Sefton MBC On Behalf Of: Business Link Greater Merseyside, Greater Merseyside Learning & Skills Council And Sefton Chamber Of Commerce
A Strategic Framework For The Delivery Of Business Support Services In Sefton
A Final Report
December 2004 A Strategic Framework For The Delivery Of Business Support Services In Sefton CONTENTS
1. WHY WAS THE STRATEGIC FRAMEWORK DEVELOPED? 1
2. CONTEXT 2
3. BASELINE OF SEFTON ECONOMY 7
4. A PROFILE OF BUSINESS SUPPORT IN SEFTON 21
5. DEMAND FOR BUSINESS SUPPORT SERVICE IN SEFTON 28
6. DELIVERY OF BUSINESS SUPPORT IN SEFTON – GAPS ANALYSIS 36
7. LESSONS FROM ELSEWHERE 40
8. STRATEGIC FRAMEWORK FOR BUSINESS SUPPORT IN SEFTON 50
9. MANAGEMENT AND DELIVERY OF THE SEFTON BUSINESS SUPPORT FRAMEWORK 69
APPENDIX A A-1
A-00146
A Strategic Framework For The Delivery Of Business Support Services In Sefton
1. Why was the Strategic Framework Developed?
Sefton Borough Partnership 1.1 Sefton Borough Partnership (SBP) is the Local Strategic Partnership for Sefton. SBP has 30 members drawn from the public sector, local businesses, local residents, the voluntary and community sector and special interest groups. The role of SBP in the economic regeneration of Sefton is to:
• Ensure all stakeholders are fully engaged in the development of local strategy • Mobilise partners’ resources towards improving the strength and viability of the local economy, and
• Promote continuous improvement based on performance review. 1.2 Eight thematic groups are responsible for taking forward SBP’s activities in key areas. The Jobs and Prosperity Thematic Group draws together stakeholders with an interest in the economic development of Sefton and seeks to ensure that their combined efforts deliver the strategic targets of the Borough Partnership. The group’s aims are:
• To influence and involve all those people and organisations who have a role to play in the design and delivery of the Action Plan for Jobs & Prosperity.
• To co-ordinate the contribution of partner organisations. • To co-ordinate, resource and cost an Action Plan on behalf of the Borough Partnership.
• To monitor progress towards implementation. • To overcome barriers to the implementation of the plan, and advise the Borough Partnership board of any alterations or corrections.
• Through the Jobs & Prosperity Champion, to report periodically to the Borough Partnership board on progress, achievements and issues to be resolved.
• To strengthen partners’ knowledge and effectiveness by implementing the Borough Partnership’s Learning Plan.
• To contribute to the updating and periodic review of the Sefton Community Strategy. 1.3 The Group is chaired by Fred Mahoney who is a Visiting Professor at Liverpool University and the Chair of the South Sefton Business Forum. Officer support is provided by Sefton Council’s Economic Regeneration Manager. 1.4 The Jobs and Prosperity Group’s (JAP) action plan identifies eight priorities for action:
1) Attract new investment
2) Strengthen growth sectors
3) Grow existing businesses
4) Encourage start-ups and social entrepreneurs
5) Improve access to jobs
6) Prevent long-term unemployment
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7) Motivate the economically inactive
8) Reduce labour market inequalities
1.5 A series of high level performance indicators have been identified as follows.
Table 1-1: JAP High Level Performance Indicators Indicator Baseline Target (2007) JP1 – Increase in productivity £8,912 (est.) £10,450 Gross Value Added (GVA) per person. Source: ONS JP2 – Convergence on UK growth rate 59 (est.) 61 GVA per person as a proportion of UK GVA per person (UK = 100). Source: ONS JP3 – Increase in jobs 65.2 67.2 % of people of working age in employment (employment rate). Source: ONS JP4 – Convergence on UK employment rate 91 95 % of people of working age in employment as proportion of UK employment rate (UK = 100). Source: ONS Source: Jobs and Prosperity Action Plan – Dec 2003
1.6 More detailed performance indicators are set for each priority area.
How business support contributes to these targets 1.7 Effective business support can have a highly beneficial effect on the competitiveness of local businesses. The term business support does not only refer to traditional business support activities such as start up advice, business planning, ICT training etc, but also refers to those services provided to investors, such as sites and premises advice, grants for buildings and so on. Business support services not only serve existing businesses but can also encourage inward investment (investors want to be secure in the knowledge that they have a reliable support infrastructure) and can encourage new businesses to start and grow if targeted in the right way. Business support services can be tailored to serve both growth and non growth sectors (the latter are likely to have at least as important a role in terms of local employment). Effective business support can not only help to increase the size but also the quality of the business base in an area.
1.8 DTI's review of Business Link by PACEC consultants estimated that use of Business Link services “had added nearly £55,000 [gross] to the turnover, and 1.63 [gross] workers to the employment, of the average firm.” Looking at the net performance ie excluding that which might be expected to happen anyway “During the three year period covered by the research, the average firm increased its employment by 0.4 jobs, its turnover by £76,000, its profits by £9,000, its net assets by £13,000 and its exports by £6,000 because it had received Business Link support”.
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1.9 A more competitive business base will have positive multiplier effects for the local economy through:
• Local purchasing by businesses (business support services can further enhance the potential for this)
• Spending by employees in local shops, leisure outlets etc • Opening up employment opportunities for local people so raising incomes and local spending power
• Revitalising disadvantaged communities and promoting economic inclusion. 1.10 By working with the Learning Partnership and others we can reduce barriers to employment which local people experience and may otherwise reduce the overall local impact of a revived economy.
1.11 We can therefore see that improving the business support services available in Sefton will have an impact upon all the JAP priorities and targets. However in order to ensure our business support services work to maximum advantage we need to ensure that:
• Services are accessible to customers and provide the inputs that customers need to the standards that they expect
• All relevant partners work together within a shared delivery framework and that each partner has a clear and distinctive role within that framework
• Our local service is aligned with the sub-regional structures and that our business support service complements learning and workforce development activities.
1.12 The Sefton Business Support Group has been established to act as a Steering Group for the delivery of business support in the Borough. Representatives from the ‘big five’ organisations sit on this group i.e. Sefton MBC, Business Link Greater Merseyside (BLGM), Greater Merseyside LSC (GMLSC), Sefton Chamber of Commerce and Industry (SCCI) and Job Centre Plus. This group marks an important step forward in partnership working and is the first time these organisations have come together round a table with the specific purpose of developing a common framework for business support anywhere in Merseyside. 1.13 One of the first actions of this group was to commission consultants to produce a Service Delivery Framework for Business Support in Sefton. Regeneris Consulting were commissioned to undertake this work in July 2004. The specific aim of this work is “to define a framework for the efficient and effective delivery of all partners’ products and services, and to fill any gaps in the portfolio”.
1.14 Regeneris’ work has been split into two phases – research, and development of the delivery framework. The diagram below shows these two phases and the key tasks in each.
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Figure 1-1: Service Delivery Framework for Business Support– Study Outline
Phase 2 – Delivery Phase 1 – Research Framework • Baseline • Gaps Analysis • Service Profile • Guiding Principles • Organisational • Best Practice II Review • Objectives • Policy Audit (review • Services of Objectives) • Organisation / • Best Practice I Management
1.15 Partners have been involved in the process at two key stages:
• A Gaps workshop held at the end of the research phase to discuss identified service ‘gaps’ and possible ways of addressing these
• A meeting of the Sefton Business Support Group to discuss and agree a draft service delivery framework for further development by Regeneris. 1.16 The study has been overseen by a Steering Group comprising representatives from Sefton MBC, Sefton CCI, BLGM and GMLSC. This report is a final draft report for circulation to the Sefton Business Support Group for discussion at their meeting on 1 November 2004. The remainder of the report is set out as follows:
Section 2: Context • Covers policy context, current organisation of business support in Sefton and on-going developments
Section 3: Baseline for Strategic • Covers customer baseline, uptake of business Framework support, customer demand and current service profile
Section 4: Delivery of Business • Identifies gaps both in terms of the way Support in Sefton – Gaps Analysis services are delivered and product / service gaps
Section 5: Lessons from Elsewhere • Looks at a series of good practice case studies tailored to the issues in Sefton
Section 6: Strategic Framework • Sets out strategic aims, design principles, for the Delivery of Business strategic objectives and priority areas for Support Services in Sefton action
Section 7: Management, Delivery • Sets out the strategic governance and and Performance Monitoring delivery structure and performance monitoring framework
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2. Context
Policy Context National Level 2.1 “A government Action Plan for Small Business” has been prepared to provide the implementation framework for the government-wide approach to small business set out in “Small Business and Government – the Way Forward” produced by the SBS. It states that the government’s main objective in improving small businesses’ experience of government services is to make services more coherent, accessible and of better quality. Key objectives are to:
• Make services more customer focused • Improve targeting of services • Reduce overlaps and duplication • Improve perceptions of government • Increase cost effectiveness of services. 2.2 Key targets are to:
• Increase satisfaction with services
• Increase Business Link Operator market penetration and customer satisfaction – a key issue is to raise the profile of the Business Link brand
• Increase small business perceptions that their concerns are being taken into account by government.
Regional Level 2.3 The Framework for Employment Skills Action aims to promote a healthy labour market and provides the framework for skills, business support and employment issues at the regional level. 2.4 National objectives trickle down to the regional level with the regional context set by the Alliance for Skills and Productivity (ASP), now called Business Skills North West in this region. This approach aims to more closely integrate business and skills development to raise regional economic performance. (The North West has the National Adult Skills Pilot.) Within this there is a specific objective to create a responsive business support organisation to enhance the delivery and quality of business and skills development solutions.
Sub-Regional Level 2.5 Sub-regional ASP partnerships have been set up in the North West. One covers Greater Merseyside (Liverpool, St Helens, Knowsley, Wirral, Halton and Sefton). This is led by the LSC. This partnership will be responsible for rolling out the regional ASP within the sub- region. 2.6 Business Link is the agency tasked with freeing up access to business support at the local level. Regional Development agencies now contract direct with the local Business Link operator (as oppose to Business Link contracting with the SBS). For Greater Merseyside the
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contract is with Business Link Greater Merseyside (BLGM - formerly known as Greater Merseyside Enterprise).
Local Level 2.7 In Sefton the LSP has established a number of sub-groups which reflect the priorities set out in the community strategy. The Jobs and Prosperity Sub-Group has business services within its remit. The Council’s performance plan (2002-5) sets three key priorities for Jobs and Prosperity:
• Meet business needs by providing sufficient choice in the variety and location of development sites and premises.
• Reduce economic exclusion by improving access to jobs, education and training for jobseekers.
• Promote and provide effective, relevant support to all business starts. 2.8 In order to address these priorities the Jobs and Prosperity Group has prepared an action plan which identifies the following areas for action:
• Attract new investment • Promote competitiveness • Encourage entrepreneurship and start ups
• Strengthen growth sectors • Develop employment • Prevent long term unemployment
• Reduce labour market inequalities 2.9 The Jobs & Prosperity Group has established a Business Support Group comprising the ‘big 5’ players – BLGM, Sefton Council, Greater Merseyside LSC, Job Centre Plus and Sefton CCI). Sefton is unique within the sub-region in bringing together all the partners in this way.
Current Delivery of Business Support in Sefton 2.10 Business support services operate at a range of levels. The responsibility for facilitating access to services rests with Business Link which is a sub-regional organisation but operates at a local level through its Relationship Managers. Services are delivered through service providers operating at a variety of levels as illustrated below. Table 2-1: Delivery of Business Support in Sefton
Sub-Regional BLGM GMLSC
Job Centre +
Universities / Colleges
Sefton MBC
Private Sector Providers
Local SIA Special Initiatives SRB
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2.11 Merseyside is designated to receive the highest levels of UK and European assistance, which creates an additional resource for business support not available elsewhere (e.g. Merseyside Special Investment Fund, Strategic Investment Areas/Pathways, MSEI, etc). In this sense, Merseyside is unique and not only sets out a hefty set of organisations and initiatives requiring co-ordination, but also provides additional opportunities for local delivery in targeted areas which also rely on external funding. 2.12 We can assume that this structure has the following effects (these assumptions will be tested later in the report):
• Providers may operate in isolation and not maximise opportunities to join up their services
• Customers are probably not always clear who to turn to, especially in the first instance
• The plethora of providers needs to be managed more effectively from the customer’s perspective to reduce confusion and increase awareness.
2.13 BLGM’s delivery plan sets the delivery framework at the sub-regional level which then filters down to the local level. The sub-regional ASP is the key channel through which local authorities should present their concerns about business support. There is scope to shape delivery, but the potential for change will be dependent upon the level of influence which Sefton is able to exert, given the fact that districts have no direct control over delivery.
On-going Developments 2.14 There are a number of key developments already in the pipeline which must be recognised and built into this service delivery framework. These are as follows:
At a regional level … 2.15 The North West Development Agency is currently operating two pilots: the regional administration of the SBS contracts for the region and the National Adult Skills Pilot. To administer these two strands of activity, Business Skills North West has been established (formerly the Alliance for Skills & Productivity). BSNW has facilitated the establishment of a series of sub-regional partnerships to develop and monitor delivery plans for business support provision in their area.
2.16 Following national guidance, changes are also being encouraged in the Business Link Remit. From 2005, Business Links will be repositioned as facilitators rather than providers of business support activity. They will have three clearly defined key roles which they are expected to perform in relation to all publicly funded business support:
• Diagnostics to identify clients’ business support needs • Brokerage between clients and providers of business support, and • Providing information to businesses on available business support products and services. 2.17 These changes to the remit of Business Links also imply Business Links take a strong role in demand stimulation and automatically positions BLGM as a strong candidate for any facilitation / ‘front-of-house’ role at a local level in Sefton.
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At a sub-regional level … 2.18 Greater Merseyside Sub-Regional Partnership: The form of the future Greater Merseyside Partnership is yet to be agreed. However its importance as far as the successful delivery of business support activity in the sub-region cannot be over emphasised. We know that it is NWDA’s intention to distribute a large proportion of the Single Pot through SRPs and early indications suggest that Greater Merseyside will receive £40m in 2005-6 and £60-80m in subsequent years. The SRP is also likely to oversee any post Objective 1 programme and may assume responsibility for the sub-regional branch of BSNW. It is therefore essential that Sefton is ready to take maximum advantage of the available funds:
• The Borough must develop good relationships at a sub-regional level so that it can be influential in the distribution of funds and the shape of services it procures.
• The Borough must have a strong structure in place so that it can show how the funding available can add value to the existing service.
At a local level … 2.19 Local Investment Centres: Sefton partners are developing the concept of Local Investment Centres (LICs). The Centre for the south of the Borough, based in Bootle, is well advanced and a site search is underway in Southport for a second Centre to cover the north of the Borough. It has already been agreed that floorspace will be made available in each of the Centres for the co-location of business support enablers and providers. It has not yet been agreed exactly what services should operate from the Centres and how this would be managed in practice. This delivery framework sets out guidelines within which the ultimate LIC set up will operate. 2.20 Affiliation of Sefton CCI to Liverpool CCI: Affiliation to Liverpool CCI would open up a wider array of services to SCCI members (SCCI is currently too small to be approved to deliver all the national chamber’s services). We understand that the decision to affiliate rather than merge has been made on essentially financial grounds – a merger would incur what have been judged to be prohibitive per member payments to the national body. 2.21 Sefton Council’s ‘Business Friendly’ Policy: policy is being developed out of the Council’s agreed Procurement Strategy. It distinguishes businesses from other local authority customers and seeks to deliver services in accordance with their needs. All local authorities are required to have a Single Business Account (SBA) in place by 1 April 2006. The SBA is intended to provide a single point of contact between the local authority and all local businesses. The SBA enables the interactions and transactions between businesses and the local authority to be collated, and managed in a seamless and joined-up way. The SBA will be managed by the local authority using its existing Customer Relationship Management system and processes. 2.22 Councils are also required to enable e-procurement and within this sign up to the National Concordat for SMEs by 2005, which is designed to ensure that SMEs are able to take advantage of e-procurement and are not overlooked in the e-procurement process. 2.23 Business Rates Reform: National Government is introducing business rates reform which will enable local authorities to keep a percentage of the increase in the business rates generated by growth in rateable value above a trend line and below a ceiling level, instead of the total amount being transferred to the Treasury and redistributed via the Rate Support Grant. It is intended to supply a financial incentive to grow the stock of businesses in any given locality. It is unlikely that this money will be ring-fenced at the local level – however it
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may be worth making a case for financial support from this source on the back of this service delivery framework.
2.24 Other developments from national channels are also driving change at the local level. For example, the Neighbourhood Renewal Fund Local Floor Targets include business start-ups and e-procurement targets for electronic ordering & invoicing require the Council to review its supply chain and may have consequences for its local suppliers.
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3. Baseline of Sefton Economy 3.1 For the purposes of this analysis the borough of Sefton was divided into three areas: South Sefton, North Sefton and Mid Sefton. This reflects the different economic functions of these three parts of the borough: • South Sefton is dominated by the Port of Liverpool and functions as part of the wider Liverpool economy. Bootle is also the administrative centre of Sefton Council and provides a large number of financial services jobs in the Alliance and Leicester customer contact centre • North Sefton’s strength is its tourist economy, focused on the coastal resort of Southport. North Sefton also boasts areas of higher value housing which provides residences for commuters to Liverpool and other areas. • Mid Sefton comprises mainly dormitory suburbs, and is also home to a significant horticultural industry.
