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Greening businesses

Greening businesses

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  • Schumpeter : Theory of economic innovation and progressConcept of Creative destructionJoseph Schumpeter, particularly in his book Capitalism, Socialism and Democracy, first published in 1942. Applying similar approaches to rural economies on the basis that they represent fractured markets where agriculture or rural economies are failing where entrepreneurs enter the rural economy to replace or develop agriculture this will form a force for log term economic renewal that can develop:Vital, Vibrant, Viable rural economies and societies
  • So lets bring greening business into Urbanisation agendas and internal demand driving productivity and consumption
  • Tangible: fractured markets where a gap exists in skills tackling new opportunitiesProviding jobs: getting people into employment reduces tax burden and helps retain family units, and community infrastructure
  • What gives me the right to comment on this in a practical senseUnderpinning by ICT and access to market information via ICT to improve
  • Over capitalisedLoss making core businessMaintained through subsidiesViable only through rising land valuesIt became clear that there were more fundamental issues in the market and that it was possible to consider it as a fractured market. That is to say a market with significant dislocations requires access to the skills, knowledge and finance to make the market efficient and profitable. This was given added incentive within the planning cycle of the project of the impact of the new entrants expected to be admitted to the EU in 2005 and 2006 that still had significant contributions to GDP made through rural and agricultural based activities.
  • Outlook was positive give
  • We were able to integrate several critical policy initiativesVarious policy strategies emerged over this period to ensure that the East of England retained its competitiveness within the UK and that its sub-regions were equally competitive. Therefore, it was possible to align a number of these strategies together to form an inter-linked approach to resolving the identified fractured rural economy. For the context of this paper two major alignments were possible. A network of university sector organisations was created called i10. This group brought together all the business development and innovation units from each university into on hub to bridge a more effective route to the market. A second initiative was the bringing together of the skills and development organisations within the region into a rural support network. In its first cycle of funding this was the Agricultural Diversification in the Eastern Region and in its second cycle Agricultural Development in the Easter n Region (ADER). This grouping brought the small business advisory service together with the six sub-regional agricultural colleges, the government department responsible for farming and rural businesses (MAFF then DEFRA), CLA (County and Landowners association) and the private training providers agricultural training board (ATB).Access to information of the correct form and at the correct time to make efficient decisions that permitted access to support funds to develop and diversify their business. This allowed small businesses to access research and development support through the university networks and the skills development agencies more directly. It also allowed access to funding streams not normally accessible such as university innovation funds and community development funds.
  • Transcript

