item 3 - final report scoping the private sector offer for business support

7/31/2019 Item 3 - FINAL REPORT Scoping the Private Sector Offer for Business Support

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SCOPING THE PRIVATE SECTOR OFFER FOR BUSINESS SUPPORT - GBSLEP MARCH 2012

Deb Baker and Jonathan Andrew Page 2 of 94

Hawthornes Research & Business Development Ltd COPYRIGHT

Acknowledgements:

The authors would like to thank all the organisations, individuals andbusinesses that gave of their time to be consulted for this research and otherstaff at Hawthornes Research and Business Development for their part in theresearch. They would also like to thank Jeff Marlow of the SouthernStaffordshire Partnership for his guidance during the research and writingAppendix A :The Public Sector Business Support Offer. The findings andinterpretations in this report are those of the authors and do not necessarilyrepresent the view of GBSLEP.


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EXECUTIVE SUMMARY

This report reviews the public and private sector business support servicesthat are available to companies in the Greater Birmingham and Solihull LocalEnterprise Partnership (GBSLEP) area. The information is based on desk

research, telephone and face to face consultations with key informedpersonnel and organisations involved in business support. Government has aclear expectation that the private sector will close the gap in the businesssupport offer that exists following the removal of the Business Link Operatornetwork, most notably a lack of face to face, locally delivered businessdiagnostics and guidance. The main objective of this research is to provideknowledge that the GBSLEP can use to determine what its response to theissue of private sector business support provision could be.

This research and resultant strategic report is intended to be a workingdocument, that will inform the GBSLEP strategy with regards to the localprovision of business support services. It is envisaged that the information willbe 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 inEngland and Wales and the GBSLEP area - access to finance is covered in aseparate piece of work. It notes that business support is designed to help toimprove businesses (especially SMEs) performance and growth prospects

through the provision of support services (in some instances perceived asbusiness support if only being provided for free) that will be valued bybusiness. For the purpose of this scoping work, business supportencompasses the provision of business information, advice, consultancy,guidance and training at commercial rates or subsidised costs and / or forfree where there has been funding or a corporate social responsibility (CSR)contribution.

Government takes the view that locally provided business support serviceswill be delivered through volunteer mentors and a broad range of privatesector 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 todevelop and promote their support offer and charge commercial rates. Thestreamlined Government offer, primarily led by BIS, of the Business Linkwebsite and the Solutions for Business Portfolio will continue for theforeseeable future and the landscape will continue to be refined withoccasional additional products offered by BIS and other governmentdepartments and non-departmental public bodies such as UKCES.

Therefore a key question for the GBSLEP will be: Can sustainable, readilymaintained, locally accessible and affordable business support be provided

and delivered by the private sector with the strategic guidance and influenceof the GBSLEP and its members or partners?


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Currently, a brief review of LEPs websites indicates that the business supporthelp available through LEPs across the country varies widely in amount andfocus.

Review of business support delivery options

The business support arena and offer is highly fragmented, complex andcluttered especially when viewed from the business end of the telescope.There is a multiplicity of providers, signposting, points of access, eligibilitycriteria, delivery mechanisms, products, organisations and individualsinvolved. To add to the confusion of what is available, to who and at whatprice, the ease of accessibility or use of the core public sector businesssupport 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 beenidentified and defined:

1. Core public sector (BIS, UKTI)2. Local authorities3. Higher education institutions4. Further education institutions5. Financial institutions6. Professional services7. Trade associations & membership8. Business network / breakfast club & peer to peer support9. Private sector10. Social Enterprise Partnerships (SEP)

Part of this analysis was based on a review of some 250 different privatesector initiatives and providers. A list of these and more detailed informationabout 70 of these is held in a separate working document that will requireregular review and updating.

Each of these segments will have some cross-trading, interactions andoverlaps 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 thatmany of the private sector segments providing business support currentlyinclude those delivering fully funded products in some instances these maybe highly dependent on funded work for their business success. Thoseproviding business support on a purely commercial basis run into thethousands in their number (accountants, banks, training companies, HRconsultants ..). Within each of these ten segments exists some specificspecialisations as well as the ability to provide more generic forms of businesssupport.

The core public sector offer is run through BIS, the Governments lead

department for business support and its website links to its and other coreproducts (e.g. Business Links, Solutions for Business, Start up Britain,


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seems limited unless the bank has specialised in certain business or industrysectors even then advisors might signpost customers to specialistprofessionals on their approved list for commercially supplied businesssupport. Banks and other financial institutions do sponsor business networkse.g. Everywoman, British Association of Women Entrepreneurs; and business

support events such as exhibitions, seminars and training workshops beingrun by Chambers of Commerce and local authorities as part of their CSR andpublic relations strategy. Goldman Sachs is one of a small number ofexample of CSR initiatives highlighted in this segment as they are privatelyfunding a programme to be delivered to 10,000 business nationwide.

There are, not surprisingly, hundreds of professional services firms of allsizes in the GBSLEP area, and, while their core offer is in itself businesssupport or a specific expertise and resource not always found in SMEs andlarger businesses (accountancy, law, HR, architecture) their main productrange 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 theresearchers were aware of was also difficult to identify bar through word ofmouth. Professional services firms do sponsor subject specific seminars andprestigious events in the GBSLEP and provide indirect support in terms ofprovision of facilities to the LEP.

Recent business engagement events on behalf of the GBSLEP highlightedthe potential value of and under-utilisation of the plethora of tradeassociations, membership organisations and representative bodies thatare available to businesses. These organisations exist at a national level, butdeliver locally, or exist at a local level to provide targeted support to specificbusinesses. Examples include Chambers of Commerce, Federation of SmallBusinesses, British Retail Consortium, National Farmers Union (NFU) and theEngineering Employers Federation (EEF). Whilst all purport to offer businesssupport, the accessibility of this support varies widely. Some organisationshave excellent business facing web pages and local direct and telephonecontact opportunities, others appear quite inaccessible to all but paid upmembers and businesses. Each organisation has its own membership orbusiness community profile and remit but they also provide a breadth andwealth of information, advice and guidance for business, be it generic or very

specialised.

