Agenda item

Report of the Deputy Chief Executive (Place)

The Business, Economy and Enterprise Scrutiny Board (3) received a briefing note and presentation of the Deputy Chief Executive (Place) detailing the support the Council provides to Small and Medium-Sized Enterprises (SMEs), the role of the Coventry and Warwickshire Chamber of Commerce and Coventry and Warwickshire Local Enterprise Partnership (CWLEP). In addition, it provided an update on how the business support service had progressed since the previous year, including how under-represented groups accessed the various business support initiatives. Councillor O’Boyle, Cabinet Member for Jobs and Regeneration attended the meeting for consideration of this item.

There were many opportunities in emerging markets such as Asia and the Middle East, in addition to opportunities following Brexit.  However, SMEs were restricted by the lack of capacity, time and resources to invest in exporting. The Briefing Note provided information on how the Council can support SME’s to make the most of these opportunities.

Coventry’s SME business community played an integral role in the local economy, both in terms of wealth creation and for the number of people employed. There were nearly 10,000 SMEs in Coventry, creating significant employment opportunities and contributing to local business rates. It was therefore vital that SMEs were given the best chance of succeeding through the support available from the Council and Partner organisations such as the CWLEP and the Chamber of Commerce.

The level of support offered depended on the need of businesses and could involve advice on access to grants/loans, new start-up support, skills support or lobbying government to develop policy or access funding. The Council had entered into a Service Level Agreement with the Growth Hub which would engage with 300 new business per year, complete 120 comprehensive business assists and help them to create almost 400 new jobs. Their initial diagnostic on a business helped to filter the appropriate business support to Partner organisations such as the Council, Universities, Chamber, Princes Trust, etc.

Through the EDS-managed Coventry & Warwickshire Skills 4 Growth Programme a total of 59 SMEs had been supported to train over 249 employees in 2019. Additionally, Social Value work around the planning process was now being recognised by contractors and developers who were active in the city.  The Authority’s ‘One Coventry’ approach ensured that developments underway in the city employed local people and apprentices, engaged with local communities and schools, utilised the local supply chain, upskilled the local workforce and cared for the environment. As a result, the Council were now actively working with approximately ten contractors who were engaging with Partners across the city.

EDS were currently managing three European Regional Development (ERDF) business Support Programmes valued at £11.9 million in ERDF funding - Coventry & Warwickshire Business Support, Innovation, and Green Business Programmes. All three support programmes were targeted at addressing barriers to growth and innovation within local SMEs and provided an offer of bespoke one-to-one support and seminars/networking opportunities to tackle challenges and opportunities, as well as a total of £4.75 million in business grants up until December 2021. Within the first year of the support programmes  167 businesses had either received a diagnostic or in-depth support; further, over £4m in grants had been awarded to an additional 157 businesses, generating total investment of £17.1m.

There was a major focus on supporting groups that had traditionally experienced high barriers to enterprise:

•  The Chamber had a particular focus on women owned businesses – running a ‘Women in Business Network’ to engage and support women who ran their own businesses across Coventry and Warwickshire.

•  The Chamber had worked with the Highlife Centre and Foleshill Women’s Training, as well as undertaking leaflet drops in geographical areas that had a higher percentage of Black, Asian and Minority Ethnic (BAME) communities. This proactive approach had resulted in Start-Up Advisors at the Chamber receiving referrals and supporting more clients from these communities to start-up or grow their business.

The Board questioned officers, received responses, and discussed the following issues:

·  2 years left on current programme with proposals to apply for 18-month extension, to June 2023 and to seek £8m ERDF funding.

·  Key outcomes expected in extended programme period - support a further 594 businesses, create 538 jobs, save 1658 tons of carbon savings, and generate 13 new IP.

·  Following UK departure from Europe – currently working to secure resources from Government to continue to support local SMEs and to support further initiatives in the future.

·  Duplex Fund – brings in £2m CCC, £2m County Council, £3.9m grant funding via growth deal and growing places.

·  Grant repayments – experienced lenders, robust assessment of borrowing, repayment monitoring.

·  University student retention to live and work in the city on completion of degree - support for graduate business start-ups provided through The Princes Trust and Coventry University Enterprises.

·  The Chamber of Commerce business start-up fund available for new businesses and the Duplex Fund available for established Small and Medium Enterprises.

·  Offer support to former IKEA staff wishing to pursue business start-ups, at the appropriate time.

·  The need for data on the retention of students to live and work in the City on completion of their degree and support for graduate business start-ups, including a measure of their success and particularly benchmarking against other cities.

·  The need for data on unsuccessful businesses and the reasons for their failure, including what measures the Council has in place to support them and whether there’s more that could be done to help them.

·  The benefit of inviting representatives of Coventry University and Warwick University to attend a meeting of the Board to explain what measures they take to encourage student retention to live and work in the City and to support graduate business start-ups.

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

1)  Supports the Economic Development Service to continue to work closely with organisations such as CWLEP, Chamber of Commerce, Federation of Small Businesses and Department of International Trade, to secure sufficient resource to assist local Small and Medium Enterprises.

2)  Agrees that a further report be submitted to the Board providing an update on future funding and data on: the retention of students to live and work in the City on completion of their degrees; graduate business start-ups and a measure of their success, particularly benchmarking against other cities; unsuccessful businesses and the reason for their failure, including what help the Authority gives to support them and whether there were further measures they could take to support them.

3)  Agrees that representatives from Coventry University and Warwick University be invited to attend the meeting of the Board when the further report is submitted, to explain what measures they take to encourage student retention for living and working in the city and the support they offer for graduate business start-ups.