Minutes:
(Alderman Ekin declared an interest and left the meeting whilst this item was under discussion.)
The Committee considered the undernoted report:
“1 Relevant Background Information
1.1 Members may be aware of the focus on creating opportunities for success and of Belfast City Council’s work in economic development and the work undertaken to promote economic growth in the city.
1.2 Our role in economic development presently focuses predominantly on supporting the micro and small businesses not currently accessing support from other sources. These companies represent the majority of businesses in Belfast. In fact around 4 in 5 businesses employ 10 people or less.
1.3 In 2010-11 Economic Development:
- supported 1,897 businesses, which is around 1 in 8 of all Belfast companies.
- provided training and development events for 3,639 people
- including over 650 pupils on our Youth Enterprise Programme;
- and 265 long-term unemployed on our HARTE programme.
- helped these people to gain approximately 1,300 new industry accepted qualifications.
- helped 37 people back into further education and training.
- created eighty jobs.
- created £5 additional business revenue for every £1 we invested.
1.4 Examples of our successes include:
- companies on our procurement programme won new business valued in excess of £250,000 and created 2 new jobs.
- participants on our BITES programme saved £240,000 on their overheads in the first year, reduced Energy usage (Gas and electricity) by 800 MWh (Mega Watt Hours) and reduced their waste to landfill by 300 tonnes.
- last year's participation by Belfast companies in the world’s largest music and media event in Austin in the USA generated $270,000 worth of immediate new contracts for Belfast companies.
1.5 In the current economic climate, micro and small businesses continue to face significant challenges. In order to help them address these challenges, a number of support activities are proposed for endorsement. If approved, these will be rolled out directly and in conjunction with partner agencies in the course of the current financial year.
2 Key Issues
2.1 Council carried out its own Belfast Business survey 2011 early this year. It involved a telephone survey of 500 companies located within the city council boundaries. The survey was representative of the business base in the city and was stratified by company size, location and business sector.
2.2 The survey identified the scale of the challenge:
- Less than half of the businesses surveyed (46%) export outside Northern Ireland
- Around 1 in 4 businesses experienced growth over the past 12 months
- While only 12% of businesses questioned in the 2010 survey anticipated a decline in demand for the coming year, 44% of this questioned in this year’s survey actually experienced a decline
- In terms of costs, the majority of businesses reported an increase in heating and fuel costs and supplier costs last year. Looking further ahead into 2011 higher proportions are expecting costs to increase across almost all areas
- Almost four out of five businesses are not availing of any government support to help their business.
2.3 In addition to direct engagement with local companies and businesses through economic development Council also interacts with businesses through its regulatory services (licensing; health and safety etc.), asset management (e.g. industrial estates management), markets (both St George’s and Smithfield) and essential support services (e.g. waste management).
2.4 Proposed Economic Development Activity 2011-12
Since 1992, the council has also had discretionary responsibility for ‘promoting the development of its area’. As part of this remit, it has undertaken economic development including direct activity to provide business support services. This work is undertaken in a number of ways: delivered directly, promoted in partnership with organisations or contracted through third party delivery. Some of this activity is match funded through EU Structural Funds which are managed by Department for Enterprise, Trade and Investment (DETI) and Department of Employment and Learning (DEL). It is developed in conjunction with relevant partners including Invest NI, both universities, Belfast MetropolitanCollege (BMC), Local Enterprise Agencies (LEAs) and other agencies working in this field.
2.5 In the course of the last year, the council engaged with 2335 businesses and individuals through a range of business support programmes, events, networking sessions, workshops and tailored mentoring activity.
2.6 In response to the findings of the business survey, and taking account of feedback from companies participating in current initiatives, a range of support initiatives has been developed for 2011/12 to help local companies, particularly the small and micro companies (and including social economy businesses), address their growth challenges at the current time. This programme of activity focuses on a number of broad themes:
- Stimulating entrepreneurship
- Supporting sustainable and inclusive business growth
- Growing key sectors
- Encouraging innovation and development activity
- Enhancing skills levels and creating sustainable employment opportunities.
Details of each of the initiatives, including budgetary commitments are attached below.