3.2 The following table shows the wards which make up each of these areas as agreed with the client.
Table 3-1: Sefton Borough split by Wards
South Sefton North Sefton Mid-Sefton
Linacre Cambridge Blundellsands Derby Meols Victoria Litherland Norwood Manor Netherton & Orrell Kew Molyneux Church Birkdale Park Ford Dukes Sudell St Oswald Ainsdale Harington Ravenmeols
Source: Census 2001
3.3 The remainder of this paper is set out as follows: • The Business Base • The Workforce
The Business Base Business Stock 3.4 In total Sefton has 5,275 VAT registered businesses. These are split: • North Sefton - 2,820 VAT registered businesses (53.5% of the borough total) • South Sefton - 1,545 (29% of the borough total) • Mid Sefton - 1,640 (31% of the borough total).
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3.5 A more careful examination of the registration data shows that in 2002 there has been a net decline of 2.27% in the number of registered businesses. This is mostly attributed to the high number of deregistered businesses in North Sefton which shows a 3.9% decline. The net change in Mid and South Sefton is almost zero. 3.6 Across Sefton there are 11,063 employment units1. 38% of these are in North Sefton, 47% in South Sefton and only 15% in mid Sefton. Comparisons with the VAT data above may indicate that the South Sefton economy is characterised by more larger companies registered outside the area than is the case in mid and north Sefton.
3.7 Table 3-2 indicates the change in the number of employment units across the borough between 1998 and 2002. The number of business units in South Sefton has increased by 57% (1,874 units), whilst in North Sefton only 314 new business units have been created and in Mid Sefton the number of business units has remained absolutely static.
Table 3-2 Change in Employment Units, 1998-2002 Total Total 1998-2002 % change 98- Employment Employment 02 Units 1998 Units 2002 Sefton North 3,881 4,195 314 8% Sefton South 3,280 5,154 1,874 57% Mid Sefton 1,716 1,714 -2 0% Sefton 8,877 11,063 2,186 25% Liverpool 12,379 12,246 -133 -1% Greater Merseyside 38,746 41,354 2,608 7% North West 218,128 225,592 7,464 3% England 1,811,897 1,926,503 114,606 6% Source: ABI © Crown Copyright A total of 105,600 employees were employed by firms in Sefton in 2002. Mid Sefton has the smallest number of employees (17,300) when compared to the rest of the borough. reflecting the fact that the business base in Mid Sefton is relatively small compared to the rest of Sefton. 3.8 illustrates changes in the employment pattern across the borough between 1998 and 2002. Mid Sefton has experienced employment decline over a four year period, whereas South and North Sefton have enjoyed increases in their employment of 14% and 21% respectively. Overall, employment in Sefton has increased quite considerably and in excess of regional and sub-regional trends.
1 These may be branches and offices of larger companies, and as such not VAT registered in their own right.
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Figure 3-1: Employees in Employment Change, 1998-2002
25% 21.1%
20%
14.7% 15% 12.8%
10% 8.6% 9.2% 6.8% 5.0%
Percentage 5%
-7.2% 0% Sefton North Sefton South Mid Sefton Sefton Liverpool Greater North West England -5% Merseyside
-10% Area
Source: ABI © Crown Copyright
Key Sectors 3.9 In Sefton almost 40% of employees in employment are employed in the public administration, education and health sector. Employment in this industry exceeds the England average by 62 percentage points. Distribution, Hotels and Restaurants is the second key employment sector and is comparable to the national average in terms of percentage of employees. The smallest employment sectors in Sefton, when compared to the national level, are manufacturing and banking, finance and insurance. 3.10 As shown above the largest employment sector in the borough is public administration, education and health. This sector is the most significant in all three sub-divisions of the borough. There are, however, some significant variations within the borough in the respective importance of other key sectors: • In North and Mid Sefton 31% - 34% of employees are employed in the distribution, hotels and restaurants industry. This is the second largest sector in both areas, where all other sectors are relatively small (less than 10% of the working age population is employed in each of the other sectors) • South Sefton stands out for its relatively significant (9,000) employees in the banking, finance and insurance sector – this accounts for 21% of employees in employment. Distribution, hotels and restaurants accounts for 15% of employees.
3.11 Compared to the national picture we can see that: • In all the sub-areas public administration, education and health accounts for a far larger proportion of employees than it does nationally (around 60% more in each case). • The proportion of employees in distribution, hotels and restaurants in Mid and North Sefton is well above the national average (around 20% higher) but is much lower in South Sefton (around 40% less).
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• All other sectors in North Sefton account for a much smaller proportion of employees than they do nationally. • South Sefton appears to have a more balanced economy in terms of employees employed in the main sectors when compared to the national picture (than is apparent when we look at absolute figures) – although the public sector is still very dominant, and in this part of the borough distribution, hotels and restaurants is relatively small.
Table 3-3: Employment Sectors of Employees, 2002 Manufactu Constructi Distributio Transport Banking, Public Other ring on n, hotels and finance administra services and communic and tion, restaurant ations insurance, education s etc & health
Sefton 8.2% 3.3% 24.6% 4.8% 14.3% 39.5% 5.0% Index: 61 75 99 77 70 162 95 England=100 Sefton North 7.6% 3.0% 30.6% 2.4% 9.9% 41.3% 5.1% Sefton South 10.3% 3.4% 15.0% 7.5% 20.6% 37.6% 5.1% Mid Sefton 4.4% 3.9% 33.6% 4.4% 9.5% 39.5% 4.4% Liverpool 8.3% 2.6% 22.2% 6.7% 18.7% 35.7% 5.6% Greater 12.7% 3.8% 22.8% 5.7% 17.0% 32.7% 5.0% Merseyside North West 15.2% 4.7% 25.1% 6.0% 17.4% 26.1% 4.9%
Source: ABI © Crown Copyright
Entrepreneurial Culture 3.12 Business density (the number of businesses per 10,000 adult residents) is a useful measure of estimating the level of entrepreneurship within an area. The number of businesses in an area relative to the size of population indicates the ability of the local economy to generate wealth and to provide employment opportunities. (See Figure 3-2) 3.13 In Sefton in 2001 there were 262 businesses per 10,000 adults (aged 16-74). Sefton performs relatively well compared to Greater Merseyside as a whole (229 businesses per 10,000 adults) and has a higher business density than the City of Liverpool. However, that said, the business density rate for Sefton is just 64% of the England average indicating significant potential for improvement. 3.14 The pattern across the borough varies quite considerably. In North Sefton there were 344 businesses per 10,000, which represents 83% of the national level and is well above sub- regional and even regional levels. Business densities in South and Mid Sefton are broadly comparable to the sub-regional level, and significantly lower than the national average.
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Figure 3-2: Business Density per 10,000 adult population, 2001
450 412.3 400 344.5 339.1 350
300 262.2 250 231.6 228.8 202.3 209.5 200
150
100
50
0 Sefton North Sefton South Mid Sefton Sefton Liverpool Greater North West England Merseyside Area
Source: VAT Registration Data 2002, ONS. Notes: Total number of VAT registrations per 10,000 people aged 16-74.
3.15 The low business density rate in South and Mid Sefton is reflected in a low rate of self employment, which is well below the England average. In contrast the 15.2% of North Sefton residents who were self employed in 2001 represented 12.4% of all residents in employment. This proportion is considerably higher than that for England as a whole (13.6%) and that for the North West (12.3%). 3.16 Another indication of entrepreneurship is the level of new business start ups (see Figure 3-3). In Sefton there were 26 new start ups per 10,000 adults in 2002 which is considerably lower than the national start-up rate of 40 per 10,000. 3.17 Again there are variations throughout the Borough. North Sefton has the same level of business start ups as the North West (33) and this is slightly lower (-7% points) than the English average. Mid and South Sefton both generate 21 businesses per 10,000 adults of working age in 2002 – just below the sub-regional average and well below regional and national averages. 3.18 The evidence appears to demonstrate a more entrepreneurial culture in North Sefton than exists in the rest of the borough, although there is scope for growth in all parts of the borough when compared to the national picture.
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Figure 3-3: New Business Start-ups, 2002
45 40 40
35 33 33
30
25 22 21 21 20 Percentage 15
10 5
0 England Sefton North Sefton South Mid Sefton Greater North West Merseyside Area
Registrations per 10,000 adults 16-74 years old in 2002
Source: VAT Registration Data 2002, ONS.
3.19 We are of course not only interested in business start up rates but also in how sustainable these businesses are. Figure 3-4 illustrates survival rates between 1999 and 2002 across Sefton and compares these to England. Overall in Sefton 69% (385 of the 555 businesses that started in 1999) survived over a three year period, a rate higher than the England average (65.9%). The survival rate is good in all parts of the borough, varying from 65.2% in mid Sefton to 70.5% in North Sefton. 3.20 There are variations in the survival rates between different sectors. For example the retail sector in Sefton demonstrates high survival rates - 72% of retail businesses survived three or more years between 1999 and 2002. In North Sefton, the retail sector is particularly strong with a 3 year survival rate of 70%. In Mid Sefton sectors such as: construction, property and business services show low survival rates of 50%-65% when compared to other parts of the borough. It is particularly interesting, since it is a key employment sector in North Sefton, that the hotels and catering industry has the lowest survival rate of 25% (5 out of 20 businesses survived) across all key employment industries.
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Figure 3-4 Survival Rates (1999-2002)
71% 70.49% 70.37% 70% 69.37% 69% 68% 67% 65.94% 66% 65.22%
Percentage 65% 64% 63% 62% Sefton North Sefton South Sefton England Mid Sefton Area
3 yr Survival Rate (1999-2002)
Source: VAT Registration Data 2002, ONS.
3.21 At a ward level, Dukes in North Sefton had a very high 65 new registrations in 2002, whereas the rest of the wards in Sefton range from 10 to 35 registrations in a year. Dukes recorded 20 new businesses in the tourism and distribution sector in 2002. 70% of businesses in Dukes survived over a three year period between 1999 and 2002.
Investment, Innovation and Research 3.22 We have attempted to identify a data source which will show ICT take-up levels in Sefton. Unfortunately it has not been possible to identify a source at local authority level.
3.23 Similarly, it would be useful to show the levels of public and private investment in R&D activity. However, again it has not been possible to identify a source at the local authority level.
Markets 3.24 Exports are another important area for business support and it would be useful to understand the level of exporting which Sefton companies are involved in. However, once again there is no data available at the local authority level.
Social Enterprise 3.25 Social enterprise offers significant potential in terms of economic regeneration. We understand that there is no definitive data source relating to the social enterprise sector in Sefton. There are three key social enterprises in the Borough: • 3tc – Merseyside Third Sector Technology Centre which promotes digital content development and the use of ICT in the charity, community, voluntary and public service sectors on Merseyside. The firm is based in Waterloo; • Plaza Cinema – A community cinema based in Waterloo offering an important local leisure facility to local residents, many of which have no access to a car. The cinema is run almost entirely by volunteers;
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• Trend – Offers business support services to the social enterprise centre – based in Netherton.
The ‘Grey’ Economy 3.26 There is believed to be a relatively sizeable ‘grey’ economy in Sefton, especially in the south of the borough. Due to its very nature there is no data on the ‘businesses’ operating within this semi-legitimate arena, however the ‘grey’ economy is probably an important source of goods and services for local people. The challenge will be to encourage people engaged in this sector to move fully into the legitimate economy.
The Workforce Deprivation 3.27 The Index of Multiple Deprivation (IMD) provides a guide to the extent of various types of deprivation within areas. The IMD is based on seven indicator domains. Each consists of a separate set of indicators. The domains are as follows: • Income • Employment • Health Deprivation and Disability • Education Skills and Training • Barriers to Housing and Services • Crime and Disorder • Living Environment
3.28 All the wards in Sefton, apart from Harrington, are ranked within the top 20% most deprived across England and Wales. Linacre is ranked within the top 3% most deprived at a national level. The following all domains table illustrates the extent of deprivation overall and in employment and income across the local authority of Sefton (ward based).
Table 3-4: Index of Multiple Deprivation Area IMD Income Employment Sefton 41.59% 41.28% 28.06% North Sefton 54.87% 52.06% 38.30% South Sefton 14.63% 16.20% 9% Mid Sefton 53.13% 54.37% 34.92% Source: ODPM 2004 Note on Data: This data uses a best fit between SOAs and wards provided by ONS to produce an average of the percentile position for all the SOAs in the area. This analysis should be treated with caution as it relies on best fits and is subject to significant rounding as averages are generated from average i.e. from ward to district level and so on. Nevertheless it does provide a good guide to relative areas of deprivation.
3.29 A local concentration rank of 42 suggests that there are high levels of deprivation, mainly attributed to the decline in traditional industries such as manufacturing, poor housing and low levels of employment across all industries.
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3.30 The map below shows the geographical extent of deprivation in Sefton using the finer geography of Standard Output Areas, with clear concentrations in the north and south of the borough.
Figure 3-5 Sefton Index of Multiple Deprivation 2004
England IMD 2004 by SOA Percentile 80 to 100 % 60 to 80 % 40 to 60 % 20 to 40 % 0 to 20 %
WestWest LancashireLancashire DistrictDistrictDistrict
SeftonSefton DistrictDistrict
KnowsleyKnowsley DistriDistricc
LiverpoolLiverpool DistrictDistrict
WirralWirral DistrictDistrict
Admin Map © ODPM Crown Copyright ©
Economic Activity 3.31 A widely used measure of the health of a local labour market and competitiveness of its residents is the employment rate; that is the proportion of adults who are in employment (as employees or as self employed). We are able to get an accurate measure of employment rates from the 2001 Census (see Figure 3-5). In 2001, 55.7% of the adult population aged 16-74 in Sefton were in employment (this equates to 112,000 people), which is below the England average of 60.9%, and broadly similar to the sub-regional and regional level. Employment rates are lowest in South Sefton and highest in North Sefton.
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Figure 3-6: % of Working Age Population in Employment, 2001
70%
60.9% 60% 58.1% 57.7% 55.7% 51.6% 51.9% 50% 45.5% 45.5%
40%
Percentage 30%
20%
10%
0% Sefton North Sefton South Mid Sefton Sefton Liverpool Greater North West England Merseyside Area
Source: Census 2001 © Crown Copyright
3.32 The converse of this is to look at the level of unemployment. The first measure we can use is the claimant count. There were 4,554 unemployed claimants as of May 2004. Based on the estimated economically active population (from the 2001 Census), this equates to a claimant unemployment rate of nearly 2.3%, which is lower than the Liverpool average of 4.4% and only slightly higher than the England average of 2%.
Figure 3-7: Claimant Count1 and Census2 Based Unemployment
12% 11.0% 10.5% 10%
8.3% 8%
6.4% 6% 5.7% 5.0% 4.8% 4.5% Percentage 4.4% 4.1% 4% 3.2% 2.3% 2.1% 2.0% 1.6% 2% 1.3%
0% Sefton North Sefton South Mid Sefton Sefton Liverpool Greater North West England Merseyside
2001: Unemployed as a % of all Economically Active ClaimantArea Rate: 2004 claimants as a % of all Economically Active
Source: Claimant Count © Crown Copyright, Census 2001 Notes: 1 May 2004 2 Census 2001
3.33 One useful feature of the claimant count is that we are able to get a picture of the duration of unemployment. The proportion of claimants who had been unemployed for more than 12 months in Sefton was 13% in May 2004, significantly above the England average of 11% and also above the regional level and comparable to the sub regional average. 39% had been
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unemployed for less than 13 weeks. Overall 77% of claimant unemployed were men, which is a similar level to all the comparators.
3.34 The claimant count is widely recognised as having limitations as it is based on whether people are unemployed claimants as opposed to genuinely seeking work. We can get a more accurate picture of the economically active population from the 2001 Census. This indicates that 6.4% of Sefton’s economically active population were unemployed according to the wider ILO definition2. Using this definition, of all three areas South Sefton exhibits the highest unemployment rate. At a ward level Linacre (South Sefton) has the highest level of unemployment in absolute terms (802 unemployed) and Harrington (North Sefton) the lowest unemployment (only 200 unemployed).
Skills 3.35 Skill levels are an indication of the job readiness of the population. Figure 3-8 illustrates qualification levels. There is a large proportion of residents in Sefton (31%) with no qualifications. This level is comparable with the regional average, and in fact lower than the Liverpool and Greater Merseyside levels. However it is slightly above the national figure of 29%. There are huge disparities between our sub areas in Sefton. North Sefton has the highest number of people with a high level qualification (21% have NVQ4+) whereas in South Sefton only 9% have NVQ4+. In contrast 26% in North Sefton have no qualifications compared to 41% in South Sefton. North and Mid Sefton compare favourably to the regional and national averages, but South Sefton’s overall qualification performance is poor.
