Enterprise, Entrepreneurship and Regional Competitiveness Working Group
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1 Enterprise, Entrepreneurship and Regional Competitiveness Working Group Report for Workshop 1 01 July 2015, City Hotel, Derry. 1. Record of Attendance In attendance: Aeidin McCarter, Aidan O Kane, Austin Kelly, Brian Flanagan, Brian O Neill, Bronagh Doherty, Bronagh McCallion, Caoimhin Corrigan, Christina Mullen, Caran Rodgers, Claire Burgess, Danielle McNally, Danny O Hagan, Deirdre Harte, Des Gartland, Fintan Coffey, Gemma Scarlett, Hollie Carroll, Joe Carlin, Joe McGinnis, John McGowan, Kevin O Connor, Louise Breslin, Louise Coyle, Mary Casey, Maryclaire Kerlin, Michael Gallagher, Richard Osterhus, Roisin Farren, Rosa McLaughlin, Rosalind Young, Sarah Quinn, Sinead McLaughlin, Stephen Gillespie, Susan Doherty, Suzanne Rodgers, Tara Nicholas Apologies: Andrea Doran, Caitriona Strain, Donna McCloskey, Edyth Dunlop, Fergal Tuffy, Frances McAllister, Cllr Gus Hastings, Nora McGowan, Sean McCabe, Siobhan McLaughlin. Chair Meeting Chaired by Co-chair, Brian O Neill, Enterprise NW 2. Community Planning recap The aim of community planning is to develop outcomes, indicators and output actions that will address social, economic and environmental inequalities, needs and challenges in the City and the region. Tackling poverty, exclusion and disadvantage is a requirement in the legislation for Community Planning. Focus groups are being held with all section 75 groups and a plan for further engagement will get underway soon. 3. Role of Facilitators The role of facilitators is to assist and guide participants discussions. Facilitators are not acting as spokespersons of the Council which is required by legislation to facilitate the process on behalf of all the statutory partners who have shared responsibility for engagement and developing and delivering the community plan. 4. North West Regional Briefing by Des Gartland, Invest NI
2 Copy of presentation and supplementary economic overview pack attached. 5. Presentation of Current Strategic Priority Needs paper by Kevin O Connor, Derry City and Strabane District Council Groups within the workshop were asked to consider the Strategic Priority Needs paper circulated in advance of the meeting. There was a consensus within the workshop that the performance highlighted within the paper around Job Creation, Entrepreneurial Activity, Business Base, Median Salary and Gross Value Added should be addressed through the outcomes developed. The groups agreed that by tackling these intervention areas the broad aims of Community Planning (Addressing social, economic, and environmental inequalities would be addressed). 6. Suggested Outcomes The workshop participants agreed that the outcomes suggested in the working paper were correct. The following supplementary points were made: Overall happy with the outcomes but need to clarify Indigenous and External Sectors are okay. Skills crucial to underpin everything Could outcomes 1 to 3 be used as a statement of intent and then focus on sectors being 3 strategic outputs. Need for sub-regional message/marketing currently Invest NI markets NI wide not NW/Derry & Strabane specifically. 7. Agreed Outcomes The following outcomes were agreed: Derry and Strabane is recognised as an entrepreneurial and creative region - Derry and Strabane has grown as a region by embedding and supporting greater levels of entrepreneurial activity. The region has developed a reputation for innovation and creativity and maximised the value of these strengths in support of wider economic growth. Derry and Strabane is business ready with a compelling investment proposition Derry and Strabane supports existing business to generate enhanced levels of trade nationally and internationally by the delivery of a coherent and attractive investment proposition. Derry and Strabane is economically connected regionally, nationally and internationally Derry and Strabane has maximised its external
3 connectivity, leveraging its role as the primary gateway City in the North West Region having developed strong partnerships with its neighbours in County Donegal and has delivered the potential of its global diaspora. Derry and Strabane has developed a specialist cluster in one/or all of its key priority sectors (Life Sciences, Creative/Digital Industries, Hospitality and Tourism) Derry and Strabane has developed the capacity of specialist business supporting the development of clusters, allowing it to become a centre of excellent in one or each of the sectors. 8. Opportunities and Challenges for Priority Outcomes 1) Derry and Strabane will be recognised as an entrepreneurial and creative region. Challenge: Lack of activity to encourage entrepreneurial spirit within young people at 1st, 2nd and 3rd level education. Marketing/re-branding exercise required at a City/Regional level and at event level. Lack of promotion of B2B, B2C opportunities. Lack of promotion of entrepreneurs & culture/city in general. Opportunities: More engagement with local schools, colleges and university Having a society that makes entrepreneurship possible Encouraging motivation for entrepreneurship and embedding it within the culture of the education curriculum. Providing strong awareness within the youth of what being an entrepreneur involves. Requirement for a specialist forum for exchange and development and progression of new business ideas for potential entrepreneurs. 2) Derry and Strabane will be Business Ready with a compelling investment proposition. Challenge: High rates placing financial strain on businesses and confusion/unawareness of marketing message to both local businesses and potential investors.
