowthprogrammetheexistingpartnershipofBirmingham
CityCouncil,DeloitteandtheAcademyforChiefExecutiveswasusedtodeliverthis
projectstrand,thesamepartnershipthatwasusedfortheEnterpriseCity
programme.Again
this
contributed
to
the
effective
delivery
of
the
model
as
all
partiesinvolvedhadpreviousexperienceofdeliveringthistypeofprojecttogether.
Anotherexampleofasuccessfullydeliveredprojectstrandreportedbystakeholders
isWeb2.0Presence,thesuccessofwhichcanpartlybeattributedtotheexisting
relationshipbetweenDigitalBirminghamandBirminghamCityUniversity.
Overalltheeffectivenessandefficiencyofusingexistingmodelsofdeliveryhasbeen
showntocontributetothesuccessfuldeliveryofsomeprojectstrands.
Projectlinkages
Oneof
the
aims
of
the
Stimulating
Demand
package
of
support
was
to
increase
the
uptakeofmainstreambusinesssupportandengagebusinesseswhopreviouslyhad
notbeenengaged.Oneofthewaysinwhichtheprojectaimedtodothiswas
throughthereferralofbusinessesseekingsupportthroughBDGandBusinessLink
elementstofurtherBusinessLinksupport,suchastheEnablingGrantofferedby
BusinessLink.Otheraspectsofthisprojectshowcasedgoodlinkageswithother
3TheBusinessSupportforCreativeIndustriesprojectwasrunbyBirminghamCityCouncil,BusinessLinkWestMidlandsand
ScreenWestMidlandsovera6yearperiodandsupportedover1,200businessesthroughofferingapackageofsupport
includingfeasibilityandcreativespace.
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projectstrandswithinStimulatingDemand,forexampleeightofthebeneficiaries
fromtheHighGrowthprogrammewerealsorecipientsofagrantthroughtheBDG
projectstrand.TherewerealsoclearprojectlinksbetweenStimulatingDemand
projectstrandsandtheothertwoprojectsthatarethefocusofthisevaluation;for
example,itwasreportedbystakeholdersandinmanagementreportsthatsome
businessesenquiringabouttheBDGprojectstrandweredirectedtotheRDPwhere
appropriate.Another
link
was
seen
between
the
High
Growth
project
strand
and
FinditinBirmingham,withtheprojectmanagerfromFiiBpresentingatoneofthe
HighGrowthsessionsheldwithparticipants,therebypromotingtheFiiBprojectand
itspotentialbenefits.
TherewerealsoexamplesofjoinedupworkingbetweenthetwostrandsoftheWeb
2.0Presenceprojectstrand,withbusinessesthatattendedtheeventsrunbyDigital
Birminghambeingdirectedtotheonetoonesupportavailablethroughthedigital
championfromBirminghamCityUniversity.Thedigitalchampionalsopresentedat
oneoftheDigitalBirminghamevents,aswellaspresentingataneventhosted
throughFinditinBirmingham.
These
links
show
the
collaborative
working
that
has
taken
place
within
the
StimulatingDemandprojectteam,andhowthesehavebenefittedbusinessesby
makingthemawareofthedifferenttypesofsupportavailabletothem.
Capacityissues
TheaspectofthedeliveryoftheStimulatingDemandprojectthathasseenthemost
problemshasbeenthedeliveryofengagement,diagnosticandbusinessplanning
support,deliveredbyBusinessLinkWestMidlands.Itwasintendedthatthisproject
strandwouldcomplementtheBDGprojectstrandbyofferingsupporttobusinesses
inputtingtogethertheirbusinessplansandapplicationsfortheBDGstrand.
However,duetochangesinpersonnelatBusinessLinkthisprojectstrandsuffered
significantdelaystotheinductionofthebusinessadvisorsthatformedpartofthe
projectteamandseveralchangesintheprojectmanageratBusinessLink.Thelack
ofsufficientresourcestodeliverthisaspectoftheproject,alongwithhighlevelsof
demandforBDGwithalargenumberofenquiries,ledtodelaysintheprocessingof
applicationswhichultimatelyledtocustomerfrustrations.However,thisproject
strandgatheredmomentumfollowingtheinitialdelaysinstartinganditwas
reportedbytheprojectmanagerinamonthlyhighlightreportthatthelevelsof
filteringandreferralstakingplaceledtoonlyqualityapplicationsbeingsubmitted
fortheBDG,makingtheappraisalprocessmoreefficient.
Qualityofservicesprovided
FromourbeneficiarysurveyresultsweseethatBDGbeneficiariesonaveragerated
theprogrammeas8.9outof10;thisincludes35percentofbeneficiariesthatrated
theprogrammeas10outof10.Reasonsgivenfortheseratingsincludedthatthe
projectteamatthecouncilwereveryhelpfulandsupportiveandtheprocesswas
efficient:
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NotonlywasIveryappreciativetohavesupportinfirstplace,thepanelandallthepeopletherehelpedmetoputmyapplicationforward they
wereoutstandinglyhelpful
Wehadalotofhelpalongthewaywiththewholeprocess.Theywalkedusthrougheverythingandgavealotofhelp.Theywereeasytogetintouch
withifweneededanythingelse veryhelpful
HighGrowthbeneficiariesonaverageratedtheprogrammeas8.5outof10;this
includes19percentofbeneficiariesthatratedtheprogrammeas10outof10.
Reasonsgivenfortheseratingsincludedthatthequalityofthespeakerswasvery
good,thementorswereveryknowledgeableandtheopportunitytonetworkand
gainotherpeoplesperspectiveonbusinessissueswasveryuseful:
Ithoughtthespeakerswereverygood.Thementorhasbeenveryencouraging theinputofthegroup,fromanetworkingpointofview,has
openeddoors
Ithasbeeninvaluabletome,boththementoringandthegroupmentoringis
areal
help.
All
the
speakers
have
been
very
relevant
to
the
business
Ourevaluationteamalsocollectedanecdotalevidencefromparticipantsthrough
attendanceatoneofthegroupmentoringsessionsthatthequalityofspeakerswas
consideredtobeexcellentandthattheindividualcoachingsessionswereextremely
helpful.