2.7 Match funding for the business development activity identified in this report is generally available from DETI through EU funding and is drawn down through a competitive application process. There are some exemptions to this. These include principally:
- Employability initiatives: apart from the European Social Fund programme (addressed in another report to this committee), there is not an equivalent match funding source for employability support initiatives
- Support for independent retail activity: this sector is not eligible for EU (or national government) support. As such, activities undertaken in this area are funded through council budgets only.
2.8 In addition to these practical support initiatives, the council has an important strategic role to play in determining the future focus and consequent spending priorities to underpin economic growth in the city. We are strengthening our working relationship with Invest NI to agree on the key drivers to ensure the city’s economic prosperity and to develop collaborative initiatives to address these, in the framework of an agreed economic strategy for the city.
2.9 In a similar vein, we are working with the DEL to address the significant skills challenges in the city – especially among particular groups and in specific geographical locations – and to make the connection between the economic strategy and the supporting role that skills development can play in its delivery.
2.10 The council also supports Belfast City Centre Management (BCCM) and Belfast Visitor and Convention Bureau (BVCB) through Service Level Agreements (SLAs) on an annual basis. Both organisations provide services to their member companies and provide a conduit for the council to interact with businesses and to influence policy and develop collaborative initiatives around city development and tourism growth activity.
2.11 The council itself is also a considerable economic generator and creates business opportunities through its procurement processes. There is an opportunity to support local companies to access these and other public sector business opportunities – while adhering to EU stipulations around free movement of goods and services. There is also an opportunity to consider how social clauses can be integrated into contracts, and supporting contractors in implementing these clauses.
2.12 Belfast City Council has also engaged in a wide range of initiatives to enhance employability support and improve skills levels in the city. To date, much of this support has focused on site-specific activity e.g. managing the ‘TQ Work’ element of the Titanic Quarter Memorandum of Understanding (MoU) and supporting employer engagement work across the city linked to the LEMIS programme. We also developed and managed the HARTE programme, as a response to the growth in the hospitality sector and the opportunities for finding employment opportunities for target groups as part of that development. We have been successful in attracting European Social Fund (ESF) match funding to run this programme for another three years, subject to council endorsement. We are currently working with DEL to look at how a skills and employability agenda for the city might be shaped, bringing together both those who are responsible for policy development and those involved in delivery of activities to ensure a better ‘fit’ to meet the future growth needs of the city.
2.13 The proposed activities for which approval is being sought are detailed below. Additional information on each of these initiatives is attached as Appendix 1. These activities will generally involve a combination of workshop sessions, networking and 1-2-1 mentoring support, based on the individual business needs.
2.14 PROPOSED COUNCIL SUPPORT FOR ECONOMIC GROWTH
STIMULATING ENTREPRENEURSHIP
|
Programme/activity |
Budget
|
|
o High-growth pre-enterprise support – targeted initiative |
£37,500 |
|
o Enterprise Outreach sessions/ mentoring/ events |
£50,000 |
|
o Belfast EnterpriseAcademy |
£30,000 |
|
o Belfast Entrepreneurs’ Network (BEN) |
£10,000 |
|
o Student enterprise competitions |
£5,000 |
2.15 SUPPORTING SUSTAINABLE AND INCLUSIVE BUSINESS GROWTH
|
Programme/activity |
Budget
|
|
o Sales development support, including events to raise awareness of MTV, 2012 and World Police and Fire Games business opportunities |
£50,000 |
|
o Business planning for growth initiative |
£33,000 |
|
o Development of an international business networking event aimed at assisting Belfast businesses to gain access to commercial opportunities in local and international markets. |
£30,000 |
2.16 GROWING KEY SECTORS
|
Programme/activity |
Budget
|
|
o Independent retail support programme: support for trader groups; promotional events; business support programme (Retail Therapy) and masterclasses |
£200,000 |
|
o Activities to support growth of small businesses in creative industries sector, particularly in film and television, design and digital media sectors |
£100,000 |
|
o Hospitality sector support programme – maximising business opportunities from upcoming key events |
£100,000 |
2.17 ENCOURAGING INNOVATION AND
DEVELOPMENT ACTIVITY
|
Programme/activity |
Budget
|
|
o New product development /business diversification support |
£50,000 |
|
o Participation in key international promotional events/activities |
£50,000 |
|
o E-commerce support/trading online support |
£40,000 |
2.18 ENHANCING SKILLS LEVELS AND CREATING
SUSTAINABLE EMPLOYMENT OPPORTUNITIES
|
Programme/activity |
Budget
|
|
o Match-funding support for European Social Fund projects |
£60,000 |
|
o Collaborative skills development initiatives for target groups (graduates, disadvantaged groups) – to be developed in conjunction with other partners |
£100,000 |
In addition to these activities, there is a number of existing business support activities which are ongoing at present and for which budgetary approval has already been agreed by this committee. These include:
- Construction sales development initiative: helping 50 local construction companies access sub?contracting/supply opportunities on a range of publicly and privately funded regeneration initiatives
- Export development support: structured programme of support for a total of 30 local companies, helping these explore the practicalities of exporting and potentially trade part in trade visits or missions
- Access to finance support: helping up to 30 local businesses take stock of their financial planning and management, focusing on how they can get additional finance into the business
- BITES (Business Improvements through Environmental Solutions) programme: helping up to 24 local businesses reduce their energy use and environmental management, with a view to reducing overheads and pollution.