Figure 3-8: Qualification Levels
45% 40.8% 40% 37.8% 34.7% 35% 31.9% 30.9%
30% 27.5% 28.9% 25.7% 25% 21.0% 19.9% 20% 18.8% 16.7% 17.2% Percentage 15.2% 15.0% 15%
10% 9.1%
5%
0% Sefton North Sefton South Mid Sefton Sefton Liverpool Greater North West England Merseyside
Percentage of 16-74 year olds: with no qualificationsArea Percentage of 16-74 year olds: NVQ 4+
Source: Census 2001
3.36 A survey commissioned by Greater Merseyside Learning and Skills Council sheds further light about the characteristics of the workforce in Sefton. This highlights significant skills shortages in certain occupations, (see below), which reflects the qualifications issue mentioned above:
2 Under the International Labour Office (ILO) standard classification a person is defined as unemployed if he or she is not in employment, is available to start work in the next 2 weeks and has either looked for work in the last 4 weeks or is waiting to start a new job.
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• Managers • Professionals • Associate professionals • Skilled Trade • Elementary Occupations • Sales and Customer Service
3.37 Some of the main causes identified are: • Lack of work experience the company requires • Applicants lack motivation • Failure to train and develop staff • The low number of applicants with the required personal skills • Recruitment problems
3.38 The survey also indicates the skills characteristics that a suitable applicant should have, such as: communication skills, problem solving skills, team working skills, IT skills, management and numeracy skills. 3.39 This lack of skills and qualifications has a certain impact on the local business community. For example, there is increased workload for the staff, there are difficulties meeting customer service objectives, difficulties meeting required quality standards and delay in delivering services or developing new products.
Travel to Work 3.40 Travel to work patterns are an indication of whether an area is a net importer or exporter of workers. This can relate to a mismatch between local skills and business needs or more simply to a lack of employment opportunities within an area. Figure 3-9 illustrates Sefton’s travel to work patterns. 3.41 A highly significant proportion of residents live in Sefton and travel every day to another local authority to work. When compared to Liverpool, Sefton residents are more likely to travel to another district to work (14% more residents travel to another LA district to work). 3.42 A closer examination of the Census travel to work data reveals different travel to work patterns across the borough. South Sefton has the highest proportion of inward commuters across the borough which may be attributed to the low skills level of its residents. But also interestingly South Sefton has the highest proportion of out commuters – the most likely destination is Liverpool.
3.43 North Sefton has the lowest percentage of both inward and outward commuters, which may reflect a better match between residents’ skills and local business needs. It is also probably a reflection of the stronger entrepreneurial culture in this part of the borough.
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Figure 3-9 :Travel to Work Statistics
60%
50.3% 50% 43.7% 40.0% 40% 38.0%
30.5% 30% 26.7% 27.0% Percentage 20% 16.2%
10%
0% Sefton Sefton North Sefton South Mid Sefton Area
Proportioon of people living the area who travel to another LA district to work Proportion of people working in the area who travel in from another LA district to work
Source: Census 2001
Earnings 3.44 A further measure of economic competitiveness and productivity is the level of wages paid by employers (see Figure 3-10). 3.45 These figures show that workplace based earnings in Sefton are well below the national average; whilst residence based earnings are broadly comparable. Within Sefton district male average earnings are higher than females at a workplace based level, in line with national and regional trends. 3.46 In North and Mid Sefton there are considerable disparities between residence based and work based earnings – with high residence based earnings reflecting the higher quality dormitory areas, and lower work based earnings. The picture in South Sefton is the reverse, with much higher work based earnings – suggesting these higher paid jobs are filled by workers from outside the area - and lower residence based earnings. 3.47 It is worth noting that male workplace earnings in South Sefton are very high compared to the rest of the borough (£424 compared to a range of £315-£335 elsewhere). On the other hand female residence based earnings are considerably higher than the England and North West average in Mid and North Sefton (between £490 and £5003), and about £100-£136 in excess of male wages. This may be attributed to the fact that male claimant count unemployment in North Sefton and Mid Sefton is higher than female by 58% and 50% respectively.
3 The New Earnings Survey records earnings only for employees in employment. It excludes self-employment as well as those earning incapacity benefits.
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Figure 3-10: Average weekly earnings per employee 2003; England=100
£120
96.2 £100 96.5 91.3 90.5 87.9 91.2 86.2 79.7 £80 72.1 68.8
£60
£40
£20
£- Sefton North Sefton South Mid Sefton Greater Merseyside North West Area
Average Gross Weekly Earnings 2003: All People (Workplace Based) Average Gross Weekly Earnings 2003: All People (Residence Based )
Source: New Earnings Survey
Key Messages • There are significant geographical variations in the make-up of the Sefton economy and any changes to business support delivery structures (including skills) must recognise this: 9 Public sector services are important throughout the borough 9 Tourism is a dominant sector in the north 9 Finance is important in the south, as is transport and distribution and construction • Sefton is performing pretty well economically but its residents are not necessarily reaping the full benefits and there is evidence of significant deprivation within the borough. In order to address this barriers to work, including the relatively low skill levels of local people, especially in the south of the Borough, must be addressed • The entrepreneurial culture in Sefton is relatively weak, especially in South and Mid Sefton, although once businesses are established survival rates appear to be good. Action therefore needs to be focused on pre-start up activity. • There is a relatively low business density in Sefton (compared to the North West), and densities are especially low in mid and south Sefton • Sefton is a net exporter of workers possibly due both to the nature of the borough (predominantly residential) and a mismatch between local jobs and skills. This points to three issues: 9 A need to ensure local people are equipped to take advantage of local employment opportunities 9 A need to ensure Sefton residents benefit from opportunities outside of the borough, for example Liverpool Capital of Culture 9 A need to encourage those residents who are economically inactive to return to return to work
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4. A Profile of Business Support In Sefton
Current Uptake & Profile of Business Support in Sefton 4.1 The following section sets out some facts and figures relating to current levels of take-up of business support in Sefton.
4.2 Business Link Greater Merseyside achieved a penetration rate4 for Sefton of 17.8% in 2003/4 against a target of 20%. 4.3 Business Link Greater Merseyside supplied data relating to European funded business support projects (Objective 1 and Objective 2) in Greater Merseyside from April 2003 to July 2004 (check). The following messages can be drawn from this data.
• Sefton was home to 8,347 companies5 (24% of companies in Greater Merseyside and 26% in the O1 area)
• There had been 153 Objective 1 funded business support projects in Sefton – equivalent to only 15.7% of all O1 funded business support projects in Merseyside excluding Halton. This is much lower than the borough’s proportion of the Merseyside business base, indicating Sefton businesses are not accessing business support services as effectively as businesses in some other districts
• An interesting comparison is with Wirral which has 21.5% of the companies in Merseyside excluding Halton but has benefited from 28.5% of O1 funded business support projects
• Only 1 project in Sefton (out of a total of 15 across Merseyside) was run with a hotel and restaurant business – notable given that one of Sefton’s key sectors is tourism
• In common with most other districts ICT support was the main area of support with over 1/3 of O1 funded support in Sefton going to ICT projects. Compared to Wirral which has a similar size business base low numbers of projects were supported in sales and marketing (19 compared to 81), new product development (6 compared to 16) and ICT (55 compared to 97). 4.4 Further information sourced from the Jobs & Prosperity Annual Report (2004) suggests that, compared with the total number of new companies registered for VAT in Sefton each year, start up advice is reaching about 1/5 of its market. The JAP Annual Plan also provides information in relation to investment levels in the district:
• Sefton has secured £14.2m of investment in sites and premises, but land take-up in recent years has been constrained by land supply (in 2002 1.03ha)
• In 2002/3 Sefton secured £12.5m of inward investment, creating 283 jobs.
4 Penetration rate = Businesses which Business Link has had contact with as a proportion of the total business base which is based upon the IDBR number of businesses. ‘Contact’ is defined as all levels of contact from a basic inquiry through to intensive support. 5 Based on IDBR – this figure will not tally with other measures such as ABI which only measures VAT registered businesses
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Profiling Business Support Services in Sefton Method 4.5 As part of our study Regeneris were asked to map business support services on offer in Sefton. Agencies providing business support services were asked to complete a spreadsheet detailing the services offered by their own agency and those offered by others where known. Three agencies responded – these were:
• Sefton MBC • Job Centre Plus • Business Link Greater Merseyside. 4.6 The service profile was based upon an agreed typology of services which identified seven categories. The typology is detailed in Table 4-1:
Table 4-1 Typology of Business Support Services • First Stop Shops • Official registration & documentation • Distribution of publications, information packages RECEPTION, FACILITIES & • Promotional activities BASIC INFORMATION, REFERRAL • Provision of facilities (e.g. meeting and office facilities, video conferencing • Initial diagnosis • Signposting • Legislation • Market information (including exports & public procurement) • Company & financial PROFESSIONAL • Technical INFORMATION SERVICES • Standards & certification • Patent & copyright • Sites & premises (information about) • Specific areas (e.g. environmental) ADVICE & DIRECT SUPPORT • Business planning • Advice on functional areas of business activity (marketing, design, finance, production etc) Follow up and accompanying measures • Mentoring • Consultancy (general management, quality, health and safety etc.) • Development of business contacts (assistance with business co-operation, commercial agents, distributors, joint ventures etc) • ICT • Schemes to provide direct experience (e.g. of foreign markets and business practices) • New product development
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• Aftercare • SME Management • Start up • Growth & development SME SPECIFIC TRAINING • Conversion courses • ICT • Targeted marketing (women, entrepreneurs, ethnic minorities etc) • Equity finance • Loans • Loan Guarantees FINANCE • Direct guarantees • Mutual guarantees • Grants & subsidies e.g. participation in trade missions, assistance to unemployed • Incubation units • Business units PREMISES & ENVIRONMENT • Technology park • ICT infrastructure • Transport • Conferences & seminars • Trade fairs • Buyers exhibitions • Trade missions STRATEGIC MEASURES • Promotion of networking • Supply chain development • Cluster promotion • Sector development
4.7 The form was designed to ensure that as much information as possible was collated. We requested data in terms of:
• Name of the Service (see Table 9-1 in Appendix A) • The Provider i.e. Sefton Borough Council, Greater Merseyside Connexions etc (see Table 9-3-22 in Appendix A)
• Funding i.e. NWDA, O1, SRB etc (see Table 9-14 and Table 9-15 in Appendix A) • Key Activities (see Table 9-16 in Appendix A) • The JAP Priority (see Table 9-13 in Appendix A) • The Geographic coverage of the support on offer i.e. Southport, South Sefton etc (see Table 9-10 in Appendix A)
• The Access Point of the support on offer i.e. Greater Merseyside, Sefton (see Table 9-12 in Appendix A)
• Whom did the service target? (See Table 9-11 in Appendix A)
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• Local Uptake – was the service directed below or above SMEs? (No data was collected)
Findings 4.8 The following section summarises the findings of the profile of the business services available. It is supplemented by findings from our consultations with key partner agencies.
4.9 Table 4-2 shows the distribution between types of business service. We can clearly see that the largest category is finance – loans and grants.
Table 4-2 Type of Business Support Schemes Finance 29% (18) Prof Info Services 18% (11) Strategic Measures 16% (10) Advice and Direct Support 13% (8) Premises and Environment 8% (5) Reception 8% (5) SME Specific Training 8% (5) Grand Total 100% (62)
4.10 There is a relatively good distribution in terms of the broad types of services on offer however at a more detailed level we can identify some apparent service gaps which are corroborated by our consultations. These are:
• Business starts • SME Aftercare / handholding. 4.11 Our consultations also suggested low penetration into specific groups – one which was highlighted was the very large number of family businesses in Sefton. Table 4-3 indicates all the Providers of Business Support Services on offer and the number of services they deliver.
Table 4-3 Providers of Business Support Services Sefton MBC 24% (15) Jobcentre Plus 8% (5) SCCI 8% (5) BLGM 8% (5) Merseyside Special Investment Fund 3% (2) Opportunities Shop 3% (2) Reid in Partnership 3% (2) TMP 3% (2) Train 2000 3% (2) TREND 3% (2) Other* 32% (20) Grand Total 100% (62) * Other includes the following organizations which provide one service each: 3tc, Blythe Developments, ENWORKS, GMLSC, Greater Merseyside Connexions, Groundwork Trust, Liverpool JMU, MCI, MDHC, Mersey Maritime Ltd, Merseyside Chambers, Merseytravel, MSEI, Princes Trust, Sefton@Work, South Sefton Partnership, Southport Partnership, joint initiative provided by SMBC / BLGM / SCCI / Bootle BVP and joint initiative provided
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by SMBC / BLGM / Southport Partnership
4.12 We can see that SMBC is the biggest single provider of services (the majority of these falling under the finance heading). However almost one-third of services are provided by a range of organisations falling within the ‘other’ category. This is simply indicative of the potential for confusion within the marketplace.
4.13 Our consultees also felt that customers may find the range of services and providers confusing – a clear area identified for potential improvement is at the reception stage (e.g. provision of an integrated service with a physical presence, enhancing the role of the Relationship Managers and giving consideration to a Sefton business web portal). This should be set in the context of Business Link’s new role from April 2005. 4.14 Of course it is not just the number of services which is important but also the quality and the extent to which these measure up to customer expectations. This is dealt with in more detail in Section 5 which looks at customer demand. 4.15 The following table shows the geographic coverage of business support services. It shows that the majority of services are delivered at a sub-regional level or local level.
Table 4-4 Geographic Coverage of Business Support Services International 3% (2) National 2% (1) Greater Merseyside / Merseyside 40% (25) Liverpool-Sefton 4% (2) Sefton 52% (32) Of which …. • North Sefton (7% (4)) • South Sefton (24% (15)) • Other: (4% (2)) 9 Bootle, Crosby Altside (East Sefton) and Southport (Business Village Partnerships) 9 Derby Park Conservation Area Grand Total 100% (62)
4.16 Delivery at the sub-regional level is not necessarily an issue, as long as services can be accessed locally and meet local needs. Of those services delivered only within Sefton, 65% (21) are offered within a specific geographical area. The majority of these very local services are externally funded, raising questions about their long term sustainability post 2006 (the end date for O1, SRB, and the current round of NRF). The geographical boundaries within which these funding streams operate also results in geographical gaps in terms of the availability of a comprehensive range of business support services.
4.17 In Appendix A, Table 9-14 and Table 9-15 indicate the type of funding by the type of services. Out of a total of 62 projects:
• 38 are being funded in part by O1 • NWDA provides funding for 17 • SRB provides a contribution towards 12 services • NRF and DWP contribute towards 5 services each. 4.18 Table 4-5 illustrates the access points for business support services.
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Table 4-5 Outlet / Access Points of Business Support Services Sefton 69% (43) Of which … South Sefton 33% (20) North Sefton / Southport 6% (4) Merseyside 25% (15) Greater Merseyside 2% (1) International 3% (2) Blank (not available) 2% (1) Grand Total 100% (62)
4.19 This shows that the majority of services can be accessed from within the borough, including services which are not necessarily delivered locally. However we know from our consultations that these access points are not always clearly defined and articulated to the market. Two specific issues are:
• The large number of access points (via different providers) which do not necessarily provide access to all services; and
• The lack of a single physical presence for the business support service. 4.20 Table 4-6 illustrates the extent to which services are addressing JAP Strategic Priorities. As would be expected, business support services in the main address Priority 2 Promote Competitiveness. Interestingly, only one existing service is addressing Priority 3 Encourage Entrepreneurship and Start Ups. Given the findings of the customer baseline this is a clear gap in service provision.
Table 4-6 JAP Strategic Priorities and Business Support Services 2. Promote Competitiveness 53% (33) 5. Develop employment 23% (14) 4. Strengthen Growth Sectors 13% (8) 1. Attract new investment 10% (6) 3. Encourage Entrepreneurship & start ups 2% (1) Grand Total 100%
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Key Messages • Sefton businesses do not appear to be making maximum use of the services on offer. This could be because: • They are difficult to access • They do not know about the services on offer • The services available do not fit their needs • A good range of services are offered, but there are some gaps, specifically: • SME aftercare / handholding • Business Starts • Geographic gaps (related to funding availability) • Many services are externally funded raising questions about their sustainability • There are numerous service providers creating potential for market confusion, especially at the reception stage
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5. Demand for Business Support Service in Sefton 5.1 Two exercises have been undertaken to try to assess demand for services among businesses in Sefton:
• We have undertaken 3 qualitative consultations with local businesses (all larger firms) plus a consultation with 2 Chamber Board Members who are also local businessmen
• A telephone survey of businesses which sought to understand Sefton businesses’ awareness of support services, their specific needs and their experience of support services.
Qualitative Consultations Awareness of Support Services 5.2 Our consultees felt that awareness of services was poor. They identified issues around too many services, lack of a route map or directory of services and no clear point of contact. In response to this they are supportive of a single physical presence and a virtual one-stop shop for businesses. There was no clear agreement among consultees about who should front this – although all felt it should be either Business Link or SCCI. That said, consultees felt that the crucial issue was not so much who managed the service but that the branding was right. The branding needs to be attractive to businesses, to represent quality of service and must not generate confusion.