Managementandreporting
Overall,theevidencegivenbystakeholdersandbeneficiariesindicatesthatthis
projectwasmanagedwell.Adedicatedprojectmanagerwasputinplaceforthe
StimulatingDemand
project,
who
was
responsible
for
liaising
with
partners
including
DigitalBirmingham,BusinessLinkandDeloitte.TheHighGrowthprojectstrandwas
mentionedasaparticularlysuccessfulcaseofawellmanagedprogramme,withthe
projectmanagersfrombothBirminghamCityCouncilandDeloittecommunicating
onaregularbasis.Inadditiontothemonthlyhighlightreportsproducedbythe
projectmanagerfromBirminghamCityCouncilontheStimulatingDemandproject
asawhole,Deloittewereresponsibleforproducingquarterlyprogress/status
reportswhichdetailedtheoverallprogressoftheprogrammetodate,monitoringof
theoutputsintermsofhoursofmentoringreceivedbyparticipants,detailsofthe
monthlymentoringsessionsheldincludingfeedbackfromparticipantsandprogress
againstkeymilestones.Thesereportsallowedtheprojectteamtokeeptrackofthe
progressofparticipantsandidentifyanyissueswiththedeliveryoftheprojectso
that
they
could
be
resolved.
3.2.3 Assessmentofmarketingandapplicationtoolsandmaterialsused
Thissectionlooksathowtheprojectwasmarketedandhowsuccessfultheseefforts
were,aswellaslookingattheapplicationprocess.Thefindingshavebeendivided
intosectionsasseenbelow.
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BusinessLinkapopularsourceofreferral
Aswouldbeexpected,duetothecloselinksbetweenthetwoprojectstrands,the
mainsourceofreferralsfortheBDGprojectstrandwasthroughBusinessLink,with
overathirdofbeneficiariescitingthisasthesourceofinformation. Thesecond
mostpopularsourceofinformationwaswordofmouth,followedbythe
BirminghamCity
Council
website.
High
Growth
beneficiaries
were
most
likely
to
hear
abouttheprogrammethroughwordofmouth,followedbyemailandpersonal
referral.BusinessLinkwasalsoapopularsourceofinformationforHighGrowth
beneficiaries.
Figure3.1:SourceofinformationonBDGandHighGrowth
BDG% HG%
BusinessLink 34.7 14.8
Wordofmouth 20.4 24.1
BirminghamCityCouncilwebsite 10.2 7.4
Email 6.1 18.5
Personalreferral
6.1
16.7
AleafletIreceived 4.1 5.6
AneventIattended 0.0 3.7
Other 18.4 9.3
Total 100 100
Source:BDGandHighGrowthbeneficiarysurvey,2010/11,ConsultingInplace
Varietyofmarketingmethodsused
Theevidencecollectedduringthisevaluationshowsthatawidevarietyofmethods
wasusedtomarketandpromotetheBDGandHighGrowthprojectstrands.The
methodsused
include
attendance
at
business
events,
including
those
targeted
at
specificaudiences(e.g.HighGrowthbusinessnetworkingevents),thedistributionof
promotionalmaterialssuchasleaflets,individualcontactbyprojectofficersto
businessesandadvertsontheBirminghamCityCouncilwebsite.Oneofthemain
methodsofmarketingusedwastheutilisationofpartnerssuchasBusinessLinkto
promotetheprojectstrands.
TheBDGprojectstrandappearstohavebeenpromotedinavastnumberofways,
asdemonstratedbythevarietyofanswersgivetothoserespondingOtherinFigure
3.1.Otherwaysthatbeneficiarieshadheardabouttheproject,inadditiontothe
optionsalreadylisted,includedtheChamberofCommerce,thejobcentre,thelocal
library,localpressandafinancialadvisor.TheBDGprojectstrandalsohadapress
release
distributed
to
local
press
and
as
a
result
received
strong
press
coverage,
increasingtheprofileoftheprojectfurther.Despitedelaysinthepromotionofthis
project,whichweredowntothefactthatthefocusofmarketingwasinitiallyonthe
RDPasthisprojectwasfurtherdeveloped,themarketingeffortsappeartohave
worked,reflectedinthehighlevelofenquiriesreceivedforthisprojectstrand.
TheHighGrowthprojectstrandwasanotherexampleofasuccessfullymarketed
programme.AmarketingplanwasdrawnupbyDeloittewiththeassistanceoftheir
internalmarketingteam,andtheprogressofthisplanwasmonitoredandadapted
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wherenecessary.Anumberoforganisationswereutilisedinthepromotionofthe
HighGrowthprojectstrand,includingAWM,CBIWestMidlands,BusinessVoice
WestMidlands,PrincesTrustandanumberofuniversitiesintheWestMidlands
region.
Thesuccessofthemarketingofthesetwoprojectstrandsisreflectedinthefactthat
thetarget
numbers
of
business
supported
were
reached
for
both
project
strands
(seeFigure3.2).
Applicationprocess
AstheBDGprojectstrandwasbasedonapreviousgrantsbasedproject,the
applicationprocesswasalreadyinplace.Oncebusinesseshadmadeinitialcontact
witheitherBusinessLinkordirecttoBirminghamCityCouncil,BusinessLinkthen
carriedoutadiagnostictochecktheirsuitabilityfortheproject.Followingthisthey
receivedsupportwiththeirapplication,beforeitwassubmittedtotheStimulating
Demandprojectmanager,whichwasthenpassedontotheCouncilofficerswho
directlycontactedthebusinessesregardingtheirapplications.Anumberof
beneficiaries
in
our
survey
commented
on
the
helpfulness
of
this
contact
with
Councilofficers,whoinmanycasesvisitedthebusinessesattheirpremises.The
applicationwasthenpassedontotheappraisalpanelwhereadecisionwasmade.