In addition to these private sector organisations (trade associations) are thesector skills councils and other government funded bodies providinginformation, advice and guidance to businesses. These are probably all underutilised as they are not always obvious on information portals, are fragmentedand not always accessible on searches made by uninformed businesses.

An almost overwhelming number of national and local business networkingclubs and groups provide yet another form of business support tobusinesses in the GBSLEP area. This is usually in the form of referral

marketing and peer to peer support with the anticipation of mutual trading andpersonal professional intervention or help. There are usually several


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Support will support all those seeking to start a business, whether thatbusiness is for profit or not for profit.

In broad terms, these organisations are generally very accessible tobusinesses, but if those businesses who do approach these organisations are

not eligible for support, they will usually be directed to more appropriateorganisations. Although this segments offer is very different, from the outsidelooking in, the social enterprise sector would appear to be a mini-sector andeconomy in its own right, albeit one which trades with the private and publicsector 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 goodidea of what businesses expect or ask of business support. Businesses indifferent stages of their life cycle have different needs and different levels of

experience in sourcing support, making it difficult for some to pinpoint thesupport they truly need, its availability and source.

Support sought ranges from information, advice and guidance (where to gofor what) to more specific implementation questions, for example how do Istart and what do I need to do to equipping a company for improvement orgrowth with business planning or market development plans and deliveryskills. Additionally more mature businesses may seek help with writing andimplementing 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 andsignposting, then leads to more topic specific support and guidance (ormentoring) and finally with the provision of quite specific or specialised,bespoke, support (consultancy, product development) which will be a moreintense, focussed, potentially complex and costly activity. To work throughthis offer line requires increasing levels of knowledge, competence, time andresource.

Given the less than clear business support offer and the fact that manybusiness people will start their search for support or advice using the internet

(and social media) which can often create more confusion around what isappropriate and available to them and their situation. The business supportoffer line does not necessarily match how business (people) seeking supportbehave, especially those with less experience of business itself or in seekingexternal support. Therefore the opportunity to discuss initially a question orpotential need with an informed individual is important to help understand theneed and determine what aspect of the business support offer line is neededand 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 ofindividual 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 / timerequirements involved.


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The research evidence base around the sources of business support used bybusinesses demonstrates there is no one source of information that is clearlyfavoured; 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 thesuggestion that up to a third of SMEs would not know where to go forbusiness support. The delivery mechanisms used for business support andinformation delivery also need to be tailored to the stage of development ofthe business and in some instances its market sector of operation.

Accessibility of business support varies by supply segment. Themultiplicity of individual product and service offers, providers and targetbusiness support client reduces any chance of making it clear to a businessseeking support what they can get, what they need to do and what costs areinvolved. The less informed, start up and static businesses in particular are

unlikely to be able to easily access the information, help or support they needwithout some guidance or interpretation of their ask and translation of thebusiness support offer. No one seems to make it easy - finding support canbe pot luck unless you are in the know. This puts the more vulnerablecompanies at risk of failure.

We need to encourage businesses to learn ask for what they need rather thantake what they are told is there or on display as the lack of overtly publiclyavailable information on what is on sale will further deter businesses whichwould benefit from help accessing it. During the scoping exercise it proveddifficult for the researchers to elicit detailed, or indeed any, information aboutbusiness support offers from some of the segments or individual organisationsactually involved in the provision or delivery of relevant initiatives.

LEP engagement and partnering

The rationale for the GBSLEP to partner with private sector suppliers ofbusiness support must be carefully considered. A series of key questionshave been identified that need to be addressed by GBSLEP prior to adecision as to whether to partner or not, being taken. These includeascertaining 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 partnershipwith those private sector organisations delivering sustainable businesssupport which is accessible to a wide audience. Such partnerships might helpin the presentation of a cohesive package of business support servicesthroughout the region and smooth the fragmented and cluttered market place.

While there are a number of issues surrounding potential partnershipsbetween GBSLEP and private sector organisations, the key ones would seemto be whether or not partnerships should be only with those supplying publicly

funded services or not, what the advantages would be to partners and whatwould be the impact on take up by businesses within the GBSLEP area?


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and the impact they may have on the GBSLEP future strategy forbusiness support.

7. Develop a mechanism to improve the (equitable) identification of thosebusinesses that need, and are receptive to, business support?

Products are being developed without ascertaining the exact levels ofdemand.

Communications

1. GBSLEP could utilise this research to develop an online supportgateway, detailing how to access the different supply segments, whateach does or can offer to businesses and in what types ofcircumstances 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 supportunderstand what is available, what it is now called and who it isavailable to.

3. Part of the GBSLEP communication strategy could be to partner withBIS and other public sector bodies to develop cohesivecommunications that are focused at a local level.

4. Part of the GBSLEP strategy around communications should be toensure that each local authority member is aware of the businesssupport offering available throughout the GBSLEP area.

5. GBSLEP could gain by interacting with the various business networksand clubs throughout the region, using them as an additionalcommunication platform to raise awareness of business support offersthat may be available and delivery of seminars and training in a costeffective 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 forfinding trustworthy deliverers and determining the likely type(s)business support needed and its potential impact on the businessssuccess almost an educational programme.

2. Examine the provision of specific vs generic business support by typeof business, sector or specialisation to better inform routes to entry forbusiness support .

3. To reduce confusion, improve access and reduce the time taken forbusiness to search for support on an easily found route to entry to each

part of the offer line is required. GBSLEP might consider howfunnelling of specialisation, generic need or sector specific enquiries


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can be simplified and refined this, together with a translator of theperceived business support need into a more specific and betterdefined requirement, could lead to a more effective and efficientlyfulfilled business support offer.

