Nearly nine in ten small businesses think that the current support services, mainly TECs and Business Links, have great potential but need to be restructured to ensure they serve SMEs efficiently and effectively. The findings come from research commissioned by the accounting software company, Sage, among 1,000 small firms, published at the start of August. More than three quarters of the companies surveyed said it should be easier for small businesses to obtain venture capital, while nearly four in five said that clarification of the UK’s position on the Euro would allow them to plan better for the future. Sage has also commissioned a book to help start-up and small business; The Sage Guide: Setting Up and Managing your own Business. Contact Georgie Cameron, Sage, on 0191 255 3000 (www.sage.com)
DAMAGING DUPLICATION
The dual existence of TECs and Business Links is further fragmentation of an already confused, duplicative and counter-productive system of business support. Achieving consolidation and greater transparency must be primary objectives of the new regional development agencies if the current ‘network model’ is to be sustainable. A study by Cardiff University, published in August, also argues that rigid central funding regimes prevent TECs from tackling economic development in their own areas, resulting in a loss of credibility among the business community. Contact Robert Huggins, Cardiff University, on 01222 874945
ONE STOP SHOPS
A survey by the TEC National Council, published on September 6, shows that voluntary mergers between local business support organisations are continuing, driven by the need to cut confusion and offer a better service to small business customers. The key findings include:
– one in five (21%) TECs has merged with local chambers of commerce to become CCTEs;
– more than half (54%) English TEC/CCTEs have integrated their local Business Links either as subsidiary companies or fully integrated departments;
– only six English TECs are neither integrated with Business Link nor considering becoming so, meaning that the concept of a stand alone training and enterprise council almost no longer exists.
The government has placed a moratorium on further TEC/chamber mergers, pending the outcome of its review of business support arrangements. Contact Michael Davis, TEC National Council, on 0171 203 2520 (www.tec.co.uk)
REGIONAL CHAMBERS
In August, the government published guidance on the general principles governing the relationship between regional chambers and the nine new business-led regional development agencies. Chambers are being created on a voluntary basis in each region to address practical issues in the region in a consensual manner. Elected local authority members must be in a majority but not taking more than 70% of the places, with the balance drawn from businesses and the voluntary sector.
The RDAs will be government bodies, accountable to ministers, but must take account of regional views expressed by the chamber to which they should give an account of their activities. Contact DETR Enquiries on 0171 890 3000 (www.detr.gov.uk)
Comment
The present government came into office having promised no real change to the main architecture of its predecessor’s business support structures. Given how much time and effort individual business people had put in personally to get the system going, perhaps the government-in-waiting thought it prudent to leave well alone. Even proposals to “enhance” Business Links soon proved to be mere incremental improvements (although no less welcome for that).
But the structure is inherently unstable. The loudest calls for change now come from those same business people, frustrated at wasting their time. The high number of TEC/chamber/BL mergers prior to the moratorium is evidence of them trying to sort it out locally. Most important, the customers – the small businesses who provide the life-blood of future economic success – are confused and complaining.
In the short term, the arrival of regional development agencies makes matters worse: their sponsoring government department is the DETR, holders of the regeneration purse strings, while the DfEE runs Tecs and the DTI the Business Links. But the only long term answer is hand it all over to the regions, with merged funding streams.
Of course civil servants won’t like giving up their empires, nor ministers their opportunities for photocalls and sound-bites when launching new national initiatives. So it won’t happen unless business demands it, speaking with one voice. Companies large and small must get firmly involved in the new regional chambers, crafting close working partnerships with local politicians and other community representatives. They must also ensure that the business-led RDAs then follow the regional blue-prints devised by consensus in these chambers. At that point, the case for local control of the whole structure will be incontrovertible and the original vision of business-led regeneration can finally be realised.
TECs, chambers of commerce and Business Links have been trying to improve their support services for small firms locally. Now a government review is underway. It’s time for business to insist on a regional solution.
The present government came into office having promised no real change to the main architecture of its predecessor’s business support structures. Given how much time and effort individual business people had put in personally to get the system going, perhaps the government-in-waiting thought it prudent to leave well alone. Even proposals to “enhance” Business Links soon proved to be mere incremental improvements (although no less welcome for that).
But the structure is inherently unstable. The loudest calls for change now come from those same business people, frustrated at wasting their time. The high number of TEC/chamber/BL mergers prior to the moratorium is evidence of them trying to sort it out locally. Most important, the customers – the small businesses who provide the life-blood of future economic success – are confused and complaining.
In the short term, the arrival of regional development agencies makes matters worse: their sponsoring government department is the DETR, holders of the regeneration purse strings, while the DfEE runs Tecs and the DTI the Business Links. But the only long term answer is hand it all over to the regions, with merged funding streams.
Of course civil servants won’t like giving up their empires, nor ministers their opportunities for photocalls and sound-bites when launching new national initiatives. So it won’t happen unless business demands it, speaking with one voice. Companies large and small must get firmly involved in the new regional chambers, crafting close working partnerships with local politicians and other community representatives. They must also ensure that the business-led RDAs then follow the regional blue-prints devised by consensus in these chambers. At that point, the case for local control of the whole structure will be incontrovertible and the original vision of business-led regeneration can finally be realised.
COMMENTS