Use of Support Services 5.3 The services which businesses find helpful vary according to the size of the organisation. We found that the larger organisations make use of sites and premises (including grants), recruitment, regulation and legislation and aftercare services. Consultees felt that all of these services were effective and helpful. The two smaller organisations we spoke to found trade associations in general met all of their needs. One of these firms had used Business Link Greater Merseyside (GME as it was) in the past but felt that the service lacked credibility and continuity and as such would not use it again in the future. However we understand from the Chamber that the majority of members who have used business support services appear to be generally happy with the service received from providers.
5.4 All consultees felt that Relationship Managers served an important function engaging with businesses. However, issues were identified at the moment around continuity and credibility. There was also a view expressed that GMBL’s Relationship Managers were perceived as sales people. 5.5 During our discussions a number of specific service gaps were identified:
• Aftercare / ‘handholding’ for SMEs (corroborating the evidence from the service profile)
• Practical support in implementing green transport plans – poor public transport limits what can be done
• A need to develop better links with educational institutions (schools through to HEIs) both to promote careers and deliver services.
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Business Engagement 5.6 The businesses we spoke to did not feel that Sefton business were effectively engaged. Consultees felt that business networks in the Borough were traditionally weak but that improvements were being made e.g. SSBF. We found mixed views about the effectiveness of the Chamber – the larger businesses we spoke to did not feel that it was an effective organisation. Doubt was expressed about the extent to which it represents all businesses in the Borough (there is a perceived geographical bias towards Southport and a perceived sectoral bias towards tourism). However, it seems that those businesses who are members of the Chamber use this as their main source of information. For businesses in the South of the Borough the SSBF is thought to fulfil an important role in information dissemination. 5.7 Larger businesses feel that they could be used more effectively as a sounding board for the Council on economic policy and to actively promote Sefton as a business location. 5.8 The establishment of the Sefton Economic Forum should address some of these issues. This has the potential to become the voice for Sefton’s businesses. This does, however, raise a question about the potential role which the Chamber will fulfil.
Telephone Survey Findings 5.9 The business survey was designed to elicit business views about the delivery of business support services in Sefton. The survey was undertaken over the telephone using a short questionnaire. Interviews were conducted between the 27th September and the 8th October. 5.10 The aim of the survey was to contact both users and non users of business support. As such we used the following sources of contacts:
• A list of companies in receipt of grants via Sefton MBC • A list of companies receiving support from GME (now BLGM)
• A list of companies that are members of Sefton Chamber of Commerce and Industry • Sefton MBC’s list of businesses in the borough. 5.11 We aimed to interview 30 businesses; however, despite making contact with 107 Sefton based businesses, only 12 interviews were completed. As well as using telephone calls, we faxed and emailed these target businesses to no avail. We made a point of asking all businesses which declined to participate for their reasons and found a spread of responses.
Table 5-1: Reasons for not participating No Response 51% Too Busy 23% Not Interested 18% Not Applicable to their Business 4% Not Their Policy To Do Surveys 4% Grand Total 100%
5.12 From the table above we can see that many businesses were either too busy or not interested. Does this suggest that they do not place a high degree of importance on business support? It could also be a reflection of a lack of awareness about what business support can do for them.
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5.13 The structured questionnaire was split into 6 sections (see below). Sections 2, 3, 4 and 6 were addressed only to businesses who had received business support. The questionnaire was designed to ensure that all stages of the process were covered and it was easy for the interviewee to answer. • Stage 1: Initial interest / awareness of business support services
• Stage 2: Use of business support services • Stage 3: Experience of referral processes • Stage 4: Experience of aftercare (or on-going support) • Stage 5: Business engagement in Sefton • Stage 6: Overall views about existing support services and how these compare with services offered elsewhere.
5.14 Our results are presented in the paragraphs which follow. Given the low response rate these results should be treated with caution. However they do provide an indication of some of the issues around business support in Sefton.
Basic Details of Respondents 5.15 Table 5-2 below sets out the characteristics of the 12 businesses we interviewed. We aimed to interview businesses with different types of business activity. Almost half of our interviewees are manufacturing based businesses and the rest specialise in different industries such as real estate and other business activities. All of the businesses have been established in Sefton for at least 8 years.
Table 5-2 Characteristics of Interviewees’ Businesses Business Description Size Location Property Investment 0-10 Southport Company Furniture Reupholster 0-10 Southport Hydraulic Equipment & 0-10 Southport Accessories - Sales & Services Suppliers of Art work 10-20 Bootle Publishing Company 10-20 Southport Window Manufacturing 10-20 Bootle Security Distributor 20-50 Orrell Mount Electronics Manufacturing 20-50 Southport Assembly of Automotive 20-50 Bootle wiring loops Tinplate Manufacturing 50-100 Bootle Training company 200+ Southport Engineering & Steel Did not answer Bootle Fabrication
5.16 Interviewees were asked whether they have ever received business support services and if so from whom? Table 5-3 shows their responses. 10 of our interviewees have received business
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support services (some more than once) at some point, mostly from Business Link and Sefton Borough Council.
Table 5-3 Have you ever received business support services? Business Sefton Job Chamber Learning Other Link Borough Centre of and Council Plus Commerce Skills Council Yes 5 5 1 0 1 DTI, Liverpool Chamber
5.17 We asked the 2 businesses which hadn’t ever participated in any type of business support scheme why they hadn’t, and received the following mixed responses:
• “Run an efficient business, therefore there is no need to”;
• The services on offer do not address the business’s needs; • Do not know how to access information even though aware of schemes • Not aware of any business support schemes.
Stage 1 5.18 The first question seeks to elicit business’ views about business support. The following comments are illustrative of their responses:
• “Business Support is very useful, is very good. However, it also depends on the schemes on offer, whether they address businesses’ needs”
• “I believe it is helpful for young entrepreneurs”
• “GME provided an excellent service” • “I believe it is an excellent scheme, the only thing I would criticise is that it not promoted as much in Sefton”
• “Sefton has relatively good support services, to what is offered elsewhere” • “In my opinion, business support services should not be provided through a council” 5.19 The following table illustrates how businesses learn about the business support services on offer in Sefton. It is surprising that only 1 interviewee found out information through business events.
Table 5-4 How do you learn about the business support schemes on offer in Sefton? Business Adverts/ Sefton Business Events Word of Advisor Radio/mail City Link and Mouth shots Council Relationship Seminars Manager Yes 2 3 3 3 1 0
5.20 Table 5-5 shows how clear businesses are about whom they should talk to if they require help or guidance with their business. Only 4 out of 12 interviewees are very clear about whom to contact. One third of our interviewees were unclear or not very clear. These answers were in response to prompts which mentioned: Business Link Relationship Manager, Sefton Economic Regeneration team, a business advisor or Sefton Business Forum.
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Table 5-5 Are you clear about who to contact in relation to your specific business needs? Unclear 3 Not very clear 1 Reasonably clear 4 very clear 4 Grand Total 12
5.21 The lack of clarity is, according to our respondents, due to poor information provision. When asked whether they would appreciate a ‘one stop shop’, where information about all business support services would be available, all 12 respondents thought that it would be very useful. Suggested locations for a physical base were:
• A central place • Sefton • Southport. 5.22 One interviewee suggested that the Business Link Relationship Managers were the obvious lynch pins of the one-stop shop. 5.23 We also suggested a virtual shop on the internet. It is interesting that 50% thought that it would be a good idea and the other 50% rejected the idea of using the internet to access business support information.
Stage 2 5.24 This section was addressed to businesses that had received business support in the past 3 years (7 out of the 12 businesses). The types of services received were:
• Grants for plant machinery • Legal support
• Quality Assurance support • IT related support such as developing a website and • Recruitment or training support 5.25 The cost of the support received ranged between £3,000 and £24,000. 5.26 Only 5 out of 7 recipients included in our analysis received a formal diagnostic service. Out of those, only 3 thought that this process was helpful in understanding their business issues.
5.27 Interviewees were also asked whether they found business support to be beneficial to their business. All 7 respondents (that received support in the last 3 years) agreed it was very beneficial to their business and 5 of them claimed that they would use business support again in the future. However, one business made the comment that it would use business support schemes from elsewhere (outside of Sefton) – the firm did not explain the reasons behind this choice).
Stage 3 and 4 5.28 When asked about the referral route to their service, all of the businesses had accessed their support after having being referred from a third party.
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5.29 Only 4 out of 7 businesses received aftercare (or on-going support) and only half of those businesses (2 out of 4) found the aftercare useful.
Stage 5 5.30 This section was addressed to all businesses (including those who had not received business support). Out of 12 respondents, only 2 have attended business events such as the Business Forum or Sefton Chamber events. Only 4 businesses interviewed participate in some kind of business network such as:
• Engineering Employers Federation • Institute of Directors • National Trade Guild - art network • South Sefton Business Forum, Chamber of Commerce 5.31 The overall perception is that business networks could possibly be a good place to find out information about business support services and get engaged in developing business support schemes, however, the majority of the businesses do not get involved either because:
• They do not have the time available • It is too costly for the business • They are not interested or
• Current business networks do not address their business needs. 5.32 Table 5-6 shows our respondents’ views on the business network structure. Even though businesses have some knowledge about the networks in Sefton, they appear to be indifferent when it comes to further developing the network structure so it reaches out to more firms.
Table 5-6 What are your views about the business network structure in Sefton? Business networks are a waste of time 2 I don’t know about the networks available 1 There is a network that meets my needs 4 No network appropriate for my type of business 1 (Hydraulics company based in Southport) Other 1 There are too many networks 1 There is no network in my area 1 (Publishing company based in Southport)
Stage 6 5.33 The following table indicates what businesses think is good about business support provision in Sefton.
Table 5-7 From your own experience what is good about business support provision in Sefton? Yes Services meet our businesses' needs 4 Business link relationship managers 3
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Good value for money 3 Services are of a high quality 2 Good quality info and readily available 1 The level of aftercare 1 Business networks 1 There are clear points of contact 0
5.34 One-third felt that services fit their needs – the other two thirds were not able to expand specifically on what the service lacked. One quarter valued the Business Link Relationship Managers and felt that services offered good value for money. Of concern is the fact that only 2 respondents felt that services were high quality and only 1 felt that information was accessible and of good quality. The fact that only 1 respondent cited the levels of aftercare and business networks as good aspects of the service corroborates earlier findings from our consultations about service gaps and poor business engagement. Tellingly, no businesses identified clear points of contact as a positive feature of the service – again this corroborates earlier findings relating to market confusion.
5.35 Our interviewees were also asked to indicate what is poor about business support provision in Sefton. The following gives a flavour of their views:
• “Sefton (MBC) does not have the expertise at least in our area of business (electronics manufacturer)”
• “We are entirely satisfied” • “Services do not meet business needs” (training company)” 5.36 Companies who had received business support at any time were finally asked to compare Sefton business support schemes with elsewhere in and outside of Merseyside. Here are the responses out of 9 businesses:
• 7 replied that they did not have the experience of business support schemes elsewhere, hence they could not answer
• Only 1 thought it was just as good
• Only 1 thought that Sefton business support was better (suppliers of art work).
Key Messages 5.37 Given the small sample size it is difficult to draw any concrete conclusions from this survey, however, we seek to draw out some key messages in the box below. • There are mixed views among businesses about business support in Sefton - some favourable and some less so • There is evidence of a lack of awareness among businesses about the support available in Sefton • Businesses are unclear about who to contact for advice • Businesses need to have confidence in the services used – they need to feel that advisors have the right type and level of experience and that they are not tied to an individual organisation • Businesses would welcome more aftercare • Businesses are not always effectively engaged either by business support enablers and providers or in strategic policy making – however networks are
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not always a popular solution • Businesses support the provision a more cohesive and accessible service, including better information and a single point of contact, including a physical base Health warning! Based on a sample of only 12 businesses
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6. Delivery of Business Support in Sefton – Gaps Analysis 6.1 Section 6 brings together the research outlined in the preceding three sections in the form of a ‘Gaps Analysis’. For this purpose ‘gaps’ are defined as issues around the ways services are delivered (not meeting customer needs / provider objectives / standards of best practice) rather that simply product / service gaps. 6.2 The gaps identified are highlighted below under the following five themes:
• Delivery of services • Joint working by partners • Business engagement • Making the Sefton voice heard • Performance measurement.
Theme 1: Delivery of Services 6.3 Key messages are as follows:
• Need to increase awareness and take-up of services to address: ¾ Low levels of awareness of services – appears to be lack of awareness and confusion, difficult for businesses to know where to start and what is on offer
¾ Generally low take-up - Sefton businesses are not taking maximum advantage of the services on offer ¾ Very low penetration into specific groups of businesses – e.g. family businesses ¾ Problem of providers not always being effective at “getting the message across” in terms of what is on offer to businesses
• Need to understand businesses’ needs better to address: ¾ Specific gaps in services offered – weaknesses were identified around business start-ups and SME aftercare. Businesses also felt that links to educational institutions could be improved – HEIs, FE Colleges and Schools – both for services and career development ¾ Geographic gaps in services - particularly in areas not covered by Area Based Initiatives ¾ Barriers to work - Business and providers identified issues around transport provision, basic skills and workforce development
• Need to develop an integrated, customer facing approach to address: ¾ Lack of credibility of public services - Business support services in Sefton do not always command credibility with businesses
¾ Continuity of approach – businesses feel that they are passed from ‘pillar to post’ – need to facilitate seamless exchange of clients between services
• Need to develop an integrated investment strategy to ensure that existing and future services are sustainable and to ensure market confidence in the service
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¾ A critical gap in funding emerges post 2006 – ABIs come to an end; local authority mainstream funding is minimal; Local Investment Centres need significant revenue support.
• All partners recognise the need for more appropriate models of business support that improve levels of contact and continuity with business clients, solving problems at point of contact wherever possible and introducing specialist support as required
Theme 2: Joint Working by Partners 6.4 Key messages are as follows:
• Need to improve joint working by partners to address: ¾ Lack of awareness of each others’ activities and services - Partners are not fully aware of each others’ roles, cultures and objectives and the services offered ¾ Limited sharing of information – there is a feeling that information is not shared as freely as it might be
¾ Perceived competition for customers - reinforces negative opinions among clients and, possibly, impacts on referrals. Partners need to identify areas of overlap and potential to work together to meet common objectives and shared outputs
• All partners recognise that joint working could be improved and are keen to identify ways of achieving this. The Sefton Business Support Group has been an important move forward.
• Joint working should start with the ‘big five’ (SMBC, SCCI, BLGM, JC+ and LSC), moving progressively towards a shared approach to strategy and delivery. These core partners should consider how best to engage with: ¾ Other public agencies e.g. the Inland Revenue delivers business support ¾ Private sector providers
¾ Educational institutions, especially the JMU and Liverpool University and the local FE colleges.
Theme 3: Business Engagement 6.5 Key messages are:
• Need to address the feeling that there is no single voice for businesses in Sefton ¾ The Chamber is perceived as northern focused (almost half of its members are from Ainsdale, Birkdale & Southport) and tourism biased (77% of members are in the service industry although we have not been able to ascertain which services);
¾ SSBF has filled a gap but is area and time limited
• Need to address non-engagement of business in policy development: ¾ Some large companies have excellent links at a senior level with the Council – need to ensure that these links are maintained within any overall restructuring of the Council’s business function
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¾ The private sector is not formally engaged in the LSP structure as effectively as agencies would like …
¾ Businesses cannot always see “what’s in it for them” – the new Economic Forum begins to address this ¾ Opportunities for businesses to get involved do not always respect their time and resource commitments ¾ Businesses often have negative perceptions of public agencies, which need to be addressed.
Theme 4: Making the Sefton Voice Heard 6.6 Key messages are as follows:
• Priorities at regional, sub-regional and local levels are not always clearly communicated to partners and are sometimes inconsistent
• Concerns that a regionally directed approach via Business Skills North West will not suit local needs
¾ Need to appreciate what Sefton has in common & what true differences are ¾ Need to exploit potential for local flexibilities
• Sector development (quite rightly) takes place at the sub-regional level, but it is often difficult to convert the strategic approach to operational outputs ¾ Need improved relationships between sub-regional sector development managers and local operational staff – there is a feeling that these are sometimes weak and information flows poor ¾ Sector networks do not make optimum use of local knowledge ¾ The Chamber could be more actively engaged in sector development (as it is in Knowsley and St Helens) – although it may need to broaden its profile / membership base first ¾ Sefton is not as actively engaged with the Liverpool Universities as some other areas in Merseyside – this is partly but not exclusively a reflection of the business base
Theme 5: Performance Measurement 6.7 Key messages are:
• Business Link penetration rates are considered to be limited in their scope as they do not measure the intensity of support and do not capture their subsequent outcomes.
• Other externally funded services are built upon outputs which also provide only a partial picture of their achievements and also result in competition between partners for outputs.
• There is a need to consider more meaningful performance measures which capture more than just contact and instead measure outcomes and impacts (customers) and provide a comprehensive overview of Service performance.
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• Equally there is no common system for recording outputs and sharing clients through referrals which are vital for more joined up working.
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7. Lessons from Elsewhere 7.1 In developing this delivery framework we have sought to learn from experience elsewhere and have identified a number of UK and international good practice case studies. These are outlined below together with a summary of the key lessons for Sefton.
United States (New York State, Washington and Oregon State) Area of Good Practice • Effective business engagement • Strong Partnership working • Focus on Growth Businesses • Setting Meaningful Targets 7.2 This case study is particularly relevant as these parts of the USA have similar problems to Merseyside – declining ports and other traditional industries and overt attempts at regeneration.
