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A REVIEW AND EVALUATION OF GROWBIZ

FINAL REPORT

November 2015

Funded by Scottish Enterprise

& the Scottish Government

Prepared by:

David Gass & Neil MacCallum

RURAL MATTERS LLP

25 November 2015

GrowBiz – Final Report November 2015 1

Table of Contents Page

Executive Summary 3

1. Introduction 4

2. Project Methodology 6

3. The GrowBiz Story 7 3.1 The Inception and Development of GrowBiz 7

3.2 The GrowBiz Enterprise Support Model 8

3.3 The GrowBiz Story from the Client Perspective 10

4. Principal Findings of Study 11

4.1 GrowBiz Effectiveness and Impact 11

4.2 Fit within The Business Support Landscape 15

4.3 Perspectives from other areas 17

4.4 Success Factors & Learning Points from the Review 18

- GrowBiz Success Factors 18

- Key Learning Points 19

5. Conclusion and Recommendations 21

Appendix 1 – List of Consultees 23

GrowBiz – Final Report November 2015 2 Executive Summary The following report sets out the main findings of the recent review and evaluation of GrowBiz, (Enterprising Eastern Perthshire Ltd), a community-based enterprise support organisation covering rural Eastern and Highland Perthshire. GrowBiz was formed in 2007 based on the Sirolli model of enterprise facilitation, and provides a range of enterprise support activity to individuals and start-up and existing businesses in rural Eastern and Highland Perthshire every year. The review tells the story of how GrowBiz has evolved over the years, and developed its own unique model of a rural, community-based enterprise support service offering a combination of individually tailored one to one support, mentoring, networking and facilitated peer support to individuals and businesses in the region looking to start up or develop their business. Services have been expanded to also create a Women’s Enterprise Network, and the GrowBiz XChange project where clients offer voluntary time and use of their skills as needed by other clients. GrowBiz is operated through a Voluntary Board of Directors and a small core part-time staff, and funded through both public and private funding grants. The review assessed GrowBiz’s performance and impact against the various targets set for the organisation, and found the organisation to have performed strongly against all the performance targets set, and to have created a value added service and support network for individuals looking to start up and grow their business in rural Eastern and Highland Perthshire. GrowBiz was found to have increased community capacity and engagement, and is highly valued by the client base it serves in terms of harnessing the energy and ideas from the community, and providing individuals from within the community who wish to develop their business or business idea with the confidence and support to do so. The GrowBiz model is fully client led, easily accessible, and provides a mix of personal and business support allowing clients to grow their business at a pace they are comfortable with, and access the support available to them through GrowBiz as and when they need it. From the consultations and desk research undertaken, the GrowBiz model is shown to be both inspiring and effective, and has been identified as a potential source of good practice for the provision of rural enterprise support and facilitation in other areas of Scotland. In addition to telling the GrowBiz story, and assessing the impact and effectiveness of the GrowBiz model, the review also seeks to capture the lessons learned from the GrowBiz story to date, highlight any future development areas for GrowBiz, and the key success factors which have been critical to GrowBiz’s success to date which other rural areas may learn from. Enterprise development in rural Scotland remains challenging, and the GrowBiz model is shown to add real value in the rural communities it serves, and often reaching a population which the traditional models of enterprise support do not. Whilst the informal, supportive and personal nature of the enterprise facilitation support provided is key to its success with its client base, it is also

GrowBiz – Final Report November 2015 3 important that there are the systems in place which demonstrate and track the success and value for money of the model, and to ensure that where possible effective linkages and pathways are in place across the enterprise infrastructure serving each community. At many levels, GrowBiz offers a very positive example of what can be achieved in rural areas in terms of enterprise facilitation from the bottom up and embedded in the communities, and this review provides an opportunity for other rural areas in Scotland to learn from the GrowBiz experience. 1. Introduction Rural Matters LLP was commissioned by Scottish Enterprise and the Scottish Government to undertake a short review and evaluation of GrowBiz to identify the quantitative and qualitative contribution it makes to the regional economy serving rural Eastern and Highland Perthshire. In addition, the study also sought to identify whether the GrowBiz model could usefully play a role in other geographic areas in Scotland.

The review and evaluation was delivered by David Gass, Managing Partner of Rural Matters LLP, and Neil MacCallum, Senior Associate of Rural Matters LLP, supported by the Scottish Community Film Unit. The project took place from August to November 2015.

GrowBiz (Enterprising Eastern Perthshire Ltd) is a community-based enterprise support organisation (company limited by guarantee with charitable status) covering rural Eastern and Highland Perthshire.

Figure 1: Map of Perthshire, and its main towns

Eastern Perthshire has a population of around 17,000, and includes the towns of Blairgowrie and Rattray, Glenshee and Strathardle to the north; Alyth and Meigle to the east; and Coupar Angus and Burrelton to the south. Highland Perthshire lies to the north of Perth with a population of around 11,500 and includes the main towns of Aberfeldy, Pitlochry and Dunkeld.

GrowBiz – Final Report November 2015 4 The economy of both Eastern and Highland Perthshire is dominated by the service sector, with a growing tourism industry around the market towns and geography of the area, alongside a strong arable and soft fruits farming sector, and a number of small manufacturing businesses. Whilst average wage levels remain below the Scottish average and the resident population has a significant proportion of retirees, there are relatively high levels of entrepreneurship across the region, and an increasing number of migrant workers, particularly from Poland and Hungary, over the summer months.

GrowBiz was formed in 2007 as a result of a challenge fund for Sirolli-model initiatives, and provides a range of enterprise coaching, advice, mentoring and peer group activity for anyone who wants to start/grow a business, social enterprise or become self-employed.

GrowBiz works with around 150 individuals in rural Eastern and Highland Perthshire every year, and in addition provides support for a number of existing businesses on request. This support is delivered primarily through four part-time staff, (equivalent to approximately 1.5 FTE), and a voluntary Board of up to 10 people from the community.

The GrowBiz model has been identified as a potential source of good practice for the provision of rural enterprise support in other areas of Scotland, particularly given that enterprise is a specific priority area within the new Scottish Rural Development Programme (Leader areas).