Partnering

1. An independent evaluation of the initiatives identified as best practicewill enable GBSLEP to determine which ones best fit the GBSLEPstrategy.

2. The HEIs links and excellent work with business needs to beharnessed and more clearly communicated to the business community.

3. The FEI segment offers GBSLEP the opportunity to work withbusinesses through workforce development, such as the take up of

apprentices and up-skilling the workforce. It is recommended GBSLEPraise this opportunity with the FEIs.

4. GBSLEP should develop a working relationship with the banks andfinancial institutions to reduce the hit and miss nature of supportoffered, particularly to business start ups.

5. GBSLEP should work with the representative organisations for theprofessional services sector rather than with the plethora of individualpractices that exist.

6. Trade Associations provide the LEP with an excellent opportunity todevelop specialist business support, particularly with those in receipt ofGovernment funding (directly or indirectly) such as the NISP who haveoffices in Birmingham.

7. To add value to this segment of provision it would make sense for theGBSLEP to ensure these associations understand how the LEP worksand encourage Trade Associations to clarify specific business supportoffers and their accessibility.

8. GBSLEP must better understand the impact of the social enterpriseeconomy on the area as a whole, determine how it may interact withthis sector and decide how it can best engage the sector to enhancethe GBSLEP area. The LEP must understand better how SEPs achievetheir customer buy-in to their varied support offers. What lessons canthe 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) isseeking to effectively identify, understand and collate the emerging privatesector business support offer, following the Governments restructure ofpublicly funded business support services.

The research conducted focused on the identification of both private andpublicly funded business support services available to businesses andbusiness start ups within the GBSLEP area. Through the research, a listing ofthe services, a brief description, identification of the suppliers of thoseservices and clarity around their target audience has been completed, therebyenabling the LEP Business Support Group to better understand the spectrumof the current business support offer.

Furthermore, the research sought to identify any elements of duplication thatmay lead to confusion amongst businesses, and similarly will makerecommendations around the concept of co-ordinating activity whereappropriate, 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 couldbe, it is important to recognise the strategic background against which this isset.

The Government, in its strategy document Bigger, Better Business: Helpingsmall firms start, grow and prosper states that the Government will focus itsresources on improving small business performance and growth.

That strategy document goes on to state:

We will modernise the provision of online information so allbusinesses can access what they need, when they need it.

We recognise that there are now many excellent privateproviders of business advice as well as business networks bothonline and offline. Governments role is not to duplicate thisactivity, but to intervene only where there is evident marketfailure.

It is therefore clear that Government requires the private sector to step up tothe challenge of providing business support services that are valued bybusinesses small and large alike.

A typical definition of business support is used by Derby City Council, whichdefines business support as:


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Any publicly funded activity that benefits a business or potentialbusiness 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 ofbusinesses, increases SME profitability and assists businessdevelopment and growth. It incorporates information, advice,training and consultancy.

Therefore, when seeking to define business support provided by the privatesector it is fair to conclude that one or more of the following elements shouldbe 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 theirrequirements for business support services are identified further in Section 4of this report.

This study does NOT encompass access to grants or finance. Somebusinesses have (unrealistic) expectations that business support will enablethem to gain access to grants and funding and that other support activitieswill be provided free of charge or at least subsidised. Whilst some servicesare subsidised there are a large number of companies that specialise inproviding only financial advice and related services. To ensure this aspect ofbusiness support is also examined, a separate study has been commissionedby GBSLEP.

C. Context of this Work

The GBSLEP area

The GBSLEP encompasses a diverse rural and urban geographic area, ishome to approximately 1.9 million people and contributes 36bn GVA to the

economy. There are approximately 800,000 jobs within the area, whichcomprises:

Birmingham & Solihull

Southern Staffordshire (Cannock, Lichfield, Tamworth, EastStaffordshire)

Northern Worcestershire (Redditch, Bromsgrove, Wyre Forest)

The GBSLEP has established ambitious targets, seeking to create theconditions to increase GVA by 30% by 2020 and enable businesses to createa further 100,000 private sector jobs. To help achieve these challengingtargets, it is essential that the GBSLEP understands the private sector


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business support offer, and is able to shape and influence the nature ofbusiness support provision appropriately.

Focus for business support in the future

The nature and scope of publicly funded business support has undergone itsmost radical change since the creation of the Business Link network in themid 1990s. The regional Business Link operator network ceased to exist in2011, and the Business Link website (www.businesslink.gov.uk) wasrefreshed, content revised and links to other Government departmentsbusiness support activity strengthened.

This process of change will continue in future years, reflecting the differentways in which companies do business, and also taking into account a differentphilosophical 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 thosestreamlined activities into the Business Link portal.

Government has the view that locally delivered business support services willbe delivered through a combination of volunteer mentors and a broad range ofprivate sector businesses to start-up and established businesses. This in turn,will reduce the emphasis and reliance on Government funded (and in turnlocal authority funded) business support services. Future business support willbe led by businesses who understand the needs of other businesses, andwhilst some of these services may be delivered free of charge, as part of thecorporate social responsibility of such business support suppliers, there is anexpectation that ultimately, companies will pay commercial rates for thesupport they receive.

Therefore, the Governments view of business support provision for the futureis:

A streamlined, but wide reaching web portal(www.businesslink.gov.uk) will be supplemented by telephoneaccess (for those primarily without internet access or who areunable to find information on the website).

The Solutions for Business portfolio of services will be funded byGovernment, but largely delivered through private sectorbusinesses or not for profit organisations.

Funding through schemes such as the Regional Growth Fund willtarget specific job creating projects, rather than supportprogrammes

Private sector businesses will be encouraged to develop andpromote a support offer that other businesses can access on acommercial basis (recognising that some larger professionalservices companies, financial institutions and others may offer

some free at point of delivery support as part of their corporatesocial responsibilities)


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The Local Enterprise Partnership role will be to act strategically toidentify and summarise the business support requirements of locallybased companies, subsequently acting as a conduit to, rather thanas a deliverer of, such support. To do this GBSLEP would have torefresh information on an ongoing basis and resource this a big

ask.