Althoughthisprocesswasatriedandtestedsuccessfulmethod,acombinationof
thepersonnelchangesatBusinessLink,whichledtodelaysinthisprojectstrand,
andahighlevelofenquiriescauseddelaysintheapplicationprocesswhichledto
dissatisfactionfrombeneficiariesastheyhaddelaysintheirapplicationsbeing
approved.AsmallnumberofBDGnonbeneficiariesevensaidthattheydecidednot
togoaheadwiththeirapplicationbecauseofthepaperworkinvolved.Althougha
smallnumberofbeneficiariescommentedonthetimetheyhadtowaitforapproval,
ourevidenceshowsthatthisdidnotaffectthedeliveryoftheprojectextensively
andbeneficiariesstillratedtheservicestheyreceivedquitehighly.
3.2.4 Performanceandoutputsagainsttargets
WehaveanalysedmonitoringdataavailablefortheBDGprojectstrand,forboth
feasibilityandspacegrants,andHighGrowthtoassesshowwelltheprojectstrands
haveperformedagainsttheirtargets.Notethatsometargetswerereducedinlight
ofbudgetcutstotheBDGduringitslifetime.However,itmustbenotedthatthese
outputsfigureswerestillbeingcollectedatthetimeofwritinganddonotrepresent
theendofprojectoutputs,meaningtherewasstillscopeforthemtoincrease.
Thefeasibilityandspacegrantsexceededtheirrevisedtargetsfollowingthebudgetcutsintermsofthenumberofbusinessessupported.
Themonitoringdatareportsthat42ofthebusinessessupportedthroughtheBDGwerenewbusinesses,meaningtheoutputfallsshortofthetargetof50new
businessescreated.
Atthetimeofwritingtheoutputevidenceshowsthat68newjobswerecreatedasaresultofthesupportreceived,exceedingtheoriginaltargetof50by36%.Insection
4.2.6weestimatethenumberofjobscreatedbasedondatacollectedfromthe
beneficiarysurvey.
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TheHighGrowthprojectstrandreacheditstargetofsupporting90businessesthroughtheprogramme,andatthetimeofwritinghadalmostachieveditstargetof
providingparticipantswithatleast15hoursofmentoringsupport.Evidencefrom
thequarterlyprogress/statusreportsshowthatanumberofbusinesseshave
exceededthistarget,withsomeevenreceivingbetween50and60hoursof
mentoringsupport.
Figure3.2:PerformanceofStimulatingDemandprojectstrandagainsttargets
Original
target
Revised
target
Achieved(upto
endofFeb2011)
Businessessupportedfeasibilitygrant 180 62 68
Businesssupportedspacegrant 67 57 63
Newbusinessescreated 50 42
Newjobscreated 50 68
HighGrowthbusinessessupported 90 90
HighGrowthbusinessessupported
receiving15hoursofmentoring
90 89
Source:Projectmonitoringdata,March2011.Note:Thenumberofindividualbusinessessupportedtotals92as39
ofthebusinessesthatreceivedthespacegrantalsoreceivedthefeasibilitygrant.
Theprojectmonitoringdataalsoprovidesevidenceoftheamountsofgrantsbeing
appliedforthroughtheBDG,whichshowsthatonlytwothirdsofspacegrant
applicantsappliedforthefull6,000.
3.2.5 Netimpactandvalueformoney
Fromtheresultsofthebeneficiarysurveywecancalculatetheadditionalityofthe
support,essentiallycalculatingtheimpactthatthesupporthashadonthe
businessessupported
through
the
BDG
and
High
Growth
project
strands
in
terms
of
turnoverandGrossValueAdded(GVA).Figure3.3belowshowstheadditionality
factorsthatwehavetakenintoconsiderationwhencalculatingtheimpact,along
withtheirderivationfromthesurveyresultsandtheirestimates.
Figure3.3:Additionalityfactorestimates
Additionalityconcept Derivation Estimate
BDG(%)
Estimate
HG(%)
Deadweight
Thelevelofoutputsandoutcomesthatwould
havehappenedanywaywithouttheproject
Theaverageproportionof
turnoverchangenot
attributedtoWNFsupport
56.8 72.7
Displacement
Wheretheintervention takesmarketshare
fromotherexistingfirmswithinthe
geographicalareabeingassisted
Theproportionofproject
outputsaccounted
for
by
reducedoutputselsewhere
inthetargetarea
25* 25*
Multiplier
Howmuchadditionaleconomicactivityis
generatedthroughpurchasesalongthe
supplychain,employeespendingroundsand
longertermeffects
Averageproportionof
purchasesmadefromother
businessesintheregion
1.60
(not%)
1.49
(not%)
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Additionalityratio
Netimpactofsupport
Netimpactofsupportgiven
theadjustmentabove
22.6 27.3
Source:BDGandHighGrowthbeneficiarysurvey,ConsultingInplaceandConsultingInplacecalculations,
2011.*EstimatefromResearchtoimprovetheAssessmentofAdditionality,2009,CambridgeEconomicsAssociates
Thesurveyallowsestimationofimpactinthefollowingways:
Increasedturnoverwherebeneficiariesreportedthatthegrantcontributedacertainpercentagetoanincreaseintheirturnover
Safeguardingturnoverwherebeneficiariesstatedthatthegranthelpedtomaintaintheirpresupportturnoverlevelbyacertainpercentageoftheirinitial
turnover
Decreasedturnoverwherebeneficiariesstatedthatthegranthelpedtominimiseadecreaseinturnoverbyacertainpercentage
BDGbeneficiariesThe
total
turnover
for
the
above
metrics
is
shown
below
with
the
number
of
observationsandpercentageofthetotalsampleshownalso.AlmostsixintenBDG
beneficiariesstatedthatthesupporthadapositiveimpactontheirturnover,which
showsagrossbenefitfromtheprogrammeof4.25million;howeverthisismainly
drivenbyanoutlierfigureof3million,whichwhenremovedgivesatotal
attributableturnoverincreaseof1.25million.Weremovethisoutlierfigureasit
wasreportedbyabusinessthathadbeentradingforlessthan12monthsandwho
hadreportedthattheirturnoverhadgonefrom0to3millioninlessthanayear.
Safeguardedturnoveramountsto11,250,whiletherewasnoattributableturnover
decrease.