The project remit was to provide:

The background and development of GrowBiz and its services, and the GrowBiz story from the perspective of its volunteers, staff, clients, partners and funders;

An evaluation of the effectiveness and impact of its services, and the overall outcomes and impact of GrowBiz’s work;

An assessment of GrowBiz’s services and outputs in the context of wider rural enterprise support generally, and within Scotland’s economic and entrepreneurship development strategies more specifically;

Perspectives from similar enterprise facilitation models in the UK;

Key learning points and success factors from the review both in relation to the GrowBiz model itself, and initial recommendations as to the transferability of the model to other areas of Scotland.

Alongside the report, a DVD has been produced that shows the work and interaction of the GrowBiz community in practice, with filming conducted at different client premises and over a series of GrowBiz themed events and workshops, and a short powerpoint presentation and standalone Executive Summary accompany the report.

The report and accompanying presentation material sets out the success of the GrowBiz story to date and what it has achieved while at the same time seeking to identify and address any issues and challenges the project has faced, and the potential opportunity to utilise this enterprise facilitation model in other regions of Scotland.

GrowBiz – Final Report November 2015 5 Rural Matters LLP would like to express our sincere thanks to all the different individuals and organisations and funding bodies who gave their time to input to this report. In particular, we would like to thank the clients, Board and staff of GrowBiz for their wholehearted cooperation throughout the research process, and for allowing the filming and participation of the research team in a number of the GrowBiz events over the period.

2. Methodology The project was undertaken in three key principal stages:

Stage 1 involved an inception meeting and desk based review of the existing reports and information on GrowBiz and its operations in rural Eastern and Highland Perthshire. A review of the wider context of rural enterprise support in Scotland, and specifically in Perthshire, was also undertaken to assess the fit and alignment of GrowBiz’s work, and to assess any potential areas of duplication or indeed potential areas for synergy and greater efficiency with the traditional enterprise support bodies and mechanisms available to businesses.

Stage 2 involved over 30 individual client and stakeholder interviews and consultations, and attendance at GrowBiz workshops and events over the August, September and October period. Interviews were undertaken in a semi-structured format allowing the gathering of consistent information and feedback from clients and stakeholders of GrowBiz as to the effectiveness, value and role of the organisation and its services.

Group and workshop events allowed the opportunity to discuss different aspects of GrowBiz’s work and the outputs delivered in more detail, and the research team also attended the Board meeting of GrowBiz in September to discuss and review the initial findings of the project. Individual meetings were also held with a range of identified stakeholders and funding partners to understand their perspective on the role and effectiveness of the GrowBiz model, and interviews were held with other comparable enterprise facilitation models in the UK to learn of their experience.

Alongside this, filming was conducted at a series of GrowBiz events and with individual clients to bring the GrowBiz story and experience to life, and to provide a visual means of communicating and learning from the GrowBiz experience for any other areas interested in the model.

Stage 3 brought together all the project findings, and sought to create an evidence based learning report for GrowBiz, and its partners. This is intended to be helpful in setting out recommendations for GrowBiz’s future development, and also providing an informed assessment of how the GrowBiz model could be developed successfully in other parts of Scotland, particularly in respect of the current Leader Programme in place and the Scottish Government desire to see more inclusive enterprise creation and growth across Scotland.

This final report sets out:

 The GrowBiz Story

GrowBiz – Final Report November 2015 6  An assessment of the effectiveness and impact of the GrowBiz model

 The fit within the enterprise support landscape in Perthshire

 Perspectives from other similar enterprise facilitation models in the UK

 GrowBiz - Key Success Factors and Learning Points

 Final Conclusion and Recommendations

3. The GrowBiz Story 3.1 The Inception and Development of GrowBiz GrowBiz (Enterprising Eastern Perthshire) came into being in 2007 as a pilot project through Scottish Government Challenge funding, and supported by Local Authority funding, using the Sirolli method of enterprise facilitation. It was one of three pilot projects – the other pilot projects which are no longer in existence took place in Dundee and Kintyre. The core principles of the Sirolli method were that the best kind of support for individuals becoming self-employed or starting a small business comes from the community in which they operate, and that no-one can start a successful and sustainable business entirely on their own. Sustainable enterprise projects should be community based and work by facilitating links between individuals and companies, with the philosophy that a solution to any problem can be found within a community. The Sirolli Institute promotes a people-centred, bottom-up, flexible and localised approach which stimulates people to become more enterprising and pursue entrepreneurship as a career path, accessing support as and when they feel they need it and are ready for it. In its initial period of operation up to 2010, GrowBiz was funded by Perth and Kinross Council and Leader+ funding, with support from the Scottish Challenge Fund, and over this period it worked with 251 clients – 176 new businesses and 75 existing businesses. A Volunteer Board was established and Enterprise Facilitator appointed, and a report by Biggar Economics in 2010 estimated that GrowBiz had assisted in the creation of 83 new jobs, and helped retain 99 jobs in the local economy supporting an estimated £1.3million of new sales. Core funding support for the project has continued to be provided by the Scottish Government and Perth and Kinross Council, and GrowBiz has also successfully applied for other funding streams in recent years from sources such as the Scottish Government SDS Innovation Fund, RBS Inspiring Enterprise Fund, and the SSE Sustainable Development Fund, to widen and expand the portfolio of services it is able to offer to its clients. GrowBiz has continued to operate to the basic Sirolli method and principles but has adapted and developed the model, and evolved the services it provides and the way it operates to respond to the needs of the geographical area it covers and the challenges faced by client base it serves - offering access to the appropriate service to each individual at the right time for that individual, and creating

GrowBiz – Final Report November 2015 7 both an effective confidence building and learning journey for each individual as they develop their business ideas and ultimately grow their business at their own pace, often developing their business alongside existing family commitments or perhaps health issues. GrowBiz now works across Eastern and Highland Perthshire (including the communities of Blairgowrie, Rattray, Coupar Angus, Meigle, Alyth, Aberfeldy, Pitlochry, Dunkeld, Strathardle and Glen Shee). At its heart GrowBiz remains a rural community-based enterprise support service offering a combination of individually tailored one to one support, mentoring, networking and facilitated peer support to individuals and businesses in Eastern and Highland Perthshire looking to start up or develop their business. Services have been expanded to also create a Women’s Enterprise Network, and the GrowBiz XChange project where clients offer voluntary time and use of their skills as needed by other clients. The core strands of the GrowBiz Enterprise Support Model and services are set out on the following page. 3.2 The GrowBiz Enterprise Support Model

Initial contact is usually made with the GrowBiz Enterprise Coordinator who provides ongoing one to one, individually tailored, professional business advice to clients at any stage of their business development; this one to one support may also be provided by a GrowBiz Business Advisor, and is particularly valued by the clients. Peer support meetings and learning sessions are open to all and facilitated by the Peer Support Coordinator at least twice monthly in different venues. These groups are well attended with often 20- 30 attendees, and they offer clients the chance to share business successes, concerns, knowledge and experience for mutual benefit, and to learn from different speakers, often peer group members themselves, on a particular business topic such as marketing or website development.

