evaluation of wnf projects

8/3/2019 Evaluation of WNF Projects

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FinalReport

EvaluationofWorking

NeighbourhoodsFund

Projects

BirminghamCityCouncilMarch2011

CONSULTINGINPLACE


2/106

FinalReport

EvaluationofWorking

NeighbourhoodsFund

Projects

BirminghamCityCouncil

March2011

CONSULTINGINPLACE

LONDON

GilmooraHouse

5761MortimerStreet

London

W1W8HS

T:02030085539

BRADFORD

BradfordDesignExchange

34PeckoverStreet

LittleGermany

BradfordBD15BD

T:01274743600

BIRMINGHAMOFFICE

WellingtonHouse

3134WaterlooStreet

Birmingham

B25TJ

T:01212625111

E:[email protected]

www.consultinginplace.com


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EvaluationofWorkingNeighbourhoodsFundProjects

CONSULTINGINPLACE

TABLEOFCONTENTS

ExecutiveSummary i1. Introduction 12. BackgroundtoprojectsandWNF 33. StimulatingDemand 54. RetailDevelopmentProgramme 245. FinditinBirmingham 376. Conclusionsandrecommendations 52

LISTOFFIGURES

Figure1.1:Beneficiarysurveysamplesizes 2Figure3.1:SourceofinformationonBDGandHighGrowth 12Figure3.2:PerformanceofStimulatingDemandprojectstrandagainsttargets 14Figure3.3:Additionalityfactorestimates 14Figure

3.4:

Turnover

metrics

for

BDG

beneficiaries

15

Figure3.5:NetadditionalGVA 16Figure3.6:NetadditionalGVAaccountingforpersistenceeffects 16Figure3.7:TurnovermetricsforHighGrowthbeneficiaries 17Figure3.8:NetadditionalGVA 17Figure3.9:NetadditionalGVAaccountingforpersistenceeffects 17Figure3.10:JobscreatedandsafeguardedBDG 18Figure3.11:JobscreatedandsafeguardedHighGrowth 18Figure3.12:SectorofBDGbeneficiaries 19Figure3.13:SectorofHighGrowthbeneficiaries 19Figure3.14:MainimpactsofBDGandHighGrowthsupport 20Figure3.15:ImpactofBDGandHighGrowthonreducingeffectsofrecession 20Figure

3.16:

Future

uptake

of

business

support

22

Figure4.1:HowRDPbeneficiariesheardabouttheproject 29Figure4.2:Originaltargetsandactualoutputs(toendofFeb2011) 30Figure4.3:Additionalityfactorestimates 30Figure4.4:TurnovermetricsforRDPbeneficiaries 31Figure4.5:NetadditionalGVA 32Figure4.6:NetadditionalGVAaccountingforpersistenceeffects 32Figure4.7:Jobssafeguardedandcreated 33Figure4.8:MainimpactofsupportonRDPbeneficiaries 33


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CONSULTINGINPLACE

Figure4.9:ImpactofRDPonreducingeffectsofrecession 34Figure4.10:WhatwouldhavehappenedtothebusinesswithouttheRDP 34Figure5.1:RegistrationsontheFiiBsite 39Figure5.2:HowrespondentswereintroducedtoFiiB 41Figure5.3:Eventsinterestinganduseful 43Figure5.4:SalesgeneratedthroughFiiB 46Figure5.5:Possiblesourcesoffuturefunding 49

LISTOFAPPENDICES

AppendixI:Projectcasestudies

AppendixII:Stakeholdersconsulted

AppendixIII:Fullbeneficiarysurveyresults


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CONSULTINGINPLACE i

ExecutiveSummary

1.1 Introductionandmethodology

In2010,ConsultingInplacewascommissionedbyBirminghamCityCouncilto

evaluatethreebusinesssupportprojectsfundedbytheWorkingNeighbourhoods

Fund(WNF)anddeliveredbytheCouncil.Thethreeprojectswere:

StimulatingDemandaprojectconsistingoffourprojectstrandsallaimedatbusinessesinBirmingham:agrantsprogramme;theprovisionofengagement,

diagnosticandbusinessplanningsupport;ahighgrowthbusinessdevelopment

programme;andaprojectdesignedtoincreasetheuseofsocialmediaby

businesses

RetailDevelopmentProgrammeaprojectofferingfinancialassistancetonewandexistingindependentretailerslookingtosetuporexpandinBirmingham,or

relocatetothecity

FinditinBirminghamawebsitetoprovideasingleportalofinformationonnewsand

events,

business

support

services

and

business

opportunities

for

Birmingham

basedcompanies

TheevaluationtookplacebetweenSeptember2010andMarch2011andinvolved

thefollowingactivities:

Surveys:wespoketo103beneficiariesfromStimulatingDemand,52fromtheRDPand621fromFinditinBirmingham,usingacombinationoftelephoneinterviews

andesurveys.Wealsosurveyedasampleofnonbeneficiariesinordertoprovidea

controlgroupofbusinessesnotreceivingsupport

Stakeholderinterviews:interviewswithprojectmanagers,deliverypartnersandother

stakeholders

involved

in

the

projects

Documentanddatareview:areviewofprojectdocumentation,includingproposalforms,managementreportsandprojectoutputdata,aswellasreviewingthetools

andmaterialsusedinthemarketinganddelivery

Casestudies:fourindepthcasestudiesofbusinessesthatbenefittedfromeachoftheprojects.ThesecanbefoundinAppendixI.

1.2 Keyfindings

1.2.1 StimulatingDemand

TheStimulatingDemandprojectconsistedoffourdifferentprojectstrands:Business

DevelopmentGrants(BDG)(offeringfinancialassistancetoBirminghambusinesses);

Engagement,diagnosticandbusinessplanningsupport(designedtounderpinthe

BDGprojectstrand);HighGrowth(mentoringandbusinessdevelopmentsupportfor

potentialhighgrowthbusinesses);andWeb2.0Presence(promotingtheuseof

socialmediatoolsbybusinesses).Theevaluationfocussedonthefirstthreeproject

strands.


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CONSULTINGINPLACE ii

TheStimulatingDemandprojectwasbuiltontriedandtestedmodelsofsupport,

whichcontributedtoitssuccessfuldelivery.Theprojectwaswellmanaged,which

includedregularcommunicationwiththedeliverypartnerswhowereinvolvedinall

aspectsoftheproject.Theprojectofferedahighqualityofservice,withthequality

ofthespeakersandtheknowledgeofmentorsinHighGrowthpraisedasbeing

particularlynoteworthy.

TheBDGprojectstrandexceededitstargetsforthenumberofbusinesssupported.

TheHighGrowthprojectstrandachieveditstargetofsupporting90businesses,with

manyofthemreceivinginexcessofthetargeted15hoursofsupport,withsome

receiving5060hoursoverthelifetimeoftheproject.

Theevidencecollectedthroughourbeneficiarysurveyallowsustocalculatethe

impactoftheBDGandHighGrowthintermsofadditionalGVAandemployment.

Theheadlinefiguresforthisare:

BDG Accountingforpersistenceeffects,i.e.thelongtermimpactsofthesupport,totaladditional

GVA

of

5.15m

Forevery1ofBDGspend,immediatebenefitsof2.52weregenerated.Forevery1ofBDGspend,11.64ofadditionalbenefitsweregenerated,including

persistenceeffects.

Almost170jobsweresafeguardedandover160jobscreatedasaresultofthesupportreceivedfromtheBDGproject

HighGrowth Accountingforpersistenceeffects,totaladditionalGVAofaround2.25m Includingthesepersistenceeffects,forevery1ofHighGrowthspend,4.57ofadditional

benefits

were

generated

Almost60jobsweresafeguardedand75jobscreatedasaresultofthesupportfromtheHighGrowthproject

AnumberofotherimpactsoftheStimulatingDemandprojectwereevidenced

throughourresearch.Theseincludedimprovedbusinessstrategies,safeguarding

businessesagainsttherecession,theacceleratedgrowthofbusinessesandthe

increasedlikelihoodoffutureuptakeofbusinesssupport.

1.2.2 RetailDevelopmentProgramme

Theaim

of

the

Retail

Development

Programme

(RDP)

was

to

support

existing

independentretailersandattractnewindependentbrandstoBirmingham.The

projectprovidedfinancialassistancethroughgrantsofbetween2,500and10,000

foravarietyofpurposes,frommarketingtoshopfitting.

Theevidencefromourevaluationshowsthattheprojectmetarealneedfor

independentretailersinBirmingham,asretailwasasectorthatwasrarelytargeted

forsupport.Thedemandfortheprojectwasevidencedthroughthehighnumberof

enquiriesandapplicationsreceived.Oneofthekeyaspectsofthedeliverymodel


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CONSULTINGINPLACE iii

wasthedecentralisationofdelivery,withpromotionoftheprojectandtheprovision

ofsupportandguidancebeingdevolvedtolocallevels.Theprojectofficerswere

commendedbybeneficiariesfortheirhelpfulnessandsupport,particularlytheir

visitstothebusinesses.Theprojectasawholewasrunwell;itshowedflexibility

whentheapplicationprocesswassimplifiedinresponsetofeedbackfrom

businesses,andtheappraisalprocesswasnotedbystakeholdersasbeinghighly

efficient.

TheRDPexceededitstargetsforthenumberofbusinessessupported.Theproject

almostmetitstargetsforthenumberofnewbusinesscreatedandprivatesector

moneyleveragedin,onlyfallingslightlyshort.

Theevidencecollectedthroughourbeneficiarysurveyallowsustocalculatethe

impactoftheRDPintermsofadditionalGVAandemployment.Theheadlinefigures

forthisare:

Accountingforpersistenceeffects,i.e.thelongtermimpactsofthesupport,totaladditionalGVAof1.95m

Includingthesepersistenceeffects,forevery1ofRDPspend,2.30ofadditionalbenefitsweregenerated

Over310jobsweresafeguardedandalmost230jobscreatedasaresultofthesupportfromtheRDP

OtherimpactsoftheRDPincludedincreasedaccesstonewmarkets,improved

confidenceintheCouncilamongretailbusinesses,safeguardingagainstthe

recession,theprovisionofavaluablesourceoffinanceandtheregenerationoflocal

towncentres.

1.2.3 FinditinBirmingham

ThisprojectinvolvedthelaunchoftheFinditinBirmingham(FiiB)websitein2010

toprovideasingleportalofinformationonnewsandevents,businesssupport

servicesandbusinessopportunitiesforBirminghambasedcompanies.Theproject

alsoinvolvedtheprovisionofanumberofbusinessengagementevents,which

includednetworkingbreakfastmeetings,workshopsandthemedevents

Akeytothesuccessofthisprojectwasthemarketingandpromotionattheinitial

stagesandthroughouttheprojectslifetime.Astheinitiativewasbuiltonanexisting

model,FinditinSandwell,thiswasthemainsourcefromwhichbeneficiariesheard

aboutFiiB.Anumberofpromotionalactivitieswereundertaken,thesuccessof

whichisevidencedbythefactthatFiiBattractedmorethandoubleitsoriginaltarget

ofregistered

members.