- Creative Industries – delivering 5 projects for sme’s working in the film, television, digital media, music and design sectors. Through networking events, business development projects and mentoring, 400 companies will be assisted, 5 new business starts identified and 10 new creative products developed.
3 Resource Implications
3.1 Financial resources
The financial resources required for each element of the programme are detailed above. All of the budgets have been accounted for within the existing departmental allocation for the current financial year. Where possible, external funding is being sought or is already in place for all activities.
3.2 Human Resources
The programme will be coordinated and project managed by staff from the Economic Development Unit (EDU). Delivery will be done either directly through EDU staff, developed in partnership with other organisations or commissioned through a procurement exercise, as appropriate.
4 Equality and Good Relations Considerations
4.1 There are no specific equality or good relations considerations associated with these activities.
5 Recommendations
5.1 It is recommended that Members:
- Approve the proposed activities by council to support business growth, particularly for the city’s micro and small businesses, including social economy companies and approve the financial allocations required to deliver each of these;
- Agree to delegate authority to the Director of Development, in consultation with the Chair and Deputy Chair of Development Committee (or nominees), to approve the most economically advantageous tender for the delivery of the activities, as appropriate.
Appendix
|
Programme/activity |
Budget |
Description
|
|
High-growth pre?enterprise programme |
£37,500 |
Providing pre-enterprise support for the development of high-level business ideas with a particular focus on creativity, innovation and product development. It is hoped that the programme will be of particular interest to graduates and those who have recently been made redundant. The targets for the programme are: · 15 participants per wave · Support 5 participants to start a business within year 1 · Support 2 businesses per wave to become Invest NI client within 2 years
|
|
Enterprise Outreach sessions/ mentoring/ events |
£50,000 |
This enterprise plan aims to foster the spirit of enterprise while also encouraging the development and growth of existing businesses within the city’s population. The targets for the programme are:
· Provide business advice and referral service from Consumer Advice Centre in City Centre location in partnership with Local Enterprise Agencies. · Provide 15 business information and ideas generation sessions to promote enterprise with particular attention to targeted communities. · Provide 15 enterprise workshops for existing businesses with average attendance of 15 participants · Provide 45 participants from enterprise workshops with up to 1.5 days one-to-one mentoring · Organise 2 enterprise events each year - Average participation at each event of 50 businesses/participants · Refer 60 businesses/participants per year to additional support programmes, networks and workshops
|
|
BelfastEnterpriseAcademy
|
£30,000 |
Pre-enterprise student support programme which aims to assist up to 20 degree students to explore ideas and creativity, gain best practice from existing innovative businesses and develop business ideas. Almost 50% of participants in previous waves of this programme are now operating their own businesses. The targets for this programme are:
· 20 students supported · 4 students per wave to start a business within 2 years · Refer participants through to other forms of support and start-up programmes including Advantage, Go For It, UnLtd, Invest NI |
|
Programme/activity |
Budget |
Description
|
|
Belfast Entrepreneurs’ Network (BEN) |
£10,000 |
Belfast Entrepreneurs Network (BEN) is a networking and discussion forum for small businesses located in the city. BEN was established in 2007 and has grown to a membership exceeding 600, with up to 100 business people attending the networking events. The targets for the programme are:
· Organise and facilitate 10networking/workshop events · 1 joint networking event with another organisation e.g. Labour Relations Agency, Environmental Health. · Average attendance of 45 businesses per event
|
|
Student enterprise competitions |
£5,000 |
The student enterprise competition provides young people with an opportunity to run a business for a day in teams of 4-6. The targets for this programme are:
· Provide Business Bites Day for 50 students · Assist up to 25 students to develop business plans · Enable 4 teams to run a business for a day · Provide opportunities to access advice and support from associated business and support agencies. · Provide a celebration event to announce winning team and generate interest in enterprise
|
|
Sales development support, including meet the buyer events and initiatives to raise awareness of MTV, 2012 and World Police and Fire Games business opportunities |
£50,000 |
The Sales Development programme is a continuation of a successful programme that has assisted over 45 businesses with more than 50% recording an increase in sales following involvement in the programme. The programme consists of 4 sales training workshops; 24 hours one to one mentoring and 12 hours dedicated sales prospecting support with all participating businesses guaranteed at least 6 introductions to potential new customers. The targets for this programme are
· support 15 businesses a year · 30% progressing to Invest NI status · an aggregate sales growth of 25% per cohort.