GrowBiz – Final Report November 2015 8 Monthly peer support meetings for entrepreneurs who share the additional challenge of an ongoing health issue or disability also take place, focusing on confidence building and coping strategies. The Women’s Enterprise Network is a monthly opportunity to meet with fellow female entrepreneurs and hear from inspiring women about their business journey, reflecting the fact that over 70% of GrowBiz’s client base are women entrepreneurs. GrowBiz Enterprise Mentoring Support offers clients an opportunity to be partnered with a trained GrowBiz mentor who has volunteered their time to support anther local business. The GrowBiz XChange is a bi-monthly networking meeting featuring presentations from local businesses and an opportunity to connect GrowBiz clients who are willing to offer time and expertise to others. In addition to the above core services, GrowBiz also signposts clients to other business support providers who can provide access to further support as and when needed to the client as they develop their business. GrowBiz continues to have a strong volunteer Board in place, a number of whom have been involved with GrowBiz since its inception, which directs and monitors the operation of GrowBiz, and its operations are carried out through a part-time Enterprise Coordinator (3.5 days/week), a Peer Group Facilitator (60 hours/month) and a part-time administrator (60 hours/month). In addition further enterprise facilitation support is provided on a contractual basis of 1 day/week, equating in total across the four staff to just under 1.5FTE staff resource for GrowBiz in total. In any one financial year (July – June), GrowBiz will work directly with around 120-130 individual clients, and interact with a range of further clients (on average up to 50 additional clients/annum) through the different peer support and workshop events held, both generic and targeted at individual client groups such as individuals with health issues and women entrepreneurs. In addition to the provision of individual and peer group support, GrowBiz has developed its 30- strong community panel to an XChange of around 35 individuals who offer additional support, mentoring and connections to its clients and each other on a voluntary basis. This is a unique resource which is developed by the recruitment of former clients of GrowBiz who want to ‘give something back’ to the local community, and while in its early stages, already promises to bring significant and sustainable added value to the GrowBiz community, and provide practical support to clients of GrowBiz.

GrowBiz – Final Report November 2015 9 GrowBiz also delivered a pilot project which promotes entrepreneurship within the social care sector and has recently been successful in attracting a further SDS Innovation grant to develop the Perthshire Care and Wellbeing Cooperative based in Highland Perthshire. This has an initial membership of 9 self-employed or micro-businesses offering a wide range of services and support to this market. GrowBiz was also successful in attracting a grant from SSE’s Sustainable Development fund for mentoring training and the development of the XChange model, and SSE has subsequently approached GrowBiz to administer its new Highland Perthshire Enterprise Fund. Mentor and Mentee Information Guides have been produced, and a Mentor Training Course has been developed and delivered to two groups resulting in a pool of 18 Mentors available to work with GrowBiz clients. A Mentor Peer Group has been established to provide mentors with support and to share best practice and awareness of new information which can be passed on to Mentees as necessary. A workshop has also been developed and delivered for clients wishing to become Mentees with Mentor/Mentee matching carried out by the GrowBiz Coordinator and the Peer Group Facilitator. 3.3 The GrowBiz Story from the Client The Perthshire Care and Wellbeing Co-operative seeks to offer Perspective services and solutions to the challenges of community care provision in rural areas. The individual businesses involved range All of these different strands of the GrowBiz from personal carers, herbal and massage therapists, creative writing and arts therapists to welfare and legal advice providers. model and activity are further explored in section The shared philosophy of the cooperative member businesses is 4, but taken together that by coming together they can provide an affordable package of GrowBiz has developed a support for individuals in their own community, and bid for strong and effective range contracts through direct links with doctor’s surgeries and the NHS. of interventions, and a tailored individual client GrowBiz has worked with the Cooperative since its inception learning journey, that providing financial support and facilitating the development and provides support and growth plans for the Cooperative – “The GrowBiz support and progresses individuals at all facilitation has been invaluable; without the input and levels towards their commitment from GrowBiz, the Cooperative would not have business goals. GrowBiz’s happened” support remains personal, local and flexible, and this is highly valued across the clients it works with. It increases community capacity and engagement, and the take up of its services has continued to expand often through word of mouth, and client referral and individual networks, as opposed to its own advertising and promotion of the service which is undertaken only to a very limited extent. There is no formal marketing plan as such, but reports on meetings and initiatives are communicated through the local press and the Community Hub magazine on an ad hoc basis, and increasing use is made of different social media channels such as Facebook and Twitter. The phrase “From, of and for the community” came from one of the client interviews undertaken and nicely captures the consistent feedback received from across the client base interviewed. GrowBiz is

GrowBiz – Final Report November 2015 10 viewed as harnessing the energy and ideas from the community, and providing individuals from within the community who wish to develop their business or business idea with the confidence to do so. Another recurring feature of the Nic Bauer Photography, Dunkeld client feedback is the value placed on the non-judgemental approach The above client successfully took forward his enterprise of GrowBiz support as opposed to ambitions and started his own successfulphotography more traditional forms of business business in Dunkeld, with the support and practical support. In a number of instances encouragement from GrowBiz and has now become a GrowBiz had re-energised GrowBiz Mentor. businesses who were considering ceasing to trade, while for others “GrowBiz allows individuals to progress at their own pace GrowBiz had provided the mix of and retain control of their business idea and the rate of personal and business support growth. Support for progression in small steps makes it which has given them the achievable and not so scary; it allows individuals to keep confidence to start or further active with the business idea in the knowledge that they develop their business, but at a pace have support if needed. This gives a massive confidence of growth or development the client boost for GrowBiz clients – to believe in their own success” is comfortable with. The GrowBiz story is one which is both inspiring and very effective for the client base it works with. It is perhaps no surprise that over two thirds of the GrowBiz clients are women, often returning to the field of work after absence or starting up their own business for the first time, and the mix of personal and business support GrowBiz provides allows its clients to build both their personal and business confidence – the same can be said for a number of the GrowBiz clients with previous or on- going health issues. However, based on the client feedback received, it is also an enterprise support model that works for existing and larger businesses also and many clients maintain the links and engagement with GrowBiz as their business grows beyond the start-up stage, because they continue to benefit and receive added value and support from the interaction and engagement with the wider GrowBiz community. 4. Principal Findings of the Study