4 Lack of Evening economy buzz. Opportunities: Support existing businesses not solely financial but wrap around support in specific business areas e.g. marketing, I.T. business/financial planning and skills development. Strong business case to be developed to use when attracting investment unity in message being communicated. Placing a monetary value on job creation i.e. how much money to spend on various job types created. Lifestyle/Quality of Life can be an opportunity. Young population/arts & Culture offering as well as festivals and events. 3) Derry and Strabane will be economically connected regionally, nationally and internationally. Challenge: High levels of unemployment, low levels of exporting activity within SME s who consider new markets are high risk and unawareness of potential new markets and how to attract new business. Stop/Start nature of funding creates lack of forward planning and loss of momentum. All businesses don t have a digital presence. Project Kelvin under utilised. Opportunity: Placing a strong emphasis on Diaspora lionise members of the Diaspora that are successful in business so they can be business champions for the area. 4) Derry and Strabane has developed a specialist cluster in one or all of its key priority sectors. Challenge: Previous culture of Silo Working and lack of collaborating and cross referring within business sectors. Sectors ill-defined and required further drill down. Opportunity:
5 To recognise what Derry and Strabane strengths are built around - Focus on an area of expertise and become a district that is built upon this e.g. strong Design competence and/or creative industries. Project Kelvin. 9. Interventions per outcome area 1) Derry and Strabane will be recognised as an entrepreneurial and creative region. Embed entrepreneurship within curriculums both at primary and secondary level education Bridging the gap to connect the business idea to the capital required to bring the idea to market. 2) Derry and Strabane will be Business Ready with a compelling investment proposition. Developing the confidence and self worth of local entrepreneurs. Development of both an internal marketing and communications plan to sell the district as a strong investment proposition. Development of an external marketing plan to attract inward investment and use local businesses to sell the area as an ideal place to locate business. Build on the culture that the district is a fun place to live where a good worklife balance can be held. 3) Derry and Strabane will be economically connected regionally, nationally and internationally. Creation of a virtual city with free wifi access points. 4) Derry and Strabane has developed a specialist cluster in one or all of its key priority sectors. Determining what the clusters will be and linking to align with skills development in local schools and colleges 10. Date of Next Workshop 27 th August 9.30am 4pm, Holywell Trust Building, Bishop Street.