|
|
Business planning for growth initiative |
£33,000 |
Helping local businesses develop a business plan to support a planned approach to growth (less than half of businesses in the business survey had a business plan). This is a continuation of a successful programme (Strategy in Business Initiative) that has previously assisted 45 businesses develop strategic planning skills and take actions to improve their overall business performance and profitability. The targets for the programme are:
|
|
Programme/activity |
Budget |
Description
|
|
Business planning for Growth initiative (contd) |
|
• To recruit 15 companies per year for 3 years • To deliver 4 masterclasses in strategic planning each year • To deliver 32 hours of tailored mentoring for participating businesses • 30% of participants to become eligible for Invest NI support • 10% aggregate increase in profitability for participating companies
|
|
Helping companies access procurement opportunities in public and private sectors |
£30,000 |
Belfast MEET Belfast Meet 2011 is an international business networking event aimed at assisting Belfast businesses to gain access to new commercial opportunities in local and international markets. The targets are:
· Recruitment of 40 Belfast based small businesses who demonstrate the potential and desire for growth · A minimum of 2 pre-event mentoring sessions per company to prepare them for meeting buyers · A minimum of 120 business to business meetings · A minimum of 10 local large buyers and 5 international buyers to attend the event. · 30% of companies to secure new business customers generated through this initiative
|
|
Independent retail support programme |
£200,000 |
Trader Engagement – Council will provide support to traders across the city to help them to form legally constituted groups/associations. Tailored advice sessions will be offered to groups to help facilitate this. Target – support up to 4 traders groups become established. Area Campaigns – Council will offer support to allow local trader groups to develop collaborative marketing campaigns to promote the clusters of independent retail businesses across Belfast with a shop local focus and aim to improve recognition of the importance of the independent retail sector in the city. Target – Support up to 2 area campaigns. Retail Therapy – This tailored support programme allows independent retailers to assess their business and take action to move their business forward. Target - 30 independent retailers assisted.
|
|
Programme/activity |
Budget |
Description
|
|
Independent retail support programme (contd) |
|
Market Start Up Programme – This programme will enable potential entrepreneurs to explore market trading as a possible business model. Participants will complete the National Market Traders Federation’s ‘NMFT First Support Programme’ which is specific to establishing a market-focussed business, have access to specialist mentors and have an opportunity to test trade at St. George’s Market. Target – 10 traders to be assisted Retail Masterclasses These masterclasses delivered by retail and trade specialists are aimed at raising skills levels of existing retailers and improving the health and vitality of our shops. Themes may include marketing, visual merchandising, selling online, customer service and advertising and promotions. Target - 6 masterclasses (average attendance 25) Independent Retail Week – This festival is aimed at celebrating independent retail in the city through a week of events to drive brand awareness, business and increase revenue for small independents as well as visual merchandising and customer care workshops to improve the skills base of retailers and their staff. Target – deliver Retail Week by March 2012
|
|
Activities to support growth of small businesses in creative industries sector
|
£100,000 |
Working with sector support bodies to develop new business initiatives for fledgling companies and those with the potential to achieve significant growth. Consideration will be give to the cross-over between the identified sectors (film and television, design, music and digital media). Details to be agreed upon with partners. Targets to be set subsequently.