However,

akey

issue

faced

by

the

project

was

the

engagementofCouncildepartmentsinusingthesitetoposttenderopportunities;

despiteconcertedeffortsfromtheprojectteamtopromoteit,thetakeupofthe

initiativebytheCouncilitselfwasnotashighasanticipated.Theprojectwaswell

managed,withthepartnershipbetweentheCouncilanddeliveryagentbeing

particularlyeffective,andbothpartiesclearontheirrolesandresponsibilities.


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CONSULTINGINPLACE iv

Theevidencecollectedfrombeneficiariesandstakeholderssuggestsanumberof

impactsthatthisprojecthashad.Theseimpactsareasfollows(notethatGVA

calculationswerenotjudgedpossiblewiththisproject):

IncreasedsalesandleadgenerationanumberofbusinessesreportedbeingsuccessfulinleadgenerationorsecuringsalesthroughFiiB.Oursurveyindicated

that1.2m

of

work

had

been

won

through

FiiB

Improvedlocalsupplychainaswellasimprovingthesupplychainthroughanincreasednumberofpublicandprivatesectoropportunitiesbeingavailabletolocal

businesses,FiiBalsoimprovedsupplychainlinksthroughbusinessesusingthesiteto

findlocalsuppliers

Increasednetworkingopportunitiesthiswasthemainimpactoftheprojectmostreportedbybeneficiaries,whofeltthattheeventsinparticularprovidedavaluable

sourceofnetworkingopportunities

Improvedproduct/marketknowledgetheeventswerealsosuccessfulinimprovingbeneficiariesknowledgeoftheproductstheyofferedandthemarkets

theyworkedin,aswellasimprovingknowledgeofpotentialfutureopportunities

Anotherpotentialimpactidentifiedwasgreaterefficiencyandvalueformoneyfor

theCouncil,asawiderrangeofbusinessestenderingforworkwouldleadtomore

competitivequotes;thiswasconsideredtobemoreofalongtermimpact,andonly

iftheuseofthesitebyCouncilstaffincreased.

1.3 Conclusionsandrecommendations

Despitethedifferingnatureofthedeliveryofthethreeprojects,onecommon

themeamongthemisthesuccessoftheirdeliveryandtheimpactthattheyhave

beenshowntohavehadonbusinessesinBirmingham.Themainimpactsare

realisedintheadditionalGVAandemploymentgeneratedasaresultofthesupport

received.Lookingattheprojectsasawhole,wecalculatethat:

Includingpersistenceeffects,i.e.thelongtermimpactsofsupport,StimulatingDemandandtheRDPgeneratedalmost10madditionalGVA

ThesupportfromStimulatingDemandandtheRDPledtoapproximately540jobsbeingsafeguardedandover465jobscreated

Inadditiontoconclusionsrelevanttotheindividualprojects,anumberofcommon

issuesbetweenthethreeprojectsalsoarosefromtheresearchundertaken.These

aresummarisedinthediagramoverleaf:


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CONSULTINGINPLACE v

Commonissuesbetweentheprojects

Recommendations

WeunderstandthattheCouncilisexploringwaysinwhichtheseorverysimilar

projectsmightbecontinuedinfuture.Theimpactevidencefromthisevaluation

suggeststhattheyarejustifiedindoingso,giventhesuccessthattheseprojects

havehad.Thefollowingrecommendationsarethereforedesignedtohelpimprove

theeffectivenessoftheseandsimilarprojectsthatmaybedeliveredinfuture.

RecommendationOne:Themarketingofthesetypesofprojectstobusinesseshasbeenbestachievedthroughnetworks,informalcontactsandwordofmouth.Large

scalemarketingcampaignsarenotnecessarilyrequired.

RecommendationTwo:TheCouncilshouldusethereturnoninvestmentfiguresandjobcreationfiguresfromthisevaluationbothtomarketitsfuturebusinesssupport

projectsandprogrammes,andalsotohighlighttobusinessesthepotentialbenefits

ofprofessionalbusinesssupportavailablethroughtheopenmarket.

RecommendationThree:TheCouncilshouldcontinuetopursuetheirpolicyofbuildingbusinesssupportinterventionsonmodelsthathavealreadyproved

effectiveinpractice,asFinditinBirminghamwasbuiltonFinditinSandwell,

BusinessDevelopmentGrantswasbuiltonBusinessSupportforCreativeIndustries

andHighGrowthwasbuiltonEnterpriseCity.

RecommendationFour:WiththeLocalEnterprisePartnerships(LEPs)nowformed,theCouncilshouldconsiderextendingthedeliveryoftheseprojectsacrosstheLEP;

theeconomies

of

scale

achieved

through

doing

this

may

help

to

further

improve

the

costeffectivenessoftheseprojects.

RecommendationFive:Aswithanybusinesssupportprogrammepartorfullyfundedbythetaxpayer,theultimateaimshouldbetoprovethevalueofbusiness

supportandencouragethesupportedbusinessestoaccessfuturesupportfromthe

openmarket.

Common

issues

Successin

engagingwith

beneficiaries

Goodlevels

of

partnership

working

Useof

specialist

resources

Buildingon

existing

modelsof

delivery

Longterm

impactsof

support

Responding

to

beneficiaries

needs

Commitment

ofproject

teamsand

delivery

partners

Linkages

between

project

strands

Common

issues

Successin

engagingwith

beneficiaries

Goodlevels

of

partnership

working

Useof

specialist

resources

Buildingon

existing

modelsof

delivery

Longterm

impactsof

support

Responding

to

beneficiaries

needs

Commitment

ofproject

teamsand

delivery

partners

Linkages

between

project

strands


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CONSULTINGINPLACE vi

RecommendationSix:ForFinditinBirminghamtotrulybeeffective,allCouncildepartmentsneedtoadoptacommonapproachtousingitasaprocurement

channel.

RecommendationSeven:OnceFinditinBirminghamisestablishedasthemainportalforCouncilprocurement,theCouncilshouldsecurethelongterm

sustainabilityoftheproject. Thereisnointrinsicreasonwhytheprojectmustbe

deliveredby

the

Council

in

the

long

term.

Once

it

has

an

established

reputation

as

beingacentralrepositoryforprocurementopportunities,businessesshouldbe

willingtocontributetothecostsofitsdelivery.


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CONSULTINGINPLACE 1

1. Introduction

1.1 Introductiontoevaluation

In2010,ConsultingInplacewascommissionedbyBirminghamCityCouncilto

evaluatethreebusinesssupportprojectsfundedbytheWorkingNeighbourhoods

Fund(WNF)andbeingdeliveredbytheCouncil.ThethreeprojectswereStimulating

DemandforMainstreamBusinessSupport(hereafterknownasStimulating

Demand);theRetailDevelopmentProgramme(RDP);andFinditinBirmingham.

Thescopeoftheevaluationwastoassesstheeffectivenessofthethreeprojectsin

thefollowingareas:

Strategiccontext Initialconceptandmodel Deliveryarrangements Projectandfinancialmanagement Partnershiparrangements Projectlinkages Marketingandprofile Netimpactandvalueformoneyindicators Lessonslearntandrecommendationsforthefuture

TheevaluationwascarriedoutfromSeptember2010toMarch2011.Inadditionto

thisfinalevaluationreport,wehavealsoproducedfourindepthcasestudiesof

businessesthathavebenefittedfromeachoftheprojects.Thesereportscanbe

foundinAppendixI.

1.2 Methodology

Wedevelopedanoverarchingmethodologyforthisevaluation,whilerecognisingthatvariationsinthemethodologywouldoccurdependentonthenatureofthe

individualprojects.Duetothenatureofthisevaluation,eachprojectwasassigned

anevaluationleadfromtheevaluationteam,withtheprojectdirectorofthe

evaluationoverseeingtheapproachandapplicationofallthree.

Theactivitiesundertakenforthisevaluationaredescribedindetailbelow:

Reviewofprojectdocumentationandmaterialsusedwereviewedprojectproposalforms,managementreports,marketingmaterialandplans,promotional

materials,applicationsforms(forStimulatingDemandandRDP)andanyother

projectdocumentationproduced.

Stakeholderinterviewswefirstofallconductedinterviewswiththethreeprojectmanagersoftheindividualprojects.Wealsoundertookstakeholderinterviewswith

othermembersoftheprojectteams,membersofstakeholdergroupsanddelivery

partners.ForFinditinBirminghamwealsoconductedinterviewswithusersofthe

projectwithintheCouncil.Afulllistofstakeholdersconsultedcanbefoundin

AppendixII.

Consultationswithbeneficiariesandnonbeneficiariesweusedamixedmethodapproachtoconductingsurveyswithbeneficiariesoftheprojects.Themainmethod


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CONSULTINGINPLACE 2

usedwastelephone,conductedbyourmarketresearchpartnersResearchand

MarketingGroup.Othermethodsusedincludedanesurveyandemailsurveys.We

alsocarriedoutasurveyofnonbeneficiariesinordertoprovideacontrolgroupof

businessesthatdidnotreceivesupport.Moredetailsonthesurveysamplesizes

achievedandmethodsusedcanbefoundinFigure1.1.

Figure1.1:

Beneficiary

survey

sample

sizes

Project Numberof

beneficiaries

consulted

Confidence

intervalat

95%level*

Methodofconsultationused

StimulatingDemand:

Business

DevelopmentGrants

49 +/ 9.6% Allsurveyswerecarriedoutby

telephoneinNov/Dec2010

HighGrowth

54 +/ 8.5% 44surveyswerecarriedoutby

telephoneinNov/Dec2010.The

remaining10wereselfcompleted

byemailthroughaboostersurvey

inFeb2011

RetailDevelopment

Programme

52 +/ 9.7% Allsurveyswerecarriedoutby


Finditin

Birmingham

621 +/ 3.9% 551surveyswerecarriedout

throughanesurveyinNov/Dec

2010.70surveyswerecarriedout

bytelephoneinNov/Dec2010

duringtheotherbeneficiary

surveysconductedforthis

evaluation

Nonbeneficiaries53 N/A Allsurveyswerecarriedoutby


*Note:Thismeanshowconfidentwecanbethattheanswergivenbythesamplerepresentsthetrueanswerof

thepopulation,

i.e.

for

any

given

survey

answer

we

can

be

95%

confident

that

the

whole

population

would

say

the

same,plusorminusthevariancefigureshown.

ThefullanalysisofthesurveyresultscanbefoundinAppendixIII.

Casestudiesweundertookfourcasestudiesaspartofthisevaluation,oneforeachofthefollowingprojects:BusinessDevelopmentGrantsandHighGrowth(both

partofStimulatingDemand),RetailDevelopmentProgrammeandFinditin

Birmingham.Thecasestudiesinvolvedamemberoftheevaluationteamvisitingthe

casestudybusinessattheirpremises,andthecasestudyreportsfocusonthe

supportreceivedthroughtheprojectsandtheimpactithadonthebusinesses.

Analysisofsurveydataandprojectoutputdatawecarriedoutafullanalysisofthe

survey

data

in

order

to

form

the

basis

of

our

findings

on

the

impact

that

the

projectshavehad.Thisincludesafullimpactandvalueformoneyassessment.We

alsoanalysedprojectoutputdataforallthreeprojects.