4.1 GrowBiz Effectiveness and Impact

The effectiveness and impact of GrowBiz can be measured at a number of levels. In terms of the client base which GrowBiz serves, from the individual interviews and events attended, there is, without exception, very high satisfaction levels across clients and unanimous support and praise for the GrowBiz model and how it is operated. GrowBiz Effectiveness All the clients understand and fully endorse the core principles of the model – community based enterprise development which is accessible, supportive and non-judgemental – and a significant number also feel that the model works so well because of the individuals driving it – “The people in

GrowBiz – Final Report November 2015 11 GrowBiz make it work” – and this includes primarily both the Board and staff of GrowBiz, but also the wider GrowBiz community of clients and mentors themselves. Of particular note is the ability of GrowBiz to provide services and support out of hours – at a time and place which suits the client. This is highly valued by the client base and allows a number of clients to access business advice and support which they are unable to access over normal working hours often because of family or distance constraints. The flexibility of the staffing model of GrowBiz together with the commitment of the GrowBiz staff and volunteers – whether Board directors or mentors – allows this to take place effectively. The reality is that the core staff of GrowBiz work longer hours than they are paid for, and the Volunteer Board again put in significant hours to make the different initiatives and events work – all believe passionately in the GrowBiz model and do so willingly, but this also makes it harder to define objectively the actual “return on investment” for the results produced. One of the recommendations of the report is to more fully capture the hours worked set against the activities and results delivered to allow a more objective assessment of what the model is able to achieve. One very significant measure of the effectiveness of the GrowBiz model is the high survivability rates of businesses which have come through the GrowBiz model, and the very low failure rates of client businesses, compared to national averages across Scotland – fewer than 5% of the businesses started with support from GrowBiz over the last four years have ceased trading. When questioned, the client businesses felt that a key factor in this was the ability for the business to develop and grow at its own rate and at the pace of the ambition and capability of the individual driving the business, with GrowBiz able to offer support and guidance when asked, but not to push or encourage the business towards growth as a conditional feature of the enterprise support provided. This does not mean that GrowBiz clients do not grow their businesses successfully – many do, and it could be argued that the pace of growth and ambition for the business is more appropriate for sustainability, being determined solely by the entrepreneur themselves, and then the relevant support is signposted or provided for accordingly by GrowBiz. Further, as referred to above, is that where a business is perhaps struggling or not achieving what was hoped for, there is a support network available to the entrepreneur to reflect and support him or her through this period. Another positive impact of GrowBiz not formally recorded is the collaboration it enables – between individuals and businesses, and the new ideas and indeed increased scale of business opportunity and growth this enables. An obvious example is the formation and development of the Perthshire Care and Wellbeing Cooperative, but there are many other examples of GrowBiz clients cooperating with each other and developing new ideas and approaches, new knowledge and net additional income. The GrowBiz model is also very effective at a personal and individual level, as well as at a business level, and this is not formally measured but a key feature of GrowBiz – the personal development and growth in self-confidence of the individual clients should also be recognised as part of the outcomes and wider impact that GrowBiz delivers. The supportive environment and constructive challenge and encouragement which is provided through the GrowBiz model, whether through the provision of one to one advice and support or as a key feature of the peer support group and learning session meetings was commented on by all interviewees as providing significant benefits at both a personal and business level.

GrowBiz – Final Report November 2015 12 This is also reflected in the fact that for many of the clients interviewed the effectiveness and indeed the impact of GrowBiz can also be seen at the community level – in terms of the confidence and energy instilled within the community – although views varied on whether “community” referred to the geographical base or to the community of peers and clients of GrowBiz, as there is still a relatively low level of awareness of GrowBiz and its work in a number of the towns and communities. The majority however felt it did both – and genuinely brought a community capacity and confidence building element, and contributed effectively and positively to the place development agenda within the area covered. The Impact of GrowBiz The positive impact GrowBiz achieved was fed back from across all clients, not just the new start clients or smaller businesses, but the larger and the growing and ambitious businesses GrowBiz works with. However, there was also a recognition that externally GrowBiz is sometimes viewed as only providing a service and support for small hobby and lifestyle businesses and the positive impact GrowBiz could and does bring to the wider community, and enterprise development as a whole in the area, was not fully recognised. This in part reflects GrowBiz’s own desire not to actively market or promote its success, and in part relates to the Sirolli ethos of confidentiality of the client relationship with GrowBiz which is still apparent – however there is a persuasive argument that GrowBiz should adopt a fuller set of success measures, both quantitative and qualitative, that reflects more accurately the impact GrowBiz makes, and also is able to demonstrate in terms of public funding the value and impact it delivers. A further observation from the primary research is that the referral processes to and from GrowBiz to other enterprise support providers in the area could be improved, and made more effective. GrowBiz clearly brings a positive impact to the client base it works with yet there are few if any referrals to GrowBiz from the Business Gateway and other providers. GrowBiz has made consistent attempts to more proactively engage with other business support providers but to date this has not been reciprocated, and a recent example of this is the Perth and Kinross Business Month where surprisingly GrowBiz did not feature in the calendar of events. GrowBiz is seen to operate out with the formal enterprise support structure, and to many of its clients this is seen as a positive, but it does impact negatively on the lack of an effective referral process into GrowBiz, and the ability to link GrowBiz clients into other business support services. In terms of measuring the impact of GrowBiz, a review of GrowBiz records and reports was undertaken and interviews were held with each of the primary funding partners to ascertain both the level of satisfaction with GrowBiz services and the results and impact achieved against the funding streams provided. The Scottish Government and Perth and Kinross Council continue to provide the core funding to the project, supplemented by project based funding from SSE and the RBS Inspiring Enterprise Programme.

