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Business Brokerage Conference Presentation


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Business Brokerage Conference Presentation

  1. 1. Brokerage: The Future for Employment & Business 7 th March 2006 University College London CONFERENCE
  2. 2. Brokerage: The Future for Employment & Business Welcome Dr Dan Brown Entrepreneur in Residence University College London
  3. 3. The Case for New Forms of Business Support Marcia Harris Chief Executive Officer IEA
  4. 4. What is the problem? Enterprise is the lifeblood of our economy - boosting productivity, creating employment and prosperity, and revitalising our communities – says the Government. But business start-up rates in the United States are almost twice as high as those in Britain. We do worse than many other OECD countries when it comes to female entrepreneurship (with women starting only about 1/3 as many businesses as men). And across the UK, start-up rates in the best performing areas are ten times those of the worst, contributing to an enterprise gap in our inner cities of 88,000 companies, £5 billion in turnover and tens of thousands of jobs.
  5. 5. This enterprise gap in deprived areas is further compounded by a lower survival rate of businesses compared with more affluent areas. To put this into context, according to Feb 2006 SBS figures for the UK, 25% of VAT-registered businesses (i.e, the larger ones)do not survive 2 years; an additional 15% do not survive 4 years, and only 31% survive 10 years.
  6. 6. What helps businesses survive? Intensive support. Start-ups in business incubation environments have a much higher survival rate than the UK average. More than three out of four incubator start-ups are still in business after five years, compared to one in three that did not start with incubation. They have a survival rate of 90 per cent compared with a UK average of 33 per cent over five years for start-ups not using external support. (Oxford Trust Annual Innovation Census, February 2003)
  7. 7. Ian McCafferty, the Confederation of British Industry's chief economic adviser, said recently (January 2006): "Quality business support is proven to boost survival and growth prospects. [It] is essential to enabling an 'enterprise revolution'. … However, there are too many overlapping, confusing and inconsistent schemes…. New and growing firms face a ‘baffling array’ of conflicting Quangos, grants and agencies, which spend more than £8 billion of public money every year. ”
  8. 8. What can we do to provide cost-effective help? We need to help growing businesses help one another: <ul><ul><li>by serving as customers and suppliers to one another, </li></ul></ul><ul><li>by sharing best practices across sectors and regions, </li></ul><ul><li>and by creating their own ‘old boy’ network to do so. </li></ul>
  9. 9. Some ethnic communities do this already. For example, in African-Caribbean communities, according to a Bank of England report, ‘partnering schemes’ are popular. These schemes are similar to the stockvelds in South Africa, which are family cooperatives of mutual savings funds. In South Asian communities, a number of business organisations and clubs concentrate on provide support and practical assistance in dealing with banks and in lobbying at a regional and national level, again according to the Bank of England report. It also indicates that in these communities, informal financial intermediaries are relatively common.
  10. 10. <ul><li>Online brokerage schemes that </li></ul><ul><li>link individuals through shared interests or backgrounds, </li></ul><ul><li>connect would-be employees to would-be employers, </li></ul><ul><li>bring suppliers and customers together, </li></ul><ul><li>can enable these informal networks to grow, expanding both the number of participants and the number of ways in which support can be provided. </li></ul>
  11. 11. <ul><li>Of course, this doesn’t eliminate the need for professional business support for the businesses but… </li></ul><ul><li>It enables such support to be more financially efficient, </li></ul><ul><li>focusing on identified areas of need, and </li></ul><ul><li>providing some services to a broad category of companies, </li></ul><ul><li>so that one-on-one support can be reserved for the areas where it can be most effective </li></ul>
  12. 12. On line networks are the modern technological version of good old-fashioned word of mouth, and they are cost-effective ways of reaching the large number of SMEs who currently get no services at all. The CBI’s study found, for example, that Business Link was used by only 1 in 7 firms. Our own research at IEA has found that many SMEs fail without knowing why, and go on to make the same mistakes again, without seeking help, without even knowing where to seek help.