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CONSULTINGINPLACE 3

2. BackgroundtoprojectsandWNF

2.1 Overviewofthreeprojects

Presentedbelowarebriefdetailsofthethreeprojectswhichformthefocusofthis

evaluation.Moredetailedexplanationsoftheaims,objectivesanddeliveryofthe

projectsareprovidedinsections3,4and5.

StimulatingDemandaprojectprovidingaccesstograntsandbusinessadviceforSMEsinBirmingham.Thisprojectconsistedoffourstrands,includingBusiness

DevelopmentGrants(BDG),offeringsupportof2,500tohelpbusinessesidentify

newmarketopportunitiesforproductsorservices(feasibilitygrant)andupto

6,000tohelpbusinessessetup,consolidateorexpand(spacegrant).Underpinning

thisstrandwasastrandthatinvolvedatwodaypackageofsupportfromBusiness

Linkprovidingsomeengagementandfilteringsupport.Inadditiontothefinancial

assistanceandadvicetherewasalsoaHighGrowthelementtotheproject,where

businessescouldaccessmentoringandsupporttohelpdeveloptheirbusiness.The

fourthstrandwasasmallpieceofworkwithDigitalBirmingham,aDigital

ChampionpromotingtheuseofITandsocialmediainbusinesses.

RetailDevelopmentProgramme(RDP)aprojectofferingfinancialassistancetonewandexistingindependentretailerslookingtosetuporexpandinBirmingham,

orrelocateintothecity.Thegrantsawarded,ofvaluesbetween2,500and

10,000,couldbeusedforavarietyofpurposes,suchasmarketing,fascia

improvements,installationandequipment.

FinditinBirminghamaprojectinvolvingthelaunchofawebsitein2010toprovideasingleportalofinformationonnewsandevents,businesssupportservices

andbusinessopportunitiesforBirminghambasedcompanies.Theprojectworked

towardsboostingthelocaleconomybyhelpingbusinessestodevelopskills,access

supportandaccessthelatestopportunities,aswellasprovidingnetworking

opportunitiesthrough

the

hosting

of

business

events.

2.2 WNFprogrammeinBirmingham

TheWorkingNeighbourhoodsFund(WNF)ispartoftheAreaBasedGrantallocation

madefromcentralgovernmentandwasroutedthroughtheLocalStrategic

Partnership,BeBirmingham,withBirminghamCityCouncilactingastheaccountable

body.Intotal114millionwasoriginallyallocatedtothecityfrom2008to2011,

whichinturnwasallocatedtoanumberofthemedactivityareas,deliveredthrough

strategicthemedboards.

The

largest

single

allocation

made

was

to

the

Birmingham

Economic

Development

Partnership(BEDP);thisallocationwasoriginally61million,howeveritwasthen

reducedtoaround45millionduetobudgetcuts.Themajorityofthismoneywas

managedthroughtheEmploymentStrategyGroup(ESG)andwasaimedattackling

worklessnessinthecity.TheremainderwasmanagedthroughtheBusiness

EnterpriseInnovationandInwardInvestmentGroup(BEII),andwasaimedat

increasingthecityseconomicoutputandproductivity,aswellasmitigatingagainst

theimpactsoftherecessiononthebusinesscommunity.


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CONSULTINGINPLACE 4

Thethreeprojectsthatarethesubjectofthisevaluationweredeliveredunderthe

BEIIstream.TheRetailDevelopmentProgrammeandFinditinBirminghamformed

partofthe5.3millionrecessionpackage,whichwasdevelopedtohelpbusinesses

andresidentscopewiththeimpactoftherecession,particularlybyimproving

businessesaccesstofinancethroughtheprovisionofloans.StimulatingDemand

formedpartofthe5.7millionOutcome2package;thispackagewasaimedat

addressingOutcome

2of

the

Local

Area

Agreement

(LAA),

namely

to

increase

the

cityseconomicoutputandproductivitythroughexpansionofkeygrowthsectors,

greaterenterpriseandinnovationinhighvalueaddedactivity.

2.3 Backgroundcontext

Theenvironmentinwhichthesethreeprojectshavebeendeliveredhaschanged

significantlyovertheirlifetime. Whentheprojectswerebeingdevelopedthe

countrywasexperiencingthedeepestrecessionsincetheSecondWorldWar.

Althoughthenationasawholesufferedfromthenegativeimpactsoftherecession,

BirminghamwasoneoftheworstaffectedareasintheUK.Oneofthemainreasons

forestablishingthesethreeprojectswastohelpbusinessessurvivetheimpactsof

therecession.

Linked

to

this

was

the

need

to

ensure

that

Birmingham

City

Council

anditspartnersfosteredacultureofenterpriseandinnovationthatsupported

businessgrowth,inparticularinhightechnologyandhighaddedvaluesectors.1Asa

result,the31minvestment,enterpriseandemploymentpackageofsupportwas

developed,aimedatbothstartupandexistingSMEs,andjointlyfundedby

BirminghamCityCouncil,WNFandtheEuropeanRegionalDevelopmentFund

(ERDF).

AlthoughtheUKofficiallyemergedfromtherecessioninlate2009,thechallengesof

theeconomicdownturnremainforbusinessesandcommunitiesalike.The

continuedeffectsoftherecessionarelikelytohavenegativelyimpactedonthe

confidenceandabilityofbusinessestosurviveandgrow,particularlyinthecaseof

small

and

medium

sized

enterprises.

This

makes

any

support

received,

particularly

in

theformoffinancialassistance,greatlyappreciatedbybusinesses.

SincetheformationofthecoalitiongovernmentinMay2010,thepolicyand

deliverylandscapehaschangeddramatically.Twoofthemainprovidersofbusiness

supportinBirminghamandtheWestMidlandsaresoontobeabolished,withthe

imminentclosureofBusinessLinkandAdvantageWestMidlands.Responsibilities

fortheprovisionoflocalbusinesssupportareduetoliewithindividuallocal

authoritiesandthenewlyformedLocalEnterprisePartnerships(LEPs).Thefunding

forpublicsectorledbusinesssupportwillbeprimarilycentredaroundlocalplayers

andtheRegionalGrowthFund,whichmakesfundingavailablebutonacompetitive

basis.Withthecityslowlyrecoveringfromthedownturn,asignificantreductionin

localgovernmentspending,andagovernmentwithdrawalfromlargeareasof

businesssupport,itismoreimportantthanevertoprovethelevelsofneedand

potentialimpactsofanyproposedbusinesssupportsolutions.WiththeWNF

fundingcomingtoanendinMarch2011,thesechangestobusinesssupportfunding

allholdimportantconsequencesforunderstandinghowthefutureprovisionof

projectssuchastheoneswehaveevaluatedwillbefundedandhowtheywillalign

withnewstrategiesinrelationtobusinesssupport.

1BirminghamLocalAreaAgreement20082011:WorkingtogetherforabetterBirmingham,April2009,BeBirmingham


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CONSULTINGINPLACE 5

3. StimulatingDemand

3.1 Backgroundtoproject

TheStimulatingDemandprojectwasmadeupoffourseparateprojectstrands.

Thesestrandswere:

BusinessDevelopmentGrants(BDG)thisprojectstrandofferedtwogrants,onecalledthefeasibilitygrantandtheothercalledthespacegrant.Thefeasibilitygrant,

whichprovidedassistanceof2,500,wasdesignedforidentifyingnewmarket

opportunitiesforproductandservicesfromneworexistingbusinesses.Thespace

grant,whichprovidedassistanceofupto6,000,wasdesignedtohelpnewor

existingbusinessessetup,consolidateorexpand.

Engagement,diagnosticandbusinessplanningsupportthisprojectstrandwhichwasdeliveredbyBusinessLinkWestMidlands(BLWM)wasdesignedtocomplement

theBDGstrandthroughtheofferofuptotwodaysfreesupporttoassistBDG

applicantsintheirapplications,andalsofreediagnosticsupportforbusinesses

whereappropriate.

HighGrowthprogrammethisstrandoftheprojectofferedfreementoringandbusinessdevelopmentthroughacombinationofworkshops,peergroupsessions

andonetoonementoringforbusinessesinBirminghamidentifiedashavinghigh

growthpotential.

Web2.0Presencethisprojectstrand,deliveredbyDigitalBirmingham,involvedtwoelements;thefirst,theprovisionofanumberofseminarsandworkshopsfor

businessesandthesecondtheappointmentofaDigitalChampiontoprovideone

toonesupporttobusinesses,bothwiththeaimofpromotingtheuseofsocial

mediatoolsinbusinesses.

3.1.1 Aimsand

objectives

TheoverallaimoftheStimulatingDemandpackageofbusinesssupportwasto

stimulateenterprise,developnewmarketopportunities,encourageinvestment,

fostersurvival/consolidation,createnewjobs,safeguardexistingjobsandfacilitate

growthwithinbusinessesinBirmingham.

ThespecificobjectivesoftheStimulatingDemandprojectwereto:

ImprovetheperformanceofbusinessesinBirminghamthroughtheprovisionofgrantfunding

Createnewbusinesses Safeguardjobsandcreatenewjobs ProvidementoringsupportforhighgrowthbusinesseswithinAWMspriority

clusters

Developinterestinusingtheinternetamongstawiderangeofsmallandmediumenterprises


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CONSULTINGINPLACE 6

ThewholepackageofsupportaimedtocontributetothefollowingWNFoutcomes

toincreasethecityseconomicoutputandproductivity;toprovideenterprise

supportforgrowingbusinesses;tocreatenewenterprisesandforthemtobe

tradingforatleastoneyear;toincreaseselfemployment;andtoimproveaccessto

finance.

3.1.2 Deliverymodel

Astwoofthefourprojectstrandsarecloselylinked(BDGandengagement,

diagnosticandbusinessplanningsupport)wewilllinkthesetwostrandstogether

whentalkingaboutthedeliverymodel,whereastheothertwostrandswillbe

discussedonastandalonebasis.

BDGandBusinessLinksupport

ThesetwoprojectstrandsweredeliveredbyapartnershipoftheBirminghamCity

CouncilsBusinessDevelopmentandInnovationteamandBusinessLinkWest

Midlands.Theprovisionoftargetedengagementactivities,diagnosticandbusiness

planning

support

by

Business

Link

was

designed

to

underpin

the

BDG

project

strand.

Inparticular,theservicesthatBusinessLinkofferedwere:

Afocussedengagementcampaigntorecruitbusinessesintothebusinesssupportinfrastructure,particularlythosethatwerepreviouslynotengaged,referringthem

toappropriatebusinesssupportservicesincludingtheBDGproject

Uptotwodaysofadditionalbusinessadvisersupporttoenablebusinessestodevelopappropriatebusinessandactionplansthatsupportedtheirgrowth

potential,andtosupportthemwiththeirBDGapplication

TheBDGgrantsbothofferedassistanceequivalentto75%ofeligibleexpenditure

costsfornewbusinesses(tradingforsixmonthsorless)ortheequivalentof50%of

eligibleexpenditurecostsforexistingbusinesses(tradingformorethansixmonths).Thefeasibilitygrantwasdesignedtoidentifynewmarketopportunitiesforproducts

andservicesthroughactivitiesincludingtheassessmentofthemarketforanew

productorservice,designandproductionofaportfolioortheundertakingofa

promotionalcampaign.Thespacegrantwasdesignedtobespentoncostsincluding

rentsandratesforthefirst12months(forstartupbusinessesonly),physical

relocationtonewpremises,telephone,fax,broadbandconnectionsandcabling,

installationofheatingandelectric,businesssignage,cardsandletterheads,

professionalfeesandcapitalequipment(maximumof1,000).

