Have your say! Business support - Part 3

Have your say! Business support - Part 3

April 28, 2010 by Rory MccGwire

Earlier this year, entrepreneur and founder of The School for Startups, Doug Richard, published his Entrepreneurs’ Manifesto – a “declaration of rights” for small businesses.

The manifesto sets out eight demands to a new government, each of which addresses a different key concern for businesses. In the build-up to the 6 May general election, Donut MD Rory MccGwire is offering his thoughts on the issues raised by Doug Richard.

Put simply, Doug Richard has suggested that we should scrap Business Link and move government-funded business support online.

In Part 1 of this blog I summarised the recent history of business support in the UK. I concluded that, after 20 years of heavy expenditure, one precious asset that we have is a brand that most business people recognise. Business Link is “the place to go to access whatever help is available”.

In Part 2, I looked at who ‘the customers’ of business support are, and how they would like to receive help. I concluded that it is a very broad audience and that business novices make up a large proportion of the group. The latest research confirms that they prefer one-to-one help to online help, although I am the first to agree that online business support is extremely cost-effective and is more popular with experienced business people. (The popularity of one-to-one support should not come as a surprise to anyone, as it mirrors the way we behave in the rest of our business lives. When we have a question, we usually approach ‘someone who knows’ for the answer.)

So the question for the final part of this three-part blog then becomes something like ‘How is this offline help best given?’, ‘Who should be doing it?’, and ‘What tools/methods can make these delivery methods more cost-effective?’.

Let’s see; what do we already do that works well? Answer: loads of things.

Take start-ups. In the UK we provide start-up packs, start-up seminars, start-up advisers, telephone helplines, and start-up premises (if there is a vacant premises lying around). Although the quality of business support services vary from place to place and from adviser to adviser (more on that later), the business novices who I meet tend to be pretty grateful for the support they have received and think it really has been useful.

Start-ups need to get their hands on a lot of information very quickly, such as information on how to do basic book-keeping. But a typical question from a start-up is not “How do I sell?” but “How do I sell to Mr Smith at ABC Ltd?”. And the person asking this question is really asking for two things. Firstly, they want some suggestions on which types of approach might work best in that specific situation. And secondly, they want reassurance and encouragement from a fellow human being along the lines of “I know that this is totally outside your comfort zone, but go on, you can do it!”. Let’s face it, starting up a business is a lonely, worrying, risky thing to do, so the emotional side of business support is massively important.

Did you notice how difficult that question was by the way, the one about selling to Mr Smith? Most people would struggle to give a good answer to that question. Which brings me on to my next point.

With the right team, you can work out what the 100 most common questions are from start-ups on the topic of sales, and you can then find 1-5 good alternative answers to each question. You can put these questions and answers on a website, for those people who like to browse businesslink.gov. And you can also put them into a business support knowledge bank, which is exactly what clever East Midlands Development Agency has done, so that anyone in any local business support organisation can use (and contribute to) these questions and answers.

I know this is all possible, because it is what my company does for a living. We find out what all the most common questions are, then provide the answers and keep the whole library up to date each year. Any company with our skill-set could do it.

It is worth noting that the involvement of an outside ‘supplier’ seems to be essential. The Training and Enterprise Councils, Business Links and Regional Development Agencies have never been good at knowledge banks; hundreds of new items of “useful” information simply pile up month after month without being organised, tagged, edited, de-duplicated or later updated.

In the UK we seem to have spent the last 30 years squabbling over budgets and contracts and who does what - and always with a focus on the delivery end of things. It is only since the businesslink.gov website came along that we have started to realise the value of providing excellent tools for those delivery organisations to use.

Look at Tesco. How would they run business support in the UK? They would hire the best of the best to create (and keep up-to-date) a set of integrated ‘products’ that their network could then deliver. They would have three suppliers of each type of product at any one time, to keep the suppliers on their toes (think CRM software, training courses, brokerage system, knowledge bank, CPD, and so on). But they would pay the suppliers properly and they would enable the suppliers to build up capacity and world-class know-how in their niches (rather than stopping to re-tender the contract every five minutes like the public sector does).

Would Tesco keep the regional Business Link offices? They could not say, until they were a lot clearer on their budget and their objectives for the next decade. But we can be sure that they would end up with a slick, branded, easy-to-access service that achieved what the customer wanted. They would use ‘invisible shopper’ market research to improve the service, as this quickly identifies the problems and the opportunities for improvement.

Let me finish on this point of economics. Business support is not just a cost. Every time we help a good company to be brilliant, we boost employment and GDP. And, looking at the other end of the scale, every time we help a long-term unemployed no-hoper to start in self-employment (even if it is just as a gardener or window cleaner), we boost employment and GDP and reduce the welfare burden on the state.