Perth & Kinross Council (PKC) PKC has provided historical funding from its Enterprise revenue budget of £103,000 to GrowBiz over the period 2007-2013, supplemented by Leader funding. From Council reports over this period, GrowBiz is reported as having worked with 400 individual clients, supported 74 business start-ups

GrowBiz – Final Report November 2015 13 and assisted 22 businesses to grow. This resulted in the creation of 146 new jobs and the safeguarding of 140 jobs over this period. In addition, the PKC reports recognised the increased community and social capital created through GrowBiz’s activities, and the increased confidence, self- esteem and self-belief amongst the individuals supported. More recently funding was approved by PKC for two years to the level of £20,000/annum for 2013/14 and 2014/15, matched by a corresponding contribution of £20,000/annum from the Scottish Government. In addition, £14,600/annum for two years was secured from the Perth and Kinross Change Fund to pilot the growth of social care micro provision through the Creative Care Project, which has successfully led to the formation and development of the Perthshire Care and Wellbeing Cooperative, alongside the on-going peer support group formation. In terms of the core funding provided by both the Scottish Government and PKC of £40,000/annum in total over the last two years, the funding was primarily to support GrowBiz in its one to one enterprise coaching, and the development of the peer support meetings, with a target of 75 clients benefitting from one to one support, and a further 25 businesses supported through the peer support network. The funding also sought to assist GrowBiz to develop its website, and extend its peer support group and mentoring activity. In year 1, GrowBiz successfully achieved and exceeded the two year targets set with 95 clients supported through one to one support, 35 new businesses created, 22 businesses assisted to expand and diversify, and 11 businesses supported to continue to operate. In addition, over 2013/14 58 peer group meetings took place attended by 344 individuals, with GrowBiz expanding its offering to include learning sessions and specific sectoral groupings. A similar level of strong performance was achieved over 2014/15, and performance continues to be reported on a quarterly basis to PKC. There was some evidence of improved collaboration with the Council’s Business Growth team in terms of joint workshop events, and a number of referrals were provided to the Business Gateway over the two years, but for the most part GrowBiz remained a discreet project operating largely out with the core framework of enterprise support provided by PKC and the Business Gateway. There is no doubt that the funding provided by PKC has been invaluable in allowing GrowBiz to maintain and develop its services, but it is disappointing that the opportunity appears not to have been taken to further develop the linkages and pathways more fully into mainstream enterprise support. It is now understood that responsibility for any further work or funding in relation to GrowBiz from PKC will sit within the Community Investment Department of the Council which may allow closer links and a more proactive engagement with PKC to take place, recognising the distinctive GrowBiz model.

Scottish Government Funding In addition to the early Challenge Funding, Scottish Government matching funding of £20,000/annum was provided for 2013/14 and 2014/15 as above. In addition, a further £76,272 has been secured by GrowBiz split evenly between 2015/16 and 2016/17 from the Scottish Government Self Directed Support Innovation Fund specifically to support the development of the existing Care Cooperative as a collaborative consortium to build the capacity of the local community in this area, and to provide personalised high quality and flexible support which increases the choice and control for people with additional support needs in Eastern and Highland Perthshire.

GrowBiz – Final Report November 2015 14 The funding will go towards a variety of activities including registration, coordination and administration support for the Cooperative, the development of a website and associated marketing and promotional materials, CPD and peer support, and ensuring high care standards are followed and provided. The initial 6 monthly project report shows good progress against the targeted outcomes, with 14 micro providers now involved; a number of joint marketing initiatives established, and the formal launch of the Cooperative at the Wellbeing Festival in early October. The members of the Co- operative are also clear that it would not have happened without GrowBiz support and facilitation.

RBS Inspiring Enterprise Programme Another important source of funding for GrowBiz has been the RBS Inspiring Enterprise funding administered by PNE. GrowBiz has successfully applied for two funding rounds and is the only Scottish project to have received 2nd round funding. The initial project in 2014 aimed at women into enterprise was specifically targeted around Coupar Angus with project funding of 50% - £23,900 – and a target of supporting the creation of 15 new female led enterprises was again exceeded with 33 new women enterprises assisted to start up, and supporting networks created. A second project award of £33,375 (50% of total project costs) from January to December 2015 extended the geography covered and sought to build on the success of the first project including further one to one assistance and peer support for women enterprises and additional work with schools and the administration of micro grants for start-up businesses. An increased target of 35-40 enterprise start-ups, 150 women supported through the programme and 20 micro grants delivered is comfortably on track, and the enterprise project with Blairgowrie High School is due to commence at the end of October. The feedback from the grant administrator was extremely positive in terms of the outputs and impact achieved and the project reporting received for both projects – with the joined up nature of the support offered by GrowBiz particularly praised.

SSE Sustainable Development Fund for Perthshire GrowBiz has also received funding of £18,100 matched against funding from RBS, Scottish Government and PKC to develop the GrowBiz XChange, including support for a software/database system to optimise the XChange; administration and staff time to develop the operation of the XChange, marketing and event support, and also support for the training of mentors. There are no specific targets set against the activities, but the SSE appraisal for the project felt there was a very strong fit with the objectives of the fund, in particular increasing rural enterprise, and the self- sustaining support provided by the XChange project, and that GrowBiz was well placed and well connected within the community to deliver effective enterprise support and positive impacts. Indeed SSE are now considering the opportunity for GrowBiz to administer and manage the SSE £200K Griffin Fund for Highland Perthshire, and a final decision is expected on this by the end of 2015. As can be seen by the above, GrowBiz has been successful in securing funding from a range of sources, and in terms of measurable impact has delivered strongly against each set of funding targets and outcomes. There is some cross over of funding resource, and potentially some overlap in the outputs reported against each funding stream, but overall GrowBiz has delivered a strong

GrowBiz – Final Report November 2015 15 performance and set of results against all the targets set, and there was very positive feedback from SSE and PNE in particular in terms of GrowBiz’s performance and effectiveness of delivery.