TheBDGprojectstrandwasdesignedtostartactivityinSeptember2009,finishingin

March2011;however,slightdelaysmeantthattheprojectdidnotstartuntil

November2009.

The

project

originally

aimed

to

support

247

businesses,

with

180

businessesthroughthefeasibilitygrantand67throughthespacegrant,howeverit

wasclearthatsomebusinesseswouldtakeupbothgrantsandthereforethetotal

numberofindividualbusinesssupportedwouldbelowerthan247.Itwasalsothe

aimthat50newbusinessesand50jobswouldbecreated.However,theBDG

projectstrandlost150,000fromitsbudgetwhencutsweremadetotheWNF

programme.Thisreducedthetargetoutputsforthisstrandto62businesses

supportedthroughfeasibilitygrantsand57businessessupportedthroughspace


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CONSULTINGINPLACE 7

grants.Thetargetsforjobcreationandbusinesscreationoutputsremainedthe

same.

HighGrowthprogramme

TheHighGrowthprogrammewasbasedonthemodelfortheEnterpriseCityHigh

Growthprogramme,

an

ERDF

funded

programme

that

was

delivered

through

apartnershipofBirminghamCityCouncil,DeloitteLLP(hereaftercalledDeloitte)and

theAcademyforChiefExecutives.TheEnterpriseCityprogrammetookplacein2008

and2009,andanapplicationwassubmittedbytheCouncilforERDFfundingto

continuethedeliveryofthisprogramme.However,whileawaitingapprovalforthe

ERDFfunding,theHighGrowthprojectstrandwasdeveloped,securingWNF

funding.Acompetitivetenderprocesswasundertakentosecurethedeliveryagent

fortheHighGrowthprojectstrand,withDeloitteandtheAcademyforChief

Executivesbeingthesuccessfulbidders.

ThefeaturesoftheHighGrowthprojectstrandincluded:

High

growth

engagement

events

held

around

Birmingham

to

encourage

businesses

toembarkuponlongterm,transformationalchangewithintheirbusiness

Businessesandindividualsreceivedsubsidisedcoachingandmentoring,tailoredpeergrouplearning,specialistbusinesssupport,bespokecoachingand

opportunitiestolearnfromandnetworkwithbusinessleaders

Theprogrammewasavailabletostartupandexistingbusinessestosupportidentifiedgrowthenhancingpotential.

Theprojectaimedtosupport90businessesoveritslifetime,providingeachwitha

minimumof15hourssupport,andinparticularlookedtoextendthemainstream

modelofsupporttodisadvantagedcommunitiesandtotargetethnicminority

ownedor

managed

businesses,

which

demonstrated

growth

potential.

Web2.0Presence

ThisprojectstrandwasdeliveredbyDigitalBirminghaminpartnershipwith

BirminghamCityUniversity.Thereweretwomainfeaturesofthisprojectstrand:

Theprovisionofaseriesofseminarsandnetworkspromotingtheuseofsocialmediatoolsinbusiness.Theseeventswereaimedatsmallbusinessesfromavariety

ofsectorsandincludedguestspeakers,promotionalvideosandopportunitiesto

discussanyqueriesovertheuseofsocialmedia.TheseeventswereledbyDigital

Birmingham.

TheappointmentofaDigitalChampionfromBirminghamCityUniversitytoproduceabusinesscaseforthefuturegrowthindigitalservicesandcreateawebpresence

tofacilitateshowcasingandvirtualnetworking.Thiswebsitewasdesignedto

identifybestpracticeandtolinkbusinessestogether.ThisDigitalChampionalso

aimedtoprovideonetoonesupportto16businessesinBirmingham,providingup

to5daysofsupportinimprovingthecapabilityandcapacityofbusinessestouse

socialmediatools.


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CONSULTINGINPLACE 8

3.2 Findings

ThisevaluationconcentratesontheBDG,BusinessLinkandHighGrowthproject

strandsoftheStimulatingDemandproject,astheWeb2.0presenceprojectstrand

wasdeliveredbyDigitalBirmingham.Thereforethefindingsandimpactsfocuson

thefirstthreeprojectstrands,althoughanyfindingsrelatingtoWeb2.0Presence

arealso

reported

where

relevant.

3.2.1 Rationalefortheproject

TheStimulatingDemandprojectwasdesignedtoprovideacomprehensivepackage

ofsupportforthedevelopment,survival,andgrowthofbusinesseswithinthe

Birminghamarea.Astheoriginalprojectproposalstates,BirminghamandtheWest

Midlandshavehistoricallyexperiencedlowerlevelsofproductivity,employmentand

businessgrowthcomparedtootherareasoftheUK.Itwasreportedintheoriginal

projectproposalthat:

OutputperheadintheWestMidlandsregionis89%oftheUKaverage,whichequates

to

aproductivity

gap

of

some

10

billion

UnemploymentinBirminghamhadrisenrapidlyandwasatitshighestlevelforoveradecadeat11.7%(March2009)

ThenumberofVATregisteredbusinessesinBirminghamwasrelativelylowcomparedtothesizeofitsworkingagedpopulationandnewlyregistered

businesseswerestillmorelikelytofailquickly

ItwasidentifiedthatthefutureeconomiccompetitivenessofBirminghamwas

dependentonfosteringacultureofenterprisethatsupportedbusinessgrowth,and

thereforeitwasvitalthatBirminghamCityCouncilprovidedtheclimatethatis

requiredforSMEstobesuccessful.

Theresearchundertakenforthisevaluationhasshownthefollowingevidencethat

theprojectwasaddressinganeed:

ContinuationofasuccessfulmodelasstatedpreviouslytheHighGrowthprojectstrandwasbasedontheEnterpriseCityHighGrowthprogramme,andwasdesigned

tofillthegapleftinhighgrowthsupportwhiletheEnterpriseCityprogrammewas

notrunning.AnindependentevaluationofEnterpriseCity2concludedthatthe

programmehadbeenverysuccessfulandachievedanumberoftangibleoutcomes,

thereforetheHighGrowthprojectstrandmetaneedinprovidingaproven

successfulmodelofsupporttoSMEsinBirmingham.

HighnumberofenquiriestheBDGprojectstrandexperiencedahighlevelofenquiries

from

businesses

for

both

the

space

and

feasibility

grants.

This

demonstratedthedemandfortheproject.Thetwodifferenttypesofgrantalsomet

aneedinthatbusinessesinourbeneficiaryandnonbeneficiarysurveysstatedthat

theyneededthegrantforavarietyofreasons,fromrelocation/refurbishmentand

marketingtostartinguptheirbusiness.Theneedforthisprojectstrandwasalso

demonstratedthroughthefactthatmostoftheBDGnonbeneficiariesdidnot

2EvaluationStudyoftheEnterpriseCityHighGrowthProgramme20082009,UniversityofBirmingham


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CONSULTINGINPLACE 9

managetofindthesupporttheywerelookingforthroughtheBDGprojectstrand

fromothersources.

However,althoughthenumbersofbusinessesengagingintheprojectwerehigh

enoughtoshowtherewasasignificantlevelofdemandfortheprojectstrands,the

needfortheprojectwasbasedonthefactthatthreeoftheprojectstrandswere

basedon

previous

models

of

support

(see

section

3.2.2

below)

that

had

been

successfullyusedinthepast,notonanyspecificneedsidentifiedfortheseproject

strands.

3.2.2 Areviewofthedeliverymodel

Theevidencegatheredduringthisevaluationhashighlightedanumberofissues

relatingtothedeliveryoftheStimulatingDemandproject.Thedifferentissues

raisedbythestakeholdersandbeneficiariescanbegroupedunderthefollowing

themes:useofexistingdeliverymodelsandpartnerships;projectlinkages;capacity

issues;qualityofservicesprovided;andmanagementandreporting.

Useof

existing

delivery

models

and

partnerships

Twoofthefourprojectstrandswerebasedonexistingprojectsthathadusedsimilar

deliverymodels;theBDGprojectstrandwasbasedontheBusinessSupportfor

CreativeIndustriesproject3andtheHighGrowthprojectstrandbasedonthe

EnterpriseCityprogramme.Anecdotalevidencefromstakeholderssuggeststhatthis

wasakeyelementinthesmoothdeliveryoftheseprojectsastheyusedtriedand

testedmodelsofdelivery.

InthecaseoftheHighGrowthprogrammetheexistingpartnershipofBirmingham

CityCouncil,DeloitteandtheAcademyforChiefExecutiveswasusedtodeliverthis

projectstrand,thesamepartnershipthatwasusedfortheEnterpriseCity

programme.Again

this

contributed

to

the

effective

delivery

of

the

model

as

all

partiesinvolvedhadpreviousexperienceofdeliveringthistypeofprojecttogether.

Anotherexampleofasuccessfullydeliveredprojectstrandreportedbystakeholders

isWeb2.0Presence,thesuccessofwhichcanpartlybeattributedtotheexisting

relationshipbetweenDigitalBirminghamandBirminghamCityUniversity.

Overalltheeffectivenessandefficiencyofusingexistingmodelsofdeliveryhasbeen

showntocontributetothesuccessfuldeliveryofsomeprojectstrands.

Projectlinkages

Oneof

the

aims

of

the

Stimulating

Demand

package

of

support

was

to

increase

the

uptakeofmainstreambusinesssupportandengagebusinesseswhopreviouslyhad

notbeenengaged.Oneofthewaysinwhichtheprojectaimedtodothiswas

throughthereferralofbusinessesseekingsupportthroughBDGandBusinessLink

elementstofurtherBusinessLinksupport,suchastheEnablingGrantofferedby

BusinessLink.Otheraspectsofthisprojectshowcasedgoodlinkageswithother

3TheBusinessSupportforCreativeIndustriesprojectwasrunbyBirminghamCityCouncil,BusinessLinkWestMidlandsand

ScreenWestMidlandsovera6yearperiodandsupportedover1,200businessesthroughofferingapackageofsupport

includingfeasibilityandcreativespace.


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CONSULTINGINPLACE 10

projectstrandswithinStimulatingDemand,forexampleeightofthebeneficiaries

fromtheHighGrowthprogrammewerealsorecipientsofagrantthroughtheBDG

projectstrand.TherewerealsoclearprojectlinksbetweenStimulatingDemand

projectstrandsandtheothertwoprojectsthatarethefocusofthisevaluation;for

example,itwasreportedbystakeholdersandinmanagementreportsthatsome

businessesenquiringabouttheBDGprojectstrandweredirectedtotheRDPwhere

appropriate.Another

link

was

seen

between

the

High

Growth

project

strand

and

FinditinBirmingham,withtheprojectmanagerfromFiiBpresentingatoneofthe

HighGrowthsessionsheldwithparticipants,therebypromotingtheFiiBprojectand

itspotentialbenefits.

