welcome tony comber harlow centre for business support

Collaborative Strategies to Support SME Inclusion

Action Planning MeetingEast of England Region

Monday 3rd November 2003Latton Bush Centre, Harlow, Essex

9.30am – 4.00pm

Welcome

Tony Comber

Harlow Centre for Business Support

Morning Programme

10.00 Welcome, Introductions, Setting the objectives for the day

10.15 Public sector e-procurement - a driver for SME e-tradingPaul Keegen, UK online for business

10.40 Assessing the potential impact of LA e-procurement on the local economyMartin Scarfe, Newham Borough Council & NePP Programme Board

11.00 Coffee

11.10 The suppliers view, “what about the benefits to us?” - the end-to-end viewKevin Hart, Sage e-Services

11.25 Case study: collaboration in the South West RegionDick Willis, CNR

11.50 What’s happening here? Essex SME e-Enablement Project - Pete Perkins, Essex County Council Harlow - Tony Comber, Harlow Centre for Business Support Thurrock - Margaret Gozna, Thurrock District Council

Afternoon Programme

12.30 Lunch

13.45 The challenge, where are we now and where we need to get toIntroduction: Peter Duschinsky

14.00 Action Planning - Identifying and plugging the gapsBreak out groups, plenary

15.30 Final summary: have we got an Action Plan?Peter Duschinsky

16.00 Close

Objectives for today

• Our objectives today are to develop an Action Plan which:

– Recognises the impact on B2B companies in the East of England Region of public sector e-Procurement

– Helps EER pubic sector organisations to recognise the issue and take account of their local business communities in their e-procurement plans

– Helps EEDA, Business Links etc to support local businesses through the changes

– Creates the links to enable this to happen in a coherent fashion

Morning Programme




11.00 Coffee




Morning Programme



10.40 Assessing the potential impact of LA e-procurement on the local economy - Martin Scarfe, Newham Borough Council & NePP Programme Board

11.00 Coffee




Assessing the potential impact of Local Authority e-procurement

on the local economy in the London Borough of Newham

Martin ScarfeNewham Borough Council

& NePP Programme Board

Introduction

• Newham plans to implement e-procurement ahead of the national target, by 2004

• This will bring savings through increased transaction efficiencies but will also mean some consolidation of suppliers

• A large majority of businesses in London are micro firms (less than 5 employees) and are in low value sectors

• This is true of Newham’s suppliers

Economic Development

& Community Strategy

• Newham's economy is weak by London’s standards

• There are fewer local employment opportunities,particularly in high value, knowledge driven sectors such as finance and business services

• Proposed action to redress these realities include:− Improving the skills of the local labourforce− Making the local environment more attractive− Improving transportation− Reducing crime

Policy Context Summary

• SME support policy and economic and community development policy in Newham are already tightly integrated.

• Procurement policy however remains somewhat isolated

• e-Procurement’s intended outcomes – cost savings – do not have obvious ties to other policy areas

• It is the unintended consequences that are most relevant and must be addressed through a ‘joining-up’ of policies

Newham Has Fewer Businesses

than its Neighbours

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000

Barking andDagenham

Bexley

City of London

Greenwich

Hackney

Havering

Lewisham

Newham

Redbridge

Tower Hamlets

Number of VAT Registered Businesses

Agriculture and fishing

Energy and water

Manufacturing

Construction

Distribution, hotelsand restaurants

Transport andcommunications

Banking, finance andinsurance, etc

Public administration,education & health

Other services

Large Majority of Businesses

have Less than 5 Employees

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000

Barking andDagenham

Bexley

City of London

Greenwich

Hackney

Havering

Lewisham

Newham

Redbridge

Tower Hamlets

Number of VAT Registered Businesses

1-4 employees

5-10 employees

11-49 employees

50-199 employees

200+ employees

50

75

100

125

150

1995 1996 1997 1998 1999 2000 2001

Manufacturing Construction Distribution, hotels and restaurants

Transport and communications Finance and Business Services Public administration,education & health

London East Showing Signs

of Employment Decline

47.7%56.7% 60.2% 60.4%

6.7%

5.0%4.4% 3.4%

41.3%35.3% 32.4% 33.6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Newham London East Greater London Great Britain