4.2 Fit within The Business Support Landscape

The fit of GrowBiz within the formal business support landscape in Eastern and Highland Perthshire is an important consideration, both for GrowBiz going forward and if the model is to be applied and used effectively in other rural areas of Scotland. Many of GrowBiz’s clients value the fact that GrowBiz sits out with the formal enterprise support structure and is seen as “different” and “outside the system” – totally client led, community based, and a personalised service for each client that the more traditional forms of enterprise support are seen as unable to provide or support. A number of stakeholders expressed the view that the core client base of GrowBiz are those individuals and businesses who don’t have the confidence to engage with the Business Gateway, and require additional tailored support and advice to progress both at a personal and business level. While this may be true to some extent, given that GrowBiz does provide both personal and business support, and is particularly active with client groups such as women returners and individuals with health issues who gain greatly from the peer and individual enterprise support network GrowBiz provides, GrowBiz also works with a number of existing and growth businesses who also access support from the Business Gateway and other providers such as the Chamber, but still find value in the GrowBiz service offer alongside this such as its individual focus, one to one support and the personal support structure which GrowBiz delivers and other business support services do not provide. GrowBiz supports all kinds of entrepreneurship and enterprise, including part-time businesses, lifestyle and growth businesses, and cooperative opportunities and doesn’t distinguish, categorise or judge the type of enterprise created or supported. This is particularly of value in a rural area where there is not the same visible or varied enterprise support structure you would find in more urban areas, and where the feeling of isolation is more of an issue for individuals looking to start up in business. A number of clients and stakeholders felt GrowBiz fills a key gap in rural enterprise support in particular in terms of capacity and confidence building, and in recognising and responding to the different ambitions and growth aspirations of individual businesses in rural areas. A key strength of the GrowBiz model is that the support is based and delivered within the geographic area it serves – this creates additional credibility and affinity across the client base it serves, and ensures the Model is responsive to the rural communities and enterprise culture within the area. As referred to in the previous section, GrowBiz does seek to actively build links with other providers in the area including Business Gateway, FSB and Perthshire Chamber, and Perth College, part of UHI, and refers its clients to support from these organisations as appropriate. There appears to be a good mutual working relationship with bodies such as the FSB and Perth College; but less so with the Business Gateway and the Chamber where GrowBiz is perceived to duplicate the service offering in part. On balance there would appear to be little duplication of support offered by Growbiz, as both Business Gateway and the Chamber operate a one to many business support approach for the

GrowBiz – Final Report November 2015 16 majority of GrowBiz clients they interact with, driven by their respective business start-up and growth criteria targets, and limited funding and resources. GrowBiz is therefore able to reach, engage and support clients that the traditional and more formal forms of business support are unable to – particularly women and social entrepreneurs, and provide more personalised support, and if stronger linkages were built with organisations such as the Business Gateway it would provide them with an additional pipeline of clients over time. There is therefore a missed opportunity for GrowBiz and its services, and it’s clients, to be better linked into the other business and enterprise support organisations, and for GrowBiz services and support to be more proactively offered by the Business Gateway and Chamber to its client base. Many Business Gateway clients in particular do approach GrowBiz for support, but do so themselves rather than through any structured referral process. GrowBiz also fits well within the context of Scottish Government recent initiatives such as the Scotland Can Do initiative and the new Government Economic Strategy with its strengthened emphasis on the role of inclusive growth across Scotland’s geography. Enterprise development in rural Scotland remains challenging due to a lack of business infrastructure, capacity issues, and perceived and real distances from markets, and this is also reflected in the new Scottish Rural Development Programme and its Leader funding stream with its focus on enterprise development. From the research carried out the GrowBiz model adds real value in the rural communities it serves in addressing some of these issues, and reaches a population which the traditional models of enterprise support do not. It is well placed to make a significant contribution to the Rural Perth and Kinross Leader Local Development Strategy 2014-2020 and its overarching aim:- “To support individuals, organisations and communities in rural Perth & Kinross to be stronger, more confident and inclusive to lead or contribute to local economic and community development”

4.3 Perspectives from other areas

There are a number of enterprise development initiatives and projects in place across Scotland, often delivered through Local Community Trusts or Local Authority led specific initiatives, or through the private sector, such as the Entreprenuerial Spark initiative. However, in terms of comparable models to GrowBiz and its approach to enterprise facilitation in rural areas, the closest models found through the research were the Sirolli approach adopted in Hexham and Tynedale 2007-2011, and the current EFFECT project running in Blaenau Gwent in Wales.

GrowBiz – Final Report November 2015 17 The model in Tynedale was established through funding support from Northern Rock (70%), One North East (30%), and ERDF matched funding and ran for four years until 2011 when unfortunately funding for the project ceased. This was due primarily to the changes in the business support landscape in England and the demise of the Regional Development Agencies such as One North East, and despite the best efforts of the Volunteer Board, no further funding for the project was secured.

From interviews with representatives West Northumberland Council who were involved with the project over the period 2007-11, it followed a similar path to GrowBiz with the appointment of an Enterprise Facilitator role and a Volunteer Panel. Its success was measured principally by the number of enterprises and jobs created, and in terms of the community cohesion it achieved and the increased sustainability of the businesses created because of the support network created around them.

It took around three years for the community to fully engage with the project, and two years from inception before results really began to show through, but once the project was established it delivered strong results against target, and worked across a range of small start-up and existing larger businesses with equally positive results. It also worked closely with, and as part of, the Business Link for the area, and was seen to add value in reaching a different client base from the traditional enterprises Business Link worked with.

The EFFECT project in Wales has been running for 5 years and is supported by funding from the Welsh Government, local Councils, the Waterloo Foundation and Communities First. The project will be evaluated over the next few months as it is due to complete in March 2016. The project is run by volunteers, and has an 88 strong Volunteer Panel with a high profile chair from the business community, and a strong Volunteer Board committed to the Sirolli principles of enterprise facilitation. There is a full-time Enterprise Facilitator and the success of the project will again be judged primarily on the businesses and jobs created.

Early indications would suggest the project has been a success with strong community buy in, a highly visible enterprise facilitator who has worked hard to understand and engage the local communities across the geography, and has established a strong local knowledge and networks. The project adopts similar client confidentiality principles as Growbiz, and approaches and works with enterprises in a non-judgemental manner; and the project is viewed as a catalyst for community development and empowerment, and has produced strong results across a wide and diverse rural community base.

From both these projects, the importance of community buy-in and trust in the enterprise support model is crucial to its success, and this is best achieved by the building of business capacity across and within the rural community, and for the provision of support to be tailored and provided based on the individual client needs and aspirations for growth, which lies at the heart of the GrowBiz model.

4.4 Key Success Factors & Learning Points From the baseline research carried out and the interview and group consultations, it is clear there are a number of consistent factors which have enabled GrowBiz to deliver strong performance results and outputs against the targets set by its funding partners, and also a number of key learning points

GrowBiz – Final Report November 2015 18 which can be used by GrowBiz to further develop its activities and impact. Both the success factors and learning points set out below will also be important for other areas to consider and take into account should they wish to develop a comparable GrowBiz model. Key Success Factors The key success factors identified from the research which have underpinned the success of GrowBiz to date, include:  A committed and strong Volunteer Board who fully understand and support the enterprise facilitation approach – “the organising energy”. It is apparent both from GrowBiz and other comparable models that, particularly in the inception of the enterprise facilitation model, it is guided and driven by community based individuals who understand and believe in enterprise and how the model works, what it aims to achieve, and are prepared to champion the model within the community, and with both stakeholders and clients.

