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Sustainability: Resource Strategies and Donor Outreach

Public Resources: The UK – a brief insight...

9 November 2006Hyderabad

Peter HarmanDeputy CEO

UK Business Incubation (UKBI)

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Public resourcing: Public resourcing: The UK The UK –– a brief insight...a brief insight...

Some contextPublic resourcing Challenges

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UK 2006UK 2006

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The UK The UK –– some contextsome context

60m 4 countries13 (Regional Development Agencies)Local/Metropolitan Authorities146 Universities280 ‘declared’ incubation environments

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The rich mixThe rich mix……

High Growth

LeadingEdge / Innovation

High Tech

Mixed portfolio Mixed ‘aspirations’

Innovation

Growth

Technology

‘Social Consequences and responsibility’

Regeneration Social inclusion Enterprise for all

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What is business incubation What is business incubation –– or what should it be?or what should it be?

A process (not a building)

‘Physical’ and ‘Virtual’

‘Constructive interference’

An investment

Relationships and trust

Increasing sustainability, independence and growth

Reducing dependency – toughening up

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(Clients) Toughening up(Clients) Toughening up……

Sustainable and Integrated Incubation Process

Reducing Dependency

Increasing Sustainability

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Public sector support for business Public sector support for business incubation in the UKincubation in the UK

85% of business incubation environments in the UK have significant direct (or indirect) public support

From whom?For how long?How much?What?

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From whomFrom whom……??

Universities and CollegesLocal AuthoritiesGovernment

Mainly regional(Central)

EU

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For how longFor how long…… ??

Universities and CollegesOn-going - sometimes only a year

Local AuthoritiesVariable

Independent “projects”Often/usually/only up to 3 years – sometimes only a year

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How muchHow much……??

VariableSometimes as little as a few thousand $Sometimes as much as £15 million [$30 million] (each)

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WhatWhat……??

ExamplesOften Grant fundingSometimes a ‘free’ buildingOther subsidies

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The challengeThe challenge……

Reducing Dependency

Increasing Sustainability

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The challengeThe challenge……(Over) dependencyComplacencyMatching the needs and vision of the funder

ThemesPriorities

State AidManaging (limiting) bureaucracyCreating a mindsetMaking assumptions about the futureUnderstanding the risk and responsibilities‘Political’ whims and priorities“Fickleness” (source: The World Bank!)

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Public funding is just another

revenue stream

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+44(0)7793 158048+44(0)7793 158048

p.harman@ukbi.co.uk