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Appendix 1A Strategic Economic Plan for Gloucestershire - Appendix 1A Business Case - Growth Hub

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SEP Business Case Growth Hub Appendix 1A Strategic Economic Plan for Gloucestershire - Appendix 1A Business Case - Growth Hub Overview Problems A virtual and physical hub of resources, connections and support There are some well-established market failures and general obstacles which which drives business and economic growth in the county. In prevent many other companies from achieving their growth potential. For example, association with the University of Gloucestershire Business School, the Small Business Survey 2012 identified 3 reasons for the lack of take-up of business support: networked through resource centres across the county, and with close links to Higher and Further Education, it will provide focussed 1. not being clear how to access those services 2. not having developed relationships with the providers of business support business support for growth businesses. In addition, by matching services skills provision to the specific needs of business, it will be the engine 3. not being aware of the benefits those services may bring. for economic growth in Gloucestershire. These market failures of information and relationships are compounded by four Problem or opportunity barriers to business growth identified from the survey: • Strategy – 65% didn’t have a formal business plan Opportunities • People Management – 68% didn’t train their managers in managing people Gloucestershire’s total Gross Value Added (GVA) growth to 2025 across all sectors • Finance – 76% didn’t access finance is forecast to be 30%. However there are particular growth opportunities in some • New Market Entry – 57% did not introduce new or improved products key sectors. Knowledge and Export Intensive businesses are forecast to grow In April 2013, a report commissioned by the Strategic Alliance for Higher Education in GVA by 55.4% and contribute around 47.8% of the total GVA in 2025. These (HE) in Gloucestershire on skills gaps in the county showed that employers businesses need specific and targeted support for them to achieve this growth consistently reported skills shortages and high vacancy levels in high skill jobs. potential. If they don’t grow by the forecasted amount the whole county GVA growth Skills gaps were an even greater problem in terms of the ability of existing will be affected. employees to meet the skills needs of companies. *57% of employers in the GFirst LEP area with skills gaps felt that they were having an impact on the performance Support for Knowledge Intensive businesses is a key part of Strategic Objective of the organisation, 12% felt they had a major impact. In the future, forecasts 1 of the Joint Core Strategy, the Cotswolds and Forest of Dean plans, and the indicate there will be a shift towards higher-level occupations, generating a rising Stroud Local Plan, as well as being central to this Strategic Economic Plan (SEP) demand for higher levels of skills and qualifications. Working Futures projects that, for Gloucestershire. The Work Foundation ranks this area as 8th out of 56 UK from 2010 to 2020, there will be an additional 13,000 jobs that require a first degree, knowledge economies. The nature of the Gloucestershire economy, and the and an additional 14,000 jobs that require an ‘Other higher degree’ and a further ambitions of this SEP, make it a priority to enable knowledge intensive Small 2,000 jobs requiring a doctorate. Marchmont1. and Medium Enterprises (SMEs) to achieve their growth potential. The Growth Hub will provide the point of contact and direction to businesses to We have the highest % employment in Export Intensive Industries (20.5%), on simplify and effectively access the relevant business and skills support that deals a par with London. However there is low export performance as a % of GVA with their long term needs. compared to other UK regions. Delivery of export support, tailored specifically to our local needs, is a priority. 1 . Evidence report: http://gfirstlep.fastdevedit.com/cms/doc_get.aspx?DocID=162 Executive Summary: http://gfirstlep.fastdevedit.com/cms/doc_get.aspx?DocID=163 The core purpose of the Growth Hub is to target these key businesses with the Sector Report: http://gfirstlep.fastdevedit.com/cms/doc_get.aspx?DocID=164 support that will deliver growth long term. Skills Statement: http://gfirstlep.fastdevedit.com/cms/doc_get.aspx?DocID=165 2 Strategic Economic Plan for Gloucestershire - Appendix 1A Business Case - Growth Hub Rationale for intervention county provide the physical infrastructure that will enable the other services to be successful in delivering growth. This is a high level overview of all of the concepts To support their growth, the businesses in the target sectors need specific support and components of the Growth Hub, for more details see the Appendices 1B-1F to help them tackle their challenges; others need more effective direction to national inclusive. business support programmes that can provide these services. The Growth Hub will: The Accelerated Business Growth Service consists of • Provide a central location and organisation