Figure3.4:TurnovermetricsforBDGbeneficiaries
Value()
N
%
of
sample
Attributableturnoverincrease 4,246,170 29 59%Attributableturnoverincreaseminusoutlier 1,246,170 28 57%
Attributableturnoversafeguarded 11,250 3 6%
Attributableturnoverdecrease 0 0 0%
Totalattributableturnover 1,257,420 31
Source:BDGbeneficiarysurvey,ConsultingInplaceandConsultingInplacecalculations,2011
UsingfinancialdatafromtheAnnualBusinessInquiry(ABI)RegionalAccountsallows
ustotransformourtotalattributableturnoverfigureintoestimatesoftotal
attributableGVA.
The
ratios
used
for
this
transformation
can
be
seen
in
the
full
calculationsfoundinAppendixIII.AftertransformingtototalattributableGVAand
adjustingfortheadditionalityfactorsinFigure3.3,weidentifyalmost690,000net
additionalGVAintotalforthissample.Wecanscaleupthesesampledbenefitsto
calculatetheimpactonallbusinessessupportedbytheBDGproject.Wedosoby
calculatingtheratioofoursampletothepopulation(92/49=1.88)andmultiplyby
ournetsampledbenefits.4Thebenefitstranslateto14,055ofGVAimpactper
4Weuse92asthepopulationhereasthatisthenumberofindividualbusinesssupportedthroughtheBDGprojectstrand,asa
numberofthebusinessessupportedreceivedboththefeasibilityandspacegrants
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CONSULTINGINPLACE 16
businesssupportedbytheBDG,ofwhich13,914isderivedfromincreasesin
turnoverand141fromsafeguardingturnover.
Figure3.5:NetadditionalGVA
Total Increase Same Decrease
NetadditionalGVA sample 688,715 681,805 6,909 0
NetadditionalGVA population 1,293,097 1,280,125 12,972 0
Perassistedbusiness 14,055 13,914 141 0
Source:ConsultingInplacecalculations,2011
Recognisingthatbenefitsarenotalwaysfeltintheshorttermfollowingsupportand
thatthebenefitscanlastforyearsafterthesupport,weaskedBDGbeneficiaries
howmanyyearstheyexpectedthebenefitstolastfor.Theseadditionalbenefitsare
alsoknownaspersistenceeffects.Wecalculatebenefitsfor4years,theaverage
persistenceofbenefitsfromtheBDGbeneficiarysurvey,andapplyadiscountrate
of3.5%.5
Figure3.6:NetadditionalGVAaccountingforpersistenceeffects
Total Increase Same Decrease
NetadditionalGVA 5,980,961 5,967,988 12,972 0
Perassistedbusiness 65,010 64,869 141 0
Source:ConsultingInplacecalculations,2011
TheresultisanincreaseinnetadditionalGVAofalmost6millionwhich
correspondstojustover65,000perBDGbeneficiarysupported.
WecanthencalculatethevalueformoneyoftheBDGprojectusingcostsofthe
projectandthenetadditionalGVAimpact,ascalculatedabove.Usingtherevised
BDGcostfiguresof444,300,avalueformoneycalculationprovidesthefollowing
headlines:
Forevery1ofBDGprojectspend,2.92ofadditionalbenefitswasgeneratedexcludingpersistenceeffects
Forevery1ofBDGprojectspend,13.50ofadditionalbenefitswasgeneratedincludingpersistenceeffects
HighGrowthbeneficiariesAlmostathirdofHighGrowthbeneficiariesstatedthatthesupporthadapositive
impacton
their
turnover,
which
shows
agross
benefit
from
the
programme
of
444,460.Safeguardedturnoveramountsto60,000whileattributableturnover
decreaseamountsto1,400.
5Weapplyadiscountfactorof3.5%inaccordancewithguidancefromtheHMTreasuryGreenBook.Thisfactoraccountsfor
thefactthatastreamofbenefitsismorevaluableclosertothepresentthaninthefuturei.e.theimplicitpreferencetohave
moremoneynowthanmoreinthefuture.
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Figure3.7:TurnovermetricsforHighGrowthbeneficiaries
Value() N %ofsample
Attributableturnoverincrease 446,460 18 33%
Attributableturnoversafeguarded 60,000 6 11%
Attributableturnoverdecrease 1,400 1 2%
Totalattributable
turnover
505,860
25
Source:HighGrowthbeneficiarysurvey,ConsultingInplaceandConsultingInplacecalculations,2011
AsbeforeweusefinancialdatafromtheABIRegionalAccountstotransformour
totalattributableturnoverfigureintoestimatesoftotalattributableGVA.After
transformingtototalattributableGVAandadjustingfortheadditionalityfactorsin
Figure3.3,weidentifyjustover255,000netadditionalbenefitsintotalforthis
sample.Wecanscaleupthesesampledbenefitstocalculatetheimpactonall
businessessupportedbytheHighGrowthproject.Wedosobycalculatingtheratio
ofoursampletothepopulation(90/54=1.7)andmultiplybyournetsampled
benefits.Thebenefitstranslateto4,739ofimpactperbusinesssupportedbythe
HighGrowthproject,ofwhich4,027isderivedfromincreasesinturnover,696
fromsafeguarding
turnover
and
16
from
minimising
aturnover
decrease.
Figure3.8:NetadditionalGVA
Total Increase Same Decrease
NetadditionalGVAsample 255,909 217,463 37,567 879
NetadditionalGVA population 426,515 362,438 62,611 1,465
Perassistedbusiness 4,739 4,027 696 16
Source:ConsultingInplacecalculations,2011
Recognisingthatbenefitsarenotalwaysfeltintheshorttermfollowingsupportand
thatthebenefitscanlastforyearsafterthesupport,weaskedHighGrowth
beneficiarieshowmanyyearstheyexpectedthebenefitstolastfor.These
additionalbenefitsarealsoknownaspersistenceeffects.Wecalculatebenefitsfor
5years,theaveragepersistenceofbenefitsfromtheHighGrowthbeneficiary
survey,andagainapplyadiscountrateof3.5%.