TherewerealsoexamplesofjoinedupworkingbetweenthetwostrandsoftheWeb

2.0Presenceprojectstrand,withbusinessesthatattendedtheeventsrunbyDigital

Birminghambeingdirectedtotheonetoonesupportavailablethroughthedigital

championfromBirminghamCityUniversity.Thedigitalchampionalsopresentedat

oneoftheDigitalBirminghamevents,aswellaspresentingataneventhosted

throughFinditinBirmingham.

These

links

show

the

collaborative

working

that

has

taken

place

within

the

StimulatingDemandprojectteam,andhowthesehavebenefittedbusinessesby

makingthemawareofthedifferenttypesofsupportavailabletothem.

Capacityissues

TheaspectofthedeliveryoftheStimulatingDemandprojectthathasseenthemost

problemshasbeenthedeliveryofengagement,diagnosticandbusinessplanning

support,deliveredbyBusinessLinkWestMidlands.Itwasintendedthatthisproject

strandwouldcomplementtheBDGprojectstrandbyofferingsupporttobusinesses

inputtingtogethertheirbusinessplansandapplicationsfortheBDGstrand.

However,duetochangesinpersonnelatBusinessLinkthisprojectstrandsuffered

significantdelaystotheinductionofthebusinessadvisorsthatformedpartofthe

projectteamandseveralchangesintheprojectmanageratBusinessLink.Thelack

ofsufficientresourcestodeliverthisaspectoftheproject,alongwithhighlevelsof

demandforBDGwithalargenumberofenquiries,ledtodelaysintheprocessingof

applicationswhichultimatelyledtocustomerfrustrations.However,thisproject

strandgatheredmomentumfollowingtheinitialdelaysinstartinganditwas

reportedbytheprojectmanagerinamonthlyhighlightreportthatthelevelsof

filteringandreferralstakingplaceledtoonlyqualityapplicationsbeingsubmitted

fortheBDG,makingtheappraisalprocessmoreefficient.

Qualityofservicesprovided

FromourbeneficiarysurveyresultsweseethatBDGbeneficiariesonaveragerated

theprogrammeas8.9outof10;thisincludes35percentofbeneficiariesthatrated

theprogrammeas10outof10.Reasonsgivenfortheseratingsincludedthatthe

projectteamatthecouncilwereveryhelpfulandsupportiveandtheprocesswas

efficient:


21/106



NotonlywasIveryappreciativetohavesupportinfirstplace,thepanelandallthepeopletherehelpedmetoputmyapplicationforward they

wereoutstandinglyhelpful

Wehadalotofhelpalongthewaywiththewholeprocess.Theywalkedusthrougheverythingandgavealotofhelp.Theywereeasytogetintouch

withifweneededanythingelse veryhelpful

HighGrowthbeneficiariesonaverageratedtheprogrammeas8.5outof10;this

includes19percentofbeneficiariesthatratedtheprogrammeas10outof10.

Reasonsgivenfortheseratingsincludedthatthequalityofthespeakerswasvery

good,thementorswereveryknowledgeableandtheopportunitytonetworkand

gainotherpeoplesperspectiveonbusinessissueswasveryuseful:

Ithoughtthespeakerswereverygood.Thementorhasbeenveryencouraging theinputofthegroup,fromanetworkingpointofview,has

openeddoors

Ithasbeeninvaluabletome,boththementoringandthegroupmentoringis

areal

help.

All

the

speakers

have

been

very

relevant

to

the

business

Ourevaluationteamalsocollectedanecdotalevidencefromparticipantsthrough

attendanceatoneofthegroupmentoringsessionsthatthequalityofspeakerswas

consideredtobeexcellentandthattheindividualcoachingsessionswereextremely

helpful.

Managementandreporting

Overall,theevidencegivenbystakeholdersandbeneficiariesindicatesthatthis

projectwasmanagedwell.Adedicatedprojectmanagerwasputinplaceforthe

StimulatingDemand

project,

who

was

responsible

for

liaising

with

partners

including

DigitalBirmingham,BusinessLinkandDeloitte.TheHighGrowthprojectstrandwas

mentionedasaparticularlysuccessfulcaseofawellmanagedprogramme,withthe

projectmanagersfrombothBirminghamCityCouncilandDeloittecommunicating

onaregularbasis.Inadditiontothemonthlyhighlightreportsproducedbythe

projectmanagerfromBirminghamCityCouncilontheStimulatingDemandproject

asawhole,Deloittewereresponsibleforproducingquarterlyprogress/status

reportswhichdetailedtheoverallprogressoftheprogrammetodate,monitoringof

theoutputsintermsofhoursofmentoringreceivedbyparticipants,detailsofthe

monthlymentoringsessionsheldincludingfeedbackfromparticipantsandprogress

againstkeymilestones.Thesereportsallowedtheprojectteamtokeeptrackofthe

progressofparticipantsandidentifyanyissueswiththedeliveryoftheprojectso

that

they

could

be

resolved.

3.2.3 Assessmentofmarketingandapplicationtoolsandmaterialsused

Thissectionlooksathowtheprojectwasmarketedandhowsuccessfultheseefforts

were,aswellaslookingattheapplicationprocess.Thefindingshavebeendivided

intosectionsasseenbelow.


22/106



BusinessLinkapopularsourceofreferral

Aswouldbeexpected,duetothecloselinksbetweenthetwoprojectstrands,the

mainsourceofreferralsfortheBDGprojectstrandwasthroughBusinessLink,with

overathirdofbeneficiariescitingthisasthesourceofinformation. Thesecond

mostpopularsourceofinformationwaswordofmouth,followedbythe

BirminghamCity

Council

website.

High

Growth

beneficiaries

were

most

likely

to

hear

abouttheprogrammethroughwordofmouth,followedbyemailandpersonal

referral.BusinessLinkwasalsoapopularsourceofinformationforHighGrowth

beneficiaries.

Figure3.1:SourceofinformationonBDGandHighGrowth

BDG% HG%

BusinessLink 34.7 14.8

Wordofmouth 20.4 24.1

BirminghamCityCouncilwebsite 10.2 7.4

Email 6.1 18.5

Personalreferral

6.1

16.7

AleafletIreceived 4.1 5.6

AneventIattended 0.0 3.7

Other 18.4 9.3

Total 100 100

Source:BDGandHighGrowthbeneficiarysurvey,2010/11,ConsultingInplace

Varietyofmarketingmethodsused

Theevidencecollectedduringthisevaluationshowsthatawidevarietyofmethods

wasusedtomarketandpromotetheBDGandHighGrowthprojectstrands.The

methodsused

include

attendance

at

business

events,

including

those

targeted

at

specificaudiences(e.g.HighGrowthbusinessnetworkingevents),thedistributionof

promotionalmaterialssuchasleaflets,individualcontactbyprojectofficersto

businessesandadvertsontheBirminghamCityCouncilwebsite.Oneofthemain

methodsofmarketingusedwastheutilisationofpartnerssuchasBusinessLinkto

promotetheprojectstrands.

TheBDGprojectstrandappearstohavebeenpromotedinavastnumberofways,

asdemonstratedbythevarietyofanswersgivetothoserespondingOtherinFigure

3.1.Otherwaysthatbeneficiarieshadheardabouttheproject,inadditiontothe

optionsalreadylisted,includedtheChamberofCommerce,thejobcentre,thelocal

library,localpressandafinancialadvisor.TheBDGprojectstrandalsohadapress

release

distributed

to

local

press

and

as

a

result

received

strong

press

coverage,

increasingtheprofileoftheprojectfurther.Despitedelaysinthepromotionofthis

project,whichweredowntothefactthatthefocusofmarketingwasinitiallyonthe

RDPasthisprojectwasfurtherdeveloped,themarketingeffortsappeartohave

worked,reflectedinthehighlevelofenquiriesreceivedforthisprojectstrand.

TheHighGrowthprojectstrandwasanotherexampleofasuccessfullymarketed

programme.AmarketingplanwasdrawnupbyDeloittewiththeassistanceoftheir

internalmarketingteam,andtheprogressofthisplanwasmonitoredandadapted


23/106



wherenecessary.Anumberoforganisationswereutilisedinthepromotionofthe

HighGrowthprojectstrand,includingAWM,CBIWestMidlands,BusinessVoice

WestMidlands,PrincesTrustandanumberofuniversitiesintheWestMidlands

region.

Thesuccessofthemarketingofthesetwoprojectstrandsisreflectedinthefactthat

thetarget

numbers

of

business

supported

were

reached

for

both

project

strands

(seeFigure3.2).

Applicationprocess

AstheBDGprojectstrandwasbasedonapreviousgrantsbasedproject,the

applicationprocesswasalreadyinplace.Oncebusinesseshadmadeinitialcontact

witheitherBusinessLinkordirecttoBirminghamCityCouncil,BusinessLinkthen

carriedoutadiagnostictochecktheirsuitabilityfortheproject.Followingthisthey

receivedsupportwiththeirapplication,beforeitwassubmittedtotheStimulating

Demandprojectmanager,whichwasthenpassedontotheCouncilofficerswho

directlycontactedthebusinessesregardingtheirapplications.Anumberof

beneficiaries

in

our

survey

commented

on

the

helpfulness

of

this

contact

with

Councilofficers,whoinmanycasesvisitedthebusinessesattheirpremises.The

applicationwasthenpassedontotheappraisalpanelwhereadecisionwasmade.

Althoughthisprocesswasatriedandtestedsuccessfulmethod,acombinationof

thepersonnelchangesatBusinessLink,whichledtodelaysinthisprojectstrand,

andahighlevelofenquiriescauseddelaysintheapplicationprocesswhichledto

dissatisfactionfrombeneficiariesastheyhaddelaysintheirapplicationsbeing

approved.AsmallnumberofBDGnonbeneficiariesevensaidthattheydecidednot

togoaheadwiththeirapplicationbecauseofthepaperworkinvolved.Althougha

smallnumberofbeneficiariescommentedonthetimetheyhadtowaitforapproval,

ourevidenceshowsthatthisdidnotaffectthedeliveryoftheprojectextensively

andbeneficiariesstillratedtheservicestheyreceivedquitehighly.

3.2.4 Performanceandoutputsagainsttargets

WehaveanalysedmonitoringdataavailablefortheBDGprojectstrand,forboth

feasibilityandspacegrants,andHighGrowthtoassesshowwelltheprojectstrands

haveperformedagainsttheirtargets.Notethatsometargetswerereducedinlight

ofbudgetcutstotheBDGduringitslifetime.However,itmustbenotedthatthese

outputsfigureswerestillbeingcollectedatthetimeofwritinganddonotrepresent

theendofprojectoutputs,meaningtherewasstillscopeforthemtoincrease.

Thefeasibilityandspacegrantsexceededtheirrevisedtargetsfollowingthebudgetcutsintermsofthenumberofbusinessessupported.

Themonitoringdatareportsthat42ofthebusinessessupportedthroughtheBDGwerenewbusinesses,meaningtheoutputfallsshortofthetargetof50new

businessescreated.