Recent and likely changes in the business support landscape 2010 - 2013/14encompass the already streamlined 200+ government funded activities intoone gateway Business Link and the reduction one-to-one mentoringinitiatives, 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 deliveredby the private sector with the strategic guidance and influence of the GBSLEPand its members or partners?

D. Approach Adopted for this Work

Hawthornes Research & Business Development set out a clear and conciseapproach for the delivery of this project summarised as follows:

identify the (private sector) delivery organisations operating in thenational, the regional and the local market place

provide relevant contact details, programme of activities,summaries of key benefits/opportunities to customers, costs anddelivery mechanisms for each of the delivery organisations

identify any synergies or potential duplication with publicly fundedschemes

brief assessment of the quality/impact of the programmes identified

construct a partnering framework for the LEP identifying potentialjoint programme work

collate all the separate research, analysis and recommendationsinto a summary report for presenting to the Business support subgroup with elements more detailed in the appendices

The project methodology combined desk research, documentation reviews,consultation interviews and electronic questionnaires. In each of theseprocesses, the knowledge of business support service availability was probedand business support providers and services identified.

To gauge the private sector business support offer, it was essential tounderstand the publicly funded business support offer and how the privatesector is integrated within the wider context of business support. To supportthe secondary research findings, consultations were undertaken withindividuals, local authorities, educational institutions, trade and membership

bodies, private sector providers and third sector organisations deliveringbusiness 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 SupportProject is the knowledge for the GBSLEP to be able to gauge the current

level of private sector business support and determine what its response tothat should be; the primary output being the identification and summarisationof the types of business support services available. However, in isolation, thisinformation would be of limited use to the GBSLEP Business Support Group.Therefore, it is supplemented with information relating to business supportservices available nationally and locally that are available to businessesoperating in the GBSLEP area.

It is important to note that in undertaking this project, we have adopted theapproach of a business seeking support, and searched for support in thatmanner. There have been instances when individual consultations with

support providers (both public and private sector) have revealed that theyoffer other services to those that initially prompted attention. If those servicesare not immediately obvious to a business, it is likely they will not pursue thatsupplier, and will move on to the next one. Therefore, whilst we have soughtto develop a directory of meaningful private sector business support, we areunable to guarantee that we have been able to identify all such hiddenbusiness support services that may exist.

The thousands of individual private sector organisations providing servicesthat are or might be classified as business support are not included in thisresearch.

The report scopes the private and public sector support services that areavailable to businesses, highlights key aspects of good practice andinteresting initiatives in each identified segment of business support provisionand suggests how the GBSLEP might consider partnering with it. The reportalso reviews the business requirements of business support and makesrecommendations for appropriate next steps.

Within the report appendices, is a list of business support providers and theircontact details and an outline description of selected business support offers

including the nature of the activity and the source of the funding for theservice. The appendices also detail the references used and details ofconsultees by organisation.


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MAIN FINDINGS

1. SCOPING THE PRIVATE SECTOR BUSINESS SUPPORT OFFER

1.1 Business support delivery channels

The research has very substantially demonstrated the complexity of thebusiness support arena with its multiplicity of providers, signposting andaccess points, eligibility criteria (especially if funded or free), deliverymechanisms and delivery organisations or individuals.

We have collected much of the array of information and business supportoffers available throughout the GBSLEP region from a number of sources butanalysed 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 modeof working.

To help clarify the offer and provision of business support while scoping theprivate sector business support offer we have defined ten delivery segmentsfrom this multiplicity of channels of provision.

11. Core public sector (BIS, UKTI)12. Local authorities13. Higher education institutions (HEI)14. Further education institutions (FEI)

15. Financial institutions16. Professional services17. Trade associations & membership18. Business network / breakfast club & peer to peer support19. Private sector20. Social Enterprise Partnerships (SEP)

The matrix below further categorises these segments from the businesssupport seekers viewpoint.

Deliverer matrix

(Perceived as) Publicly funded Professional and supportiveorganisations

Private sector (commercial)businesses

Central Government BL, SfB,MAS, BIS initiatives, EnterpriseNetworks

Professional serviceaccountants, lawyers

Specialist private sectorproviders commercial and viafunded activities

Local authorities, GBSLEP,LSPs, SSP, BEP, TL4B,Marketing Birmingham

Banks and other financialinstitutions

General business supportproviders and individuals CSR/pro-bono/ Sponsorship

Universities and UniversityColleges

Trade associations andmembership bodies

Social Enterprise Partnerships/Community Voluntary Service

Further Education Colleges Networking based businessclubs and peer to peer support

Training providers


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The following sections of this report examine, in brief, each segment ofbusiness support provision, describing the context, generic offer andhighlighting key initiatives or business support offers. Suggestions forengagement with each are made. Ultimately we assess where gaps inprovision 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 andproviders. This list and more detailed information about 70 key private sectorprovision / providers where appropriate is held in a separate workingdocument that will require regular review and updating. The absolutenumbers are not statistically robust as there will be many more offerscontinually being put into the market place. To some extent the research isdependent upon individuals knowledge of what is out there this reflects theprivate 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 availablefrom each of the ten different business support provider groupings. It provides

a brief overview of the offer from each segment and highlights issues aroundaccessibility, examples of best practice and potential opportunities forengagement.

2.1 Core Public Sector Offer (Excluding Local Authorities)

Outline description and accessibility

The Government delivers business improvement and support servicesthrough a number of channels, albeit reduced and streamlined in recentyears. As a result of these changes, no central, guaranteed funding for localactivity is available for the use by GBSLEP in the way Advantage WestMidlands (AWM) and Business Link West Midlands (BLWM) used to operate.However, there are a number of national programmes of support either thecontinuation of existing initiatives OR the introduction of new schemes. Theseinclude the retention of the improved Business Link website, and dedicatedtelephone support, Manufacturing Advisory Service (MAS) and the soon to befunded Coaching for Business Growth. The integration of HMRC and DWPbusiness support information into the Business Link website should not be

overlooked.