 It is also very important that the Volunteer Board comprises of individuals who are or have run their own business or have been part of the business community so understand, and ideally bring practical experience and knowledge of the problems and difficulties of supporting new and early start businesses.

 The Enterprise Facilitator role, and any other staff employed through the project, should be locally based, prepared to work the hours to fit with the client base, and committed to the local business economy in a true stakeholder sense. Equally important in terms of GrowBiz in particular is the credibility factor brought by the GrowBiz team themselves all having their own businesses – the fact that all of the team have other income streams is worth noting from a sustainability position of the model, but the fact all of the team themselves have created and run successful enterprises in the area has been a key factor in building the success and credibility of the GrowBiz model.

 The fundamental principles of the model – a personalised service determined by the client; non-judgemental, informal and flexible in approach, and with an emphasis on both building confidence at a personal and business level through both one to one and peer group support– have been integral to the success and results achieved by GrowBiz, and the overwhelmingly positive feedback on the GrowBiz model from the client base.

 The service model operated by GrowBiz is well suited and matched to its core client base – particularly women returners and individuals who often require greater confidence and support to fulfil their business potential at whatever level, and who gain significant value from the combination of both the one to one support and peer group support available to them. The service model fills a gap in the enterprise support landscape particularly in rural areas such as Eastern and Highland Perthshire where there is less of an enterprise

GrowBiz – Final Report November 2015 19 infrastructure and support network which entrepreneurs and small businesses can readily access.

 The fact that the GrowBiz team work virtually with no physical office base is also a strength of the model, following the principle that the GrowBiz support and facilitation comes to the client when they need it, and are ready for it; and ensuring funding and resource is directed to the client base with overhead costs kept to a minimum. The GrowBiz team meet on client premises or at local venues which suit the clients. This low cost delivery model further engenders belief and confidence across the clients as opposed to the “office environment” which can deter the more fragile clients.

 The GrowBiz model takes time to embed in the community, build the trust with the client base and stakeholders, and demonstrate the value of the more personal enterprise facilitation approach. Once the building blocks are in place, there is then the opportunity to expand services into for example mentoring and the GrowBiz XChange initiative, which gain significant traction quickly across the client base, and allow a further element of sustainability to be built into the model.

 The micro grants offered by GrowBiz through the RBS Inspiring Enterprise funding have been very well received and although for relatively small amounts, have made a significant and positive difference to the businesses receiving them.

 The rolling programme of peer support events, learning sessions and the GrowBiz XChange are valuable in allowing a range of opportunities for clients to access individual and peer support as and when they need it. This in turn builds a self-generated momentum that creates inherent sustainability in the model as clients become peers and mentors as well as more successful businesses.

Key Learning Points There is a substantial evidence base on the success of GrowBiz, both from the performance achieved against target, and the feedback from the client base. However, there are also a number of development areas and learning points for GrowBiz from the review as follows:  The reporting and data collection processes within the GrowBiz model could be made more robust. It will be important going forward to ensure the results claimed against individual targets and outcomes provide an overall assessment of the full impact of GrowBiz, whilst able to clearly attribute individual project outputs to the relevant funding streams.

GrowBiz – Final Report November 2015 20  More rigorous data capture from the hours worked by the core GrowBiz team together with the volunteer hours given across the client base and Board should be captured to show the full leverage and additionality delivered by the GrowBiz model.

 The client confidentiality parameters of the GrowBiz model should be set out clearly for both clients and funding partners and stakeholders to ensure an agreed and consistent approach is taken to data capture and reporting.

 The opportunity to clearly identify the remit and role of GrowBiz within the wider enterprise support landscape should be formally clarified and communicated across the partners – allowing a more effective two-way referral system between other support providers, particularly the Business Gateway and GrowBiz, and effective pathways of support to be put in place as appropriate.

 Clarity of role will also assist in addressing the perceptions of duplication of support and public funding which was apparent from a number of the stakeholder interviews, and in terms of future funding streams and opportunities for GrowBiz.

 The GrowBiz Volunteer Board should consider more fully succession planning onto the Board, and ideally developing the Board skills and knowledge in the service areas GrowBiz has developed to allow a more rigorous challenge and support for the GrowBiz staff team, and to lead and guide any extension to the Service Model ensuring it remains true to the core operating principles of the GrowBiz model, whilst maximising the client reach and impact of the model across the communities it serves.

 Increased use of social media such as Facebook and Twitter fit well with the GrowBiz model and client group, and should be explored further to develop and enhance client collaboration opportunities, and to communicate more effectively the GrowBiz services and activities to a wider client community.

 The current opportunity provided to work with Blairgowrie High School should be maximised, and the learning from this considered by the Board as to how the enterprise facilitation role and message could be effectively broadened out to schools and young people.

 While public funding support will always be required to deliver the core elements of the GrowBiz model, the opportunity to attract grant funding from private funding sources has been successfully achieved by GrowBiz and should be recognised, based primarily on its

GrowBiz – Final Report November 2015 21 ability to reach core client groups to some extent out of reach of the more traditional enterprise support mechanisms in place, and to provide services which are of value and easily accessible to these client groups.