Figure3.9:NetadditionalGVAaccountingforpersistenceeffects
Total Increase Same Decrease
NetadditionalGVA 2,057,073 1,992,996 62,611 1,465
Perassistedbusiness 22,856 22,144 696 16
Source:ConsultingInplacecalculations,2011
TheresultisanincreaseinnetadditionalGVAofaround2.05millionwhich
correspondsto
almost
23,000
per
High
Growth
beneficiary
supported.
WecanthencalculatethevalueformoneyoftheHighGrowthprojectusingcostsof
theprojectandthenetadditionalGVAimpact,ascalculatedabove.UsingtheHigh
Growthcostfiguresof450,000,avalueformoneycalculationprovidesthe
followingheadlines:
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Forevery1ofHighGrowthprojectspend,0.95ofadditionalbenefitswasgeneratedexcludingpersistenceeffects
Forevery1ofHighGrowthprojectspend,4.57ofadditionalbenefitswasgeneratedincludingpersistenceeffects
3.2.6 Otherimpacts
of
support
JobssafeguardedandcreatedOvertwothirdsofBDGbeneficiaries(69%)saidthatasaresultofthesupport
receivedjobshadbeensafeguardedwithintheirbusiness;69%alsosaidthatjobs
hadbeencreatedwithintheirbusiness.OverallthelargemajorityofBDG
beneficiaries(92%)hadreportedjobssafeguardedorcreatedasaresultofthe
support.IntotalBDGbeneficiariesstatedthat89jobshadbeensafeguardedand87
jobshadbeencreatedasaresultofthesupportreceived;scalingthisuptothetotal
populationofbusinessessupportedsuggeststhatalmost170jobsweresafeguarded
throughthisprojectandover160werecreated.Thesefiguresarehigherthanthose
collectedthrough
the
project
output
data;
this
may
be
due
to
differences
in
the
definitionsofjobscreatedandsafeguardedbetweenoursurveyandtheproject
monitoringdataandthevolumeofevidencerequiredtoproveoutputs.
Figure3.10:JobscreatedandsafeguardedBDG
Sampletotal Averageperbusiness Populationtotal
Jobssafeguarded 89 1.8 167
Jobscreated 87* 1.8 163
Source:BDGbeneficiarysurvey,ConsultingInplaceandConsultingInplacecalculations,2011.*Thistotalisminusan
outlierfigureof100reportedbyonebeneficiary
OverathirdofHighGrowthbeneficiaries(36%)saidthatasaresultofthesupport
receivedjobs
had
been
safeguarded
within
their
business;
36%
also
said
that
jobs
hadbeencreatedasaresultofthesupportreceived.OveralljustoverhalfofHigh
Growthbeneficiaries(51%)saidthatjobshadbeensafeguardedorcreatedasa
resultofthesupportreceived.IntotalHighGrowthbeneficiariesstatedthat35jobs
hadbeensafeguardedand45jobshadbeencreatedasaresultofthesupport
received;scalingthisuptothetotalpopulationofbusinessessupportedsuggests
thatalmost60jobsweresafeguardedthroughthisprojectand75jobswerecreated.
Figure3.11:JobscreatedandsafeguardedHighGrowth
Sampletotal Averageperbusiness Populationtotal
Jobssafeguarded 35 0.6 58
Jobs
created
45
0.8
75
Source:HighGrowthbeneficiarysurvey,ConsultingInplaceandConsultingInplacecalculations,2011
BusinessessupportedfromavarietyofsectorsThemonitoringdatacollectedthroughoursurveyshowsthattheHighGrowth
projectinparticularsupportedbeneficiariesfromawiderangeofsectors,with
businessservicesbeingthemostpopulatedsubsector.Businessservicesincludes
consultancies(e.g.management,HR,IT),marketinganddesignfirms,andbusinesses
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CONSULTINGINPLACE 19
providingtrainingorrecruitmentservices.TheBDGprojectalsosupported
businessesfromawidevarietyofsectors,althoughtoalesserextent,withbusiness
servicesandmanufacturingbeingthemostpopulatedsectorsamongbeneficiaries.
Figure3.12:SectorofBDGbeneficiaries
Subsector SIC(2003)broadcategory BDG%
Landscapers
Agricultureand
fishing
2.0
Manufacturing Manufacturing 18.4
Distributionandwholesale Distribution,hotelsand
restaurants
8.2
Businessservices Finance,insuranceandother
businessactivities
57.1
Healthandwellbeing,socialcare
andsportandrecreation
Otherservices 14.3
Total 100
Source:BDGandHighGrowthbeneficiarysurvey,2010/11,ConsultingInplace
Figure3.13:
Sector
of
High
Growth
beneficiaries
Subsector SIC(2003)broadcategory HG%
Manufacturing Manufacturing 5.6
Construction Construction 5.6
Distribution,wholesaleandretail Distribution,hotelsand
restaurants
5.6
Telecommunications Transportandcommunications 1.9
Businessservices Finance,insuranceandother
businessactivities
55.6
Educationandskills Publicadministration,education
andhealth
5.6
Healthand
well
being,
sport
and
recreationOther
services
20.4
Total 100
Source:BDGandHighGrowthbeneficiarysurvey,2010/11,ConsultingInplace
Thisdataisanindicationoftheimpactofthehighlevelsofmarketingcarriedoutby
theprojectteamsfrombothprojectstrands,whotargetedandengagedbusinesses
fromavarietyofsectorsthroughmixedmethodsofmarketingandpromotion.
ImprovedbusinessstrategyandotherimpactsAnareaofimpactthatwascommontoboththeBDGandHighGrowthproject
strandswas
an
improved
business
strategy.
Our
survey
results
show
that
perhaps
unsurprisinglythiswastheareawhereHighGrowthbeneficiariesfeltthatsupport
impactedupontheirbusinessmost,withmorethanthreequartersofbeneficiaries
selectingthisoption.OveraquarterofBDGbeneficiariesalsofeltthatthiswasthe
areawheretheimpactofthesupportwasfeltmost.ThelargemajorityofBDGnon
beneficiariesalsoexpectedimprovedbusinessstrategytohavebeenanoutcomeof
thesupport,hadtheyreceivedit.