    • 1. Implementation issues Dr James A MacAskill Dean St James’s Business SchoolBritish Institute of Technology and E-Commerce
    • 2. A perspective• Moving to a post hydrocarbon knowledge economy• $211 billion invested in renewables but issues – Food security – Inconsistent tax benefits and regulations – Expensive per energy unit produced – Downstream toxicities• Urbanisation issues – Plenty of green options based in rural economies – Skills depleted regional economies• Nuclear option
    • 3. Bridging the route to market Concept of Creative destruction Joseph Schumpeter 1942•From partnership to profit•Policy into realityEntrepreneurial outcomes E.F. Schumacher “Small is beautiful” 1973, concepts of appropriate technologies & sustainable development
    • 4. Country Rural population UK 23%Romania 48% Japan 23%Germany 13% China 56%
    • 5. Greening business = innovation• Alternative uses for existing assets• Waste minimisation• Turning waste into usable products• Closed cycle systems• Small scale rather than large scale reducing environmental impact• Large investments long product returns
    • 6. Being pragmatic• Tangible drivers for change – Fractured markets• Reality of policy – Support often poor and insufficient• Providing jobs – Higher value – Societal benefits• Models within Regional economies – Rural economic impact • Farming sector
    • 7. Project (10 funding) Location Partners ActivityOmapood UK, Baltic states 10 Commercial Retail cooperative 2 Regional Gov(UK-KHF+) 1 State Gov 2 HE & FE UK, The Netherlands Baltic states 3 HE, 20 commercial Food quality mark andQUEST (PHARE) 4 regional gov regional brand UK HE Business advisory signpostingWaymark (ESF+RDA+) Local authority, service enterprise agency, Hungary Sister Waymark network Business advisory signpostingHTVK (EU + RDA+) in Hungary service UK 6 FE, 6 regional gov, 2 Rural business recovery,ADER (ESF+RDA+) regional & enterprise advisory and training service development agencies 4,000 rural businesses Romania 125 commercial Marketing and diversificationCDR (World Bank +) 4 HE, 25,000 Ha consortiumPraxis (Interreg IIIc+) UK, Spain, Belgium, France, Poland, 2HE Counter rural unemployment Romania, Greece, Italy, The 8 Regional gov through rural enterprise Netherlands 4 enterprise agencies Toolkit for SME supportRural Innova (Interreg France, Spain, Italy, Portugal, 7 regional gov Good practice exchange Belgium, Hungary, Lithuania 2 HE, 5 enterprise and network for rural employmentIIIc+) development agencies
    • 8. Rural Economy in East of England• Many role for farming – Food and drinks industry – 15-25% of GDP• Fractured market• Ageing profile with average farmer age in UK 59 years• 60% face of bankruptcy in 2000• CAP reforms and accession pathways• Accession state pressures
    • 9. Moving away from convention• Conventional approach – Subventions – Interventions – Production subsidies• Farm businesses operating as quasi state owned businesses to entrepreneurial and open market focused SME’s
    • 10. Supporting• Maintaining a vibrant vital and viable countryside – Help restructure the market – Help to re-skill and gain employability skills – Help develop and diversify income streams – Help with environmental protection – Help with alternative building approaches• Introducing renewables and environmental considerations
    • 11. Prospects for AgricultureProspects for food industry Prospects for drinks industry
    • 12. Strategy integration• University network i10 – All regional university sector organisations including Cambridge• Regional Development Agency• DERFA• All regional agricultural colleges• National business support services• Land owners association• Agricultural training Board
    • 13. Strategy drivers“……encouraging and supporting enterprise and innovation in rural business, and encouraging people of all ages to participate in quality learning opportunities.”.Go East• Support for stabilising businesses• Support diversification• Support development• Creating virtual and physical hubs for business support and skills development• Support in environmental pollution control and prevention
    • 14. Achievements• Created a comparative regional competitive environment• Provided stability to allow transformation to occur• Contributed to rise in world competitive index and UK competitive index (8 and 6 places)• 40% of business reported turnover increases• Estimated 294 FT and 546 PT jobs created• Income from diversification rose from £10,900 to £18,400• Income for tourism rose from £244 to £5,900 per farm
    • 15. What about renewables• Set out to create awareness of alternatives – Universities have some of the leading climate change experts and alternative energy• Set out to create practical CAP reforms and NZ legislation awareness• Set out to advise on redundant buildings and sustainable building practices• Set out environmental village plans as a demonstration site
    • 16. Putting to practice• Materials • Design principles – Joinery – Solar gain – Cladding – High thermal mass – Insulation – Super insulation – Concrete – Passive ventilation – Photovoltaics – Reduce trades – Recycle materials and building products
    • 17. Dealing with sustainable buildings• Show it can look good• People can work in them• Re-learning how a building operates• Re-learning how building absorb and release heat• Helping new users get the bets out of sustainable buidings• Using surplus energy
    • 18. Lessons Learnt• Meaningful business support moving beyond simple intervention• farmers re-employed in other sectors• integrated approach to rural business support adopted by current mainstream providers• improved offer from regional agricultural colleges, reflecting improved knowledge of farm diversification needs and the experience of running joint-programmes• best practice of regional and national significance in engaging with farmers, including ‘hard-to-reach’ groups and women.• Increased societal benefits
    • 19. Thank you Dr Jamie MacAskill Tel: +44 (0) 2079 308 886 email:“Some peoplesee things asthey are andsay why. Idream thingsthat neverwere and saywhy not?”GeorgeBernard Shaw
    • 20. Academic Curriculum Development Market orientation Improve business process Seminars & Partner visits Business OutcomesPartners master classes Benchmark financing Business plan financing Workforce Development Value added Commercial Copyright Jamie MacAskill 2003 - 2011
    • 21. •Framing the issues •Delivery teamPartners •Screening •Trust •Reliable local manager •It takes time Copyright Jamie MacAskill 2003 - 2011
    • 22. Curriculum DevelopmentPartners Seminars & •Responsive master classes •Socialisation •Multi-dimensional •Training trainer •Team bonding Copyright Jamie MacAskill 2003 – 2011
    • 23. Curriculum Development Seminars & Partner visitsPartners master classes benchmark •Sharing experiences •Sharing resources •Test assumptions Copyright Jamie MacAskill 2003 - 2011
    • 24. •Preferred access to partners accessing programme •Linking regional support more closely •Integrated approach to programme planning •Combining resources strengthens business plan •Sharing risks Seminars & Partner visits BusinessPartners master classes Benchmark financing Value added Commercial Copyright Jamie MacAskill 2003 - 2011
    • 25. Academic Curriculum Development Market orientation Improve business process Seminars & Partner visits Business OutcomesPartners master classes Benchmark financing Business plan financing Workforce Development Value added Commercial Copyright Jamie MacAskill 2003 - 2011
    • 26. Values Chain Seminars & Partner visits Business OutcomesPartners master classes Benchmark financing Trust Chain Copyright Jamie MacAskill 2003 - 2011
    • 27. Academic Curriculum Development Market orientation Improve business process Seminars & Partner visits Business OutcomesPartners master classes Benchmark financing Business plan financing Workforce Development Value added Commercial Copyright Jamie MacAskill 2003 - 2011