Lisbon Conference Peter R

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Slides from a speech about ethnic minorities and business support in the Phoenix Development Fund . There is a paper to accompany the speech published by the Portuguese ministry

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Lisbon Conference Peter R

  1. 1. Ashes to ashes: experience from the UK’s Phoenix fund Peter Ramsden, Lisbon 3 rd November 2008 Peter Ramsden Director of Inclusion
  2. 2. Phoenix Development Fund <ul><li>The Development Fund is designed to encourage innovative ideas to promote and support enterprise in disadvantaged areas and in groups currently under-represented in terms of business ownership. Its purpose is to encourage experimentation, the evaluation of new ideas and the identification and spread of best practice </li></ul><ul><li>95 projects selected to last 3 years of which 25 had extra 2 years </li></ul>
  3. 3. Evaluation: Terms of reference and methodology <ul><li>Fresh thinking : to what extent has the Development Fund encouraged fresh thinking about stimulating enterprise and business support to people in disadvantaged areas and in under-represented groups;  </li></ul><ul><li>Effectiveness: How effective have specific project type approaches been? Training, outreach, incubation, enterprise champions, etc;   </li></ul><ul><li>Reaching target groups: To what extent have projects to help particular sections of the community been successful? (e.g. disadvantaged areas, women, Black and Ethnic Minority, people with disabilities etc);   </li></ul><ul><li>Mainstreaming: To what extent has the Fund helped to engage mainstream providers in the support of entrepreneurs in disadvantaged groups and communities.   </li></ul><ul><li>Capacity : To what extent has DF funding helped to build capacity within the organisations that are running projects? </li></ul><ul><li>Methodology: 3 surveys, two questionnaires of 95 projects, telephone survey of 800 beneficiary enterprises, 24 case studies based on field visits </li></ul>
  4. 4. Key questions <ul><li>What have we learnt about outreach using specialist services? </li></ul><ul><li>What are the drawbacks of the specialist model? </li></ul><ul><li>Can it be sustained? </li></ul><ul><li>What should the support system look like? </li></ul>
  5. 5. BME and migrant facts <ul><li>80% of Pakistani and Bangladeshi have incomes < 50% of national average </li></ul><ul><li>80% of new migrants working on hourly rates close to minimum wage </li></ul><ul><li>50% of all Muslims in the UK of working age are ‘inactive’ especially women (27% active) </li></ul>
  6. 6. BME business characteristics <ul><li>250,000 BME businesses in 2005 (out of 4.3million) </li></ul><ul><li>£15 billion in turnover </li></ul><ul><li>Younger - 20% of BME businesses have been trading less than 3 years (compared to 14%) </li></ul><ul><li>More based in services (90% compared to 70%) </li></ul><ul><li>Located in the poor inner city : 40% located in poorest 15% of electoral wards (25%) </li></ul><ul><li>High level of aspiring and actual entrepreneurs (Other Asian and Black 3 times the Total entrepreneurship activity) </li></ul><ul><li>High self employment for some groups 19% of Bangladeshis and Pakistanis, 18% of Chinese, 15% of Indians </li></ul><ul><li>Low for others – african caribbeans 7% (12% white) and Asian women especially Pakistani and Bangladeshi (<1%) </li></ul>
  7. 7. Reasons for low take up of business support by BME groups <ul><li>Cultural and language differences </li></ul><ul><li>Lack of trust and confidence </li></ul><ul><li>Lack of awareness of services (and these services do not exist back home) </li></ul><ul><li>Inexperience in engaging support </li></ul><ul><li>Not linked to other advice needs (e.g. on immigration, welfare rights) </li></ul><ul><li>(David Smallbone) </li></ul>
  8. 8. Faith in business: Piggy backing <ul><li>An outreach technique using pastors in Baptist churches </li></ul><ul><li>Focusing on raising levels of enterprise among African caribbeans </li></ul><ul><li>Developing faith based business clubs and a loan fund </li></ul><ul><li>Uses church congregations and pastors as the route into the community </li></ul><ul><li>Potential to link to 3000 black majority churches and 300,000 adherents in the UK </li></ul>
  9. 9. East end micro credit consortium: Hub and spoke outreach <ul><li>Micro finance delivered through a hub and spoke model </li></ul><ul><ul><li>Finance hub - Environment trust </li></ul></ul><ul><ul><li>homeless families unit - outreach </li></ul></ul><ul><ul><li>- Account 3 - outreach </li></ul></ul><ul><li>- Quaker social action (streetcred) outreach </li></ul><ul><li>Peer group methodology (groups of 5 like Grameen bank) </li></ul><ul><li>High deal flow after 18 months – 150 loans with Very hard to reach target groups - Bangladeshi and Somali women in London’s East End </li></ul><ul><li>High social but low economic impact </li></ul><ul><li>Now continuing through Fair Finance and EERT </li></ul>