Key Features of Approach 7.3 The Small Business Administration (SBA) is the equivalent of the SBS in England. The SBA operates through a network of Business Counsellors in 57 Small Business Development Centres (SBDCs) across 50 states. Each state has several SBDC operational centres usually located in educational institutions. Business support is also conducted by the larger city governments, New York, Seattle, Portland etc.
7.4 SBDCs usually deal with no more than 10% of the total company base of the region. On average each Counsellor works with 150 businesses p.a. (not all in detail)
Key Principles:
• Significant prestige is attached to SBA / SBDC – ¾ affords credibility and enables cost saving e.g. floorspace for the SBDC is usually provided free of charge as housing and SBDC adds prestige to an institution; ¾ commercial consultants are persuaded to give services free due to the prestige of working with the SBDC
• Selection and Intensive Support – ¾ Focus on SMEs with growth potential (irrespective of sector) – companies go through a 5 stage assessment process before being accepted on the SBDC programme. There is recognition that the majority of SME growth will come from non-growth sectors (80% in NY State). The only state where a higher percentage of total SME growth comes from growth rather than non-growth sectors is California. ¾ Focus on steering businesses towards goals and growth but not to do it for them; for example low interest loans are offered rather than grants, giving businesses a level of accountability
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¾ Only deal with start ups which have a rigorous business plan in place.
• Tailored Services – ¾ Each SBDC is virtually autonomous and tailors its services to local needs; ¾ SBDC’s do not run ‘initiatives’ – they focus on tailoring support to business needs
• A credible service - Business counsellors are very experienced at the coalface – they must have an MBA and at least 5 years in a small business, preferably as owner / manager
• Single focus and contact point for SME support • Affordable - Most services are free to businesses, although non Counsellor support involves at least a 30% cost to businesses
• Joint working – The SBDCs serve as the focal point for linking the resources of federal, state and local government with the colleges / universities and the private sector to meet the needs of the small business community:
¾ SBDCs are formal partnerships between the SBA and an educational institution (usually business / technical based community colleges – similar to our former polytechnics);
¾ Banks are a major source of referrals; ¾ Chambers of Commerce are heavily involved in business support and development;
¾ SBDCs foster, develop and maintain partnerships among local community based business support organisations and local, state and federal agencies.
• Business Engagement – SBDC’s rely heavily on networking in the public and private sectors. In Albany there is a CEO network involving CEOs of 85 manufacturing companies which acts as a Steering Group for SBDC’s activities.
Performance measures:
7.5 SBDCs use the following measures-
• Growth performance measures – Job creation; job sustaining; investment – reported quarterly
• Performance – company sales, profit, efficiency, capital investment, job creation. 7.6 SBDCs operate a state wide management information system which allows staff to effectively and efficiently manage their case load and the SBDC directorate to monitor individual counsellors’ performance.
Key Partners • SBA • Educational Institutions • Local, state and federal agencies • Private sector providers
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• Chambers of Commerce.
ALMI Business Partner Ltd, Sweden
Area of Good Practice • Coordination of SME support services locally
Key Features of Approach • Holistic, coherent and co-ordinated approach to all SMEs, rather than sector oriented • Aims to stimulate SME establishment and growth through a combination of advice and finance
• Local dissemination of a national approach - ALMI is a nationwide group with the Parent Company being owned by the state – there are 21 local companies
Key Partners 7.7 ALMI identifies a series of activities / target groups to be delivered by co-operating partners:
Table 7-1: ALMI Target Groups Activities / Target Group Co-operating Partner(s) New Start Ups Jobs & Soc, Call Centre, Unemployment Office, Municipality Female Entrepreneurs Municipality, Banks Young Entrepreneurs Ass of Young Entrepreneurs in Schools, Junior Chamber Immigrant Entrepreneurs Ass of immigrant entrepreneurs Co-operative Enterprises Ass of Local Co-operatives Commercial Support Services Private Consultants Regional Development County Adm Board, County Council Mentoring, Management and Ass of SMEs, Business Schools Training Access to Finance Banks, Business Angels, VC Companies Inv Funds, Innovation Fund, EIF Internationalisation Export Centre, Export Council, Chamber of Commerce, JEV Inward Investment Invest in Sweden Agency EU Relations Networks EURADA, EIC, Nutek, County Administrative Board Industrial Design Centre of Industrial Design Innovation Project Council, Innovation Centre, Industrial Development Centre Technological Transfer Nutek Industrial Development Centre, University
TECentres, Finland Area of Good Practice • Integrated, customer facing service delivery
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Key Features of Approach 7.8 Employment and Economic Development Centres (TE Centres) are the joint regional service centres of three ministries (the Ministries of Trade and Industry, Labour and Agriculture and Forestry). The basic services of the National Board of Patents and Registration have also recently been added. There are 15 centres across Finland serving business people, farmers and individuals. The primary objectives in the establishment of TE Centres were:
• The alignment of workforce and business policy • Improvement of customer service • The promotion of regional development • More effective co-ordination in EU matters. 7.9 The Centres have 7 key roles:
• To support and advise SMEs at various stages of their life cycle • To promote technical development in enterprises and assist in matters associated with export activities and internationalisation
• To implement regional labour policies • To plan and organise adult training within the official labour policy framework • To promote and develop farming and rural enterprise activities
• To develop fisheries • To influence and participate in regional development in general.
Key Principles
• A co-ordinated approach - Customers can find all public services in employment related, industrial and farming matters in one place. So an entrepreneur just starting out could manage his finances, determine his business plan, establish the company and consider ideas for the name of the business all at the same time.
• A pro-active approach tailored to customer needs - TE Centres have also introduced a strategic planning process which aims to change their role from being a passive distributor of money to a proactive developer. Key features of the strategic planning process were to: ¾ Define customers and their needs ¾ Identify how their needs can be fulfilled ¾ Identify key competence and success factors.
• Credibilty - To develop business management skills for staff as well as internationalisation skills and awareness of changes in the business environment, including regulation and legislation – this enables TE Centres to offer a credible service to customers
• Engagement - Engendering local commitment and partnership through co-operating with companies, municipalities, trade unions and employers interest groups
• Meaningful performance measures based on results based management.
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• Market Segmentation - Market segmentation has been essential in enabling TE Centres to define and respond to customer needs. Examples of market segmentation used are: ¾ New entrepreneurs, Growing companies, Established not Growing companies, Companies that are restructuring or off laying, Green Field investments.
¾ Segmentation by market – local, national, EU, Global – fast growing, market driven companies typically require technology development, seed and capital financing and recruitment support; small companies not ready for the national / international market need support around basic services such as management training, investment subsidies, risk sharing, quality, export promotion and sometimes transfer of business to a younger generation
• Partnership - In all cases TE Centres bring public and private organisations together e.g. in Tampere region all four service points have been co-ordinated by the municipalities, the local entrepreneur association and the labour office.
• Customer Facing - TE Centres are also characterised by well organised customer service points. These points guarantee access to services. In addition to the main office, TE Centres have local service points spread evenly across the region. Virtual service points are also being developed. Local service points have enabled the collection of better and more accurate customer information and improved feedback from customers.
Key Partners 7.10 All key national and local public agencies and private sector services.
York and North Yorkshire Business Support Partnership Area of Good Practice • Strong partnership working
Key Features of Approach 7.11 A partnership of key agencies and providers which focuses on start-ups and businesses less than 18 months old and has one of the highest start-up and continuation rates in the UK. The region is a net exporter of highly educated young people and so the focus is on attracting people into the region to start businesses (mainly older age range).
Key Principles
• Joint working – ¾ Co-location of Chamber of Commerce and Business Link providing a region wide network covering
¾ Business start ups (4 franchises) ¾ Local Access Points – at partners’ premises ¾ York University for spin-outs and SME access support – 2 BSP officers dedicated to this link
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¾ Bi-monthly meetings between BSP, York University and Council Economic Development Unit
• Business Engagement ¾ 15 Local access points that are ICT linked in Council offices, community colleges, community centres etc
¾ 60 libraries have on-line access points ¾ 38 business associations in a network of networks
Key Partners • York and North Yorkshire Business Link • York and North Yorkshire Chambers of Commerce • York and North Yorkshire Councils • York University • Local Colleges (F.E. and others) • Library services
• Franchised enterprise and business start-up organisations
Luton & Bedfordshire Chamber Business Concept Area of Good Practice • Strong Partnership Working • Common performance framework / Accountability Mechanisms
Key Features of Approach 7.12 The Luton area was traditionally highly dependent upon the Vauxhall plant for employment. With the decline of this plant the partners felt that establishing an enterprise culture was key to the regeneration of the area. The key aspects of their strategy are:
• The unification of existing business support activities. • The creation of Enterprise Centres. • The inclusion of community colleges and schools. • The promotion of all as a unified service (Chamber Business) to business. 7.13 This mirrors the USA SBA model of business support. 7.14 The initial thrust came from the establishment of an enterprise post within the Council (externally funded) and then the establishment of two enterprise centres – one to focus on young people and one to deal with ‘mature’ entrepreneurs. A third is planned to meet the rural agenda.
Principles
• Joint working –
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¾ Each of the partners operate as a separate entity with its own objectives but the partners come together under the Chamber Business banner via common aims and objectives, referrals and working groups.
• Market segmentation – based on different needs rather than sectors – separate enterprise centres to meet the needs of young people, older people and rural areas.
• Community / Business engagement ¾ Open door, open access policy – all business advisors work from community centres
¾ Run community based studies to generate interest ¾ Run a range of integrated enterprise and start up workshops 7.15 Chamber Business is in the process of developing an entrepreneurs web-site.
Key Partners • Bedfordshire and Luton Enterprise Centres (BLEC). • Luton Chamber of Business and Industry (LCBI).
• Business Link Bedfordshire and Luton (BLBL). • East of England Development Agency (EEDA). • Hastingbury Upper School and Community College (HUSCC).
• Local Councils.
Business Eye Wales Area of Good Practice • Information provision to businesses
Key Features of Approach 7.16 Business Eye Wales is a single business portal with three access points:
• Web-site / e-mail • Pan Wales Contact Centre • Local Centres across Wales. 7.17 The information available covers:
• Directory of business support • Information about events and courses • Documents covering key business legislation and regulation • A business forum page for posting questions and answers. 7.18 Basic queries are answered by the contact centre / front of house staff and information provided / referrals made accordingly. More complex queries are referred to local centres. Basic sites and premises information is provided and clients are referred on as appropriate for more detailed enquiries.
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7.19 WDA manage the service. Information to populate the service is provided by providers largely on a goodwill basis, although a database of business support is currently being developed which will require more formal agreements to be put in place. WDA collect the information and populate the database. 7.20 Local delivery is contracted out to providers – however WDA include a clause in the contract which states that anyone who is a customer facing part of Business Eye is not allowed to work on any other business support product. The reason for this is to remove any perception of bias which might undermine trust and confidence in the service. Local contractors are managed by WDA but employed by the contracting agency. 7.21 The success of the Business Eye service is believed to be due to its total independence and impartiality which creates trust and confidence among clients. The service aims to provide information and to signpost and to ensure that the client has the facts they need to make a decision about what to do next. Clients who contact Business Eye and who need additional support will either:
• Receive information on one or more providers for them to take the matter forward themselves; or
• Be transferred to the most appropriate provider directly using a standard Transfer Form. 7.22 WDA require certain performance standards to be met by providers when a client is referred on e.g. the client must be contacted in 24 hours and WDA must receive feedback about the referral within 7 days. 7.23 The only delivery target which is set is customer satisfaction – measured through a questionnaire sent to every client which covers their experience of the Business Eye service itself and any services they were referred to. If any problems are identified in relation to other services WDA will seek to resolve these. No targets are set about number of contacts made – WDA believe these would lead to pro-active calling to meet targets – these calls would probably be unwanted by potential clients. The service also sets no targets related to the delivery of business support services by WDA or any other organisation. Marketing targets include service awareness and understanding.
7.24 Service development included extensive consultation with businesses. In order to get to on the ground business needs consultation with umbrella organisations such as the CBI, the Welsh Chamber etc were avoided. Instead focus groups were held and were segmented to reflect the local economy (rather than strictly by sector) e.g. rural, small town, urban, manufacturing, construction, services etc.
Key Partners 7.25 Managed by WDA. Description of the service as partnership is purposely avoided to ensure it is seen as totally independent and impartial.
Kirklees Local Business Partnership
Area of Good Practice • Business Engagement • Joint Working • Information provision to businesses.
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Key Features of Approach
Local Business Partnership
7.26 The KLBP was established in response to a need to engage with businesses better in terms of regulatory services. It was felt that there was a negative perception of Council as enforcers rather than advisors – there was an identified need to address these perceptions and improve the credibility of the service. 7.27 The KLBP aims to engage with SMEs rather than larger companies which tend to have internal support and advice on tap. It comprises:
• 17-18 regulators – Council departments plus organisations such as Customs and Excise, ACAS, Valuation Office and Inland Revenue among others
• 4-500 business members • Federations of industries which ensures as many individual businesses as possible are covered. 7.28 Services offered include:
• Meetings and seminars • Newsletters • Hotline – promoted as Local Business Partnership Hotline – manned by Council staff who are trained to answer basic queries and to make referrals for more complex queries. The Hotline is open for all business enquiries, not just regulatory services. All partners are signed up to the “Business Partnership Pledge” which sets a performance measurement framework based upon speed of response, customer satisfaction etc. There is no Service Level Agreement, partners implement the pledge through goodwill
• Advice Team comprising qualified EHOs with no enforcement remit – every business is entitled to a free assessment which takes around two hours
• An annual “Business Rules Day” – regulators have exhibition stands, seminars are held (businesses are canvassed before hand about preferred topics) 7.29 All services of the LBP are free – at the moment there is no formal funding arrangement but funding for events is becoming an issue and it seems likely that partners will need to agree annual contributions from mainstream budgets. 7.30 The LBP is managed by members.
Business Consultation / Involvement in Decision Making
7.31 The Council’s Corporate Development Unit has established a network of panels and focus groups which are available to all departments. This avoids duplication and ensures consultation by different departments can be co-ordinated
Key Partners • KMBC • Other regulatory services
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Lessons for Sefton from the Best Practice Reviews 7.32 The key lessons for Sefton emerging from these good practice case studies are summarised in the box below. • Services tailored to business needs and not driven by the finance available tend to be more effective 9 Market segmentation facilitates a better understanding of customer needs and the development of a tailored service • Public services must be credible and trusted by customers 9 Engaging with businesses helps encourage potential clients to trust the service on offer 9 Enablers and providers can retain their own identities behind the scenes, but it is important that a unified service is promoted to customers. This may mean some organisations working under the banner of another organisation’s name or establishing a completely new name for the service 9 Front of house services must be seen as independent and impartial • Reducing the number of steps between a service request and a resolution to the absolute minimum by means of an effective and professional intervention • Providing a variety of ways of accessing services generates a positive sense of accessibility among potential clients and would-be entrepreneurs • Joint working by the public and private sectors is essential • Co-location facilitates joint working and is important in delivering a 3600 service • Formal partnerships help deliver effective joint working and shared performance targets • Clear definition of the roles and responsibilities of different enablers and providers is essential in delivering an integrated service • Involvement of HEIs is useful, particularly when targeting growth businesses • Performance targets should be meaningful and appropriate to all elements of the service.
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8. Strategic Framework for Business Support in Sefton 8.1 To take forward the lessons from this research a strategic delivery framework of objectives and potential actions has been developed. This is intended to provide a breadth and longevity to the future actions and to guide all the relevant players shaping business support services in Sefton.
Strategic Aim 8.2 The strategic aim of the service delivery framework is: “To deliver business support in a way which simplifies the customer experience, provides local focus and makes efficient use of resources”
(Amended from the Jobs and Prosperity Action Plan, December 2003)
Design Principles for Service Framework 8.3 The following principles have been drawn from the SBS good principles of scheme design:
• Customer Focus – Services should be customer facing and tailored to customer needs
• Clarity – There should be clarity to the market – businesses should be made fully aware of the services on offer and how to access support, this requires clarity among providers about who does what and when. The key to the market will be simplicity of approach – customers do not need to know about the complexities behind the scenes
• Coherence – The service must present a united front to the market. It should be delivered to consistent standards and roles and responsibilities allocated to partners should be both logical and reasonable
• Cost Effectiveness – The service should be delivered in a co-ordinated way which raises the potential for resource sharing between partners. Meaningful performance targets will also facilitate effective targeting of resources.
• Continuous Improvement – The service should be delivered to a common performance framework which sets consistent standards. There must be a shared commitment to address any failure to meet those standards.
8.4 A further ‘C’ has been added for Sefton:
• Collaboration. – Close partnership working will be essential to deliver a service which meets the five principles outlined above. Sefton already has a growing platform of partnerships on which to build.