  13. 13. We at IEA are setting up sector specific online ‘brokerage networks’ , that motivate participation by enterprises in the sector through entertaining multi-media content and competitions that draw SME contestants and larger corporation buyers. The first of these is HybridLab
  14. 14. HybridLab is an interactive, international web channel scheduled to go live in April 2006. The purposes of HybridLab are: To promote and support new creative enterprises, especially those developed by black and minority ethnic, refugee, women and other disadvantaged entrepreneurs in advanced economies and those developed by entrepreneurs in emerging economies. HybridLab enterprises are the cutting edge – and they’re located where you might not expect to find them – in emerging markets from Barbados to Brixton to Bulgaria, wherever new creativity is crackling. In addition to innovative narrative programming content (outlined below), HybrdLab’s platform hosts a multi-themed gallery, showcasing carefully selected creative enterprises. HybridLab members have access to focused business support and mentoring, high quality online training and professional development opportunities, collaborative forums and other peer interactive opportunities
  15. 15. To encourage collaboration and innovation among creative entrepreneurs by providing them with opportunities to participate in cross-sector and/or cross-cultural ‘fusion’ projects. HybridLab brings together traditional and new creative sectors (video animators and landscape architects, fashion designers and CAD-based industrial designers, garage musicians and traditional marionette troupes, electronic game designers and live theatre performers, folk crafts persons and new media advertising specialists…and so on) as members of an interactive community with online learning and business mentoring as well as peer support by sharing experience, promoting one another across sectors and doing business with one another.  
  16. 16. HybridLab’s programming is an innovative use of new media reaching audiences that include consumers, wholesalers, buyers and promoters. It provides these audiences with some of the very best of undiscovered creative talent. HybridLab’s exciting multi-media narrative programming format is a series of online sector-focused interactive reality shows with a ‘competitive edge’.   Each show will be a contest in a narrowly defined creative sector, with awards of sector-relevant promotion (press, events, buyers) and/or collaborative contract opportunities. Sample awards include a gig at IEA’s co-sponsored Caribbean Creative Enterprise Conference and inclusion on a CD with newly developed technology (made available to us by University College London) for virtual presentation to be distributed to sector buyers at a major trade fair.
  17. 17. At IEA, we are also using on-line ‘brokerage networks’ to provide otherwise unavailable content to small construction companies through our Conexus website , enabling these SMEs to meet sector regulatory requirements cost effectively (even saving money) as well to provide other web-based business support services (including collaborative consortia to bid for jobs) in a virtual context.
  18. 18. We at IEA think that this is the way of the future. Not to eliminate face-to-face support but to raise awareness of the need for such support – and to encourage business-to-business supplementary support – to maximise the opportunities for SME survival.
  19. 19. [email_address]
  20. 20. Alex Pratt Chairman, Business Link for Milton Keynes, Bucks & Oxon
  21. 21. 3 Key Messages to take away- a) It‘s about Supply AND Demand b) Solves Consumption Inertia c) Customer Driving
  22. 22. [email_address]
  23. 23. <ul><li>‘‘ PROMOTING ECONOMIC </li></ul><ul><li>BUSINESS </li></ul><ul><li>and </li></ul><ul><li> COMMUNITY </li></ul><ul><li>REGENERATION ” </li></ul><ul><li>Through PARTNERSHIP----- in Acton, Ealing and adjoining West London Boroughs. </li></ul>Brokerage: The Future for Employment & Business John Blackmore Chief Executive, Action Acton