These latter national initiatives can be accessed by GBSLEP businessesthrough locally contracted deliverers. Some offers appear to be more akin totrade associations than a businesses perception of what the Governmentprovides, for example Society of Motor Manufacturers and Traders (SMMT).The extent to which these then sign to points of access for specific chargeableor public funded provision by private sector businesses might be consideredfor further exploration.

BIS is the Governments lead department for business support and its website

provides links to Business Link and the (non-Government private sectorsponsored) Start Up Britain campaign (which are seen as primary routes forgeneral information for existing businesses).

The ease of accessibility or use of the core public sector (Government)business support product is considered variable, particularly from thebusiness end of the telescope. Obviously Business Link is accessible toanyone with internet access and who is familiar with navigating complexwebsites to secure appropriate information. However, the concern is that theless informed, start up or innovative business people are unlikely in manyinstances to be able to navigate through the site without help to understand or

translate their need and implement this. For mentors and more informedbusinesses it is an excellent tool.


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The multitude of individual product offers does not make it clear to a businesswhat they will get, what they need to do and if there are any costs or matchedfunding / time requirements involved.

Accessibility appears more and more complex the more focused or bespokethe business support sought. Similarly the lack of clarity on financialimplications adds to the complexity of accessing and benefiting from theseoffers. This situation is also reflective of much of the HEI, FEI and privatesector business support offer in some instances exacerbated when thesesegments are delivering publicly funded support.

Furthermore, businesses become confused by the almost constant re-namingand re-branding of Government funded initiatives, and this is a potentialbarrier to their accessibility and success. Also, if business engagement isintermittent, businesses may be seeking former, now no longer available, re-

grouped or re-branded, services.

Offers

The public sector offer line starts with a broad spectrum of information throughto more specific advice and guidance to bespoke support. Examples ofgeneric support include forums to toolkits through mentoring and consultantsupport to specialist input and provision. Some of the core public sectorsignposting is focused on the provision of access to finance support (fundingand grants) to businesses rather than on specific business improvementadvice 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 tobe incurred the further along the offer line a company travels. (For example,the Coaching for High Growth initiative, that provides one to one specialistcoaching, requires a client contribution if the company is successful insecuring support through this service).

There is often a lack of clarity as to exactly what support is provided and atwhat cost for some public sector business support offers, for example thosewithin the Solutions for Business portfolio.

Examples of good initiatives

Taking a pragmatic view, the streamlining and regrouping of the plethora ofGovernment 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 pastsatisfaction from services such as BLWMs Transforming Business and the


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Mustard service, which had many of the components that are to beincorporated into Coaching for Business Growth.

LEP engagement and partnering opportunities

Across the core public offer there needs to be a higher or better level ofcommunication as it is still a mystery to even the partially informed business.Part of the GBSLEP communication strategy could be to partner withBIS and other public sector bodies to develop cohesive communicationsthat are focused at a local level.

GBSLEP ought to consider engagement with those private sector deliverypartner that have been selected to deliver the Coaching for Business Growthservice within the area. This could enhance the value of the initiative inattracting the candidates who would most benefit from the support and in turncontribute to the GBSLEPs growth strategy.

Another activity to be considered is mapping the core public sector offer fromhow 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 thenew offer accommodates this de-duplication of provision. Good and regularcommunication of this (dynamic) situation could help all involved in thebusiness support advice, guidance and supply arena.

It is not a question of telling businesses what they need and what is there butallowing businesses to ask (sometimes with informed help) for what theyneed.

Appendix A provides full details of the public sector offer via the Business Linkwebsite, via BIS and partner agencies, and through the other public sectorproviders. As a range of third party organisations/ brands are leading ondifferent aspects of the support they can also all be accessed via the BLwebsite or their direct link e.g. grants for Research and Development can beaccessed via www.innovateuk.org.uk; and the Manufacturing AdvisoryService 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 somemore bespoke sectors are available. Given the importance of automotivedetails of some 8 different support streams including the Low Carbon andFuel Cells Centre of Excellence; and the Foresight Vehicle Programme areprovided.

This section also highlights offers of private sector support that are marketedvia 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 byprivate sector sponsors developing a theme of further blurring the

relationship between the public and private sector.


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2.2. Local Authorities


Local authorities within the GBSLEP have varying levels of, and commitment

to, providing business support. As business support is not a statutoryrequirement, it does not always feature highly in their performance indicatorsand involvement is often limited to interactions between regulatory officers(e.g. planning and health) and businesses requiring these services. Also, localauthorities may not be an immediate front of mind potential source ofbusiness support, except in a regulatory context or by companies seekinginward investment opportunities.

However, most of the authorities have allocated monies for economicdevelopment departments to encourage economic growth, businessengagement and at least provide basic signposting to government or local

resources where these exist.

Those more active authorities are pursuing business support initiativesfinanced through successful bids (primarily European and formerly AWM).Authorities report differing numbers of calls from businesses seeking purebusiness support (rather than statutory issues) from a couple of calls eachweek to regular dialogue with key businesses and those who particularly seekengagement with the councils. In several cases, the detail of the caller, andthe nature of the enquiry, are not always recorded and therefore it is difficult toassess the extent to which businesses seek information from authorities.

Local authority websites are generally user friendly and searchable bybusinesses the importance of keeping web pages up to date is noted. Mosthave links to other websites such as Business Link, Think Local for Business,Find it etc. However, active business support and face to faceinteractions are less overt or accessible to the uninformed localbusiness user. Those authorities with a number of initiatives for businesssupport are, to some extent, reliant on their contracted deliverers e.g.colleges, Social Enterprise Partnerships (SEPs) and occasionally privatelycontracted suppliers of support to engage with businesses.