Strategic Objectives 8.5 Based on our work to date: a baseline analysis, a service analysis, a gaps analysis and a best practice review, we have identified five strategic objectives, each with a series of objectives as follows:
• SO1: Service Delivery - To deliver services in an integrated, customer focused way ¾ SO1.1 To ensure the financial sustainability of services
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¾ SO1.2 To increase awareness and take-up of services ¾ SO1.3 To enhance the credibility of public services among businesses ¾ SO1.4 To facilitate the seamless exchange of clients between different services and to ensure continuity of service
• SO2: Joint Working - To build upon existing working practices to bring all partners together in the development and delivery of services and to maximise joint outcomes ¾ SO2.1 To improve awareness about partners’ objectives, activities and services
¾ SO2.2 To improve sharing of service information between partners ¾ SO2.3 To ensure opportunities for joint outcomes are recognised and acted upon
¾ SO2.4 To build upon the Sefton Business Support Group and seek to extend joint working beyond ‘the big five’
• SO3: Business Engagement – To improve our understanding of customer needs and to involve businesses in service development ¾ SO3.1 To improve our understanding of customer needs and to ensure this feeds back into service development
¾ SO3.2 To build upon the Sefton Chamber and the South Sefton Business Forum, to provide an over-arching voice for businesses in Sefton through ensuring business networks are accessible and representative
¾ SO3.3 To involve businesses in policy development through both formal and informal means
• SO4: Making the Sefton Voice Heard – To increase Sefton’s influence on policy development and investment decisions at a sub-regional level. ¾ SO4.1 To ensure Sefton can influence the development of the sub-regional investment framework
¾ SO4.2 To identify local flexibilities within the sub-regional / regional approach to secure maximum effect for local delivery arrangements and businesses ¾ SO4.3 To improve sector development by establishing closer strategic and operational links with cluster initiatives and the Liverpool universities
• SO5: Performance Measurement – To monitor service provision using meaningful and measurable performance targets.
¾ SO5.1 To ensure that performance measures are fit for purpose ¾ SO5.2 A regular shared reporting cycle of performance is established
Priority Areas for Action 8.6 This section identifies priority actions by strategic objective. The actions identified are those which will ensure delivery of an integrated, customer facing business support service within the short to medium term and which will build on the positive work already underway in the borough.
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8.7 The actions are each designed to contribute to the strategic aim set out earlier and they will set in train a process which ensures that Sefton is prepared for the financial climate post 2006. The actions when implemented will ensure that Sefton is in a strong position to influence allocations under the sub-regional pot and will be well placed to justify funding from this source. This action list is simply indicative and by no means exhaustive. It should be continually refreshed as events unfold and new opportunities arise. It will be possible to bolt any new projects emerging from Objective 1 / post Objective 1 funding onto the structure which has been put in place.
8.8 The strategic framework including priority actions is summarised in the diagram overleaf.
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Figure 8-1: Delivery of Business Support Services in Sefton - Strategic Framework
To deliver business support in a way which simplifies the customer experience, provides local focus and STRATEGIC AIM makes efficient use of resources”
STRATEGIC SO1 Service SO2 Joint Working SO3 Business SO4 Making the SO5 Performance OBJECTIVES Delivery Engagement Sefton Voice Measurement Heard
PRIORITY 1. Long Term 1. Knowledge 1. Sefton 1. Enhance the 1. Performance ACTIONS Investment Pool for Economic role of SCCI Monitoring Framework Strategy Providers Forum 2. Intelligence 2. Business 2. Operational 2. A guardian of on business Support One- Joint Working networks needs Stop Shops 3. Standard, shared supplier panel 4. Standard diagnostic procedure 5. Framework of responsibilities 6. Joint Branding
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SO1: Service Delivery 8.9 Actions under this strategic objective are designed to address issues around:
• Awareness and take up of services • Understanding of business needs • Service integration • Credibility of public services • Sustainability of services.
Action 1.1: Develop A Long Term Investment Strategy For Business Support In Sefton Project Champion, Sefton Business Support Group led by SMBC lead economic Partners & development officer Management Rationale As the sources of investment shift and the roles and priorities of partners evolve, Sefton needs to establish a long term commitment to a comprehensive suite of business support services involving all key partners which makes best use of the widest range of funding streams.
Particular issues to be resolved will be: identifying funding for the short term actions with resource implications; and identifying sustainable sources of funding post 2006 when the current SRB and O1 programmes come to an end. Action to be Taken Building on the profile of services already in place a considered programme of replacement initiatives needs to be established. Continuity is a key requirement of business support clients and the strategy should be designed to ensure that as services or funding streams come to an end, appropriate exit and replacement strategies are implemented. The funding strategy should seek to consolidate the respective roles of partners and to continuously make better use of service performance data. The funding strategy should at least include consideration of: • Mainstream resources – core partners and others (e.g. HEIs) – including for the Council Business Rates revenue under the new system • Objective 1 and any post 2006 European programme • Sub-regional pot • NWDA / Business Skills North West potential funding • Potential resource savings through joint working. • New Local Public Service Agreement in next round . The investment strategy must be a collaborative vision for the long term provision of services. It will be vital tool in dialogue with future funders.
The investment strategy must recognise the different issues pre and post 2006 and be tied back to the phasing of actions set out in this delivery framework (see the end of Section 8).
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Funding Nil requirement in the short term. Timetable Within the next 6 months
Action 1.2: Establishment Of Business Support One-Stop Shops Project Champion & Led by Sefton MBC Partners & Management Rationale Businesses in Sefton require easier access to and greater clarity about the business support services available and providers need to collaborate more closely to meet clients requirements. Action to be Taken Action 1.2a: Establishment of LICs The Local Investment Centres should be established as the single entry point for business support services (public and private) in Sefton. A site has been identified for a new build LIC in the South of the district and discussions are underway to utilise existing premises in the North. In due course there may be scope for a third in the East. The LICs should perform a number of roles: • provide a physical base for the key public sector business support providers: the local authority, the Chamber of Commerce, sector development officers and Job Centre Plus and project funded initiatives such as SRB. • establish a single identity and a common gateway for business support services • customise provision to meet the specific needs, strengths and weaknesses of north and south Sefton • provide a focus for businesses to engage in networking activities. Action 1.2b: Rollout Integration of Providers in LIC The Business Support Group6 should take a lead in co-ordinating the roll-out of the LICs, by co-ordinating the service providers. In practice this would mean that SMBC undertakes the lead role, possibly becoming the lead tenant and sub-letting space to the other organisations. The provider of the front of house service could be SMBC or another partner agency such as BLGM. A base of Relationship Managers7 should be housed in the LICs which would: • work to an agreed set of protocols on referrals, output sharing, information/case load sharing and reporting on achievements • be founded on a set of service standards covering quality of communication, speed of response and progression routes • establish customer satisfaction targets for all tenant providers
6 Sefton CCI and BLGM were considered for the role of leading this initiative, but on balance it was felt that Sefton’s local strategic role was more closely aligned to co-ordinating the one stop shop. BLGM’s will play a key role operationally as facilitator of services and provider of information and SCCI will have a base in the one stop shop 7 Relationship Managers should provide non-exclusive customer contact and not be aligned to any particular organisation. They will include BLGM’s existing relationship managers and customer facing staff from other agencies, all with a newly defined remit.
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Action 1.2: Establishment Of Business Support One-Stop Shops to work towards As co-ordinator of LIC provision, SMBC under the jurisdiction of the Business Support Group would assume responsibility for establishing a system for referrals, agreeing information sharing protocols and reporting of achievements between the tenant organisations, each of which could be embedded in any tenancy agreements. There will be an expectation that delivery staff from partner organisations will be relocated to the LIC as their normal place of work and operate from a pooled team to deliver their agency’s contracted services. As funding arrangements come up for renewal, partners should ensure that successor posts are integrated as a matter of course behind common procedures and targets and that a gap filling exercise is undertaken to identify key LIC requirements which may not currently be satisfied. These arrangements should initially proceed on the basis of good- will and collaboration but in due course may be more effectively governed through Service Level Agreements between partners. Each LIC should establish a Management Team with representation from each provider/tenant, with SMBC providing the chair and reporting to the Business Support Group. Businesses in Sefton will experience: • a single gateway to business support services • on site initial advice / guidance from a Relationship Manager (or equivalent) • access to a standard diagnostic service, provided by staff on- site • access to an information pool on services, opportunities (including sites and premises) and general factsheets, details of events and courses, business support directory, newsletters and local contact details. • hand-holding towards third-party support providers and guidance. Funding • Initial capital investment: 9 South – the Centre is being built under the auspices of the South Sefton Partnership funded through various sources including SRB and O1 9 In the North the Centre will be built under the auspices of the Southport Partnership and will be funded through various sources which could include SRB, O1 and SRP 9 The idea of an Investment Centre in the East has not yet been mooted. If a need were to be identified possible sources of funding include O1 and SRP • Revenue support 9 In the South the South Sefton Development Trust (the succession body for the South Sefton Partnership) will own and manage the building, leasing space to providers (either directly or through SMBC). The provision of services will be funded through mainstream resources of key partners and project costs. There may be scope for the LICs to generate additional income by hiring out
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Action 1.2: Establishment Of Business Support One-Stop Shops facilities, charges for events and seminars etc 9 It is anticipated the centres in the north, and possibly the east, would be managed and funded along similar lines Timetable LIC opens - South end 2005; North mid 2005
SO2 Joint Working 8.10 Significant progress has been made in terms of joint working with the establishment of the Sefton Business Support Group. The actions under this heading are designed to build upon these developing relationships, but also to address the following on-going issues which have been identified:
• Lack of awareness among partners about each others activities and services • Limited sharing of information between partners • Perceived competition for outputs.
Action 2.1: Establish A Knowledge Pool For Providers Project Sefton Jobs And Prosperity Group, on behalf of the Sefton Partnership, Champion, and delegated to Sefton MBC EDO. Partners & Management Rationale Agencies in Sefton need access to better information about the range of providers and initiatives available and the respective roles of partner organisations. Action to be This study has established an initial profile of services and providers of Taken business support in Sefton which should be built upon over time to maintain a map of provision, roles and achievements. A Knowledge Pool is required for providers which can capture, embed and share information in a systematic way, including: • An overview of the respective roles and responsibilities of partners (an initial summary is provided at Action 4: Establish a framework of responsibilities) • Details of all business support funding and support products • Details of events, seminars etc in each area – to help co-ordination • Booking arrangements for different agencies to ensure they have key staff in attendance • A bulletin board to support sharing of information. Subject to resolving data protection issues a unified client contact database should be established Funding • Establishment - O1 / SRP • On-going maintenance costs absorbed into mainstream budgets Timetable Implementation within next 12 months.
Action 2.2: Operational Level Joint Working Project Sefton Jobs And Prosperity Group, on behalf of the Sefton Partnership, Champion, and delegated to Sefton MBC EDO. Partners & Management
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Action 2.2: Operational Level Joint Working Rationale Staff delivering and facilitating access to services need to have a forum to meet and share insights and agree joint ways of working Action to be A forum for operational staff should be established which allows officers Taken to come together and share knowledge and experience. We recommend the establishment of a Sefton Business Support Working Group of operational representatives from each of the business support agencies and reporting back to the Sefton Business Support Group. The Working Group would be co-ordinated by an EDO from Sefton MBC. The role of the Working Group would be: • To bring together the business support agencies at an operational level • To put into action the decisions made by the Sefton Business Support Group • To share knowledge and information at an operational level • To identify new ways of working at an operational level • To input into joint working protocols. The kinds of issues which are likely to be on the agenda of the Working Group are: • Information sharing • Common approaches to diagnostics and opportunities for joint diagnostics • The realistic potential for passporting • Opportunities for joint referrals. Funding Nil Timetable Implementation within next 12 months.
Action 2.3: Work Towards A Standard, Shared Supplier Panel Project Led and managed by BLGM Champion, Partners & Management Rationale Making all business support sources more widely available to Sefton’s businesses requires a coherent method of referring clients to all potential providers (public and private), which in turn requires a standardised approach to identifying and accrediting third party providers. Action to be A number of partners currently use third party suppliers in different ways Taken and have different sets of criteria for accrediting their services. Cross agency referrals would be more effectively facilitated if partners moved towards a shared supplier panel in which all agencies can have confidence and which would allow clients and their suppliers more easily to utilise the different funding channels. We understand that the supplier panel criteria used by BLGM for its Growing Business Merseyside, may have the most exacting standards(based on DTI specification) and therefore needs to be the starting point. It is not suggested that this or any other criteria are adopted wholesale and imposed upon all providers and services. The criteria for assessing suppliers should be designed to reflect the requirements of the service being provided and the funding streams which are supporting it and therefore may need to retain some
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Action 2.3: Work Towards A Standard, Shared Supplier Panel flexibilities. The introduction of a shared supplier panel would require, as far as is reasonably possible: • Agreed common criteria for supplier accreditation. • Establishment of a shared database of suppliers. • Agreed procedures for joint approval, obviating the need for suppliers to register with several organisations. • Accepted standards and approach to monitoring performance of suppliers The introduction of a shared supplier panel would provide a stronger basis for pass-porting clients between initiatives/funding streams whilst retaining a single supplier in the longer term. This is an innovative business support model whereby agencies work together to determine how they will support a particular firm and the support resource follows the business rather than the agency. (See Action 3 below for more detail about how this could work). The benefit of the passport approach is that it gives the right to move funding to match local or individual need.
Funding Nil requirement to agree, but potentially substantial in the long run and could therefore be considered for use only in new schemes which come forward. Over time improved joint working could result in resource savings Timetable Within the next 12 months
Action 2.4: Accelerate Move Towards A Standardised Framework For Diagnostics Project Led by BLGM (diagnostics are one of the three strands of their new Champion, remit) Partners & Management Rationale Business Skills North West are keen to promote a standard approach to diagnosing client’s business support needs and Sefton should seize the initiative to implement a common approach. Action to be A standardised framework for diagnostics should be agreed between all Taken facilitators and deliverers. This would facilitate cross agency referrals and knowledge sharing. Diagnostics is a sensitive issue where balance needs to be struck on two fronts: • Between standardising the approach and making sure the tool is able to accurately identify different types of business’ needs • Between accurately identifying clients’ needs and placing barriers in the way of accessing services. The standardised framework should take into account both the principles of good diagnostics and also the wishes and needs of businesses. A tiered approach to diagnostics along the following lines: may be appropriate • First level needs analysis, which is genuinely standard across all organisations and is undertaken quickly at the initial enquiry stage • A more substantial second level needs analysis involving an on site visit with a view to identifying short term immediate support requirement
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Action 2.4: Accelerate Move Towards A Standardised Framework For Diagnostics • A more detailed, invasive, thorough and costly diagnostic overview of the whole business if required. Each stage of the diagnostic process should serve to channel potential clients closer to an appropriate package of support and a suitable supplier. • A standardised framework for diagnostics would both increase the scope for joint diagnostics and would also facilitate passporting between schemes in the longer term. Funding Nil requirement. Timetable Over the next 2 years
Action 2.5: Establish A Framework Of Responsibilities Project Led by JAP and delegated to Sefton EDO in line with strategic overseer Champion, role Partners & Management Rationale Suppliers and facilitators of business support services in Sefton need to have a clearer understanding of what each other is doing and an agreed framework of responsibilities for business support Action to be An agreed statement of roles and responsibilities is required. This Taken statement should be used to guide future developments and agree among partners which organisation is best placed to undertake which services and activities. Much of the thinking required for this exercise has already implicitly been undertaken, and the broad role of the core partners can already be clarified thus: Sefton Partnership (LSP): Strategy Guardian • Guardian of the district’s strategic objectives, taken forward by the Jobs and Prosperity Group which in turn has support from Sefton MBC • The voice of Sefton businesses via the Economic Forum and guardian of business networks Sefton MBC: Strategy Overview • Strategic Co-ordination of business support on behalf of the JAP Group • Monitoring services and performance of the unified business support service • Co-ordination of the Business Support Group and Working Group • Co-ordination and management of LIC members and operational management of customer facing services • Monitor and co-ordinator of Sefton’s business networks Business Link Greater Merseyside: Enabler • Provider of information • lead body in establishing a standard approach to diagnostics and supplier panels • To be represented on the Sefton Business Support Group and the Working Group
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Action 2.5: Establish A Framework Of Responsibilities Sefton Chamber of Commerce: Network Guardian & Potential Deliverer • A voice for businesses in Sefton and in the sub-region • To be represented on the Sefton Business Support Group and the Working Group • To deliver in accordance with the Service Delivery and Common Performance Standards Greater Merseyside Learning & Skills Council: Core Partner • Responsible for shaping the learning landscape sub-regionally and influencing investment in training and workforce development • A core partner participating in the Business Support Group Job Centre Plus: Core Partner • Responsible for delivering employment advice and support to residents and assisting businesses meet their recruitment objectives • A core partner participating in the Business Support Group Other agencies: Deliverers • To be represented on the Sefton Business Support Group and Working Group as required • To deliver in accordance with the Service Delivery Framework and Common Performance Standards • There is a case for a clearer sense among delivery bodies about strengths and roles of the various providers of support. This exercise would need to be informed by a thorough evaluation of their track-record and capacity which should coincide with the formation of the LIC’s and should build upon the BLGM experience of supporting private and public sector supporters. This framework sets out a series of onerous responsibilities for SMBC which will in practice fall to the lead EDO supporting the JAP and Business Support Groups which may require a review of roles & responsibilities for other staff. Funding Nil requirement to establish the framework. The operational review of responsibilities among deliverers should undertaken independently and will incur fees circa £20,000. Timetable Immediate
Action 2.6: Establish A Joint Branding For Business Support Services Project Led by JAP and delegated to Sefton EDO in line with strategic overseer Champion, role with inputs from the Business Support Group. Partners & Management Rationale Businesses are deterred by a confusing array of branding for business support services – this deterrent to greater uptake could be reduced by a more simple approach to branding of services. Action to be ‘Local Investment Centre’ to be adopted as the brand for front of house Taken activity at all access points (including hard copy material and internet access as well as physical locations). Partners retain own brands for discrete services.