in the county to provide access to Business Generator: focusing on the growth sectors where specific support will business support useful to these businesses enhance and increase their chances of success. It will comprise an integrated start- • Raise business awareness of ‘where to go’ for help and advice up, business clustering and support service made up of existing and new provision. It will help new and young businesses improve their performance, create new jobs, • Through the formation of a single Hub, but networked and available to businesses offer new options for local graduates (aligned with the Enterprise Programme), and across the county, remove the current fragmentation of services, the lack of co- work on collaborative research and development projects across the county. This is ordination between them and the consequent low level of business awareness a component of the Growth Hub. and engagement • Provide the services that will support businesses in their strategic development, Business Navigator: to identify growth businesses for specific targeted support, the introduction of new products and services where there are gaps, and secure and to point other businesses to existing support services provided nationally and the right level of skills through recruitment and work-based training. locally. This will add and develop new support where a gap or market failure is identified and ensure that those businesses in the knowledge and export intensive • Give access to the resources provided by the University and other Higher and sectors fully realise their potential. This is a component of the Growth Hub. Further Education providers with regard to innovation and research. Business Expansion Service: for strategically important businesses bringing inward investment to the county to ensure they can access all the resources they Business case detail need to grow and expand their business. It will support those businesses to remain Plans for the first phase of the Growth Hub have already been launched by GFirst in the county and continue to invest in growth and jobs. It will also be used to support LEP and the University of Gloucestershire working in partnership, with investment key ‘home grown’ businesses. This is a component of the Growth Hub. from the Higher Education Funding Council for England. The Hub will be the focal point for a range of business and employment services funded through the EU The Enterprise Accelerator service consists of Structural and Investment Fund (EUSIF). Phase 2 aims to create a joint venture partnership, attracting private investment to support major expansion of the Entrepreneur Programme: a cross-county programme to support the capability of the Business School to support the Growth Hub. The Hub will be the development of entrepreneurs of any age by providing the skills needed to develop home for two distinct but linked support themes; the Accelerated Business Growth and grow a successful business. It will identify people at an early age - still within Service and the Enterprise Accelerator. The first gathers together the services school, college and universities - so that they can be guided to develop their ideas funded through the EUSIF for business support. The latter, also funded through the and employability skills, and be encouraged to start their own business initiatives at EUSIF, is focussed on skills. the earliest opportunity. This is a component of the Growth Hub. The Growth Hub and the associated network of Resource Centres and Science, Technology, Engineering and Maths (STEM) specific locations around the 3 Strategic Economic Plan for Gloucestershire - Appendix 1A Business Case - Growth Hub Employment Pathfinder: a service providing the tools, knowledge and strategic Delivery planning activities to enable schools and colleges to provide students with the level of information advice and guidance they need to make important decisions about The first phase of the Growth Hub was launched in December 2013. It will draw their future careers. In addition employers will be able to contact the Growth Hub on £2.7m investment from the Higher Education Funding Council for England to discuss recruitment issues and get help to find the staff they need including (HEFCE), awarded from the Catalyst Fund in recognition the national significance direct support for work placements, apprenticeships and graduate placements or of this innovative partnership. The University is contributing substantial resources, recruitment. There will also be signposting to other services such as Jobcentre in the form of its Business Development Unit, access to the teaching and research Plus, sector academies or commercial recruitment agents. This is a component of expertise of the Business School, and its campus facilities. The LEP is investing the Growth Hub. £1 million of its own funding. These combined funds will support the initial Growth Hub capability, in terms of facilities, CRM systems, staffing and delivery of business The Gloucestershire STEM strategy: will align STEM education capability services. The partners have worked together to seek investment of EU funding with STEM sector industrial growth and demand.
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