 The extension of GrowBiz services into areas such as mentoring support and the GrowBiz XChange genuinely provide a means to build a more sustainable and self-supporting enterprise infrastructure within the community, and allow many of the individuals who have benefitted from GrowBiz support and services to give something back, and build the overall community capacity for enterprise. These areas should continue to be a focus for development within GrowBiz going forward – and also offer the potential opportunity to develop appropriate links with the Chamber and Business Gateway in areas such as mentoring support. 5. Conclusion and Recommendations

Review Conclusion The GrowBiz story is a successful and inspiring one – demonstrating an innovative and positive approach to enterprise facilitation in a rural area with proven results. At the current time it is unique in Scotland, although there are comparable models which have been tried and tested across other rural areas of the UK. GrowBiz has succeeded where other models have failed by taking the Sirolli model and developing it to fit with the needs of the communities of Eastern and Highland Perthshire. A strong and committed Volunteer Board in place from the start has been fundamental to its success, as have the staff enterprise facilitation team in place who have all believed passionately in the core principles of the model – community based, supportive and confidence building, and business advice and support fundamentally driven by the needs and at the pace of the clients. The public and private sector funding support provided to the project has allowed GrowBiz the time and ability to establish itself within the community, build the trust across its client base, and deliver strong results and outputs over the eight years since its inception – it is not a quick win; it takes time and faith to build the model sustainably across a community, but once in place the GrowBiz model has shown itself to be very effective at reaching and adding value to its client base at each stage of their enterprise development, and particularly for clients who have found it hard to engage with the more traditional forms of enterprise support available. Whilst the informal, supportive and personal nature of the enterprise facilitation support provided is key to its success with its client base, it is also important that behind the client facing model, there are the systems in place to demonstrate and track the success and learning from the model, and to ensure that where possible effective linkages and pathways are in place across the enterprise infrastructure serving each community. Other areas where the review has identified learning and development points should be considered over time by the GrowBiz Board, whilst continuing to build on the critical success factors that have allowed GrowBiz to achieve the success it has to date. It should also develop its strong fit with the

GrowBiz – Final Report November 2015 22 Scotland Can Do agenda and the emerging priorities under the Scottish Government’s new Economic Strategy, and Enterprise priority theme within the new Scottish Rural Development Programme. GrowBiz offers a proven and tried and tested enterprise facilitation model which has worked successfully for the communities in Eastern and Highland Perthshire, providing added value services and strong personal support to its client base. It has achieved strong enterprise results and growth across the geographical areas it serves, and against the performance targets set for the organisation through its different funding streams demonstrating good value for money, and it now provides a strong platform for individuals and enterprises across the community to develop their enterprise ideas and plans confidently and successfully.

Recommendations as to the Transferability of the GrowBiz Model The final part of the review was to assess the opportunity for other rural areas in Scotland to consider and develop a similar enterprise facilitation model, particularly in terms of the potential project funding which may be available to support the Enterprise priority theme in a number of rural areas across Scotland through Leader. From the review undertaken, the GrowBiz model would lend itself well to the development of enterprise and an enterprise culture in rural areas within the context of the new Scottish Rural Development Programme for Leader areas, with its focus on community led and bottom up development and empowerment of rural communities, and the opportunity for businesses in rural areas to collaborate and work together to develop and grow the local economy. Any enterprise facilitation model for rural areas should consider the lessons learned and key success factors identified through the review, in particular:  The importance of community buy-in and trust to the enterprise facilitation model adopted, and to allow time for this trust to be built up;  A Volunteer Board which understands the challenges of rural enterprise, and is credible and able to champion the enterprise facilitation model in the community, particularly in the initial stages;

 Ideally an enterprise facilitation staff resource or team who are credible, engaging and supportive, and able to work flexibly in terms of hours and location;  Clarity of the role and place of the enterprise facilitation model within the business support infrastructure of the area; the client base it will serve, and sufficient initial funding for a 2 to 3 year pilot period  The importance of a personalised and non-judgemental service with an emphasis on building confidence at both the personal and business level if the model is to capture and engage as wide as possible a cross-section of potential entrepreneurs  Ideally allow a range of opportunities for clients to access individual and peer support as and when they need it.

GrowBiz – Final Report November 2015 23 There are also alternatives to creating a separate enterprise facilitation structure, and there is the potential for some rural areas to establish the Enterprise Facilitator role within existing Community Development Trusts or similar organisations serving the community. There is also the opportunity for GrowBiz “management” to offer a consultancy service to other areas if the GrowBiz model is rolled out and deemed appropriate for the area, avoiding re-inventing the wheel and potentially allowing the full impact of the model to be realised over a shorter timescale. Whatever the approach, the opportunity to reflect and learn from the core principles of the GrowBiz model that have allowed it to effectively and successfully engage and grow its client base, and the enterprise culture and performance of Eastern and Highland Perthshire, is there for other rural areas in Scotland to learn from over the coming months, and to seek to establish the appropriate enterprise facilitation model which would best serve and inspire their own communities, supported potentially by Leader funding, and providing the mechanism to harness and develop the enterprise talent, ideas and ambition latent in many areas of rural Scotland.

Appendix 1 – List of Consultees and Interviews

 John Corrigan, GrowBiz Director and Interim Chair

 Wendy Birse, GrowBiz Director

 Simon McCaig, GrowBiz Director

 Corrie Watson, GrowBiz Director

 Nic Bauer, Nic Bauer Photography

 Peter Grigor, Tubs R Us

 Garry Hutton, Swellbow Clothing Company

 John W R Lindsay, Alyth Photography

 Jenny & Keith Lyall, Agrivision

 Leila Mayne, Herbalist

 Chris Mullin, The Rookery

 Merle Palmer, Your Scots Past

 Olivia Robertson, Homestraight Scotland

 Claire Reading, Brown Earth Landscapes

 Ashleigh Slater, Warp Weft Weave Studio

 Jane Wilkinson, Special Branch Baskets

 Cornelia Weinmann, Artist

 Jackie Brierton, GrowBiz Enterprise Coordinator

 Joyce McQuilken, GrowBiz Peer Group Coordinator

GrowBiz – Final Report November 2015 24  Rosie Baxendine, GrowBiz Development & Administration Support

 Alan Watt, GrowBiz Adviser

 Anne –Maria Brown, PNE Grant Administration, RBS Inspiring Enterprise

 Moe Forouzan, Enterprise Facilitator, Effect Blaenau Gwent

 Alan Graham, Perth & Kinross Council

 Heather MacDonald, Perth College

 Gillian MacEwan, FSB

 Anna McBurney, Entrepreneurship Policy Officer, Scottish Government

 James Muldoon, Entrepreneurship Officer, Scottish Government

 Julian Pace, Rural Director, Scottish Enterprise

 Alistair Prior, Head of Rural Communities Team, Scottish Government

 Alison Seggie, Enterprise Manager, Perth & Kinross Council

 Andrew Webster, Business Gateway Perth & Kinross

 Ciara Wilson, Project Manager, SSE Our thanks also again to all the GrowBiz clients who took part in the various peer support group meetings and GrowBiz events which we attended, filmed and took part in – your contribution and input was much appreciated.

GrowBiz – Final Report November 2015 25

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