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Action 2.6: Establish A Joint Branding For Business Support Services
The ‘LIC’ brand should be one which businesses associate with the following messages: • The obvious starting point for business support in Sefton • A quality service • An independent and impartial service which is tailored to businesses’ needs • A local service (wording will need to be carefully chosen - we know that the geographical location of ‘Sefton’ is not one that all businesses can identify with) • An efficient service which can provide all the information required at the time it is required • A credible service which is of value to businesses • A professional and reliable service The brand will need to be supported by promotion of services and good communications. A service can stand or fall on the quality of its communications. A communications strategy should set out the channels and protocols for communication throughout the entire service: • Between strategic and operational levels • Between core partners • Between core partners and other enablers and deliverers • Between the service and its customers – both promotional communications and communications during service delivery. Funding Nil requirement in short term, potentially significant in longer term. Timetable Discussions should commence immediately.
SO3 Business Engagement 8.11 The actions under this heading are designed to facilitate better engagement with local businesses. Specific issues to be addressed include:
• The lack of a single representative voice for businesses in Sefton • Non engagement of businesses in policy formulation
• Prevailing negative perceptions of public agencies.
Action 3.1: Continue To Develop The Economic Forum Project Sefton MBC lead as part of LSP remit Champion, Partners & Management Rationale The priorities, concerns of Sefton’s businesses and the barriers they face in moving forward need to be given air and heard in a structured forum environment. Action to be Establishment of the Forum is underway – the first meeting is due to be Taken held in November 2004. It is imperative that continued pro-active promotion of the Economic Forum is undertaken. In particular officers should seek to ensure membership is representative of the local economy both geographically
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Action 3.1: Continue To Develop The Economic Forum and sectorally. It is essential that the Economic Forum has genuine influence and is more than a ‘talking shop’. It must therefore be incorporated alongside, and have direct reporting mechanisms to and from, the Jobs and Prosperity Group and the SBP board itself. The Sefton Economic Forum will have three components: the general meeting, the Jobs & Prosperity executive, and task-and-finish sub-groups of the executive for particular purposes. Funding Nil requirement Timetable 1st meeting Nov 2004, subject to continual development
Action 3.2: Establish A Clear Guardian Of Networks Project JAP delegated to lead SMBC EDO Champion, Partners & Management Rationale Businesses need to be able easily to understand the opportunities they have for engaging in networking activities and be reassured that their views are heard and acted upon systematically. Action to be The array of existing and emerging networks in Sefton needs to be Taken carefully monitored and structured – too many can create confusion and make it harder for agencies to respond to the priorities and concerns raised within them. Too few can lead to overly generic topics which are of too little relevance to local businesses. Stimulating higher levels of involvement in networking activities is a key goal across the UK. Whilst recognising that networks are not the route to all businesses, Sefton needs to pursue a number of actions: • The LSP via JAP should be positioned as the guardian and champion of business networking. In practice this would mean that SMBCs lead EDO supporting JAP would be tasked with: 9 identifying key messages and themes from networking activities and reporting these to the JAP Group and the BSG 9 monitoring the range of networks operating for local businesses 9 identifying gaps in the coverage and membership 9 taking a lead in consolidating networking activities and advising on new network development • SCCI should consolidate its position as a voice of businesses in Sefton within the context of the Economic Forum providing the over- arching business voice in the Borough. It would be possible for the Chamber to sponsor the SEF if this was thought appropriate. • Pass management of South Sefton Business Forum to SCCI – this is already the agreed exit strategy for SCCI. In order to boost the profile and capacity of SCCI needs to boost its profile and capacity in the district a tie up with neighbouring Liverpool Chamber could help, whilst clearly retaining a local identity (an affiliation is underway, but the option of a full merger at a later date should not be written off). The district’s business networks should utilise the LICs for promotional activities and highlight the LICs to businesses as the standard entry point for business support.
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Action 3.2: Establish A Clear Guardian Of Networks JAP should adopt a set of principles for future network development, along the following lines: • Networks should be representative of the structure and geography of the local economy • Duplication of networks should be avoided – where it exists amalgamation of overlapping networks should be encouraged • Where there are gaps (geographical, sectoral, types of businesses) expansion of existing networks should be pursued before new networks are established. • Networks should be established in response to customer demand • The SEF should act as ‘a network of networks’ and be the over- arching voice for businesses Funding Minimal funding required Timetable Progress over next 12 months
SO4 Making the Sefton Voice Heard 8.12 Actions under this heading are designed to address the following issues:
• The feeling that priorities at a regional and sub-regional level are not always clearly communicated to partners and are sometimes inconsistent
• Concerns that a regionally directed approach will not suit local needs
• The perception that there is a gap between strategic sector development and sector initiatives on the ground.
Action 4.1: Enhance The Role Of SCCI At Sub-Regional & Regional Level Project Champion, Sefton CCI working with partners to identify the best way forward. Partners & Management Rationale SCCI should utilise its insights into local business priorities and become more engaged sub-regionally and regionally in strategy and policy development. Action to be Taken Simply need to ensure that SCCI rises to the challenge of engaging in policy and strategy decision-making. From its current profile outside of the north of the district this is a major step forward, however the affiliation with Liverpool Chamber and its management responsibility for the South Sefton Business Forum will provide a capacity and a profile which should project SCCI forwards into this role. The Chamber should continue its membership drive, and play a full part in the LIC Management Teams, SEF and the Business Support Group. Funding There may be some short-term need to boost SCCI’s capacity from external resources, but in the long term this activity should rightfully be funded from network member contributions. Timetable Progress immediately
Action 4.2: Develop An Intelligence Base On Business Needs Project Champion, Led by Sefton Business Support Group reporting back to JAP
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Action 4.2: Develop An Intelligence Base On Business Needs Partners & group by the Sefon MBC EDO support. Management Rationale Knowledge of business needs and conditions in Sefton is patchy and sometimes relies on anecdote rather than data. Making the case for Sefton businesses requires robust intelligence drawn from the experience of service deliverers and networks. Action to be Taken The Sefton Business Support Group should assist the Sefton MBC EDO in collating regular intelligence reports covering: • Monitoring data on service provision in the district • Messages and developments emerging from the district’s networking activities • Research findings and data updates as they are published (building on the baseline presented earlier in this report) This material should be used for: • management decision making by key service providers (hence the reporting to and ownership by the Sefton Business Support Group) • contributions to strategic discussions on future funding initiatives , particularly with an eye on the establishment of a Merseyside Sub Regional Partnership and the demise of Objective 1. • championing the progress made locally by businesses and to continually refresh knowledge of their needs and requirements. Funding Nil requirement Timetable Immediate
SO5 Performance Measurement 8.13 This theme is dealt with under Section 7 where the performance measurement framework is set out.
Action 5.1: Establish a Systematic Performance Monitoring Framework Project Overseen by the Business Support Group and at an operational level by Champion, SMBC lead Economic Development Officer. The lead EDO will monitor Partners & standards and report performance to the JAP Group. Management Rationale The achievements of business support in Sefton, across all agencies, need to be better understood Action to be Performance monitoring must relate back to the targets set down in the Taken Jobs and Prosperity Action Plan. The JAP Action Plan provides the framework for the performance monitoring set out below but seeks to adapt this more specifically to the delivery of a unified business support service. Any performance monitoring framework must also take account of SRP indicators once these are determined. The high level performance indicators of the JAP action plan are set out in detail in Section 1. In summary these are to: • Increase productivity (GVA per person) • Converge on UK growth rate (GVA per person as a proportion of UK
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Action 5.1: Establish a Systematic Performance Monitoring Framework GVA per person) • Increase employment (% of people of working age in employment) • Converge on UK employment rate (% of people of working age in employment as a proportion of UK employment rate). A more effective and unified business support service will clearly contribute towards the achievement of these high level targets. However, more specific core outcomes for the business support service will be: • Improved co-ordination between providers • An improved business support service which fits the needs of Sefton businesses • An increased level of take up of support services • Better engagement with local businesses. Wider impacts will be: • Improved competitiveness of the Sefton economy (as measured by the high level performance indicators) • Improved cost effectiveness of the business support service in Sefton. There are two issues around measurement of these outcomes and impacts: • Firstly, several are qualitative rather than quantitative – we need to identify proxy quantitative measures or ways of collecting qualitative data • Secondly, the information base to measure some of these indicators is not currently available. Partners will need to set in train protocols to govern information collation and dissemination to establish baselines and ensure that performance can be measured in the future. Measures are set out under core outcomes and wider impacts.
Core Outcomes Improved Co-ordination between providers Possible measures include: • Implementation of the actions identified in the service delivery framework • Levels of use of the Knowledge Pool • Number of joint solutions / cross agency referrals An improved business support service which fits the needs of Sefton businesses It is essential to monitor the service through customer feedback. Targets should be set for: • Awareness of service and understanding • Customer satisfaction (all levels – initial contact with one-stop shops through to services received from partners) Standard practices for obtaining customer feedback should be established. These are more likely to be successful if implemented as standard, regular practice rather than one-off surveys.
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Action 5.1: Establish a Systematic Performance Monitoring Framework
An increased level of take up of support services This outcome is perhaps the most straightforward to measure, although it still relies upon the necessary information being made available by partners. It is imperative to ensure that targets are meaningful and so are based upon outcomes for the businesses and not just take-up of services. This requires follow up with businesses to see how they have responded to the support received. Measures for consideration include (those marked with an asterisk are existing JAP indicators): • Take up of business support services (all providers) in Sefton, comparison to rest of Merseyside (this is more than penetration rates) • Levels of inward investment (value and additional jobs created)* • Changes in sectoral make-up of the local economy (number of firms, number of employees, value to local economy) - specifically draw out growth sectors* • Business starts (including social enterprises)* and survival rates • Changes in the number of jobs and earnings* • Jobs sustained • For supported businesses: 9 Changes in turnover / profit 9 Jobs created and sustained 9 Levels of capital investment 9 Efficiency improvements. Better engagement with local businesses. This will be measured in part through customer satisfaction surveys which will allow partners to assess how businesses perceive the service in terms of its credibility and value. Take-up of services will also be relevant. In addition to these measures we also need to understand how effectively businesses are being engaged in policy making and in more informal ways. Measures could include: • Number of businesses who are members of the Economic Forum and the number who are actively involved • Number of business networks in total, new and sustained • Events held and numbers of additional businesses attending
Wider Impacts Improved competitiveness of the Sefton economy This will be measured by existing high level JAP performance indicators. Clearly the unified business support service together with other JAP activities will have a cumulative impact on achievement of these targets. Improved cost effectiveness of the business support service in Sefton. Measurement of this impact depends upon partners being able to provide cost information at a Sefton level. Possible measures include: • Total cost of the business support service in Sefton (mainstream and external funding)
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Action 5.1: Establish a Systematic Performance Monitoring Framework • Cost of service per business supported – ideally break down into levels of intensity of support • Cost per business supported set against average improvement to business performance. Key Performance Indicators We suggest the following KPIs for the Sefton Business Support Service: • Customer satisfaction with service • Cost of service per business supported • Take-up of business support services. Targets for each of these KPIs need to be defined. Care should be taken not to introduce targets which might distort the service or impact upon perceptions of the service – for example penetration rates can encourage ‘cold calling’ which is often not welcomed by businesses. Funding Nil requirement Timetable Immediately
Phasing and Resources 8.14 The table below shows an indicative outline phasing and resource schedule. Table 8-1: Sefton Delivery of Business Support – Phasing and Resourcing of Indicative Actions Type 2005 2006 2007 2008+ Jan June Dec Action 1.1 Long Term Investment Strategy F F 1.2 Business Support One-Stop Shops - South F - North F - East R 2.1 Knowledge Pool For Providers R 2.2 Operational Level Joint Working D (1.2) 2.3 Standard Shared Supplier Panel R 2.4 Standard Framework For Diagnostics R 2.5 Framework Of Responsibilities D (1.2) 2.6 Joint Branding For Service R 3.1 Economic Forum F 3.2 Guardian Of Networks D (3.1) 4.1 Role Of SCCI R 4.2 Intelligence Base R 5.1 Performance Monitoring Framework - Establishment D (All) Key: F _ Foundational Task upon which other Actions depend Action requiring nil or minimal funding D – Dependent Tasks on Foundational Action (Foundational Action is listed in brackets) Action requiring capital funding R – recommended task to maintain quality Action requiring revenue funding
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9. Management and Delivery of the Sefton Business Support Framework
Business Support Strategic Framework Champion 9.1 Many of the principles and actions set out in this report are not new to people working in business support in Sefton, indeed a number of them are already underway. The logic of these ideas is largely straight forward and not contentious. This report has sought to bring some additional clarity and direction to these ideas and to add some impetus to their achievement. Perhaps the single most striking observation is that the concept of greater collaboration between agencies and providing a more accessible service to clients has not always been translated into actions. In light of this observation it is critical that there is ownership of the framework and an agreed champion with responsibility for ensuring its recommendations are acted upon is identified.
9.2 It is proposed that the Jobs and Prosperity Group on behalf of the SBP assume the role of Strategic Framework Champion, giving them responsibility for monitoring overall performance against performance targets and challenging partners which do not maintain progress. The role & responsibilities of the JAP Group in terms of business support will be as follows:
• To oversee the rollout of a more unified business support service for Sefton in accordance with the service delivery framework
• To provide a locus for monitoring performance of the unified business support service against the common performance standards and the performance monitoring criteria and to push for corrective action as appropriate
• To provide an over-arching voice for businesses via the Economic Forum and to act on these soundings
• To receive progress and monitoring reports from the support officer
• To report back to SBP board on business support matters. 9.3 The lead SMBC Economic Development Officer supporting the JAP group should assume operational responsibility of these tasks. It would be his / her responsibility to co-ordinate reports from partners back to the JAP group and to ensure monitoring is undertaken to an agreed framework. The role and responsibilities of the SMBC lead Economic Development Officer would be as follows:
• To support the running of the JAP Group • To co-ordinate progress reports from partners back to the JAP group • To monitor performance of the unified business support service against the common performance standards and the performance monitoring criteria and to report back to the JAP group
• To oversee implementation of JAP Group decisions in relation to business support, including any corrective action to address under performance
• To co-ordinate the Sefton Business Support Group and the Working Group (see below)
• To manage the Business Support One Stop Shops in the Local Investment Centres • To manage Sefton’s business networks.
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Sefton Business Support Group 9.4 Clear outline roles for each of the key agencies were set out in Action Point 2.5. These organisations meet regularly as the Sefton Business Support Group, an important forum which should be retained. It currently has the right level of representation from the key partners and should be the overall Steering Group for the implementation of the Strategic Delivery Framework at a managerial level. There is scope to invite others if significant additional facilitators of business support emerge, but we do not consider that membership should be widened from the current participating core partners. The group’s role is:
• To bring together core partners at a strategic management level on a regular basis • To enable core partners to share knowledge and information • To receive reports from the lead EDO about delivery of the unified business support service
• To receive feedback from SBP / JAP / SEF • To act as an engine of service improvement and alignment • To promote joint planning, programming, resource utilisation and performance monitoring. • To take required actions back to the individual agencies for implementation.
Client Liaison 9.5 Businesses’ primary point of contact with the unified business support service will be through the Local Investment Centre and its gateway. Each client will be assigned a contact, who will be drawn from the pool of advisors, relationship managers and investment managers located in the LIC. Businesses’ primary point of contact on the ground will be with their contact officer, who will have the following roles and responsibilities:
• To be the ‘face’ of the unified service • To provide a named point of contact for businesses • To act as business support brokers, providing non-exclusive advice and signposting
• To provide information • To undertake diagnostics within a standard agreed framework • To undertake referrals • To provide aftercare and handholding • To provide an outreach service where appropriate. 9.6 The Delivery Structure is outlined in diagrammatic form overleaf.
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Figure 9-1: Sefton Business Support: Proposed Delivery Structure
Business Priorities Feedback SBP, JAP, into LIC & Performance Monitoring SMBC EDO, BSG Service Material Portfolio Performance Monitoring SBP / SEF
RelationshipLiaison Office Managersr
Business Networks
Aftrercare Approved Suppliers
RelationshipLiaison Office r RelationshipLiaison Officer RelationshipLiaison Office r Delivery ManagersQualifiedr (Qualified) Managers Managers LIC Design of Support Diagnostic Referral to Supplier Package •Business Link Frameworks •Sites and Premises •Start Ups •Cluster / Sector development Joint LIC Front of House Various •Regulatory Services •Other public & private sector •providers Demand Stimulation / First Point of Contact Information Marketing CUSTOMERS
Relationship with Sub-Regional Partnership 9.7 Given the likely levels of funding available to the Sub-Regional Partnership through the SRP and its potential role in managing any post Objective 2 programme, the importance of developing influential links with the SRP cannot be over emphasised. 9.8 This will be achieved through:
• Identifying opportunities for Sefton representation on sub-regional boards and working groups
• Ensuring pro-active involvement in the development of the sub-regional strategy 9.9 Ensuring Sefton has a strong structure already in place with proven delivery capability.