Atthetimeofwritingtheoutputevidenceshowsthat68newjobswerecreatedasaresultofthesupportreceived,exceedingtheoriginaltargetof50by36%.Insection

4.2.6weestimatethenumberofjobscreatedbasedondatacollectedfromthe

beneficiarysurvey.


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TheHighGrowthprojectstrandreacheditstargetofsupporting90businessesthroughtheprogramme,andatthetimeofwritinghadalmostachieveditstargetof

providingparticipantswithatleast15hoursofmentoringsupport.Evidencefrom

thequarterlyprogress/statusreportsshowthatanumberofbusinesseshave

exceededthistarget,withsomeevenreceivingbetween50and60hoursof

mentoringsupport.

Figure3.2:PerformanceofStimulatingDemandprojectstrandagainsttargets

Original

target

Revised

target

Achieved(upto

endofFeb2011)

Businessessupportedfeasibilitygrant 180 62 68

Businesssupportedspacegrant 67 57 63

Newbusinessescreated 50 42

Newjobscreated 50 68

HighGrowthbusinessessupported 90 90

HighGrowthbusinessessupported

receiving15hoursofmentoring

90 89

Source:Projectmonitoringdata,March2011.Note:Thenumberofindividualbusinessessupportedtotals92as39

ofthebusinessesthatreceivedthespacegrantalsoreceivedthefeasibilitygrant.

Theprojectmonitoringdataalsoprovidesevidenceoftheamountsofgrantsbeing

appliedforthroughtheBDG,whichshowsthatonlytwothirdsofspacegrant

applicantsappliedforthefull6,000.

3.2.5 Netimpactandvalueformoney

Fromtheresultsofthebeneficiarysurveywecancalculatetheadditionalityofthe

support,essentiallycalculatingtheimpactthatthesupporthashadonthe

businessessupported

through

the

BDG

and

High

Growth

project

strands

in

terms

of

turnoverandGrossValueAdded(GVA).Figure3.3belowshowstheadditionality

factorsthatwehavetakenintoconsiderationwhencalculatingtheimpact,along

withtheirderivationfromthesurveyresultsandtheirestimates.

Figure3.3:Additionalityfactorestimates

Additionalityconcept Derivation Estimate

BDG(%)

Estimate

HG(%)

Deadweight

Thelevelofoutputsandoutcomesthatwould

havehappenedanywaywithouttheproject

Theaverageproportionof

turnoverchangenot

attributedtoWNFsupport

56.8 72.7

Displacement

Wheretheintervention takesmarketshare

fromotherexistingfirmswithinthe

geographicalareabeingassisted

Theproportionofproject

outputsaccounted

for

by

reducedoutputselsewhere

inthetargetarea

25* 25*

Multiplier

Howmuchadditionaleconomicactivityis

generatedthroughpurchasesalongthe

supplychain,employeespendingroundsand

longertermeffects

Averageproportionof

purchasesmadefromother

businessesintheregion

1.60

(not%)

1.49

(not%)


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Additionalityratio

Netimpactofsupport

Netimpactofsupportgiven

theadjustmentabove

22.6 27.3

Source:BDGandHighGrowthbeneficiarysurvey,ConsultingInplaceandConsultingInplacecalculations,

2011.*EstimatefromResearchtoimprovetheAssessmentofAdditionality,2009,CambridgeEconomicsAssociates

Thesurveyallowsestimationofimpactinthefollowingways:

Increasedturnoverwherebeneficiariesreportedthatthegrantcontributedacertainpercentagetoanincreaseintheirturnover

Safeguardingturnoverwherebeneficiariesstatedthatthegranthelpedtomaintaintheirpresupportturnoverlevelbyacertainpercentageoftheirinitial

turnover

Decreasedturnoverwherebeneficiariesstatedthatthegranthelpedtominimiseadecreaseinturnoverbyacertainpercentage

BDGbeneficiariesThe

total

turnover

for

the

above

metrics

is

shown

below

with

the

number

of

observationsandpercentageofthetotalsampleshownalso.AlmostsixintenBDG

beneficiariesstatedthatthesupporthadapositiveimpactontheirturnover,which

showsagrossbenefitfromtheprogrammeof4.25million;howeverthisismainly

drivenbyanoutlierfigureof3million,whichwhenremovedgivesatotal

attributableturnoverincreaseof1.25million.Weremovethisoutlierfigureasit

wasreportedbyabusinessthathadbeentradingforlessthan12monthsandwho

hadreportedthattheirturnoverhadgonefrom0to3millioninlessthanayear.

Safeguardedturnoveramountsto11,250,whiletherewasnoattributableturnover

decrease.

Figure3.4:TurnovermetricsforBDGbeneficiaries

Value()

N

%

of

sample

Attributableturnoverincrease 4,246,170 29 59%Attributableturnoverincreaseminusoutlier 1,246,170 28 57%

Attributableturnoversafeguarded 11,250 3 6%

Attributableturnoverdecrease 0 0 0%

Totalattributableturnover 1,257,420 31

Source:BDGbeneficiarysurvey,ConsultingInplaceandConsultingInplacecalculations,2011

UsingfinancialdatafromtheAnnualBusinessInquiry(ABI)RegionalAccountsallows

ustotransformourtotalattributableturnoverfigureintoestimatesoftotal

attributableGVA.

The

ratios

used

for

this

transformation

can

be

seen

in

the

full

calculationsfoundinAppendixIII.AftertransformingtototalattributableGVAand

adjustingfortheadditionalityfactorsinFigure3.3,weidentifyalmost690,000net

additionalGVAintotalforthissample.Wecanscaleupthesesampledbenefitsto

calculatetheimpactonallbusinessessupportedbytheBDGproject.Wedosoby

calculatingtheratioofoursampletothepopulation(92/49=1.88)andmultiplyby

ournetsampledbenefits.4Thebenefitstranslateto14,055ofGVAimpactper

4Weuse92asthepopulationhereasthatisthenumberofindividualbusinesssupportedthroughtheBDGprojectstrand,asa

numberofthebusinessessupportedreceivedboththefeasibilityandspacegrants


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businesssupportedbytheBDG,ofwhich13,914isderivedfromincreasesin

turnoverand141fromsafeguardingturnover.

Figure3.5:NetadditionalGVA

Total Increase Same Decrease

NetadditionalGVA sample 688,715 681,805 6,909 0

NetadditionalGVA population 1,293,097 1,280,125 12,972 0

Perassistedbusiness 14,055 13,914 141 0

Source:ConsultingInplacecalculations,2011

Recognisingthatbenefitsarenotalwaysfeltintheshorttermfollowingsupportand

thatthebenefitscanlastforyearsafterthesupport,weaskedBDGbeneficiaries

howmanyyearstheyexpectedthebenefitstolastfor.Theseadditionalbenefitsare

alsoknownaspersistenceeffects.Wecalculatebenefitsfor4years,theaverage

persistenceofbenefitsfromtheBDGbeneficiarysurvey,andapplyadiscountrate

of3.5%.5

Figure3.6:NetadditionalGVAaccountingforpersistenceeffects


NetadditionalGVA 5,980,961 5,967,988 12,972 0



TheresultisanincreaseinnetadditionalGVAofalmost6millionwhich

correspondstojustover65,000perBDGbeneficiarysupported.

WecanthencalculatethevalueformoneyoftheBDGprojectusingcostsofthe

projectandthenetadditionalGVAimpact,ascalculatedabove.Usingtherevised

BDGcostfiguresof444,300,avalueformoneycalculationprovidesthefollowing

headlines:

Forevery1ofBDGprojectspend,2.92ofadditionalbenefitswasgeneratedexcludingpersistenceeffects

Forevery1ofBDGprojectspend,13.50ofadditionalbenefitswasgeneratedincludingpersistenceeffects

HighGrowthbeneficiariesAlmostathirdofHighGrowthbeneficiariesstatedthatthesupporthadapositive

impacton

their

turnover,

which

shows

agross

benefit

from

the

programme

of

444,460.Safeguardedturnoveramountsto60,000whileattributableturnover

decreaseamountsto1,400.

5Weapplyadiscountfactorof3.5%inaccordancewithguidancefromtheHMTreasuryGreenBook.Thisfactoraccountsfor

thefactthatastreamofbenefitsismorevaluableclosertothepresentthaninthefuturei.e.theimplicitpreferencetohave

moremoneynowthanmoreinthefuture.


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Figure3.7:TurnovermetricsforHighGrowthbeneficiaries

Value() N %ofsample

Attributableturnoverincrease 446,460 18 33%

Attributableturnoversafeguarded 60,000 6 11%

Attributableturnoverdecrease 1,400 1 2%

Totalattributable

turnover

505,860

25

Source:HighGrowthbeneficiarysurvey,ConsultingInplaceandConsultingInplacecalculations,2011

AsbeforeweusefinancialdatafromtheABIRegionalAccountstotransformour

totalattributableturnoverfigureintoestimatesoftotalattributableGVA.After

transformingtototalattributableGVAandadjustingfortheadditionalityfactorsin

Figure3.3,weidentifyjustover255,000netadditionalbenefitsintotalforthis

sample.Wecanscaleupthesesampledbenefitstocalculatetheimpactonall

businessessupportedbytheHighGrowthproject.Wedosobycalculatingtheratio

ofoursampletothepopulation(90/54=1.7)andmultiplybyournetsampled

benefits.Thebenefitstranslateto4,739ofimpactperbusinesssupportedbythe

HighGrowthproject,ofwhich4,027isderivedfromincreasesinturnover,696

fromsafeguarding

turnover

and

16

from

minimising

aturnover

decrease.

Figure3.8:NetadditionalGVA


NetadditionalGVAsample 255,909 217,463 37,567 879

NetadditionalGVA population 426,515 362,438 62,611 1,465



Recognisingthatbenefitsarenotalwaysfeltintheshorttermfollowingsupportand

thatthebenefitscanlastforyearsafterthesupport,weaskedHighGrowth

beneficiarieshowmanyyearstheyexpectedthebenefitstolastfor.These

additionalbenefitsarealsoknownaspersistenceeffects.Wecalculatebenefitsfor

5years,theaveragepersistenceofbenefitsfromtheHighGrowthbeneficiary

survey,andagainapplyadiscountrateof3.5%.

Figure3.9:NetadditionalGVAaccountingforpersistenceeffects


NetadditionalGVA 2,057,073 1,992,996 62,611 1,465



TheresultisanincreaseinnetadditionalGVAofaround2.05millionwhich

correspondsto

almost

23,000

per

High

Growth

beneficiary

supported.