  24. 24. A potted history <ul><li>Action Acton evolves from Central Acton Partnership formed 1996 to tackle the decline in Acton </li></ul><ul><li>1999 - Partnership secures £11.7million SRB grant for regeneration of Acton -with 'match' funding exceeds £47 million by end of SRB in March 2004 </li></ul><ul><li>Action Acton successfully delivered all SRB outputs </li></ul><ul><li>SRB ends-- Action Acton continues as CHARITY </li></ul><ul><li>Since 2004 wins funding from LDA, ESF, ERDF, EQUAL, LSC,Home Office, Big Lottery, Ealing Council </li></ul><ul><li>CHALLENGE –to become Sustainable organisation </li></ul>Brokerage: The Future for Employment & Business
  25. 25. BUSINESS PLAN KEY THEMES 2005-2008 <ul><li>1. JOB BROKERAGE —helping disadvantaged individuals into employment </li></ul><ul><li>2 . BASIC SKILLS ---helping disadvantaged individuals improve basic skills/job skills for disadvantaged </li></ul><ul><li>3 . BUSINESS SUPPORT </li></ul><ul><li>4. REGENERATING ACTON TOWN CENTRE </li></ul><ul><li>5. ECONOMIC REGENERATION— Borough wide and sub regionally. </li></ul><ul><li>6. COMMUNITY DEVELOPMENT - for disadvantaged communities </li></ul><ul><li>7.Action Acton - SUSTAINABLE ORGANISATION </li></ul>Brokerage: The Future for Employment & Business
  26. 26. ACTION ACTON--Current Delivery <ul><li>EXODUS -EQUAL prisoners into employment project </li></ul><ul><li>CEMENT -EQUAL –’target’ groups into Construction </li></ul><ul><li>LIVEABILTY –ODPM- Ealing Council - Safer, Cleaner, Greener </li></ul><ul><li>Language Resource Centre -LSC contract Basic skills, ESOL </li></ul><ul><li>Home Office --Citizenship, IAG,Job brokerage Somali and refugees </li></ul><ul><li>Acton Business Forum - support for SME’s—BID etc </li></ul><ul><li>TALLO CENTRE —Big Lottery funding for Somali and refugees </li></ul><ul><li>BOSS -Construction Jobs Brokerage for unemployed residents </li></ul><ul><li>BUSINESS INCUBATOR UNIT —creative and media hub </li></ul><ul><li>Crime and community safety developments </li></ul><ul><li>MEGANEXUS—Business Improvement Web Network </li></ul>Brokerage: The Future for Employment & Business
  27. 27. BUSINESS BROKERAGE <ul><li>Engaging with SME’s </li></ul><ul><li>Establishing local networks </li></ul><ul><li>Acton Business Improvement District (BID) </li></ul><ul><li>Engaging BME businesses </li></ul><ul><li>BME Networks </li></ul>Brokerage: The Future for Employment & Business
  28. 28. Business Networking <ul><li>West London Business-meetings/events/strategies </li></ul><ul><li>Chambers of Commerce (West London), </li></ul><ul><li>Regeneration partnerships/groups (SRP; PRP,BOSS,BECK) </li></ul><ul><li>Ealing Council Business engagement </li></ul><ul><li>Acton Business Forum, Acton Town centre Task group; Acton Markets. </li></ul><ul><li>Business Breakfasts/corporate social responsibility </li></ul><ul><li>Win it in A Minute </li></ul><ul><li>Business Link </li></ul>Brokerage: The Future for Employment & Business
  29. 29. JOB Brokerage and SME’s <ul><li>Employer engagement through free job placement-listening to employer needs </li></ul><ul><li>Employer engagement through free training </li></ul><ul><li>Links with Colleges (TVU, EHWLC) </li></ul><ul><li>Information /advice </li></ul><ul><li>Be Your own Boss training </li></ul>Brokerage: The Future for Employment & Business
  30. 30. Voluntary sector as a Business <ul><li>Action Acton </li></ul><ul><li>Old Donut Factory Business Incubator Unit (Creative and Media hub) </li></ul><ul><li>Street market developments </li></ul><ul><li>Community centre developments </li></ul><ul><li>Contracts in economic and community regeneration </li></ul><ul><li>Social enterprises </li></ul>Brokerage: The Future for Employment & Business
  31. 31. MEGANEXUS BUSINESS IMPROVEMENT NETWORK Business Networking and IT <ul><li>GOL/ERDF PROJECT IN WEST LONDON AND THAMES Gateway Objective 2 areas. £850K </li></ul><ul><li>Developing UCL Meganexus web technology for business networking </li></ul><ul><li>Linking businesses across these wards </li></ul><ul><li>Exploiting all the benefits of new technology and the web </li></ul><ul><li>Based on business, economic and community networks </li></ul><ul><li>Business focused –responding to what businesses tell us they want </li></ul>Brokerage: The Future for Employment & Business
