Agenda item

Presentation and Briefing Note of the Deputy Chief Executive (Place)

The Business, Economy and Enterprise Scrutiny Board (3) received a briefing note and presentation from the Deputy Chief Executive (Place) on the support the Council gave to small and medium-sized enterprises (SMEs), the role of the Coventry and Warwickshire Chamber of Commerce and Coventry & Warwickshire Local Enterprise Partnership (CWLEP). 

There were nearly 10,000 SMEs in Coventry and this business community played an integral role in the local economy for both wealth creation and employment and also its contribution to local business rates. It was vital that SMEs were given the best chance of success through the support available from the Council and Partner organisations. The Council had a proactive approach to partnership working, constantly redeveloping existing networks and finding new connections. Currently the Economic Development Service (EDS) was supporting the emerging Local Industrial Strategy for West Midlands which set strategic objectives and brought major new aspirational projects for Coventry which would ultimately open up supply chain opportunities for SMEs.

EDS was proficient at supporting Coventry’s SMEs through the provision of advice and support with access to finance and infrastructure. This was facilitated by building effective relationships with key representative bodies such as the CWLEP Growth Hub and the Chamber of Commerce, relationships to provide the delivery of a suite of business support programmes. The varied support included advice on access to grants/loans, new start-up support, skills support or lobbying government to develop policy or access funding. The Growth Hub’s initial diagnostic on a business helped to filter the appropriate business support to Partner organisations such as the Council, Universities, Chamber, Princes Trust etc.

EDS were currently managing three European Regional Development (ERDF) Business Support Programmes valued at £11.9 million, including £4.75 million in grants available for business within Coventry and Warwickshire up until December 2021. The previous ERDF Support Programme which ended 31st December 2018 awarded £4.5m in grant funding, generating £16.8 million of private sector investment and supported 264 start-up enterprises. With 867 SMEs receiving non-financial support. In addition, the Green Business Programme had saved over 11,600 tonnes of greenhouse gases by supporting businesses. This combined support had generated 775 new jobs in the local economy.

New start-up support was provided by the Chamber of Commerce through a dedicated project offering specialist on business planning, finance, marketing and 1-2-1 mentoring and coaching. It also offered dedicated support around exporting. To ensure SMEs possessed the necessary digital skills to benefit from opportunities generated by new technology, the Chamber also offered specialist ICT advice such as developing a digital marketing plan, implementing Superfast/Ultrafast broadband and moving to the Cloud. 

Through the EDS Skills 4 Growth programme, a total of 22 SMEs had been supported to train over 60 employees. The social value work around the planning process had been recognised nationally and this year 786 local people were now employed on sites with Skills and Employment plans. The work had facilitated investment in digital infrastructure, recently being awarded £5.7m through the Local Full Fibre Network Fund Wave 2 and delivering an innovative Gigabit Voucher Scheme for SMEs. This would help support innovation and growth in key sectors such as intelligent mobility/Connected and Autonomous Vehicles and provide foundations for the successful delivery of UK City of Culture 2021.

The Council had a strong relationship with local businesses and worked across all areas of the business base. The Cabinet Member for Jobs and Regeneration was supportive of the work with small businesses and had visited local businesses that had been assisted through the Council’s work. He was the opening speaker at the official launch of the new ERDF Business Support Programmes at the end of February 2019. Such initiatives would enable Coventry to continue to prioritise delivering integrated and comprehensive business support programmes, enabling SMEs to grow and prosper. 

The Board questioned officers and discussed the following issues:

·  Types of businesses supported – only retail trade was excluded (retailers contact the Chamber of Commerce for support). Predominantly engineering trade. SMEs based overseas supported. Boundary in UK is Coventry and Warwickshire. Assess any request against SME definition/criteria and support all possible.

·  The definition of an SME – under 250 employees, a turnover of 50m euros, can have wider group ownership, company accounts inspected

·  Larger businesses/take-overs – provide support but not usually relating to finance. State aid rules apply. SME definition applies to enable full support.

·  Finance/funding – Funding of £10m in place for 3 years: Authority provides revenue of 50% with 50% match funding. Local organisations go through Coventry and Warwickshire Re-investment Trust. Shared Prosperity Fund is likely source of future funding comprising one pot feeding into different funding streams – could be a regional level concept.

·  Honda closure – concerns about future impact. Data gathering required to assess effects on suppliers.

Members of the Board requested that they be provided with information on targets for future SME start-ups, to include a breakdown of targets for specific groups.

The Chair, Councillor McNicholas, thanked officers for their presentation. The Board endorsed the support the Council gave to small and medium-sized enterprises and welcomed a further report on progress in due course. 

RESOLVED that the Business, Economy and Enterprise Scrutiny Board (3):

1)  Notes the briefing note and the presentation.

2)  Makes the following recommendation to the Cabinet Member for Jobs and Regeneration:

The Cabinet Member for Jobs and Regeneration be requested to consider how to engage under-represented groups and communities in the city, in order to establish and support small and medium enterprises from these communities.

3)  Requests that a further report on progress be submitted to the Board in due course.