This research revealed the suggestion by councils and businesses that findingbusiness support can be pot luck unless you are in the know. Localauthorities 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


There is a mix of free and chargeable offers to businesses provided by thelocal authorities, dependent on the nature of the service being delivered andthe local authoritys approach to accessing funding and to the authoritysphilosophy towards supporting local businesses.

Some authorities provide grants, solely based on appropriate applicationsfrom businesses, others require businesses to contribute to services orgrants through matched funding mostly in the form of cash rather than an inkind contribution. Specific business services such as food hygiene coursesdelivered through environmental health departments may be charged at fullcommercial 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 businesssupport. One local authority respondent observed: Should councils fill thegap in support for micro-businesses?


There are several examples of good practice from within the local authoritysegment including:

Think Local for Business Find it in Birmingham

Birmingham City Councils High Growth Mentoring Scheme (deliveredfree of charge to the end user by Deloitte who are funded by the CityCouncil)

Solihull Metropolitan District Councils business support and trainingcourses delivered through Balancing Business


The formation of GBSLEP has provided a good opportunity to engage acrossand within its representative local authorities, thereby providing theopportunity of a level playing field for the provision of joined up businesssupport across the whole region.

GBSLEP should consider partnering with local authorities to promote andenhance their strategic business support offers. Based upon our experienceof business needs, identified in Section 4, those services that potentially addmost value to customers include ease of access to tendering, for exampleFind It In and Think Local for Business.


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2.3 Higher Education Institutions (HEI)


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 WestMidlands. This was established with the aim of fostering collaboration andbuilding regional partnerships between HEIs to support economic, social andcultural wellbeing. A major facet of Universities West Midlands work is saidto be around business engagement, in particular providing opportunities forbusinesses in the region for:

Graduate internships

Business improvement

Workforce development

Providing facilities

In addition most other universities which have a business school haveopportunities which may be useful to businesses within the area

Universities are proud of their individual areas of expertise, teaching andprovision of our future work-force. All have business facing activities thoughthese 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 differentnames for their business facing faculties. A mutual lack of connectivity exists.

As one HEI respondent noted, You need to know someone, or havecontacts, or have links in to take advantage of University businesssupport.

As a business searching for business support, the initial web-site visits andsearches and telephone contact to the HEIs revealed limited information. Formany businesses this might be the least obvious sector for business support;except perhaps for innovation or pure research. The lack of publicly availableinformation may deter businesses from seeking support from this sector. It isonly with prior experience of contacting an institution, or through access to an

informed contact that the extent of support available to businesses becomesclear.

Offers

The University sector offers a range of support services to businesses. Thekey offers are highlighted below:

Knowledge Transfer Partnerships (KTP)

Graduate/ PhD researchers (often linked to the learning objectiveswhen 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) deliveredthrough Aston University, Warwick University and BirminghamUniversity


Higher Education Institutions may have European, national or locally funded

schemes available that will provide business support services, for examplethe Niche Innovation Scheme that provides grant support to West MidlandsSMEs within the niche vehicle sector to work with a HEI or researchorganisation on R&D or product development.

There is very little provision from within this sector that is free of charge at thepoint of delivery. Some provision by lecturers and faculty staff is chargeddirectly into their own business account, and thus could be classified asprovision by a private business.


A number of best practice initiatives were identified through the research:

Aston University Support for High Growth Businesses funded byGoldman Sachs

Staffordshire Universitys For Business their one stop shop for allbusiness enquiries into the University.

Birmingham City University Birmingham Institute of Art and Design -has some of its latest facilities available for hire. This incorporated acollaborative 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 andSMEs through creating a demand led approach to supportinginnovation.


There is an opportunity to maximise the potential for businesses to engagewith 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 awarenessof the value that HEIs can potentially bring to businesses through their arrayof business support products. For example, initiatives that have the potentialto add significantly to the areas economy, such as the Goldman Sachs

service provided through Aston University, could be promoted more widelymaximise their take-up.

There are examples of Universities utilising private sector organisations toprovide additional expert support, including Staffordshire UniversitysBusiness Club.


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2.4. Further Education Institutions (FEI)


The Colleges of Further Education primarily provide education below degree

level for over 16s. This includes work-based learning. Traditionally they havebeen associated with day release courses enabling those in employment togain recognised qualifications relevant to their work. Increasingly they havebecome involved in delivering skills to the unemployed. Therefore businesssupport could be considered to be largely indirect.

Colleges see their role in relationships with businesses as having an impacton the economy through up-skilling which is important and supporting peopleinto employment. There are specific demands from some employers (e.g.Toyota) that will not only be delivered at the College but also within theorganisation. 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, theinternet and careers advisors/job centres. However the colleges have becomefar more pro-active, partly through open days but increasingly through havingstaff whose job is to make contact with businesses with the ultimate aim ofrecruiting more students.

In the main the websites are very student orientated and frequently do notappear to offer much to businesses looking for help and support. Thoughmany of the colleges have a unit classified as business development theirnumber one priority frequently appears to be the development of the collegesbusiness 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 voicemailmessages, and websites that give no clue as to what if anything is available inthe way of help for businesses.

Offers

Further education establishments traditionally provide a less expert focus thantheir higher education counterparts but their expertise is in their focus onvocational training and apprenticeships relevant to the needs of businesses.They are also expert at ensuring businesses can obtain nationally recognisedqualifications below degree level for their employees. Other offers include:

Apprenticeships (brokering and support)

Developing sustainable links with larger employers for example throughdeveloping 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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One of the main aims of colleges is to fill places on courses so as to maximiseincome so courses tend to be on a full cost basis. However, there are somenational funding opportunities available for the unemployed and young people

as well as some more local ones e.g. from Skills for Midlands Growth. Localprivate sector funding is rarely available. Again it is stated there is an array offunded training for businesses and their employees but this is not alwaysspecifically signposted or overtly publicised; perhaps this is due in part to thecomplex eligibility criteria to access such training.