  32. 32. DOING IT IN PARTNERSHIP <ul><li>ACTION ACTON, MEGANEXUS LTD, IEA </li></ul><ul><li>Software development/trials/business testing </li></ul><ul><li>E mail and text service </li></ul><ul><li>Sales pitch to SME’s </li></ul><ul><li>Achieving ambitious targets </li></ul><ul><li>Business advisers/ trainers </li></ul><ul><li>Partnership with Business advice agencies </li></ul><ul><li>FREE promotion of services/products/training </li></ul>Brokerage: The Future for Employment & Business
  33. 33. BUSINESS SUCCESS THROUGH INNOVATIVE WEB NETWORKING <ul><li>MARKETING AND SUPPLY CHAINS </li></ul><ul><li>EASY ACCESS TO FINANCE </li></ul><ul><li>ON LINE JOB BROKERAGE MEGANEXUS </li></ul><ul><li>EASY ACCESS TO TRAINING </li></ul><ul><li>EASY ACCESS TO BUSINESS ADVICE </li></ul><ul><li>ZONES—Creative and Media, Construction, Manufacturing, Retail, Olympics, BME, Women,Crime prevention. </li></ul><ul><li>PROCUREMENT ADVICE/CONTACTS </li></ul><ul><li>PREMISES AND PROPERTY </li></ul><ul><li>BUSINESS ‘BLOGS’ </li></ul>Brokerage: The Future for Employment & Business
  34. 34. MEGANEXUS BUSINESS IMPROVEMENT NETWORK <ul><li>ACTION ACTON, UCL MEGANEXUS & IEA WELCOME YOUR VIEWS AND IDEAS </li></ul><ul><li>ON MAKING IT WORK </li></ul>Brokerage: The Future for Employment & Business
  35. 35. Brokerage: The Future for Employment & Business How New Technology can Assist Business Brokerage Dominic Pinkney Senior Consultant, MegaNexus
  36. 36. Brokerage: The Future for Employment & Business MegaNexus Networks <ul><li>Improving social & business networks by connecting </li></ul><ul><li>individuals and organisations together </li></ul><ul><li>The power of networks - Limited networks limit success </li></ul><ul><li>MegaNexus networks facilitate connections that otherwise </li></ul><ul><li>would have been impossible or difficult to achieve </li></ul><ul><li>Our Projects: Helping Socially Excluded & </li></ul><ul><li>Business Support Networks </li></ul>
  37. 37. Brokerage: The Future for Employment & Business Business Support Networks <ul><li>Create a Virtual Infrastructure for Business Support/Brokerage </li></ul><ul><li>Match & Connect businesses to organisations that can </li></ul><ul><li>support, advise & offer guidance </li></ul><ul><li>Match & Connect business to other businesses! </li></ul><ul><li>Match & Connect businesses to information & opportunities </li></ul>
  38. 38. Brokerage: The Future for Employment & Business A Virtual Market Place <ul><li>Localised Online Business Communities </li></ul><ul><li>New & Growing Businesses can engage with each other </li></ul><ul><li>as well as find support & useful information </li></ul><ul><li>Pro-active distribution of Information promotes interactivity </li></ul><ul><li>Match & Connect businesses to information & opportunities </li></ul>
  39. 39. Brokerage: The Future for Employment & Business Making Connections <ul><li>Quick & Easy connections to information & support: </li></ul><ul><li>Support Organisations </li></ul><ul><li>Raising Finance </li></ul><ul><li>Finding Office Premises </li></ul><ul><li>Business Plan Support </li></ul><ul><li>Protecting Ideas/Copyright </li></ul><ul><li>Employment Opportunities </li></ul><ul><li>Events/Workshops </li></ul><ul><li>Tax Information </li></ul><ul><li>Marketing/PR </li></ul><ul><li>Employment Law </li></ul>
  40. 40. Brokerage: The Future for Employment & Business How it Works <ul><li>Searching: Free Text, Common Questions, Feedback </li></ul><ul><li>Matching Technology: Online Profile Matching </li></ul><ul><li>Businesses receive automatic recommendations based on </li></ul><ul><li>their profile and preferences </li></ul><ul><li>Support Organisations receive recommendations of new </li></ul><ul><li>businesses based on the services they offer </li></ul><ul><li>Automated Email Notifications </li></ul>
  41. 41. Brokerage: The Future for Employment & Business Tracking and Monitoring <ul><li>Usage Monitoring; Interactivity </li></ul><ul><li>Searching Reports </li></ul><ul><li>CRM – Client/Beneficiary Tracking </li></ul><ul><li>Output Reporting </li></ul><ul><li>Feedback Monitoring </li></ul>
  42. 42. PANEL Q & A
  43. 43. Thank you Brokerage: The Future for Employment & Business