6 Challenges and Weakness across Outcome Areas 1. Derry & Strabane will be recognised as an entrepreneurial and creative region Opportunities Challenges Track record of successful research & development collaborations including: o Intelligent Systems Research Centre o C-TRIC o Centre for Renewable Engineering Growing availability of creative space, notably at Ebrington, North West Science Park and North West Business Complex, Nerve Centre and NWRC Success of CultureTECH as NI s largest technology and creative industries event USP around combination of creative technologies with arts and culture Some incubation space now available, for example at NWRC (managed by NORIBIC), Ebrington (Eighty81), North West Business Complex, Magazine Nerve Centre and North Western Social Enterprise Hub Derry and Strabane council area to be branded as the most business friendly area of Ireland. Need to get the branding correct and be clear about the business environment here offers businesses that is different from other cities. Strong social enterprise culture Weak culture of entrepreneurialism Shortage of flexible accommodation for business start-ups Lack of coordinated action on business acceleration and incubation schemes specific to the needs of the district. Lack of activity to encourage entrepreneurial spirit within young people at 1 st, 2 nd and 3 rd Level education.
7 within communities and established large social enterprises operating in the region. Social Enterprise / Social Purchasing at centre of economic policy for the region through localised procurement Joined up approach through local authority (DCSDC), business development agencies (Enterprise North West, NORIBIC, Chamber of Commerce, Princes Trust, Young Enterprise, Women in Enterprise) and education bodies (NWRC and UoU)
8 2. Derry & Strabane will be business ready with a compelling investment proposition Opportunities Challenges Low cost base in Western European terms. Quality digital infrastructure in particular the highest-speed connection to North America Developing clusters such as Creative Industries. Support for existing businesses such as Business Opportunities Programme, Growing the Digital Economy providing wrap around support such as marketing, I.T., business/financial planning and skills development. R&D expertise and facilities, supported for example by UU Magee and Altnagelvin hospital Presence of UU Magee and NWRC, allied to proximity of LYIT and UU Coleraine More business focused NWRC Joined up approach through local authority (DCSDC), business development agencies (Enterprise North West, NORIBIC, Chamber of Commerce, Princes Trust, Young Enterprise, Women in Enterprise) and education bodies (NWRC and UoU) Need to reinvent itself as a business ready city. Availability of Grade A accommodation needs to be enhanced and developed with a supportive business eco-system in place Perception of smaller skills/workforce base Commercial business rates can be an inhibitor to business sustainability/growth. Lack of focussed marketing message to both local businesses and potential investors. Perceived lack of ease of travel to/from the district, especially from outside NI Insufficient supply of appropriate accommodation for the needs of FDI Negative image portrayed by the press and media of the region. E.g. benefits, unemployed, low skills etc.
9 3. Derry & Strabane will be economically connected regionally, nationally and internationally Opportunities Challenges Digital infrastructure in particular the high-speed connection to North America City of Derry Airport (Council owned but with limited current business friendly connectivity relative to NI s other two airports) Need to develop mainland Europe direct links to allow for business customers as well as the tourism market growth (e.g. good example is how Cork has grew its tourism market significantly since establishing a direct link with Milan) Londonderry Port the UK s most westerly port and accounting for 10% of NI s imports Gateway into Republic of Ireland (County Donegal and particularly Letterkenny) Linkages to the City of London and to Boston Relatively weak transport infrastructure (particularly roads and rail). Need for route development strategy for City of Derry Airport concentrating on developing key routes (Dublin, European) and sustaining London, Liverpool and Glasgow routes. Lack of current convenient air connections to business centres in GB, Dublin and elsewhere Accessibility and affordability for SMEs to get connected to the highest speed of broadband connection (Kelvin) Currently low levels of SMEs with direct access to Project Kelvin connection
10 4. Derry and Strabane has developed a specialist cluster in one/or all of its key priority sectors Opportunities Challenges Digital / Creative Industries C-TRIC / Stratified Medicine Agri-Food Centre for Renewable Energy ISRC Mechanical and Electrical Engineering Tourism Cluster within Walled City Tourism Cluster outside Walled City Lack of supply chain benefits being realised in key sectors Lack of supply chain benefits being realised for FDI businesses Lack of collaboration among stakeholders within the sector. Emerging signs of cluster but none yet developed. Competition from other UK/Ireland locations with established clusters. Culture of Silo Working and lack of collaboration a key inhibitor to cluster development.
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