% o

f p

op

ula

tion

ag

ed

16

-74

Employed Unemployed Inactive

Very Low Levels of

Employment in Newham

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

NVQ4+ NVQ3 NVQ2 NVQ1 + no quals

% o

f po

pula

tion

aged

16-

74

Newham London East Greater London

Newham Residents Have

Fewer Qualifications

High Levels of Deprivation

in Newham and East London

Summary analysis of

the match process

17,724

Modest match rate when all suppliers are included

Still very significant proportion of supplier file by value & transaction volume

‘Corporate’ match ratesignificantly better

33% of all suppliers are physically located in Newham

The Geography of

Newham’s Suppliers

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total Suppliers Total Transactions Total Value

% o

f to

tal

500 + 201-500 101-200 51-100 21-50 11-20 6-10 3-5 1-2 unknown

Size of Supplier

(employees)

96% of matched LOCAL suppliers by value employ less than 50 people

Local Transactional

Supplier Analysis

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

unknown 1-2 3-5 6-10 11-20 21-50 51-100 101-200 201-500 500 +

75%+50-7520-5010-205-91-5< 1%

Base: All Newham suppliers matched to the SMB Universe AND located in Newham

Employment Size

% o

f S

up

pli

ers

30% of small local suppliers are dependant on Newham for over 20% of their annual turnover

Local Supplier Dependency

Value per Employee (1) Total

Suppliers

% of which Suppliers in

Newham

Unknown 4,979 27%< 250 per Head 7,282 34%250-499 1,541 45%500-999 1,269 36%1000-4999 1,920 38%5000-9999 496 32%10000-24999 294 22%25000+ 193 24%

Total 17,974 33%

Distribution of Suppliers by Value of Transactions per Head

(1) if unmatched and supplier name is classified as an Individual, employment defaulted to 1

Identifying Suppliers Most at Risk

We looked for suppliers with high Council spend per employee – these would be most affected by loss of Council business

Suppliers assumed to be most ‘at risk’ (£ per head)

Generating ‘at risk’ Lists for Action

More than £10,000 Newham spend per head (ordered by size of spend)

Base: All Newham suppliers/creditors matched to the SMB Universe AND located in Newham

Neighbourhoods at Risk

by Vulnerable Employment

Total number of jobs in ‘vulnerable’ companies in deprived neighbourhoods

Neighbourhoods at Risk

(totals for companies at risk in deprived wards)

Ward Local Authority Total Number of Transactions

Total Value of Transactions

Total Number of Employees

Stratford Newham 9,494 7,018,925 166 Bromley Tower Hamlets 991 3,136,600 220 Cathedral Southwark 2,362 3,033,579 210 Ordnance Newham 885 2,342,528 148 Clerkenwell Islington 39 2,246,940 22 Bunhill I slington 57 2,239,909 66 Manor Park Newham 935 1,779,363 30 Monega Newham 136 1,617,998 16 Cann Hall Waltham Forest 27 1,594,927 70 St. Katherine's Tower Hamlets 52 1,396,029 130 Holborn Camden 2,622 1,216,971 109 Park Newham 3,666 1,210,096 79 Quadrant Islington 1,597 1,098,648 27 Chalvey Slough 630 1,048,423 60 Loxford Redbridge 1,305 1,001,818 87

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

10% mostdeprived

2nd decile 3rd decile 4th decile 5th decile 6th decile 7th decile 8th decile 9th decile 10% leastdeprived

Company Location by Level of Ward Deprivation

Nu

mb

er

of

Tra

ns

ac

tio

ns

-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

Va

lue

of

Tra

ns

ac

tio

ns

Number of Transactions Value of Transactions

Transactions

by Level of Ward Deprivation

Local Economic Impact Assessment

Summary

• Local economic risk is highly concentrated in a few wards, with Stratford - Newham’s commercial centre - the most vulnerable

• Businesses at risk in Stratford account for over £7 million in transactions and directly employ 166 persons

• The loss of even part of this capital and these jobs would have a strong negative impact on an already vulnerable area

