STAFFORDSHIRE MOORLANDS DISTRICT COUNCIL. Report to Cabinet. Revised Arrangements for Business Support Service

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1 AGENDA ITEM 10.1 STAFFORDSHIRE MOORLANDS DISTRICT COUNCIL Report to Cabinet 10 th October 2006 TITLE: Revised Arrangements for Business Support Service PORTFOLIO: OFFICER: Regeneration Corporate Director and Monitoring Officer WARD: Non-Specific 1. Recommendation That Cabinet is informed of Advantage West Midlands new business support model for the West Midlands. Reason: To update Cabinet on the revised mechanism for delivering business support in the West Midlands. 2. Executive Summary 2.1 Regional Development Agency Advantage West Midlands is currently changing the Business Link service in the region. The aims according to the agency are to: Improve the productivity of the region Increase the number of new businesses and self-employed people in the region - focusing on those start-ups most likely to add value to the West Midlands' economy. 2.2 From April 2007, the five existing services Business Link Black Country, Business Link Coventry and Warwickshire, Business Link West Mercia, Business Link Staffordshire and Business Link Birmingham and Solihull will be replaced by a single, regionally-managed and locally delivered service. 1

2 2.3The concept behind the new Business Link model is that it will be managed regionally but will continue to be delivered locally, with businesses being able to access advice from across the region rather than being constrained by the expertise available within their particular area. 2.4 The new service will comprise a separate Gateway service which will provide a telephone and web based information and enquiry handling service, through which all companies in the West Midlands will access support and information, a Brokerage service to link firms that need in-depth help with the right initiatives and programmes, and specialist help for business start-ups and manufacturing. 2.5 In August 2006 contracts between Advantage West Midlands, which funds Business Link, and the successful bidders for the three elements of the service were signed: Gateway West Midlands a subsidiary of the Black Country Chamber will deliver the on-line and telephone gateway services West Midlands Brokerage Services Ltd a consortium of the Black Country Chamber, Birmingham Chamber, Coventry and Warwickshire Chamber, Staffordshire Business Support Ltd and Shropshire Chamber and Herefordshire & Worcestershire Chamber will provide the Core Brokerage and also the separate enterprise services Manufacturing Advisory Service West Midlands (MAS-WM) will deliver the specialist manufacturing service 2.6 As this is a new model for delivering business support services across the region there is limited information available as to how the new service will perform and so it is not yet possible to comment on its effectiveness in engaging with businesses in the Moorlands and dealing with their specific rural needs. 2.7A recent business breakfast meeting held in the Moorlands attended by forty local businesses discussed issues and priorities for local businesses. One of the issues highlighted was the need for an improved business support service to meet and deliver local business needs. 2.8Officers will monitor the new service to ensure the required level of support is available to benefit businesses operating in the Moorlands. 3 Evaluation of Options 3.1 There are no options to consider as the report merely provides details of changes to the delivery mechanism for Business Links business support service in the West Midlands. 2

3 4. Implications 4.1 Community Safety: Nil 4.2 Employees/IIP: Nil 4.3 Equalities: This report has been prepared in accordance with the Council s Equal Opportunities policy. 4.4 Financial: Nil 4.5 Legal Nil 4.6 Sustainability: Nil MARK TRILLO Corporate Director and Monitoring Officer Background Papers Location Contact The Future of Business Support Regeneration Services Ian Jackson In the West Midlands Moorlands House Principal Economic Leek Regeneration Officer Tel: Decision: Reason: Interest Declared 5. Background and Detail 5.1Advantage West Midlands is one of nine Regional Development Agencies whose role is to promote sustainable economic development in England. 5.2 Business Link was established in 1993 as a national chain of one-stop shops for businesses, providing information, advice and support to stimulate business growth in the region. 3

4 5.3 In 1999 the DTI s Small Business Service took responsibility for the service and the 89 Business Links reduced to 43 nationally. 5.4 The nine regional development agencies took control from April and were tasked with finding the best service for business in their region. 5.5 Regional Development Agency Advantage West Midlands is currently changing the way the Business Link service in the region is delivered to: Improve productivity of the region Increase the number of new businesses and self-employed people in the region - focusing on those start-ups most likely to add value to the West Midlands' economy. 5.6From April 2007, the five existing services Business Link Black Country, Business Link Coventry & Warwickshire, Business Link West Mercia, Business Link Staffordshire and Business Link Birmingham and Solihull will be replaced by a single, regionally-managed and locally delivered service. 5.7 The new service is being introduced to tackle underperformance in productivity and business start-ups. 5.8One of the objectives of the new service will be to help the creative and knowledge based industries and business and professional services to grow and also to reach minority ethnic companies, social and women's enterprises and rural businesses. 5.9Since January 2006, Advantage West Midlands has been undertaking a competitive selection process to find the providers for the new regional Business Link service, which will come into effect from April The new service will comprise a separate Gateway service which will provide a fully integrated telephone and web based information and enquiry handling service, through which all companies in the West Midlands can access support and information, a Brokerage service to link firms that need in-depth help with the right initiatives and programmes, and specialist help for business start-ups and manufacturing The Core Brokerage services will be established to provide assistance to businesses focusing particularly on professional and business services and creative industries as well as those businesses that have the potential and aspiration to grow. Additionally, there will be providers of specialist enterprise brokerage and specialist manufacturing support 5.12 In August 2006 contracts between Advantage West Midlands, which funds Business Link, and the successful bidders for the three elements of the service were signed: Gateway West Midlands a subsidiary of the Black Country Chamber will deliver the on-line and telephone gateway services 4

5 West Midlands Brokerage Services Ltd a consortium of the Black Country Chamber, Birmingham Chamber, Coventry and Warwickshire Chamber, Staffordshire Business Support Ltd and Shropshire Chamber and Herefordshire & Worcestershire Chamber will provide the Core Brokerage and also the separate enterprise services Manufacturing Advisory Service West Midlands (MAS-WM) will deliver the specialist manufacturing service Additionally, the Learning and Skills Council has already appointed West Midlands Brokerage Services Ltd to deliver the Train to Gain skills and training element for businesses. Train to Gain will provide diagnostic service of a business training needs and offer employers a choice of solutions to best fit their requirements The new service will support all businesses but place particular emphasis on enterprise creation, manufacturing, professional and business services and knowledge and creative industries, recognising the specific requirements of women, young people, ethnic minorities, social enterprises and rural companies As this is a new model for delivering business support services across the region there is limited information available as to how the new service will perform, and so it is not yet possible to comment on its effectiveness in engaging with businesses in the Moorlands and dealing with their specific rural needs A recent business breakfast meeting held in the Moorlands attended by forty local businesses discussed issues and priorities for local businesses. One of the issues highlighted was the need for an improved business support service to meet and deliver local business needs. There was a perception amongst local businesses that the existing Business Link service does not provide the level of support and advise needed for rural businesses. There is uncertainty regarding who to contact for specific business advice and a lack of available dedicated business advisors to provide a one-to-one on-site service. 5