Links to Specific Areas of Activity 9.10 This section seeks to set out how specific areas of activity can link into the delivery framework, both strategically and operationally. This covers the following areas:
• Business Starts • Sector Development • Workforce Development • University Links.
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Business Starts
9.11 At the time of writing the sub-regional start up strategy was still in production. In due course the contents and consequences of the strategy should be absorbed and accommodated within the unified service.
Sector Development
9.12 An outline service delivery framework is already in place for sector development in Sefton by means of a Sector Development Programme for the borough. The four sectors where Sefton will be taking immediate action are maritime, tourism, ICT and Construction. Other sectors will be considered at a later date. 9.13 Sector development is led at a sub-regional strategic level. There is no intention to challenge this but it is essential to ensure that Sefton has an influence over strategic level decision making and that strategic policy is converted to action at the local level. In terms of business support it will be necessary to ensure close working relationships between Strategic Sector Development Managers and local operational staff. It would be worth identifying a named contact at the Sefton level (SMBC EDOs) for each target sector. The named contacts would be responsible for:
• Keeping up to date on strategic sector development and reporting back to JAP and SEF
• Ensuring that Sefton is represented on key strategic decision making panels • Building relationships with the Strategic Sector Development Managers
• Briefing Relationship Managers and LIC frontline staff on sector development initiatives and opportunities for businesses
• Delivering seminars to appropriate business networks.
Workforce Development
9.14 A key issue for Sefton is ensuring that those in work are maintaining and advancing their skill levels to enable progression through the job market. A high quality workforce is clearly essential to business competitiveness. There is a close relationship in this respect between the activities of JAP and the Learning Partnership (a sub-group of the SBP with responsibility for learning and skills). JAP and the Learning Partnership have already identified a series of joint outcomes as follows:
• Preparation for employment (vocational GCSEs, education/business links, youth enterprise, etc)
• Entry to employment (procuring placements, entry-level jobs, support in work) • Job brokerage (adult information, advice and guidance via labour market intermediaries)
• Workforce development (labour needs assessment, vocational training provision, skills development, employee progression, HR infrastructure)
• Sector development (skills and recruitment for designated growth sectors: maritime, ICT, tourism, construction, environmental technologies)
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• Labour supply (diversity and access issues, reaching the economically inactive) • Sefton Council as an employer (New Deal, Modern Apprenticeships, etc). 9.15 Following on from these joint outcomes are a series of priority actions identified for JAP and the Learning Partnership. 9.16 The two key partners who are represented on both JAP and the Learning Partnership are GMLSC and Job Centre Plus. These two organisations are beginning to formalise their working relationship outside of SBP via development of a Joint Delivery Plan. It is essential that this Joint Delivery Plan, which is currently under preparation, is developed within the context of this service delivery framework for business support. This will include potential co- location at LICs and use of LICs for information dissemination. Co-location would enable the LSC in particular to be more actively engaged in the delivery of business support in Sefton.
9.17 It will also be important to include workforce development within the performance monitoring framework. This will provide a ‘stick’ to encourage joint working between the relevant organisations. The lead SMBC EDO will be responsible for engaging with the relevant organisations, implementing the monitoring framework and overseeing corrective action.
University Links
9.18 There is a widely held view that Sefton is not maximising links with Universities – both in terms of their potential roles as business support providers and influencers of policy development. Universities have a particularly important role to play in relation to growth businesses, particularly those which are knowledge intensive.
9.19 The new chair of the Jobs and Prosperity Group is a visiting professor at Liverpool University and this should help strengthen the links with that institution. Clear opportunities for further involvement of all the Liverpool Universities include:
• The Economic Forum • The Sefton Business Support Working Group • Appropriate business network events. 9.20 Initial engagement probably needs to be made at the highest levels and there will be a role for the Chief Executive here. The lead SMBC EDO will be responsible for on-going contact.
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Appendix A
Table 9-1 Name of Business Support Services Action Team for Jobs Aftercare project Atlantic Gateway SIA Business Link for Merseyside Capital Grant Scheme Co-located business support services - Argyle Buildings, Southport Co-located business support services - Pinnacle House, Bootle COMPETE Connexions Derby Park Heritage Economic Regeneration Scheme Economic Regeneration Employability Fund Environmental Business Service Financial assistance to start-ups Gateway to Growth Going for Growth Green Businesses Growing Business Merseyside Improve Your Lot InfoPool Initial diagnostic Jobcentre Plus JOBLINK Bus services Liverpool Intermodal Freeport Terminal (LIFT) Liverpool/Seftom Employment Zone Mersey Maritime Merseyside Construction Initiative Merseyside Destination Management Organisation Merseyside ICT Industry Board Merseyside SME Development Centre Merseyside Social Enterprise Initiative New Deal 18-24 New Deal 25+ New Deal 50+ Opportunities Link Opportunities Shop Power Business Loan Fund Princes Trust Sefton @ work Sefton Best Practice Grant Scheme
Ref: A-00146 A-1 A Strategic Framework For The Delivery Of Business Support Services In Sefton
Sefton Business Village Partnership Sefton Chamber of Commerce & Industry Sefton Investment Network (SINE) Sefton Womens Business Network Skillworks Small Firms Fund, Mezannine Fund, Venture Fund & Community Loan Fund South Sefton Business Forum South Sefton Investment Initiative South Sefton Small Firms Loan Fund Southport Commerce Park Southport Seafront Action Plan Southport Works Third Sector Technology Centre TREND Web site - Business Link for Merseyside Web site - Sefton MBC portal Employer's Charter Grand Total 62
Table 9-2 Type of Business Support Services Advice and Direct Support 8 Finance 18 Premises and Environment 5 Prof Info Services 11 Reception 5 SME Specific Training 5 Strategic Measures 10 Grand Total 62
Table 9-3 Provider of Business Support Services under Advice and Direct Support Provider Services Delivered 3tc 1 BLGM 1 Groundwork Trust 1 Liverpool JMU 1 SCCI 1 Sefton MBC 1 Train 2000 1 TREND 1
Ref: A-00146 A-2 A Strategic Framework For The Delivery Of Business Support Services In Sefton
Grand Total 8
Table 9-4 Provider of Business Support Services under Finance Provider Services Delivered Business Link for Greater Merseyside 1 ENWORKS 1 Jobcentre Plus 4 Merseyside Special Investment Fund 2 Opportunities Shop 1 Princes Trust 1 Sefton @ Work 1 Sefton MBC 5 Train 2000 1 TREND 1 Grand Total 18
Table 9-5 Provider of Business Support Services under Premises and Environment Provider Services Delivered Blythe Developments 1 MDHC 1 Merseytravel 1 Sefton MBC 2 Grand Total 5
Table 9-6 Provider of Business Support Services under Professional Information Services Provider Services Delivered Greater Merseyside Connexions 1 Jobcentre Plus 1 LBC, LCCI, BLGM 1 Opportunities Shop 1 Reid in Partnership 1 SCCI 1 Sefton MBC 3 South Sefton Partnership 1 Southport Partnership 1 Grand Total 11
Ref: A-00146 A-3 A Strategic Framework For The Delivery Of Business Support Services In Sefton
Table 9-7 Provider of Business Support Services under Reception Services Provider Services Delivered BLGM 2 Sefton MBC 1 Sefton MBC, BLGM, SCCI, Bootle BVP 1 Sefton MBC, BLGM, Southport Partnership 1 Grand Total 5
Table 9-8 Provider of Business Support Services under SME Specific Training Provider Services Delivered BLGM 1 GMLSC 1 MSEI 1 Reed in Partnership 1 SCCI 1 Grand Total 5
Table 9-9 Provider of Business Support Services under Strategic Measures Provider Services Delivered MCI 1 Mersey Maritime Ltd 1 Merseyside Chambers 1 SCCI 2 Sefton MBC 3 TMP 2 Grand Total 10
Ref: A-00146 A-4 A Strategic Framework For The Delivery Of Business Support Services In Sefton
Table 9-10 Geographic Coverage of Business Support Services Geographic Coverage Type of Services Advice and Finance Premises and Prof Info Reception SME Specific Strategic Grand Direct Support Environment Services Training Measures Total Derby Park Conservation 1 1 Area Bootle, Crosby Altside 1 1 (East Sefton) and Southport Greater Merseyside 1 1 1 3 International 2 2 Liverpool-Sefton 1 1 Merseyside 3 7 1 3 1 2 5 22 National 1 1 North Sefton 1 1 Sefton 2 1 4 1 3 11 South Sefton 2 7 2 2 1 1 15 South Sefton + Liverpool 1 1 Southport 2 1 3 Grand Total 8 18 5 11 5 5 10 62
Ref: A-00146 A-5 A Strategic Framework For The Delivery Of Business Support Services In Sefton Table 9-11 Targeting of Business Support Services Targeting Advice and Finance Premises Prof Info Reception SME Strategic Grand Direct and Services Specific Measures Total Support Environment Training 13-21 year olds 1 1 6 month plus unemployed 1 1 Aged 18-31, start-ups 1 1 All companies in the construction industries 1 1 All companies in the ICT sector 1 1 All companies in the maritime and port- 1 1 related industries All companies in the tourism sector 1 1 Clients aged 18-24 1 1 Clients aged 25+ and long-term 1 1 unemployed Clients aged 50+ 1 1 Companies > 250 employees 1 1 Derby Park 1 1 Geography, size, growth potential 2 2 JSA claimants, 18-24 unemployed over 6 1 1 months, aged 25+ unemployed at least 18 months Long-term unemployed 1 1 New & existing SMEs, and inward investors 1 1 None 1 2 3 3 2 11 Pathways residents and SIA employers 1 1 Port-related uses 1 1 Residents of NRF wards and the Pathway 1 1
Ref: A-00146 A-6 A Strategic Framework For The Delivery Of Business Support Services In Sefton areas are targeted SMEs 3 6 2 1 12 SMEs, south Sefton 1 1 SMEs/Non SMEs 1 1 South Sefton 1 1 Southport 2 2 Start-ups and existing social enterprises 1 1 Start-ups and SMEs 1 3 4 Targets vacancies on residents of South 2 2 Sefton Town centre businesses 1 1 Voluntary and community sector 1 1 Women entrepreneurs 1 1 2 Women, start-ups 1 1 2 Grand Total 8 18 5 10 5 5 10 61
Ref: A-00146 A-7 A Strategic Framework For The Delivery Of Business Support Services In Sefton
Table 9-12 Business Support Schemes by Access Point Outlet / Access Type of Services Point Advice and Finance Premises and Prof Info Reception SME Specific Strategic Grand Direct Support Environment Services Training Measures Total Greater 1 1 Merseyside International 2 2 Merseyside 3 7 1 2 2 15 North Sefton 1 1 Sefton 1 1 2 5 1 2 7 19 South Sefton 4 9 1 3 1 1 1 20 Southport 2 1 3 Grand Total 8 18 5 10 5 5 10 61
Ref: A-00146 A-8 A Strategic Framework For The Delivery Of Business Support Services In Sefton
Table 9-13 Business Services by Strategic Priority JAP Strategic Advice and Finance Premises and Prof Info Reception SME Specific Strategic Grand Priority Direct Support Environment Services Training Measures Total 1. Attract new 1 3 2 6 investment 2. Promote 8 12 2 5 2 4 33 Competitiveness 3. Encourage 1 1 Entrepreneurship & start ups 4. Strengthen Growth 4 4 8 Sectors 5. Develop 6 6 2 14 employment Grand Total 8 18 5 11 5 5 10 62
Ref: A-00146 A-9 A Strategic Framework For The Delivery Of Business Support Services In Sefton
Table 9-14 Business Services Funded by O1 Funding Advice and Finance Premises and Prof Info Reception SME Specific Strategic Grand Direct Support Environment Services Training Measures Total 1 1 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 3 1 2 3 9 O1 1 1 1 1 1 1 1 1 1 1 1 1 2 1 1 1 1 1 1 3 3 1 7
Ref: A-00146 A-10 A Strategic Framework For The Delivery Of Business Support Services In Sefton
Table 9-15 Types of Funding Funding Advice and Finance Premises and Prof Info Reception SME Specific Strategic Grand Direct Support Environment Services Training Measures Total 1 1 1 1 1 1 1 1 3 1 2 3 9 1 1 1 1 1 1 1 1 NWDA NWDA 1 1 1 1 2 2 1 1 NRF 4 1 5 D W P 1 1 1 1 1 1 1 1 3 3 1 7 1 1 SRB
Ref: A-00146 A-11 A Strategic Framework For The Delivery Of Business Support Services In Sefton
Table 9-16 Key Activities of Business Support Services Key Activities Total Additional bus services linking SIAs and Pathways 1 Advice and practical assistance for start-ups, micro and small businesses, ongoing mentoring and advisory service. 1 Business review 1 Career advice and guidance service 1 Collaborative project between chambers to promote O1 provision to SMEs on Merseyside through events & 1 marketing Customised on-demand training for SMEs 1 Delivers 9 Best Practice Frameworks 1 Delivers start-up and business improvement services including business review, benchmarking, environmental 1 advice, workforce development, exporting, accessing new markets and ICT advice. Subsidised Consultancy through 9 Best Practice Frameworks Designs and delivers flexible and tailored business growth programmes to SMEs 1 DMO for the sub-region, and lead agency for delivery of the Merseyside tourism strategy. Supports Sefton Tourism 1 Strategy, southport seafront Action Plan and the Southport Tourism Business Network Employment Credit for taking on older worker 1 Facilitates employer engagement with issues and opportunities in South Sefton 1 Follow-through assistance following client training, employment subsidy, work trials 2 Formation of town centre partnerships in Bootle, Crosby, Maghull and Southport between businesses and public 1 service providers Grant to employ residents of Pathways areas 1 Grants to assist capital works leading to environmentally friendly practices and waste minimisation 1 Grants to business start-ups 1 Grants to employers for pre-employability training 1 Grants to improve environmental impact or develop sites and premises 1 Grants to improve the working environment and reduce absenteeism and accidents 1
Ref: A-00146 A-12 A Strategic Framework For The Delivery Of Business Support Services In Sefton Independent information, advice and guidance service to employers and jobseekers 3 Information on service availability and contacts 2 Job-related investment grants for fixed asset purchases 1 Job-related investment grants for property and environmental improvements 1 Key development site (greenfield prepared site adjacent to Seaforth Container terminal) for port-related uses 1 Key sub-regional investment site offering design & build B1/B2/B8 industrial and commercial accommodation (NB 1 Hibernia Atlantic gigabit trans-Atlantic node located in Park) Last resort loans and bursaries for young person's start-ups 1 Loan and equity packages for companies with strong management teams and strong product demand 1 Loans for fixed asset purchases and/or wrking capital 1 Loans to women setting up or developing a business 1 Marketing of Atlantic Gateway SIA sites and handling of inward investment projects 1 Maximises the local employment and procurement benefits of construction spend on Merseyside 1 Membership benefits plus advisory services (legal, personnel, training, marketing, business advice...) 1 Membership benefits plus information services (legal, personnel, training, marketing, business advice...) 1 Networking organisation for local women in business 1 Offers first point of call for new and existing businesses, project manages investment into Sefton, provides financial 1 incentives to investment, aftercare, and promotes local recruitment and local procurement Offers ICT training, web design, full range of print services 1 One stop information service to businesses, investors and developers 1 Pre-and post-investment business advice (condition of funding) 1 Programme of training and support for the social economy sector (finance, legal, board development) 1 Promotes investment and development in Sefton through events, networking and mutual support 1 Promotes the development of the ICT sector on Merseyside through thematic funding and flagship projects. 1 Supports Sefton ICT sub-cluster. Provides advice and information on available sites and premises for both new and expanding businesses in Sefton- 1 Produces free quarterly register
Ref: A-00146 A-13 A Strategic Framework For The Delivery Of Business Support Services In Sefton Provides an environmental diagnostic, news and information, and membership of the Business Environmental 1 Association Provides recruitment and placement services for long-term unemployed 1 Provides tailored to businesses needs recruitment package 1 Repair and refurbishment of structures and environmental improvements, leading to jobs and/or community 1 regeneration Representative and advocacy body for businesses in Sefton 1 Services to jobseekers and employers including information on vacancies, new deals and work trials 1 Single point of contact for co-located agencies. Source of information on business support, financial assistance and 2 property search. Signposting to external agencies. Strategy and masterplan for development of Bootle Town Centre, Hawthorne Road and key sites on Dunnings Bridge 1 Road Strategy and masterplan for development of key sites linking seafront and the town centre 1 Strengthen linkages between investors and local providers of recruitment as well as progressing investment plans 1 Subsidized Consultancy through 9 Best Practice Frameworks 1 Supports the development of maritime and port-related industries 1 Targeted marketing 1 Training and support for long-term unemployed 1 Grand Total 62
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