• Approximately half of the jobs at risk in Newham are in skilled occupations (professionals, managers, administrators)

• Losing these jobs would have a disproportionate effect on the local economy

SMEs at Risk – Conclusions

• We are using the Impact Assessment analysis to target the most vulnerable companies

• We are working with spending departments to confirm their suppliers

• We will link up with business support agencies to assist local businesses with the transition to e-commerce

• The @London pilot scheme will offer an easy route for SMEs to move to e-trading with the Council and other corporate and public sector customers

Morning Programme




11.00 Coffee

11.10 The suppliers view, “what about the benefits to us?” - the end-to-end view - Kevin Hart, Sage e-Services



Morning Programme




11.00 Coffee




Morning Programme




11.00 Coffee



11.50 What’s happening here? Essex SME e-Enablement Project - Pete Perkins, Essex County

Council Harlow - Tony Comber, Harlow Centre for Business Support Thurrock - Margaret Gozna, Thurrock District Council

Afternoon Programme

13.45 The challenge, where are we now and where we need to get to

Introduction: Peter Duschinsky



16.00 Close

The challenge

Where are we now? • We have les than 18 months to March 2005• National e-Procurement Project ends March 04• Some local initiatives in place but little coordination

Where we need to get to?• Agreed Action Plan which coordinates approach of all

players in support of local SMEs

Afternoon Programme




16.00 Close

Action Plan

• What needs to be done?• What can each of us do?

– Councils

– Business Links

– Regional bodies

– ICT suppliers

– Trade Associations, business clusters, alliances

– Training Organisations, H.E (and F.E.) Institutions

What can Councils do?

• Initiate and support Action Plan

• Collaborate with neighbouring councils and other locally based public sector organisations

– ‘Share’ suppliers

– Develop common pre-qualification approach – minimise effort for suppliers

• Play role in local economic development

– Community Plan

– Best Value – longer-term sustainability of local economy

What can NePP do?

• Initiate regional workshops

• Demonstrate model for Regional Collaborative Action Plan

• Encourage development of Action Plan

• Raise awareness among local councils and other locally based public sector organisations

• Offer guidance and standards

WE CAN’T ACTIVATE COLLABORATION - ONLY YOU CAN DO THAT

What can Business Links do?

• Co-ordinate Action Plan, as main focus for local business support services

• Work with purchasers to identify and reach local SMEs that will be vulnerable as a result of public sector e-procurement

• Provide specialist advisers to help transformation (its not just the technology)

• Operate through brokerage to provide wide range of services and support

• Provide access to grants and other resources

What can Regional bodies do?

Regional Development Agency• Provide the necessary leadership and coordination

for Action Plan• Provide or leverage resources to assist engagement

processes

Learning and Skills Councils

• Help develop and support Action Plan• Provide resources to support skills upgrading

What can ICT suppliers do?

• Offer support for Action Plan• Design solutions for joined-up e-procurement to

ensure end-to-end benefits for purchasers and suppliers

• Provide necessary infrastructure investment for suppliers eg Broadband

• Provide systems expertise e.g. web-based help• Participate in initiatives eg e-Business Clubs,

Technology Means Business accreditation

What can Trade Associations,

Business clusters, Alliances etc do?

• Ensure their SME members’ interests are represented in Action Plan

• Use their influence with their members to disseminate key messages

• Provide services where relevant to help SME members through changes

• Offer mechanism, where relevant, for SME suppliers to collaborate to engage with public sector supply

What can Training Organisations,

H.E (and F.E.) Institutions etc do?

Training Organisations (incl learndirect) • Enable suppliers to acquire or enhance skills needed to

implement new technologies and processes• Offer variety of learning approaches – traditional to

online, including at workplace and at learner’s own pace and schedule

Higher Education and Further Education Institutions• Assist with skills development• Assist with process and change management• Offer students for short term projects [work experience]

Action Plan

Break out groups

1. Identify the gaps (20 mins)

2. Consider what needs to be done to plug the gaps– by whom

– by when

3. Plenary (30 mins)

(30 mins)

Afternoon Programme




16.00 Close

Action Plan

Have we got an Action Plan?

welcome tony comber harlow centre for business support

Documents