WecanthencalculatethevalueformoneyoftheHighGrowthprojectusingcostsof

theprojectandthenetadditionalGVAimpact,ascalculatedabove.UsingtheHigh

Growthcostfiguresof450,000,avalueformoneycalculationprovidesthe

followingheadlines:


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Forevery1ofHighGrowthprojectspend,0.95ofadditionalbenefitswasgeneratedexcludingpersistenceeffects

Forevery1ofHighGrowthprojectspend,4.57ofadditionalbenefitswasgeneratedincludingpersistenceeffects

3.2.6 Otherimpacts

of

support

JobssafeguardedandcreatedOvertwothirdsofBDGbeneficiaries(69%)saidthatasaresultofthesupport

receivedjobshadbeensafeguardedwithintheirbusiness;69%alsosaidthatjobs

hadbeencreatedwithintheirbusiness.OverallthelargemajorityofBDG

beneficiaries(92%)hadreportedjobssafeguardedorcreatedasaresultofthe

support.IntotalBDGbeneficiariesstatedthat89jobshadbeensafeguardedand87

jobshadbeencreatedasaresultofthesupportreceived;scalingthisuptothetotal

populationofbusinessessupportedsuggeststhatalmost170jobsweresafeguarded

throughthisprojectandover160werecreated.Thesefiguresarehigherthanthose

collectedthrough

the

project

output

data;

this

may

be

due

to

differences

in

the

definitionsofjobscreatedandsafeguardedbetweenoursurveyandtheproject

monitoringdataandthevolumeofevidencerequiredtoproveoutputs.

Figure3.10:JobscreatedandsafeguardedBDG

Sampletotal Averageperbusiness Populationtotal

Jobssafeguarded 89 1.8 167

Jobscreated 87* 1.8 163

Source:BDGbeneficiarysurvey,ConsultingInplaceandConsultingInplacecalculations,2011.*Thistotalisminusan

outlierfigureof100reportedbyonebeneficiary

OverathirdofHighGrowthbeneficiaries(36%)saidthatasaresultofthesupport

receivedjobs

had

been

safeguarded

within

their

business;

36%

also

said

that

jobs

hadbeencreatedasaresultofthesupportreceived.OveralljustoverhalfofHigh

Growthbeneficiaries(51%)saidthatjobshadbeensafeguardedorcreatedasa

resultofthesupportreceived.IntotalHighGrowthbeneficiariesstatedthat35jobs

hadbeensafeguardedand45jobshadbeencreatedasaresultofthesupport

received;scalingthisuptothetotalpopulationofbusinessessupportedsuggests

thatalmost60jobsweresafeguardedthroughthisprojectand75jobswerecreated.

Figure3.11:JobscreatedandsafeguardedHighGrowth

Sampletotal Averageperbusiness Populationtotal

Jobssafeguarded 35 0.6 58

Jobs

created

45

0.8

75

Source:HighGrowthbeneficiarysurvey,ConsultingInplaceandConsultingInplacecalculations,2011

BusinessessupportedfromavarietyofsectorsThemonitoringdatacollectedthroughoursurveyshowsthattheHighGrowth

projectinparticularsupportedbeneficiariesfromawiderangeofsectors,with

businessservicesbeingthemostpopulatedsubsector.Businessservicesincludes

consultancies(e.g.management,HR,IT),marketinganddesignfirms,andbusinesses


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providingtrainingorrecruitmentservices.TheBDGprojectalsosupported

businessesfromawidevarietyofsectors,althoughtoalesserextent,withbusiness

servicesandmanufacturingbeingthemostpopulatedsectorsamongbeneficiaries.

Figure3.12:SectorofBDGbeneficiaries

Subsector SIC(2003)broadcategory BDG%

Landscapers

Agricultureand

fishing

2.0

Manufacturing Manufacturing 18.4

Distributionandwholesale Distribution,hotelsand

restaurants

8.2

Businessservices Finance,insuranceandother

businessactivities

57.1

Healthandwellbeing,socialcare

andsportandrecreation

Otherservices 14.3

Total 100


Figure3.13:

Sector

of

High

Growth

beneficiaries

Subsector SIC(2003)broadcategory HG%

Manufacturing Manufacturing 5.6

Construction Construction 5.6

Distribution,wholesaleandretail Distribution,hotelsand

restaurants

5.6

Telecommunications Transportandcommunications 1.9

Businessservices Finance,insuranceandother

businessactivities

55.6

Educationandskills Publicadministration,education

andhealth

5.6

Healthand

well

being,

sport

and

recreationOther

services

20.4

Total 100


Thisdataisanindicationoftheimpactofthehighlevelsofmarketingcarriedoutby

theprojectteamsfrombothprojectstrands,whotargetedandengagedbusinesses

fromavarietyofsectorsthroughmixedmethodsofmarketingandpromotion.

ImprovedbusinessstrategyandotherimpactsAnareaofimpactthatwascommontoboththeBDGandHighGrowthproject

strandswas

an

improved

business

strategy.

Our

survey

results

show

that

perhaps

unsurprisinglythiswastheareawhereHighGrowthbeneficiariesfeltthatsupport

impactedupontheirbusinessmost,withmorethanthreequartersofbeneficiaries

selectingthisoption.OveraquarterofBDGbeneficiariesalsofeltthatthiswasthe

areawheretheimpactofthesupportwasfeltmost.ThelargemajorityofBDGnon

beneficiariesalsoexpectedimprovedbusinessstrategytohavebeenanoutcomeof

thesupport,hadtheyreceivedit.


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However,theareathatwasmostcommonlyselectedbyBDGbeneficiariesashaving

seenthemostimpactwasaccesstonewmarkets.Thisismostlikelyduetothe

numberofbeneficiariesreceivingfeasibilitygrantswhichenabledthemtotestand

developnewproductsorservices.

Figure3.14:MainimpactsofBDGandHighGrowthsupport

BDG%

HG

%

Accesstonewmarkets 32.7 7.5

Businessstrategy 26.5 77.4

Other 16.3 9.4

Turnover 12.2 1.9

Employment 6.1 1.9

Profitability 6.1 1.9

Total 100 100


ThoseBDGbeneficiariessayingOthergenerallycouldnotpindowntheimpactto

onearea

and

picked

more

than

one

option.

Some

of

the

Other

answers

given

by

HighGrowthbeneficiarieswerenewnetworkingopportunitiesandmarketing

advice.

SafeguardingagainsttherecessionThemajorityofBDGandHighGrowthbeneficiariesreportedthattherecessionhad

quiteanegativeimpactontheirbusiness,withsalesandturnoverdecreasing.Inour

surveyalmostfourintenBDGbeneficiariesfeltthatthesupporttheyreceived

helpedtoreducetheimpactsoftherecessioneitherenormouslyorsignificantly.

AlmostoneinfiveHighGrowthbeneficiariesfeltthesupporthelpedtoreducethe

impactsoftherecessionenormouslyorsignificantly,withhalfofbeneficiaries

thinkingit

helped

marginally.

Figure3.15:ImpactofBDGandHighGrowthonreducingeffectsofrecession

32.7

28.6

32.7

6.1

32.1

49.1

17.0

1.9

0 10 20 30 40 50 60

Notat

al l

Marginally

Significantly

Enormously

%

HighGrowth

BDG



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ThemainreasonsthatBDGbeneficiariesgaveforthesupporthelpingtoreducethe

effectsoftherecessionenormouslyorsignificantlywerethatthesupportenabled

themtomoveintonewmarkets,whetherthroughtheadditionalmarketingor

diversificationintonewproductsorservices.

HighGrowthbeneficiariesweremorelikelytofeelthatthesupportreceivedhada

marginalimpact

on

reducing

the

effects

of

the

recession

as

although

they

felt

that

thesupportprovidedthemmoreknowledgeonbusinessstrategyandfutureplans,

thisdidnotdirectlylinktoincreasedturnoverintheshortterm,andthereforethe

impactswouldbefeltmoreinthelongterm.

AcceleratedgrowthofbusinessesOneareaofimpactthattheBDGandHighGrowthprojectstrandshavehadhas

beentoaccelerategrowthwithinthebusinessessupported.Thisbecameapparent

whenthebusinesseswereaskedwhatwouldhavehappenedtotheirbusinessesif

theyhadnotreceivedthesupport,towhichathirdofBDGbusinessesandovera

quarterofHighGrowthbusinessesrepliedthatthebusinesswouldnothavegrown,

or

at

least

would

not

have

grown

at

the

pace

it

has

since

receiving

support.

Theimportanceofthesupportreceivedinhelpingbusinesstoaccelerategrowth

wasreinforcedbyresponsesfromBDGnonbeneficiaries,whowhenaskedwhatthe

impactofnotreceivingthesupporthadbeenontheirbusinessmostcommonly

repliedthattheirbusinesshadntbeenabletogrow.

Someofthecommentsbelowshowtheimportanceofreceivingthesupportin

growingthebusinessessupportedbytheBDGandHighGrowthprojectstrands,as

theycommentonwhatwouldhavehappenedtotheirbusinesswithoutthesupport:

Itwouldhaveprobablynotbeenabletoincreaseatthisrate;wewouldhavebeen

less

flexible.

It's

given

me

the

ability

to

increase

turnover

and

employ

morepeopleandcapitaliseonanyopportunitiesthathavearisen BDG

beneficiary

Rateofsaleswouldhaveremainedstagnantratherthanamarginalincreasewhichiswhatweseebecauseofthisprogramme HighGrowth

beneficiary

Wewouldnothavehadthegrowth[ofthebusiness] wewouldhavebeenhitbytherecessionBDGbeneficiary

FutureuptakeofbusinesssupportOne

of

the

objectives

of

the

Stimulating

Demand

package

of

support

was

to

increase

theuptakeofmainstreambusinesssupportprovision,particularlybybusinessesthat

werenotpreviouslyengagedwithbusinesssupportproviders.Theevidence

collectedthroughthebeneficiarysurveyindicatesthatboththeBDGandHigh

Growthprojectstrandshavecontributedtotheachievementofthisobjective.

Figure3.16showstheresponsesfrombeneficiarieswhenaskedifthesupportthey

hadreceivedhadencouragedthemtoaccessfuturebusinesssupport.Oneinfive

BDGbeneficiariessaidthatthesupporttheyhadreceivedthroughtheprojecthad

encouragedtothemtoaccessfurtherbusinesssupport,withafurtherquarter


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sayingthattheyhadalreadyaccessedfurthersupportsincetakingpartintheBDG

project.AroundoneinsevenHighGrowthbeneficiariessaidtheyplannedtoaccess

futurebusinesssupport,andalmostaquarterhaddonesincetakingpartinthe

project.

Figure3.16:Futureuptakeofbusinesssupport

BDG%

HG

%

Yes,willlookforsupportinfuture 20.4 14.8

Yes,wearecurrentlyaccessing

support/havesincetheproject

24.5 24.1

Havereceivedsupportinthepast 14.3 5.6

Havetriedtoaccesssupportinpast 2.0 1.9

Noplanstoatthemoment 28.6 42.6

Notawareofothersupportavailable 8.2 3.7

Source:BDGandHighGrowthbeneficiarysurvey,2011,ConsultingInplace

BusinessLinkwasthemostcitedproviderofbusinesssupport,withfourintenBDG

beneficiariesand

aquarter

of

High

Growth

beneficiaries

stating

they

had

received

supportfromtheminthepast,weredoingcurrently,orplannedtointhefuture.A

smallnumberofbeneficiariesalsomentionedtheCouncilasapotentialproviderof

businesssupport.HighGrowthbeneficiarieswerethemostlikelytomentionother

organisationsasprovidersofbusinesssupport,includingtheChamberofCommerce,

BirminghamEnterpriseandtheUniversityofBirmingham.