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 to100,000 available to enterprises and entrepreneurs of SMEs andstart-ups that are able to provide up to 50% match funding. Eachbusiness supported will be provided with a mentor, as well as skills andassessment training.

NEW College has a downloadable business plan template for thoseseeking to start a business and for established businesses

South Staffordshire College offer desk research and visit businesses toidentify 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 butwho are unable to do so in the current climate. The ATA acts as theemployer for the apprentice and place them with the host employer.The host employer pays the ATA a fee for the apprentices servicesbased on the wage agreed with the host and the ATA management fee.


Further education colleges are active in utilising a variety of media channels(press, radio, poster, advertising) to promote awareness of their services andopen their doors to businesses.

There is, however, no obvious sign-posting to further educationestablishments and the majority of these institutions appear to be selling tobusinesses, but it is hard for a business to know what support services to askfor. There is clear opportunity for GBSLEP to fill this gap.

Additional partnering opportunities exist around the provision of apprentices tobusinesses 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


These are defined as profit making organisations primarily involved in money

management. Almost all of them have a High Street presence though thetrend in recent years has been the growth of call centres not necessarily inthe U.K. and internet banking. The call centres can be expected to deal withmost of the issues an SME might have, though in practice the person at thefirst point of call may only have the information on the web site. The Banks willnormally have a specialised business banking sector aimed at helpingbusinesses. Santander also have a presence through the Post Offices/subPost Office network.

This research has primarily focused on banks as we are aware of a separateproject looking at Access to Finance. It is evident that a number of

Government led financial initiatives to stimulate growth are being channelledthrough venture capitalists and other investment and funding organisationse.g. Mercia Technology Seed Fund and BCRS. Several of these organisationsdo provide business support, but this is mutually dependent upon securingfunding.

Offers

As well as the basic banking facilities there will usually be some incentives fornew customers in particular free banking for a period of time and access to aBusiness Manger / Advisor / Mentor. Other items might appear attractive,such as the Free Start-Up Course which is actually some leaflets andmentoring. They may have advisors who specialise in specific businesssectors and might also offer to signpost customers to specialist professionalson their approved panel.

Banks and other financial institutions may sponsor events and workshops,such as Chamber of Commerce seminars, business start up workshops andtrade shows.

The banking industry has also collaborated with the Government to develop

and launch the MentorsMe portal, which matches businesses with thoseindividual volunteers seeking to offer mentoring support to companies.


The Financial Institutions are in a good position to know what funding andgrants are available and to signpost to these. However, they are commercialbusinesses and therefore not well known for giving money away and aim tomaximise uptake of the services they have to offer! In some instancesfinancial institutions are used by the Government as a vehicle to providebusiness support as part of their corporate social responsibility agenda.


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There are several examples of good initiatives from this segment. The LloydsSME Charter includes a commitment to run a programme of seminarsnationwide to provide expert guidance and support for SMEs on subjects

including starting up, employment, exporting, sustainability and finance, aswell as specialist seminars for the healthcare, education and manufacturingsectors. They have also enhanced their on-line guidance and support tobusiness 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 freeon-line business course.

Goldman Sachs have established an initiative to support 10,000 small

businesses nationwide (in partnership locally with Aston University). This isaimed at helping small businesses create jobs and to drive economic growth.It is designed to provide high quality practical support to the owners andleaders of established small businesses and social enterprises as they seekto grow.


Banks have a clear remit around corporate social responsibility, and to thisend, GBSLEP should seek to understand how the banks, regionally, aim tofulfil their corporate social responsibility obligations, forging appropriatepartnerships where there is clear synergy with the LEPs strategic objectives.

GBSLEP should not promote the core banking offer of one banking groupover that of another. Instead, GBSLEP ought to consider focusing on theadded value services provided by financial institutions, raising awareness andensuring knowledge of initiatives such as Goldman Sachs 10,000 SmallBusinesses.


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2.6 Professional Services Sector


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 maynever need e.g. recruitment agencies. Access is usually initially by telephoneafter a recommendation, searching Yellow Pages or the internet. Some ofthese 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 businesssupport offer proved difficult, even where we knew that a serviceexisted, unless a specific contact name was available. There was areluctance on the part of several organisations to identify and articulate the

business support services they provided (apart from their core commercialoffering). In some instances, our researcher found a better approach was totarget the public relations departments within these businesses, who weremore likely to identify what business support they offered, in particular toSMEs.

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 impartknowledge relevant to the target business audience.

High level business and leadership mentoring

Access to business tools and peer group networks (primarily availableto 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 privatebusinesses and Ernst Young have "Accelerate" - free business workshops for

young business leaders.


The professional services sector is made up of commercial organisations andusually their services will have to paid for in full. However, these organisationsmay use part of their marketing budget to provide occasional free advice toexisting customers and to potential customers, for example they may sponsorthe AGM of a professional body at which they give a presentation on the latestdevelopments 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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The few initiatives that stand out were run through the professional servicesrepresentative 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 freebusiness advice on how to overcome challenges faced by SMEs. This advicemay 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 AdviceService are mostly likely to be seeking a new accountant, and as such, thescheme is basically an excellent marketing tool for ICAEW members whosubscribe to the initiative.

The Law Society, through 1,000 firms of solicitors gives 30 minutes freeadvice through its Lawyers for your business scheme. Advice can be soughton a range of legal issues including finance, taxes, employment law,contracts, company structures and health and safety. They also providedownloadable 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 areknow to provide high quality seminars with little or no overt sales involved, forexample, Keeleys Solicitors and The Chartwell Practice in Burton upon Trentand Birmingham.