  10. 10. IMRC working with refugees and ethnic minorities <ul><li>Refugees are, in general, determined and enterprising individuals, often with professional and commercial skills. </li></ul><ul><li>Even those with business backgrounds need help adapting to the culture of British business and finding their feet </li></ul><ul><li>  clients need confidence building and emotional support. advisors should show sensitivity. Ideally they should also use counselling and listening techniques. </li></ul><ul><li>Refugees are often dealing with other major life challenges - such as personal and family life disruption - related to their immigration. </li></ul><ul><li>IMRC   builds a listening and learning relationship, and understanding their unique set of difficulties and dilemmas. </li></ul><ul><li>Standard support packages are inappropriate. </li></ul><ul><li>advisers need to be culturally appropriate and sensitive - particularly to norms of politeness, respect and hospitality. </li></ul>
  11. 11. Targeting works <ul><li>80% of BME and migrant clients were reached by 15% of the projects (similar findings on women entrepreneurs) </li></ul><ul><li>Most of these projects were specifically focused on BME communities </li></ul><ul><li>Generalist projects, even when working in inner city areas did not achieve high proportions of BME clients although some achieved high numbers (e.g. Prince’s Trust) </li></ul>
  12. 12. Fresh thinking in outreach <ul><li>Piggy backing locally based community organisations to access hard to reach communities- using the capacity of a locally based community organisation to reach the group (faith in business) </li></ul><ul><li>Hub and spoke approaches (East End Micro Credit Consortium, Ideaspark) </li></ul><ul><li>Building community capacity to deliver business support (Ideaspark but also Equal project Reflex/ ACBBA) </li></ul>
  13. 13. New ways of working with clients <ul><li>Working in the clients community, culture and language (Nazir associates, Ideaspark, IMRC) </li></ul><ul><li>Working with them from inside their community </li></ul><ul><li>Providing support to the client to sort out non business problems (most projects) </li></ul><ul><li>Finding new ways of supporting clients – e.g. mutual support through peer, EEMC), mentors (Business enterprise centre) </li></ul>
  14. 14. What does Phoenix tell us about business support for migrants? <ul><li>Specialist approaches are needed to reach significant numbers of particular groups </li></ul><ul><li>There are trade offs between economic and social impact </li></ul><ul><li>Mainstream business support services are not used by disadvantaged groups and often ignore disadvantaged areas </li></ul><ul><li>People often need intense help that goes beyond the business plan and includes confidence building, coaching, childcare etc </li></ul><ul><li>Self employment is very important for groups that are most discriminated against in the labour market </li></ul><ul><li>For many people it is a stepping stone to employment </li></ul><ul><li>Diversity is very diverse (along group lines and gender lines) </li></ul>
  15. 15. The problem of specialist support <ul><li>Specialist business support for BME and migrants has developed as a separate system </li></ul><ul><li>few linkages to the mainstream </li></ul><ul><li>Not financially sustainable </li></ul><ul><li>Dependent on alternative funding streams that are threatened (Equal, Phoenix ) or hard to access (ESF/FSE, ERDF/FEDER) </li></ul><ul><li>Patchwork of provision – geographically and for groups </li></ul><ul><li>Confusing to the customer </li></ul>
  16. 16. Key questions <ul><li>What have we learnt about outreach using specialist services? </li></ul><ul><li>What are the drawbacks of the specialist model? </li></ul><ul><li>Can it be sustained? </li></ul><ul><li>What should the support system look like? </li></ul>
  17. 18. Some lessons <ul><li>Groups are useful for analysis but bad for planning policy delivery </li></ul><ul><li>Diversity is itself very diverse </li></ul>
  18. 19. Resources <ul><li>[email_address] </li></ul><ul><li>Case studies on http://wikipreneurship.eu and Leading lights </li></ul><ul><li>2 Major evaluation reports by Peter Ramsden on the BERR website </li></ul><ul><li>Key learning points: Investing in success reports </li></ul>
  19. 20. Some common characteristics of community based business support <ul><li>Empathetic </li></ul><ul><li>Client focused </li></ul><ul><li>Reaches out </li></ul><ul><li>Tranformational and developmental of the person and the business </li></ul><ul><li>Empowering </li></ul><ul><li>Intensive (and often intense) </li></ul><ul><li>Open ended not rationed </li></ul><ul><li>Safe and trusted (not an arm of the state) </li></ul><ul><li>Free at the point of delivery </li></ul><ul><li>Recognises the diversity of diversity </li></ul><ul><li>Accessible and usually located in the community </li></ul><ul><li>Not just a business plan or a referral </li></ul>

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