|
|
Hospitality sector support programme – maximising business opportunities from upcoming key events |
£100,000 |
The programme will increase opportunities for local businesses to take advantage of tourism related developments and events it will consist of three inter-related initiatives: developing and improving the Belfast tourism product; improving customer care skills a bespoke sales growth programme targeted at businesses involved in hospitality and tourist related industries. The programmes will consist of a mixture of workshops; masterclasses; product development; customer care (Welcome Host) training; mentoring; sales training and meet the buyer events. The targets for the Programme are:
• 300 people will be trained through the Welcome Host Programme; • 45 businesses will receive sales development training directly related to tourism development;
|
|
Programme/activity |
Budget |
Description
|
|
Hospitality Sector (contd) |
|
• 120 businesses will have opportunity to meet major buyers related to hospitality and tourism industries; • 20 new tourism products will be developed; • 16 Belfast Tourism champions will be recruited and supported to develop plans and product development support to increase and enhance the Belfast Tourist product.
|
|
New product development/ business diversification support |
£50,000 |
Helping local companies consider the potential for environmental and process efficiencies and assisting traditional manufacturing businesses to diversify and take advantage of emerging opportunities in international growth sectors, predominantly within the lucrative market for low carbon goods and services. A total of three projects will be delivered through this activity with the following targets; BITES (Business Improvement through Environmental Solutions)
· 105 businesses supported over 3 years – 30 from the Belfast City Council area, 30 from the Newtownabbey Borough Council area, 30 from the Lisburn City Council area and 15 from the Carrickfergus Borough Council area; · 6 full day workshops per cohort – 6 cohorts over the lifetime of the Programme; · An average of £10,000 savings identified and implemented for the participating businesses · 105 participants to achieve Phase 3 of the BS 8555 – IEMA Acorn Approach to Environmental Management; and · 105 participants to achieve the IEMA Foundation Certificate in Environmental management UK. AIMS (Advanced Industry Material Saving Programme) · 36 businesses supported over 3 years – 18 from the BelfastCity Council area and 18 from the LisburnCity Council area; · 6 half day workshops delivered each year; · Profitability improvement of 5% per business; and · Savings and improved productivity of £40,000 per participant. Diversification Support Programme · 45 businesses supported over 3 years; · 45 diversification plans and opportunity analyses conducted; · 3 days of targeted mentoring support per participant; and · 15 businesses to develop new/improved products and services aimed at international growth opportunities, predominantly within the market for low carbon goods and services.
|
|
Programme/activity |
Budget |
Description
|
|
Participation in key international promotional events/activities
|
£50,000 |
Consideration to be given to participation in appropriate promotional events, e.g. MIPIM, subject to analysis of benefit to be gained from such participation.
|
|
E-commerce support/trading online support |
£40,000 |
This programme will support small and new businesses to review the application of new technologies in improving business performance (e.g. developing a website, assistance to explore e-commerce capabilities of the business and introduction of new technological methods to promote the business or make it more efficient).
Target - 15 businesses per year and at least 25% will progress to Invest NI status and there will be an increase of sales per cohort of 15 of 20%
|
|
Match-funding support for European Social Fund projects
|
£60,000 |
Match funding for identified European Social Fund (ESF) projects, as outlined in separate committee report. |
|
Collaborative skills development initiatives for target groups (graduates, disadvantaged groups) – to be developed in conjunction with other partners
|
£100,000 |
Pilot skills development programmes, capitalising on new growth sectors. Detail to be agreed with partners.
Targets to be set subsequently. |
|
Research/economic intelligence |
£30,000 |
Commissioned research to support approach to new integrated economic strategy as well as targeting focus of existing and new business growth support.”
|
After discussion, it was
Moved by Councillor Ó Muilleoir,
Seconded by Councillor McVeigh,
That, given the extent of the recession affecting local businesses across the City, consideration of the report be deferred to enable Political Party briefings to be provided on the proposals and how they would address the economic downturn.
On a vote by show of hands six Members voted for the proposal and twelve against and it was accordingly declared lost.
After further discussion, the Committee agreed to adopt the recommendations.