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However,theareathatwasmostcommonlyselectedbyBDGbeneficiariesashaving
seenthemostimpactwasaccesstonewmarkets.Thisismostlikelyduetothe
numberofbeneficiariesreceivingfeasibilitygrantswhichenabledthemtotestand
developnewproductsorservices.
Figure3.14:MainimpactsofBDGandHighGrowthsupport
BDG%
HG
%
Accesstonewmarkets 32.7 7.5
Businessstrategy 26.5 77.4
Other 16.3 9.4
Turnover 12.2 1.9
Employment 6.1 1.9
Profitability 6.1 1.9
Total 100 100
Source:BDGandHighGrowthbeneficiarysurvey,2010/11,ConsultingInplace
ThoseBDGbeneficiariessayingOthergenerallycouldnotpindowntheimpactto
onearea
and
picked
more
than
one
option.
Some
of
the
Other
answers
given
by
HighGrowthbeneficiarieswerenewnetworkingopportunitiesandmarketing
advice.
SafeguardingagainsttherecessionThemajorityofBDGandHighGrowthbeneficiariesreportedthattherecessionhad
quiteanegativeimpactontheirbusiness,withsalesandturnoverdecreasing.Inour
surveyalmostfourintenBDGbeneficiariesfeltthatthesupporttheyreceived
helpedtoreducetheimpactsoftherecessioneitherenormouslyorsignificantly.
AlmostoneinfiveHighGrowthbeneficiariesfeltthesupporthelpedtoreducethe
impactsoftherecessionenormouslyorsignificantly,withhalfofbeneficiaries
thinkingit
helped
marginally.
Figure3.15:ImpactofBDGandHighGrowthonreducingeffectsofrecession
32.7
28.6
32.7
6.1
32.1
49.1
17.0
1.9
0 10 20 30 40 50 60
Notat
al l
Marginally
Significantly
Enormously
%
HighGrowth
BDG
Source:BDGandHighGrowthbeneficiarysurvey,2010/11,ConsultingInplace
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ThemainreasonsthatBDGbeneficiariesgaveforthesupporthelpingtoreducethe
effectsoftherecessionenormouslyorsignificantlywerethatthesupportenabled
themtomoveintonewmarkets,whetherthroughtheadditionalmarketingor
diversificationintonewproductsorservices.
HighGrowthbeneficiariesweremorelikelytofeelthatthesupportreceivedhada
marginalimpact
on
reducing
the
effects
of
the
recession
as
although
they
felt
that
thesupportprovidedthemmoreknowledgeonbusinessstrategyandfutureplans,
thisdidnotdirectlylinktoincreasedturnoverintheshortterm,andthereforethe
impactswouldbefeltmoreinthelongterm.
AcceleratedgrowthofbusinessesOneareaofimpactthattheBDGandHighGrowthprojectstrandshavehadhas
beentoaccelerategrowthwithinthebusinessessupported.Thisbecameapparent
whenthebusinesseswereaskedwhatwouldhavehappenedtotheirbusinessesif
theyhadnotreceivedthesupport,towhichathirdofBDGbusinessesandovera
quarterofHighGrowthbusinessesrepliedthatthebusinesswouldnothavegrown,
or
at
least
would
not
have
grown
at
the
pace
it
has
since
receiving
support.
Theimportanceofthesupportreceivedinhelpingbusinesstoaccelerategrowth
wasreinforcedbyresponsesfromBDGnonbeneficiaries,whowhenaskedwhatthe
impactofnotreceivingthesupporthadbeenontheirbusinessmostcommonly
repliedthattheirbusinesshadntbeenabletogrow.
Someofthecommentsbelowshowtheimportanceofreceivingthesupportin
growingthebusinessessupportedbytheBDGandHighGrowthprojectstrands,as
theycommentonwhatwouldhavehappenedtotheirbusinesswithoutthesupport:
Itwouldhaveprobablynotbeenabletoincreaseatthisrate;wewouldhavebeen
less
flexible.
It's
given
me
the
ability
to
increase
turnover
and
employ
morepeopleandcapitaliseonanyopportunitiesthathavearisen BDG
beneficiary
Rateofsaleswouldhaveremainedstagnantratherthanamarginalincreasewhichiswhatweseebecauseofthisprogramme HighGrowth
beneficiary
Wewouldnothavehadthegrowth[ofthebusiness] wewouldhavebeenhitbytherecessionBDGbeneficiary
FutureuptakeofbusinesssupportOne
of
the
objectives
of
the
Stimulating
Demand
package
of
support
was
to
increase
theuptakeofmainstreambusinesssupportprovision,particularlybybusinessesthat
werenotpreviouslyengagedwithbusinesssupportproviders.Theevidence
collectedthroughthebeneficiarysurveyindicatesthatboththeBDGandHigh
Growthprojectstrandshavecontributedtotheachievementofthisobjective.
Figure3.16showstheresponsesfrombeneficiarieswhenaskedifthesupportthey
hadreceivedhadencouragedthemtoaccessfuturebusinesssupport.Oneinfive
BDGbeneficiariessaidthatthesupporttheyhadreceivedthroughtheprojecthad
encouragedtothemtoaccessfurtherbusinesssupport,withafurtherquarter
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CONSULTINGINPLACE 22
sayingthattheyhadalreadyaccessedfurthersupportsincetakingpartintheBDG
project.AroundoneinsevenHighGrowthbeneficiariessaidtheyplannedtoaccess
futurebusinesssupport,andalmostaquarterhaddonesincetakingpartinthe
project.