Last year the UK spent £80bn on education. We spent £97bn on welfare. And every year we happily dish out taxpayer-funded training to public sector employees on everything from assertiveness and teambuilding to you-name-it. These are vast sums of money and any spending on business support needs to be judged in comparison with these other budgets and what they achieve for our society.

Just as it makes economic sense to have a workforce that is literate and numerate, it makes sense to have owner managers who know how to start-up, run and grow a business. Personally, I do not think that taxpayer-funded business support needs to be an expensive operation, but it does need to be high quality and accessible, both online and offline.

I look forward to your comments.

Read Doug Richard’s Entrepreneurs’ Manifesto

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Comments

Me and my friend were arguing about an issue similar to this! Now I know that I was right.Thanks for the information.

trying to improve the quality and quantity of enterprise training and support (plus get a fair share for start ups and micro enterprise owners of the govt skills and support purse) it has been constantly one step forward and two steps back. No wonder we're only the 12th ranked country as a place to start a business - my concern is that we get further and further behind the top 3 countries even though we've known precisely what New Zealand does right for over ten years. Panic Away Review

i interested businness but...i don't now how to strart

[...] Have your say! Business support – Part 3 [...]

[...] Have your say! Business support – Part 3 [...]

Wow Rory - you've certainly been busy. I think we share the same anxiety about what a new government will do next.

Certainly, we both know that politicians and senior civil servants don't listen to business owners like us and have no memory of what works and what doesn't.

In the 25 years I've been running my own businesses and 15 years of SFEDI - trying to improve the quality and quantity of enterprise training and support (plus get a fair share for start ups and micro enterprise owners of the govt skills and support purse) it has been constantly one step forward and two steps back.

No wonder we're only the 12th ranked country as a place to start a business - my concern is that we get further and further behind the top 3 countries even though we've known precisely what New Zealand does right for over ten years.

As you mention me & SFEDI by name in your Part 2 blog on business support - here are 3 ways SFEDI supports your views to the next government:

1) The SFEDI Advisory Board (all the major small business membership e,g. FSB & FPB and national business support organisations e.g. ACCA & NFEA is broadly in favour of Doug Richard's report and recommendations. Whlist all the SFEDI Advisory Board members have their own enterprise manifestos our joint effort which focuses on pre start and start ups is at www.sfedi.co.uk

2) The biggest problem is the new government must differ from its predecessors - for the enterprise agenda it must a) listen -government folk have no idea what it takes to start and run your own enterprise - if they did, as you say, theu wouldn't be so disparaging about what they term 'disadvantaged' or 'lifestyle' businesses. The employment rate would look really sick without 1 million more self employed, small and home business owners than the lasst recession.
b) enable - the private sector and voluntary sector can self regulate against SFEDI standards and other professional qualifications and do a damned good job of giving everyone who starts their own business the right in context of them as an individual and for their business (your sell my product to Mr Smith example) skills, know how and support to survive and thrive.
c) don't meddle - in order to govern civil servants, on behalf of ministers, design the products and develop agencies and organisations to deliver them. By the time they've done this with daft diagnostics to meet spurious targets there's very little money left in the budget to help the small business owner. It is madness. Proven low cost, high value enterprise support has shown with 25,000 long term unemployed people starting a business that 85% will survive over 3 years and 6% will become substantial employing businesses (we can't pick winners though - we don't don't know which of the start ups will fall into the 6%). This is way above the average - let's just do what works in practice.

3) Increase the birth rate of new enterprises. Julie Meyer said at our recent SFEDI Awards 'do' at Kensington Roof Gardens that she knows hardlly anyone under the age of 30 that wants to work for someone else. I know hardly anyone over the age of 45 that doesn't realise that now or within the next 10 years they'll have no alternative but to go it alone.

All the research shows that people will work for themselves if they're given the confidence. Confidence comes from having the right skills, know how, business concept and support. SFEDI describes what these are at www.sfedi.co.uk.

Just like every other career everyone who wants to run their own enterprise should have access to the appropriate skills, know how and support to achieve this and control their own destiny.

Continuing support and learning after start up can largely be bought from existing professionals (coaches, accountants, mentors and advisers) and free or low cost from online and offline small and home business owner networks. Govt advisers will never be as credible as small business owners helping other small business owners.

Not much humour there then! I suggest all the answers to the questions you pose and a lot more laughs are available in 'Stripping for Freedom' by Leonora Soculitherz (www.amazon.co.uk and www.entrepreneursuk.com)

Cheers
Tony

In Belgium (not always a promising start for a convincing argument!) the state pays existing self-employed people to run start-up courses for new self-employed businesses.

This gives the tutor businesses an extra income stream, and goes some way to ensure that the courses are on the right wavelength.

Ian.

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