From a logistical perspective, there are so many professional organisations inthe GBSLEP area that it would be extremely difficult to choose which

organisations the LEP would wish to partner with, or develop relationshipswith. 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 itmay be appropriate to consider establishing links with national or regionalbodies 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, eventhough we know from other sources that they are delivering services inconjunction with Birmingham City Council. This raises the question, Oughtthe LEP to ascertain whether this is a reflection of the sectors strategytowards helping smaller businesses or an activity in need of awarenessraising?


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2.7 Trade Association and Membership Organisations


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 alocal level to provide targeted support to specific businesses. Examplesinclude Chambers of Commerce, Federation of Small Businesses, BritishRetail Consortium, National Farmers Union (NFU) and the EngineeringEmployers Federation (EEF).

Whilst all purport to offer business support, the accessibility of this supportvaries widely. Some organisations have excellent business facing web pagesand local direct and telephone contact opportunities, others appear quiteinaccessible to all but paid up members and businesses.

Each organisation has its own membership or business community targetprofile, primary and secondary remits (e.g. lobbying), member services,promotion of its industry or sector through to generic business support: but onbalance they provide a breadth and potential wealth of information, adviceand guidance for businesses.

In addition to these private sector organisations are the sector skills councilsand other government funded bodies providing information, advice andguidance to businesses e.g. Carbon Trust, WRAP, Environment Agency andNatural England. These are probably all under utilised as they are not alwaysobvious on information portals, are fragmented and not always accessible onsearches 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


It is difficult to separate out the multiple funding routes and degrees ofdependence on membership subscriptions, commercial work, funding bids

and the winning of public and private sector contracts. This is in part due tothe commercial sensitivity of such an analysis as well as the complexity.


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2.8 Business Networking / Breakfast Clubs / Peer to Peer Support


Business networking, referral marketing groups, business clubs and peer to

peer support groups exist in a number of guises to provide businesses withthe opportunity to meet their peers, interact, trade and learn from othersexperiences.

There is an overwhelming number of business networks and business clubsfrom which business owners may benefit. These range from peer to peersupport networks such as The Alternative Board and Academy of ChiefExecutives, through structured referral marketing networking groups such asBNI and Business for Breakfast, through to independent and informal orsubject led business networking events with their own rules and modusoperandii. Also delivering business networking opportunities are professional

bodies, Chambers of Commerce, Federation of Small Businesses and otherrepresentative and industry groups.

These networking opportunities exist across the whole of the GBSLEP areaand there are usually several networking events available within every town,providing considerable choice to businesses. Regular networking events aresupplemented by more ad-hoc arrangements such as Meet the Buyer eventsor Business Growth Shows.

Networking groups are, by their nature, accessible to all and most are wellpublicised through both traditional routes, and also through the use of socialmedia platforms.

Offers

It is true to state there is probably a networking event or organisation to caterfor the specific needs of every business, be that meeting other businesspeople, gaining peer support, generating leads and opportunities or learningabout new legislation. Some business networking groups are sectorallybased, others have one place per business type and some are open to all.


The costs of this type of support vary considerably, dependent upon the leveland nature of support provided. For example, monthly support from TheAlternative Board could cost between 400 and 1,000 per month, dependentupon the package of support subscribed to. A referral marketing businessnetwork could cost in the region of 1,000 per annum (BNI). Alternatively,businesses can choose to attend networking opportunities on an ad-hocbasis, for example pre-registered attendees at Business Growth Shows cansecure free access (exhibitors pay to promote their business). Cost structuresusually 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.


Best practice is dependent upon the specific requirements, objectives and

profile of each group. However, during the research, we noted particularlyinteresting 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 varietyof platforms in promoting and growing business opportunities for its members.In addition to regular networking opportunities, the Mafia hold an annual, highprofile conference.


There are many different organisations active in this area, and given thenature of their activities, the majority would be agreeable to some form ofpartnership linkage even if that extended solely to a link to their website.Most networking groups are very amenable to hosting public sector speakersto discuss business related initiatives and issues that may be of relevance totheir 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 raiseawareness of business support offers that may be available and delivery ofseminars and training in a cost effective manner. The LEP must consider whatits ideal network type is, and how it may interact with them for the mutualbenefit of both this may be a role for the communications team rather thanthe business support team.

The GBSLEP should consider exploring the Yorkshire Mafia concept ingreater detail, which has proved to be an excellent profile and image raiser forbusinesses 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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2.10 Social Enterprises


In this context, social enterprises are considered to be those organisations

delivering business support activities on a not for profit basis. In manyinstances these organisations are heavily dependent upon public funding tosupport their service delivery offer. This does not, however, mean that thoseorganisations will always deliver support to businesses that is free of chargeat the point of delivery. However, any income generated is re-invested in thedelivery of services to other companies. That funding also covers theiroverhead, salary and delivery costs.

Examples of social enterprises include Business Enterprise Support,Staffordshire Business Innovation Centre, Groundwork, Social EnterpriseWest Midlands and the Birmingham & Solihull Social Economy Consortium

and its network.

In broad terms, these organisations are generally very accessible tobusinesses, but if those businesses who do approach these organisations arenot eligible for support, they will usually be directed to more appropriateorganisations. An example of this is demonstrated by Business EnterpriseSupport, who employ a number of Business Coaches whose primary remit isto identify individuals who are seeking to start and run a business. Wherethey meet businesses in need of support, they signpost to other organisationswho can meet that need.

Social enterprises have very quickly identified social media as an increasinglyappropriate method of reaching out to its target audience, and the majority areextremely active in this area, utilising Twitter, YouTube, Facebook and otherplatforms.

Offers

The offer available through social enterprises is not homogenous, in fact, foreach sector we have researched, this is the most fragmented. The overalloffer is dependent on the aims and objectives of each individual social

enterprise or group. For example, Social Enterprise West Midlands providessupport, including business support, to other Social Enterprises, whereasBusiness 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 socialenterprise sector would appear to be a mini-sector and economy in its ownright, albeit one which trades with the private and public sector.

item 3 - final report scoping the private sector offer for business support

Documents