Figure3.16:Futureuptakeofbusinesssupport
BDG%
HG
%
Yes,willlookforsupportinfuture 20.4 14.8
Yes,wearecurrentlyaccessing
support/havesincetheproject
24.5 24.1
Havereceivedsupportinthepast 14.3 5.6
Havetriedtoaccesssupportinpast 2.0 1.9
Noplanstoatthemoment 28.6 42.6
Notawareofothersupportavailable 8.2 3.7
Source:BDGandHighGrowthbeneficiarysurvey,2011,ConsultingInplace
BusinessLinkwasthemostcitedproviderofbusinesssupport,withfourintenBDG
beneficiariesand
aquarter
of
High
Growth
beneficiaries
stating
they
had
received
supportfromtheminthepast,weredoingcurrently,orplannedtointhefuture.A
smallnumberofbeneficiariesalsomentionedtheCouncilasapotentialproviderof
businesssupport.HighGrowthbeneficiarieswerethemostlikelytomentionother
organisationsasprovidersofbusinesssupport,includingtheChamberofCommerce,
BirminghamEnterpriseandtheUniversityofBirmingham.
Thenumberofbeneficiariesengagingwithmainstreambusinesssupportproviders
orplanningtointhefutureasaresultoftakingpartintheBDGandHighGrowth
projectstrandsevidencestheimpactthatthisprojecthashadontheobjectiveto
increasethenumberofbusinessesengagingwithmainstreambusinesssupport.
Wecarried
out
acase
study
of
abusiness
that
benefitted
from
the
Business
DevelopmentGrantsprojectstrandandonebusinessfromtheHighGrowthproject
strandtoshowtheimpactthesupporthashadonthemandtheirbusinesses.
ThesecasestudiescanbefoundinAppendixI.
3.3 Conclusions
Overall,theStimulatingDemandprojecthasbeensuccessfullydelivered.Although
theseparateprojectstrandswerequitedifferentinthenatureoftheirdeliveryand
theoutcomestheywereaimingtoachieve,theyhaveallbeendeliveredeffectively
andsuccessfully,withintegrationtakingplacewherepossible.Themanagementof
theproject
was
commended
as
working
particularly
well,
as
despite
some
delays
in
theprojectcausedbyfactorsoutoftheprojectteamshands,theoutputswerestill
deliveredontimeandtobudget.
QualityofdeliverymodelsusedboththeBDGandHighGrowthprojectstrandswereconsideredbybothstakeholdersandbeneficiariestobewelldeliveredand
providedhighqualityservices.InthecaseoftheHighGrowthprojectthequalityof
thespeakersandtheknowledgeofmentorswerepraisedasbeingparticularly
strongqualitiesoftheproject.IntermsoftheBDGandBusinessLinkprojectstrands,
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despitedelaysandcapacityissuesinthedeliveryoftheBusinessLinkelement,
whichledtodelaysintheBDGapplicationprocessandsomecustomerfrustrations,
BDGbeneficiariesstillratedthequalityofservicesprovidedhighly.Thehelpfulness
andsupportoftheprojectteamattheCouncilwereparticularlypraisedby
beneficiaries.
QuantitativeimpactsofBDGaswellasexceedingitstargetsforthenumberofbusinesses
supported
through
both
feasibility
and
space
grants
and
the
number
of
jobscreated,theBDGprojectstrandwasverysuccessfulintermsoftheimpactit
hadonturnover,additionalGVAandemployment.Themainimpactsare:
TotaladditionalGVAforallBDGbeneficiariesof1.3millionexcludingpersistenceeffects,and6millionincludingpersistenceeffects
Jobscreatedandsafeguardedtheprojectmonitoringdatashows68jobswerecreated,andoursurveyresultssuggestover160jobswerecreated
andalmost170jobsweresafeguardedasaresultofthesupport
Forevery1ofBDGspend,2.92ofadditionalbenefitsweregeneratedexcludingpersistenceeffects
Thisdemonstrates
the
high
levels
of
immediate
impact
that
the
BDG
project
has
had
intermsofgeneratingadditionalGVA.
QuantitativeimpactsofHighGrowththisprojectstrandmetitstargetofsupporting90businessesoveritslifetimeandhasalsobeenshowntohavehad
impactsonturnover,additionalGVAandemployment.Themainimpactsare:
TotaladditionalGVAforallHighGrowthbusinessessupportedof425,000excludingpersistenceeffectsandaround2.05millionincluding
persistenceeffects
JobscreatedandsafeguardedoursurveyresultsindicatethatasaresultoftheHighGrowthprojectalmost60jobsweresafeguardedand75were
created
Forevery1ofHighGrowthspend,4.57ofadditionalbenefitsweregeneratedincludingpersistenceeffects
TheseresultsreflectthefactthattheHighGrowthprojectstrandhadagreater
impactonbusinessstrategyratherthanimmediateimpactonturnoverand
employmentgrowth,howevertheimpactsoftheprojectwouldbefeltinthelong
term.
Otherimpactsofthesupportreceivedincludedtheacceleratedgrowthofthe
businessesbenefittingfromthesupport,anincreaseduptakeofmainstream
businesssupportandsafeguardingagainsttheeffectsoftherecession,particularly
inthecaseofBDGbeneficiaries.
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4. RetailDevelopmentProgramme
4.1 Backgroundtoproject
4.1.1 Aimsandobjectives
TheaimoftheRetailDevelopmentProgramme(RDP)wastosupportexisting
independentretailersandattractnewindependentbrandsinBirmingham.The
projectwasdevelopedatatimewhenmanyindependentretailbusinesseswere
sufferingfromtheimpactoftheeconomicdownturn.Thispackageofsupportwas
developedtohelpretailerssurviveandgrowduringtherecession.
Thespecificobjectivesoftheprojectwereto:
Providegrantsofbetween2,500and10,000tosupportindependentretailerstodevelopandgrow
Encouragenewretailbrands Createnewjobs Safeguardjobs Regeneratelocaltowncentres
4.1.2 Deliveryoftheproject
TheRDPwasdeliveredthroughapartnershipoftheBirminghamCityCouncil
BusinessDevelopmentandInnovationteamandtheHousingandConstituencies
team,inparticulartheTownCentreManagers(TCMs).6RetailBirminghamwasalso
involvedinthedeliveryoftheproject,particularlyinthepromotionoftheprojectto
city
centre
businesses.
