Linking business

Sep 14 2006 North East Vision

North-east England is one of the most dynamic regions in Europe. A thriving centre for digital media, life sciences, renewable energy and process industries, the region enjoys an international and long-standing reputation for innovation.

Home to 2.5 million people, a thriving £26bn economy, the region has changed dramatically in recent years, moving from an economic reliance on heavy industry to a modern, knowledge-based economy.

The region has attracted investment from overseas with world leading companies such as Nissan, Huntsman, Atmel, Dupont, Dow and SembCorp all establishing successful operations in the region. However, it is just as important to nurture our homegrown successes to help develop the next Sage or Northern Rock.

To do this we must provide effective support to the region's SMEs and budding entrepreneurs.

Business Link is a simple to use business support service, providing access to independent information, advice and help for companies of all sizes. As well as working with existing organisations, Business Link also works with individuals looking to start their own enterprise.

The service is dedicated to helping business develop and progress by ensuring they can quickly and easily locate and benefit from the broadest range of private, public and voluntary support services.

In the North East, Business Link services are currently provided by four partnerships, in County Durham, Northumberland, Tees Valley and Tyne & Wear.

To achieve maximum impact, these partnerships include the exiting operators, but also a broad range of enterprise and development agencies, and local authorities - to meet the need of businesses in their area.

The service is non-exclusive and supports businesses from all industry sectors and geographic regions. It actively looks to encourage more enterprise in disadvantaged communities and under-represented groups and support business owners from all ethnic origins and background.

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Delivering the service

One NorthEast signed a funding agreement with Business Link North East (BLNE), formerly known as the Coalition for Ambition, who will deliver the region's business support service.

Agency chairman, Margaret Fay, Coalition chairman Paul Callaghan, and other Coalition members signed the contract to deliver the Business Link service, worth at least £30m over five years from April 2007.

The company will deliver Business Link branded services from April 2007.

BLNE will also be responsible for delivering the regional Skills Brokerage Service under the Train to Gain brand, which is also funded by the Learning and Skills Council.

The North East is the only region in the country where the regional development agency and the Learning and Skills Council have managed a joint procurement process, to ensure the best possible outcome for businesses in the region.

The two organisations have been working closely to fully align both services, to make sure an employer's skills needs are considered alongside their other business development issues.

Margaret Fay said: "After an extensive and rigorous procurement process it is fantastic to get the contract signed and soon start delivering. As part of the agreement we have made detailed plans with the Coalition to ensure that by March 2007, when the four current Business Link contracts come to an end, everything is in place for a smooth transition to the new regional service.

"We are confident that the Coalition, under the new banner of Business Link North East, will deliver a service which ensures the highest standard of quality and support for businesses, across the whole of North East England."

Both One NorthEast and the LSC are confident that BLNE will deliver a first rate, consistent business support service the region needs.

Paul Callaghan, BLNE chairman said: "I am delighted to be able to confirm our role as deliverers of Business Link and Train to Gain and announce our new name.

"We believe that our experience and track record of managing the current Business Link contracts will ensure a seamless transfer next year. We are looking forward to delivering a first class service to businesses across the North East."

One NorthEast and the LSC will also work with BLNE to make sure that the current skills brokerage service is maintained and delivered as part of an early phase rollout of Train to Gain.

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Business Link - Q&As
By Tim Pain , head of enterprise and business support at One NorthEast

Q: Was the original Business Link format underperforming?

A: No, the four sub-regional Business Support Networks all have the Business Link operators at their centre and some very good work is being delivered via this approach.

However, the current BL contracts come to an end in March 2007 and new arrangements need to be put in place. The time is right to capitalise on the progress made to date and build on this sub-regional approach to establish a regional business support service across the North- East, and ensure that a step change in delivery takes place on the ground.

Q: What are the main problems of the current system?

A: At the moment businesses are dealt with on a first come, first served basis. We aim to target the advice service at specific groups and sectors to ensure sustainable economic growth.

Businesses must also receive the advice they require regardless of the time of year they need it or the sector they operate in. As an RDA we are committed to creating a service that is the same in County Durham as it is in Northumberland.

At the moment there is also an enormous amount of duplicated "back room" and administrative work. By centralising that work funding is freed up for frontline service improvements

Q: Why are we doing this?

A: The Agency believes that the aim of business and enterprise support in North-East England is to provide businesses with access to high quality advice and business solutions. This will enable the business base of the region to grow at a higher rate and directly contribute to GDP growth in the region.

It is critical to the success of this strategy that first class regional business support is in place to ensure individuals and business have access to information, diagnostic and brokerage services, which enable them to identify and procure the services they need to establish, maintain or grow their businesses.

In particular the tender process is seeking to procure a service that:

• Ensures a consistently high quality service for businesses wherever they may be based in the region;

• Improves the efficiency of business support by regionalising key functions;

• Prioritises impact on the regional economy as a key measure of performance.

Q: What will the new service look like?

A: The new Regional Business Support Service will:

• Be provided using the national Business Link brand

• Be based upon the Information, Diagnostic and Brokerage (IDB) model

• Include a reactive element available to all

• May include targeted support for groups demonstrating a high return on investment, and under-represented groups

• Provide access to a wide range of business support measures and solutions

• Be offered to both existing businesses and to those wishing to set up in business

• May include access to a range of skills support (such as National Employer Training Programme in the North East)

In addition to the core IDB service, the contract will include a service to enable the channelling of business solutions funding to business.

As well as One NorthEast, other organisations and Government departments - such as LSC, DTI, DEFRA, DfES, Government Office for the North East and Local Authorities - may wish to use this service to route some of their business support funding to business.

Q: What does this mean for Business Links?

A: The Agency currently contracts with four sub-regional Business Link organisations to deliver business support in the region. We will continue to manage the existing contracts and develop relationships with each Business Link to make sure that the current level of service to the region's individuals and organisations is maintained.