The conclusions from the partners affect their regions in different ways. However together with the recommendations they form a framework which if applied across the Regions and nationally could bring real social and economic benefits. Taking each of the improvement ideas the relevance to the SEEDA Region or nationally is: -
1. Legal Frameworks. In the UK it is relatively easy to start and register a business or declare oneself to be self-employed and a sole trader. Some may say the regime is too lax. Compare for example the Italian model with around 12 steps to negotiate and a cost considerably greater than the straightforward registration of a company in the UK.
Conclusion Legal regimes need to be non-bureaucratic and inexpensive, but sufficiently robust to ensure that businesses requiring support can be identified.
2. Tax Regimes. A tax regime for the self-employed was introduced in Poland which we were told discriminated against self-employment hence numbers of people wanting to take this route had fallen. Compare this with the situation in the UK where over 40,000 poles have set up businesses it becomes evident the importance fair tax regimes play in encouraging people into enterprise
Conclusion Further moves to change the tax regime for SME’s should be resisted to avoid disincentivising people who want to start a business
3. Variances in Social attributes. A major difference in the social fabric of the Regions was identified. In both the South East of England and the Emilia Romagna Region of Italy there were areas where areas of deprivation existed alongside more affluent areas. Here there existed a problem managing the expectations of the clients, who expectations were sometimes influenced by the success of their neighbours.
In Andalucia the situation appears different, with large areas of deprivation. Here there is a demand for Social Enterprises such as bakers or fishmongers to provide some basic form of amenity.
Conclusion It was not felt this was a learning point for the SEEDA Region but could be elsewhere in the UK
4. Need for outcomes linked to training and employment. It became apparent that providing the intensive one to one support needed by people in the Pilot was expensive. It was therefore seen as important to increase the number of successful outcomes thus reducing unit costs. Seemingly many of the people in the Pilot, having received the support, gained sufficient confidence to find employment where previously they had failed. To have support tailored around personal development, in the case of the UK model using the business plan as the driver, delivering success measured by the numbers moving into economic activity is seen to be important.
Conclusion Support programs need to be focused equally between personal development and business support. Contrast the results in the UK between those achieved in the other Partner Regions where it seemed there was not the same emphasis in support on personal development.
5. Lack of Understanding of Business Advisers. Whilst the mechanisms for support for business start-up may vary across the Regions in Spain, Italy and the UK the way in which Business Advisers operate is fairly similar. Recognising the need for specialised training for Business Advisers to effectively engage with and support people from Disadvantaged Groups the Regional Government in Andalucia have introduced a specialised training program. A similar project sponsored by the LDA is underway in the London Region to identify the training needed. If the premise is accepted that support for these groups needs to have an equal focus of personal development any specialised training will need to reflect this aspect.
Conclusion Business Advisers participating in programs providing business start up support for disadvantaged groups need specialised skills and training
6. Engagement. This aspect was reflected in a number of the improvement ideas. This is recognised to be a major issue in the BSSP. The need for Community based co-ordinators was seen to be important by all partners. There may be a need to extend this type of support beyond the boundaries envisaged in the latest the BSSP proposals.
Conclusion The proposals in The BSSP for Community Business Advisers should be commended but the proposed geographical spread may need to be reassessed.
7. One to One support required over a period of months. This extra level of support has been recognised in the latest BSSP proposals. It was seen by all partners as a major inhibiting feature as current main stream support did not provide the level of free support in terms of frequency or permanency of adviser.
Conclusion The proposals in the BSSP recognising the need for greater assistance for disadvantaged groups are to be commended. However from the results of the pilots it can be seen that not only is the amount and period of support important but also the nature of the support itself.
8. Access to funding to start a Business. It was recognised that people from disadvantaged groups needed financial support to both conduct market research and to buy equipment, materials etc. to start the business.
Conclusion Again this issue is highlighted in the latest BSSP proposals, the amount and accessibility of help available is the key issue.
9. Fear of moving out of Benefits. This characteristic was experienced across all Partner Regions. In the UK we have ways to assist the transfer from Benefits to personal earnings. This is often a combination in the short term of personal earnings and in work benefits e.g. Tax Credits
Conclusion The need for Business Advisers to understand the regime and be able to handle this barrier positively is important.
10. Support for the Vision for greater inclusion. The need for greater positive encouragement, led by Government and other support organisations to support the vision to others that people from disadvantaged groups have the capacity to run businesses and make good employees.
Conclusion It was felt that to identify and publicise the financial benefit brought to national and Regional economies by businesses run by people emerging from disadvantaged groups would clearly demonstrate the benefits. Such a calculation should also include aspects such as the value of greater social cohesion, reduced crime etc.
11. Co-ordination Seen as crucial by all Project Partners. It is the intention of the BSSP to simplify business support and establish a co-ordinated approach. SEEDA has recently appointed a specialised Co-ordinator
Conclusion The UK has already seemingly gone a good way farther than in the other Partner Regions. However evidence from people entering into the Pilot indicated that from their viewpoint they currently saw the support as fragmented and difficult to understand. It is important that any provision is easily understood and meets the agreed needs of the diverse customer groups. Agreement for this should be reached by due consultation.