Thenumberofbeneficiariesengagingwithmainstreambusinesssupportproviders

orplanningtointhefutureasaresultoftakingpartintheBDGandHighGrowth

projectstrandsevidencestheimpactthatthisprojecthashadontheobjectiveto

increasethenumberofbusinessesengagingwithmainstreambusinesssupport.

Wecarried

out

acase

study

of

abusiness

that

benefitted

from

the

Business

DevelopmentGrantsprojectstrandandonebusinessfromtheHighGrowthproject

strandtoshowtheimpactthesupporthashadonthemandtheirbusinesses.

ThesecasestudiescanbefoundinAppendixI.

3.3 Conclusions

Overall,theStimulatingDemandprojecthasbeensuccessfullydelivered.Although

theseparateprojectstrandswerequitedifferentinthenatureoftheirdeliveryand

theoutcomestheywereaimingtoachieve,theyhaveallbeendeliveredeffectively

andsuccessfully,withintegrationtakingplacewherepossible.Themanagementof

theproject

was

commended

as

working

particularly

well,

as

despite

some

delays

in

theprojectcausedbyfactorsoutoftheprojectteamshands,theoutputswerestill

deliveredontimeandtobudget.

QualityofdeliverymodelsusedboththeBDGandHighGrowthprojectstrandswereconsideredbybothstakeholdersandbeneficiariestobewelldeliveredand

providedhighqualityservices.InthecaseoftheHighGrowthprojectthequalityof

thespeakersandtheknowledgeofmentorswerepraisedasbeingparticularly

strongqualitiesoftheproject.IntermsoftheBDGandBusinessLinkprojectstrands,


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despitedelaysandcapacityissuesinthedeliveryoftheBusinessLinkelement,

whichledtodelaysintheBDGapplicationprocessandsomecustomerfrustrations,

BDGbeneficiariesstillratedthequalityofservicesprovidedhighly.Thehelpfulness

andsupportoftheprojectteamattheCouncilwereparticularlypraisedby

beneficiaries.

QuantitativeimpactsofBDGaswellasexceedingitstargetsforthenumberofbusinesses

supported

through

both

feasibility

and

space

grants

and

the

number

of

jobscreated,theBDGprojectstrandwasverysuccessfulintermsoftheimpactit

hadonturnover,additionalGVAandemployment.Themainimpactsare:

TotaladditionalGVAforallBDGbeneficiariesof1.3millionexcludingpersistenceeffects,and6millionincludingpersistenceeffects

Jobscreatedandsafeguardedtheprojectmonitoringdatashows68jobswerecreated,andoursurveyresultssuggestover160jobswerecreated

andalmost170jobsweresafeguardedasaresultofthesupport

Forevery1ofBDGspend,2.92ofadditionalbenefitsweregeneratedexcludingpersistenceeffects

Thisdemonstrates

the

high

levels

of

immediate

impact

that

the

BDG

project

has

had

intermsofgeneratingadditionalGVA.

QuantitativeimpactsofHighGrowththisprojectstrandmetitstargetofsupporting90businessesoveritslifetimeandhasalsobeenshowntohavehad

impactsonturnover,additionalGVAandemployment.Themainimpactsare:

TotaladditionalGVAforallHighGrowthbusinessessupportedof425,000excludingpersistenceeffectsandaround2.05millionincluding

persistenceeffects

JobscreatedandsafeguardedoursurveyresultsindicatethatasaresultoftheHighGrowthprojectalmost60jobsweresafeguardedand75were

created

Forevery1ofHighGrowthspend,4.57ofadditionalbenefitsweregeneratedincludingpersistenceeffects

TheseresultsreflectthefactthattheHighGrowthprojectstrandhadagreater

impactonbusinessstrategyratherthanimmediateimpactonturnoverand

employmentgrowth,howevertheimpactsoftheprojectwouldbefeltinthelong

term.

Otherimpactsofthesupportreceivedincludedtheacceleratedgrowthofthe

businessesbenefittingfromthesupport,anincreaseduptakeofmainstream

businesssupportandsafeguardingagainsttheeffectsoftherecession,particularly

inthecaseofBDGbeneficiaries.


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4. RetailDevelopmentProgramme

4.1 Backgroundtoproject

4.1.1 Aimsandobjectives

TheaimoftheRetailDevelopmentProgramme(RDP)wastosupportexisting

independentretailersandattractnewindependentbrandsinBirmingham.The

projectwasdevelopedatatimewhenmanyindependentretailbusinesseswere

sufferingfromtheimpactoftheeconomicdownturn.Thispackageofsupportwas

developedtohelpretailerssurviveandgrowduringtherecession.

Thespecificobjectivesoftheprojectwereto:

Providegrantsofbetween2,500and10,000tosupportindependentretailerstodevelopandgrow

Encouragenewretailbrands Createnewjobs Safeguardjobs Regeneratelocaltowncentres

4.1.2 Deliveryoftheproject

TheRDPwasdeliveredthroughapartnershipoftheBirminghamCityCouncil

BusinessDevelopmentandInnovationteamandtheHousingandConstituencies

team,inparticulartheTownCentreManagers(TCMs).6RetailBirminghamwasalso

involvedinthedeliveryoftheproject,particularlyinthepromotionoftheprojectto

city

centre

businesses.

The

TCMs

were

responsible

for

promoting

the

project

to

businesseswithintheirlocaltowncentreandofferingsupportandguidancewiththe

applicationprocess.Theoriginaldeliveryplanassetoutintheprojectproposal

anticipatedBusinessLinkWestMidlands(BLWM)beingadeliverypartner,providing

supporttobusinessesinthedevelopmentoftheirapplications.Thismodelwasused

inthepilotoftheprojectthatwascarriedoutpriortothefullproject.However,this

didnothappenasBLWMdidnothavethecapacitytodealwiththevolumeof

applicationscomingthroughtheRDP.

TheRDPprovidedgrantsofupto50%ofeligibleexpenditurecosts.Thegrantwas

intendedtobeusedonavarietyofservices,includingrentandrates(forstartup

businessesonly);heatingandlightinginstallation;removalcosts;fascia

improvements/shopfitting;connections(telephoneandbroadband);professional

fees;websitedevelopment;rebranding/promotionalcampaigns;andwindow

dressingofvacantproperties.

TheRDPdeliverymodelwasoriginallydesignedtobedeliveredfromJuly2009until

March2011.ItwasintendedthatJulytoSeptember2009wouldbespent

formalisingdeliveryarrangementsandrecruitingtheRetailChampion,with

6TownCentreManagers(TCMs)aremembersofCouncilstafffundedthroughtheWorkingNeighbourhoodsFundwhoare

employedtotransformhighstreetsinlocaltowncentresaroundBirminghamandturnaroundailingshoppingcentres.


35/106



applicationsbeingacceptedfromSeptember2009untiltheprojectclosedinMarch

2011.OverthelifespanoftheprojecttheRDPaimedtohelpimprovethe

performanceof100newandexistingindependentretailersthroughtheawardofa

grant.Theprojectalsohadtargetstoestablish40newbrands,create40newjobs,

andsafeguard100jobs.Totalprivatesectorinvestment,throughmatchfunding,

wasexpectedtobe846,000.

4.2 Findings

4.2.1 Context/rationalefortheproject

TheRetailDevelopmentProgrammewasdevelopedtoprovidesupporttotheretail

sectorinBirmingham,inparticularexistingindependentretailersandnew

independentbrands.Theprojectwasdevelopedfollowingamasterclassheldwith

MaryPortas,aretailexpertknownastheQueenofShops,andindependent

businessesinBirmingham,duringwhichtheybrainstormedwaysinthesectorcould

besupported.Fromthisapilotgrantsprojectwasrun,inwhich50,000wasmade

availabletosupportfiveindependentretailbusinessesinthecitycentre.Following

thesuccess

of

this

pilot,

the

RDP

was

developed.

Theevaluationfoundthefollowingevidenceofneedforthisproject:

SupportforaneglectedsectorTheretailsectorisonethatisveryrarelysupported,despitethefactthatitwasseenbyanumberofstakeholdersasan

importantsectorforemploymentandinvestmentinthecity.Itisnotclassedasa

highgrowthsector,andwasnotconsideredaprioritysectorbyBusinessLinkor

AdvantageWestMidlands,twoofthemainprovidersofbusinesssupportatthe

timethisprojectwasdeveloped.Thereforethisprojectwashighlywelcomedby

thoseworkinginthesector,particularlyduringthetimeofaneconomicdownturn

whenindependentretailbusinesseswereamongtheworsthit.

HighlevelofdemandTheprojectaimedtosupport100businessesthroughtheprovisionofagrant.Enquirieswerereceivedfromaround350businesses,showing

thehighlevelofdemandandinteresttherewasintheproject.Asaresultofthe

highdemandthefundswerecommittedmuchsoonerthanhadbeenanticipatedit

wasoriginallyplannedthattheprojectwouldrununtilMarch2011,howeverthe

fundswerecommittedbyAugust2010,10monthsaftertheprojecthadlaunched.

Thesefiguresreflecthowmuchinteresttherewasintheprojectfromindependent

retailersacrossthewholeofBirmingham

VarietyofneedsamongbusinessesRDPbeneficiariesandnonbeneficiariesbothreportedavarietyofreasonsforneedingsupportfromtheproject.Almosthalfof

theRDPbeneficiariesandfourinfiveofthenonbeneficiariessurveyedsaidthat

theyappliedforsupporttoeithercarryoutrefurbishmentsintheircurrentpremises

orrelocatetodifferentpremises.Oneinfivebeneficiariessaidthattheywerestrugglingwithfinancesandsotheyneededthemoneytopayforimprovements

theyotherwisewouldnothavebeenabletopayfor.Otherfrequentreasonswhy

beneficiariesstatedtheyneededthemoneyincludedhelptostartupanew

business,moneyneededformarketingpurposesandthattheyneededfinancialhelp

indevelopinganewproductorservice. Thisevidenceshowsthatthedecisionto

allowthegranttobespentonawidevarietyofpurposeswasgreatlyappreciatedby

thebusinesses


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4.2.2 Areviewofthedeliverymodel

Theevidencegatheredhashighlightedanumberofissuesrelatingtothedelivery

modelusedforthisproject.Theissuescanbegroupedunderthefollowing

headings:importanceofTownCentreManagers;matchfundingelement;

decentralisationof

delivery;

services

provided;

and

appraisal

process.

ImportanceofTownCentreManagers

TheroleoftheTownCentreManagers(TCMs)wasacriticalpartofthedeliveryof

thisproject.Theypromotedtheprojectwithintheirlocaltowncentresandprovided

generaladviceandsupporttobusinesseslookingtomakeanapplication.TCMswere

inpostpriortothisproject.Evidencesuggeststhattheirexistingrelationshipswith

businessesprovidedcredibilitytotheRDPproject.TheTCMsworkedhardto

promotetheprojectintheirareas,attendinglocalbusinessevents,handingout

promotionalmaterialsandvisitingindividualbusinessestoinformthemofthe

projectandansweranyqueriestheyhad.Thiswasvitaltoensuringthat

beneficiaries

were

engaged

with

the

project

an

evaluation of wnf projects

Documents