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Social on Business
Business Start-up Provision for
Disadvantaged People |
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4.1 Current Mainstream Provision in SEEDA Region
Standard Business Start-Up Support (open to disadvantaged people and advantaged people) has been through a series of metamorphoses of the existing provision over the last decade although other provisions have been introduced and modified and there is also a clear regionalisation of the management of the services and tightening of the purse strings. In essence the present system centralises on the RDA (SEEDA), who fund the Business Links to act as referral and contract agencies for delivery through the Enterprise Agency network in the South East and the new Gateway and Enterprise Hubs.
Gateways in essence are established to focus on supporting people into and to continue in business and are found to target disadvantaged groups and groups at risk of social exclusion to move into economic activity through signposting existing support and the provision of workspace. Some have other remits depending on such as the provision of flexible workspace. In essence they are there to:-
- Increase the start up, survival and growth rates of local SME’s through establishing a network of people who can provide a complete range of services for entrepreneurs and young companies.
- Promote a culture of entrepreneurship and innovation
- Contribute to the regeneration of a localised area (or a localised type of market such as a “Rural” Gateway)
The Gateways provide a range of local business support which is intended to include a wide range of start–up ventures including social enterprise and not-for-profit organisations. They cover all business sectors: giving advice, creating networking opportunities and where they have the ability providing incubation office/work space, the Gateways in the South East will total 20 in number and tend to individually tailor themselves to local needs.
Enterprise Hubs are primarily work within the innovative and technology market place to provide similar support to the Gateways but are orientated towards assisting companies to expand rapidly with access to opportunities in relevant market places. There is a network of some 20 Enterprise Hubs in the South East.
Both of these initiatives have a valuable part to play in ongoing economic regeneration and development, and whilst they may have a commitment to disadvantaged people there are frequently difficulties in penetrating harder to reach groups.
Programmes through Jobcentre Plus* /Department for Work and Pensions**
The growth of these programmes stemmed from historic roots in the North*** where the black economy culture had been recognised as being a means of starting a sustainable business model. When something works why change it?
A concept of “Test Trading” was very successfully developed, with very valid and creditable results. However the results were most relevant to unemployed people with perhaps natural entrepreneurial skills, whom with a little support and nurturing, would achieve.
This mainstream provision currently under a new contract to InBiz as an established provider has moved to a single dual region contract that started July 2006 and covers both the SEEDA and LDA**** regions and is a commitment to support a maximum of just over 1,100 people per annum into business start-up/self-employment. Interestingly this contract specifically excludes people who are not on Jobseeker Allowance (JSA) e.g. those on incapacity benefit (IB), who to access the scheme would need to transfer benefits or seek other means of support, such as the Business Ability programme.
The practical operation to incorporate the long term unemployed and disadvantaged people in the mainstream “test trading” program showed fundamental flaws that impacted on the sustainable success rate of the programme. This has been further exacerbated with a subsequent drought of government funding to support this sector and the push to limit the total number of contracts within a given region. Key questions that need to be asked are:-
- Do the funding limitations and time constraints orientated towards output driven programmes have an adverse affect on encouraging socially disadvantaged people into sustainable entrepreneurship?
- With limited support in terms of time from advisors does the “Test Trading” model have a “laissez-faire” impact on such clients that actually negates the sustainability of the model with disadvantaged people?
* Henceforth referred to as JCP
** Henceforth referred to as DWP
*** This is not intended to imply the so called “Black Economy” was conceived in the North
**** LDA London Development Agency
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