NWDA Collaborative Approach to a Regional Business Start-up Programme

1. NWDA Collaborative Approach to a Regional Business Start-up Programme ISUS 16th November 2009

2. Gary Skelley Head of Enterprise Strategy Northwest Regional Development Agency

3. Aims of the Presentation • Summarise the: • Context : Economic, Enterprise Policy and Business Support NW Region • Approach / Strategic Objectives • Commissioning Framework • Funding Sources, Model and Service Specification • Lessons Learned • Questions

4. Context – Economic 2006 RES:- • £13bn Output gap: variations in performance • Increased emphasis on Enterprise • Improve business formation, survival and growth rates • 18% fewer businesses - gap of 91,000 businesses (Eng. ave.) • Start ups: RES Actions 3,36, 53 targeted at: • Under-represented/performing Groups • Women, Disabled, BME & Social Enterprise • Deprived Communities (IMD) & Rural Areas • HMR, URC.

5. Context – Enterprise Policy European National Regional Sub-regional Local The Lisbon Agenda (ERDF) SNR/BSSP Business Environment (Regulation, Taxation, Budget etc) National Enterprise Strategy Related Strategies (Access to Finance, Science; Innovation) 2006 NW Regional Economic Strategy 2008 NW Enterprise Strategy: People, Business Places, City Regions Strategies Sub-regional Enterprise Strategies Sub-regional Action Plans/Multi Area Agreements (MAAs) LEGI/URC WNF LAGBI Programmes Local economic development plans Local Area Agreements (LAAs)

6. Context - Business Support • Significant Area of Assistance • EU, Rural, HMR • Numerous Central Government Initiatives – DEFRA, DWP, DCLG, BIS • 43 Local Authorities • 4 LEGI Areas (£70m) • Strong University Base; operating business support • Many entities of business support; mix of channel & delivery

7. Approach / Strategic Objectives • Balance of Economies of Scale and Local Flexibility / Access • Engagement with SRPs and LAs began March 2008 • Assemble all Relevant Funding: SP, ERDF, DWP, / LA Funds • Tailor National / Regional Priorities to Local Need • One Service Specification that Fits with BSSP & BLNW • A Quality, Tailored Service and focus on aftercare • Regional Project Management (Lot 1) separate to Delivery (Lot 2) • Development and sharing of Regional Best Practice • = More Businesses Growing and Surviving Longer

8. Commissioning Framework

9. Funding Sources • Up to 5 years; up to £36m (min) + co-funding • NWDA - £26.6m • ERDF - £8.4m • DWP - £1.0m (09/10) • Investment Framework 4.1; Strands 1 and 2 • Disadvantaged Groups / Areas • Co-funding Local Authorities – LEGI, WNF, LABGI

10. Funding Model • Determine LAs ‘share’ of NWDA/ERDF funding • Basis for LA co-funding negotiations • Target Groups- 80% NWDA/ERDF for RES Priorities - 20% NWDA/ERDF and LA co-funding for local priorities • Define scale and targets for call off from the Panel

11. Service Specification • Backbone to the Commissioning Framework • Flow through: NWDA/LA Funding Agreements NWDA/LA Framework (Panel) Contracts • Defines - what co-funders are buying - what start up providers are delivering - what services the clients will receive • Prescribes the service but gives flexibility and encourages innovation in how it is delivered • Not one size fits all – Tailored to Client’s Needs and Local Conditions

12. Lessons Learned • Internal Resource: Management Team / Skillset • Pilot Scheme: Customers / LA’s / Suppliers / BLO • Dedicated CRM • Procurement and Legal Processes: NWDA / LA’s • Standardise all Documentation • Contracts, Mini-Tender (RFQ) Docs. • Time: Procurement and Mini-Tender • Minimise Bureaucracy • Communication

13. Any Questions?

14. New Start-Up Project Project Parameters • £26.6m NWDA, £8.4m ERDF • £1m DWP • 12,727 new businesses • 22,900 jobs (gross) • Support up to 42 months • Net GVA impact £575m • Up to £75m with LA • Green Book Appraisal £49:1 Themes • Strategic Leadership • Regional priorities & local need • Aftercare/growth focus • Engagement with SRPs & LAs began March 08 • Regional Project Management (QA, Monitoring), separate to Delivery • NWDA Board Approval • Endorsed by the PMC (ERDF)

15. Engagement • Complete background information • Read relevant information • Arrange meeting with Business Start-Up advisor • Participate in individual tailored support, if appropriate • Work with Business Start-up advisor to complete: Training Needs Analysis and Business Plan-Action Plan Client Journey Client STAGE 3 STAGE 1 STAGE 4 STAGE 2 Idea Development Planning Start up support/ aftercare Business Start-up advisor • Record background information • Assess the needs and barriers and level of service appropriate • If client does not require support, collate and retain relevant information for BL CRM system • Follow up after 2 weeks (phone call or email) • Confirm receipt of information and/or arrange adviser session • Business Start-Up advisor will determine whether to undertake follow-up with the client apart from the mandatory contact at the two week point • Undertake training needs analysis • Undertake Business Plan-Action Plan • Minimum guaranteed service will depend on aspirations, needs and commitment of each client • Support will be individually tailored providing Information, Advice, Development Opportunities and Ongoing Support • Aftercare up to 36 months monitored 12, 24, 36 survival

16. Delivery ModelLot 1 Regional Project Management • Overall Project • Quality Assurance • Monitoring & Evaluation • Aggregation and Analysis of Performance & Reporting • Communication with Partners and Stakeholders • Management of NWDA Contracts

17. Delivery Model Lot 2 Start Up Delivery Panel • Provision of Tailored Specialist and Intensive Start Up Support • People with the Desire to Start a Business or Grow a Business less than 36 months old • Local Delivery / Accessibility • Types of Activity • Engagement • Assessment and Action Plan • Development Support • Aftercare to 36 months • Transition Support Provision to clients from BSU1 – BSU2