A network of 200 Community Enterprise Zones is needed to regenerate deprived urban areas, according to a new report by the Joseph Rowntree Foundation. Investing in People: Rescuing communities from the Margin examines community regeneration strategies in Germany and the UK and identifies the common elements of successful strategies, including;
partnership involving central and regional government, local authorities, voluntary agencies and the community;
decentralised decision-making, with a neighbourhood ‘compact’ incorporating a clear shared vision for the future;
training, job-creation and business formation programmes.
Each zone would start with a small ‘seed-bed’ team of secondees from business and government, to help develop local strategies, followed by a community enterprise agency, ultimately controlled by the local community. It could take over public sector land and buildings, such as housing estates, and extra tax relief would encourage new local businesses. The Report sees these as complementing or providing exit strategies for existing schemes such as Inner City Task Forces, City Challenge, housing action trusts and urban development corporations. Contact Sally Corrie, Joseph Rowntree Foundation, on 0904 629241
TECs ROLE SHOULD BE MORE CLEARLY DEFINED
TECs have a unique part to play in local economic development but their role must be more clearly defined, says a report commissioned by the former Employment Secretary, Gillian Shepard and published on January 17. The report, The Role of TECs in Local Economic Development, was carried out by the Centre for Research and Employment and Technology in Europe (CREATE) and sets out fourteen steps TECs can take to tackle skill shortages and long term unemployment, in partnership with other agencies. But it warns that TECs alone cannot deliver without government support and calls for more flexibility for TECs to achieve local solutions, as well as tax incentives for companies taking up the Investors in People initiative. Contact CREATE on 0892 526757
CITY CHALLENGE CONFERENCE
Around 40 representatives from large companies in the capital gathered at the London City Challenge Conference on January 28 to hear how the private sector can help regenerate urban communities through the government’s City Challenge initiative. Speakers from BAT Industries and BT explained their involvement and two City Challenge chief executives presented their projects. The conference was organised by Business in the Community. Contact Anne Harris or Nancy Haque, BITC, on 071 629 1600
YOUNG ENTERPRISE ANNIVERSARY
Young Enterprise celebrated its 30th anniversary in 1993 and recorded record numbers of students participating in the scheme. Over 28,000 students participated in the running of 2,007 companies in the year 1992-93, 15,000 of which passed the revised written examination. It now has almost 2000 corporate supporters, providing resources and 5000 volunteer business advisers to schools. Contact John Capstick, Young Enterprise, on 0865 311180
RECORD SELF EMPLOYMENT
Livewire, the self-employment initiative for young people backed by Shell UK, has reported record numbers of enquiries into setting up a business. The organisation received 9,140 registrations during the first ten months of 1993, an increase of 35% on 1992. Contact Gary Nagel, Livewire, on 091 261 5584
LENTA PROMISES JOB CREATION
The London Enterprise Agency has committed itself to the creation of 1300 jobs in 1994 as well as helping 300 long-term unemployed and homeless people to find work. In its New Year review, LEntA warns that London lost 250,000 jobs and a quarter of its micro-businesses in 1990-93 and promises an expansion of its support services. Among leading firms supporting LEntA are BP, IBM UK and Marks & Spencer. Contact Tim Baldwin, LEntA, on 071 236 3000
SMALL BUSINESS SUPPORT
Michael Heseltine MP, President of the Board of Trade, announced a new package of funding to promote the small business scheme Business Links on December 7. Funding is to increase by £14 million, with the aim of creating a national network within three years. TECs also have a small budget increase to £33 million, to allow their continued support for small business services essential to the Business Links scheme. Mr Heseltine also announced the trial of a new consultancy brokerage service, for introduction nationwide early in 1995. Contact DTI on 071 215 5000
EXPORT CHALLENGE
Livewire, the national scheme which encourages self-employment in young people, has launched a new initiative aimed at promote overseas trading. Backed by Shell UK with support and funding from Bass as well as local TECs, Export Challenge will provide specialist training and advice to young business owner managers, including an organised trade mission to Europe. The scheme is being piloted in four areas: Chester, Birmingham, Cardiff and Staffordshire; with a view to becoming a national initiative next year. Contact Paul Sampson, Livewire, on 091 261 5584
RURAL FIRMS CREATE JOBS
Rural firms have often been more successful at generating employment than urban ones, according to a research paper published by the Centre for Enterprise and Economic Research at Middlesex University. The paper, Employment Generation and Small Business Growth in Different Geographical Environments, examined the relationship between the growth of small businesses and their ability to generate employment and found that firms outside urban areas create the most jobs. Firms in urban areas are more likely to substitute capital for labour, perhaps because of higher wages or skill shortages, and still achieve growth in output. The Report concluded that for future employment growth, support should be focused on those firms with the greatest potential across the country as a whole. Contact David Smallbone or David North on 081 362 5000
NEW RURAL STRATEGY
The Rural Development Commission announced its new strategy for rural development in England on December 15, along with an increased budget from £38.5 million to £42 million. The three main goals are:
the regeneration of disadvantaged rural areas;
support for voluntary activity in rural areas, especially through its funding of the 38 county-based Rural Community Councils and support for key services such as housing, transport;
ensuring the needs of rural communities and businesses are taken into account by policy makers and service providers.
The Commission will be concentrating more of its resources in Rural Development Areas (RDAs). New priority areas have been announced, to come into effect on 1 April. RDAs will then account for 35% of the area of England and 2.75 million people. The Commission also intends to strengthen its national advisory role, seeking to influence rural housing policy and the work of TECs. Contact Anne-Marie Sewell, Rural Development Commission, on 071 276 6970
Comment
The second half of the intended TEC revolution was the E of its acronym – enterprise. After the major advances in the 1980s, when many companies offered extensive support for the enterprise agency movement, the 1990s have been less exciting. At a micro level, the challenge is how to ensure full coordination between existing services, so new and small businesses easily get the help they need – Business Links is meant to achieve this. At a macro level, the task is rather harder: how to encourage local economic development.
With the emasculation of local government, TECs are uniquely placed to coordinate and develop strategies appropriate for their areas. That must involve the area’s major employers and central government too – not just with resources but with new initiatives like community enterprise zones, an excellent successor for the now-stalled City Challenge scheme. Interestingly, the report on TECs role in local economic development, commissioned by the government itself, reaches much the same conclusion about the need for greater autonomy and flexibility as the CBI and LSE reports. So whether it is the E or the T of TECs, they need to be given the tools to do the job.
COMMENTS