The
TCMs
were
responsible
for
promoting
the
project
to
businesseswithintheirlocaltowncentreandofferingsupportandguidancewiththe
applicationprocess.Theoriginaldeliveryplanassetoutintheprojectproposal
anticipatedBusinessLinkWestMidlands(BLWM)beingadeliverypartner,providing
supporttobusinessesinthedevelopmentoftheirapplications.Thismodelwasused
inthepilotoftheprojectthatwascarriedoutpriortothefullproject.However,this
didnothappenasBLWMdidnothavethecapacitytodealwiththevolumeof
applicationscomingthroughtheRDP.
TheRDPprovidedgrantsofupto50%ofeligibleexpenditurecosts.Thegrantwas
intendedtobeusedonavarietyofservices,includingrentandrates(forstartup
businessesonly);heatingandlightinginstallation;removalcosts;fascia
improvements/shopfitting;connections(telephoneandbroadband);professional
fees;websitedevelopment;rebranding/promotionalcampaigns;andwindow
dressingofvacantproperties.
TheRDPdeliverymodelwasoriginallydesignedtobedeliveredfromJuly2009until
March2011.ItwasintendedthatJulytoSeptember2009wouldbespent
formalisingdeliveryarrangementsandrecruitingtheRetailChampion,with
6TownCentreManagers(TCMs)aremembersofCouncilstafffundedthroughtheWorkingNeighbourhoodsFundwhoare
employedtotransformhighstreetsinlocaltowncentresaroundBirminghamandturnaroundailingshoppingcentres.
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applicationsbeingacceptedfromSeptember2009untiltheprojectclosedinMarch
2011.OverthelifespanoftheprojecttheRDPaimedtohelpimprovethe
performanceof100newandexistingindependentretailersthroughtheawardofa
grant.Theprojectalsohadtargetstoestablish40newbrands,create40newjobs,
andsafeguard100jobs.Totalprivatesectorinvestment,throughmatchfunding,
wasexpectedtobe846,000.
4.2 Findings
4.2.1 Context/rationalefortheproject
TheRetailDevelopmentProgrammewasdevelopedtoprovidesupporttotheretail
sectorinBirmingham,inparticularexistingindependentretailersandnew
independentbrands.Theprojectwasdevelopedfollowingamasterclassheldwith
MaryPortas,aretailexpertknownastheQueenofShops,andindependent
businessesinBirmingham,duringwhichtheybrainstormedwaysinthesectorcould
besupported.Fromthisapilotgrantsprojectwasrun,inwhich50,000wasmade
availabletosupportfiveindependentretailbusinessesinthecitycentre.Following
thesuccess
of
this
pilot,
the
RDP
was
developed.
Theevaluationfoundthefollowingevidenceofneedforthisproject:
SupportforaneglectedsectorTheretailsectorisonethatisveryrarelysupported,despitethefactthatitwasseenbyanumberofstakeholdersasan
importantsectorforemploymentandinvestmentinthecity.Itisnotclassedasa
highgrowthsector,andwasnotconsideredaprioritysectorbyBusinessLinkor
AdvantageWestMidlands,twoofthemainprovidersofbusinesssupportatthe
timethisprojectwasdeveloped.Thereforethisprojectwashighlywelcomedby
thoseworkinginthesector,particularlyduringthetimeofaneconomicdownturn
whenindependentretailbusinesseswereamongtheworsthit.
HighlevelofdemandTheprojectaimedtosupport100businessesthroughtheprovisionofagrant.Enquirieswerereceivedfromaround350businesses,showing
thehighlevelofdemandandinteresttherewasintheproject.Asaresultofthe
highdemandthefundswerecommittedmuchsoonerthanhadbeenanticipatedit
wasoriginallyplannedthattheprojectwouldrununtilMarch2011,howeverthe
fundswerecommittedbyAugust2010,10monthsaftertheprojecthadlaunched.
Thesefiguresreflecthowmuchinteresttherewasintheprojectfromindependent
retailersacrossthewholeofBirmingham
VarietyofneedsamongbusinessesRDPbeneficiariesandnonbeneficiariesbothreportedavarietyofreasonsforneedingsupportfromtheproject.Almosthalfof
theRDPbeneficiariesandfourinfiveofthenonbeneficiariessurveyedsaidthat
theyappliedforsupporttoeithercarryoutrefurbishmentsintheircurrentpremises
orrelocatetodifferentpremises.Oneinfivebeneficiariessaidthattheywerestrugglingwithfinancesandsotheyneededthemoneytopayforimprovements
theyotherwisewouldnothavebeenabletopayfor.Otherfrequentreasonswhy
beneficiariesstatedtheyneededthemoneyincludedhelptostartupanew
business,moneyneededformarketingpurposesandthattheyneededfinancialhelp
indevelopinganewproductorservice. Thisevidenceshowsthatthedecisionto
allowthegranttobespentonawidevarietyofpurposeswasgreatlyappreciatedby
thebusinesses
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EvaluationofWorkingNeighbourhoodsFundProjects
CONSULTINGINPLACE 26
4.2.2 Areviewofthedeliverymodel
Theevidencegatheredhashighlightedanumberofissuesrelatingtothedelivery
modelusedforthisproject.Theissuescanbegroupedunderthefollowing
headings:importanceofTownCentreManagers;matchfundingelement;
decentralisationof
delivery;
services
provided;
and
appraisal
process.
ImportanceofTownCentreManagers
TheroleoftheTownCentreManagers(TCMs)wasacriticalpartofthedeliveryof
thisproject.Theypromotedtheprojectwithintheirlocaltowncentresandprovided
generaladviceandsupporttobusinesseslookingtomakeanapplication.TCMswere
inpostpriortothisproject.Evidencesuggeststhattheirexistingrelationshipswith
businessesprovidedcredibilitytotheRDPproject.TheTCMsworkedhardto
promotetheprojectintheirareas,attendinglocalbusinessevents,handingout
promotionalmaterialsandvisitingindividualbusinessestoinformthemofthe
projectandansweranyqueriestheyhad.Thiswasvitaltoensuringthat
beneficiaries
were
engaged
with
the
project
an