Business Brokerage Conference Presentation

Brokerage: The Future for Brokerage: The Future for Employment & BusinessEmployment & Business

7th March 2006

University College London

CONFERENCECONFERENCE

Brokerage: The Future for Employment & BusinessBrokerage: The Future for Employment & Business

WelcomeWelcome

Dr Dan BrownEntrepreneur in ResidenceUniversity College London


The Case for New Forms of

Business Support

Marcia Harris Chief Executive Officer IEA


What is the problem?

Enterprise is the lifeblood of our economy - boosting Enterprise is the lifeblood of our economy - boosting productivity, creating employment and prosperity, and productivity, creating employment and prosperity, and revitalising our communities – says the Government.revitalising our communities – says the Government.

But business start-up rates in the United States are almost But business start-up rates in the United States are almost twice as high as those in Britain. twice as high as those in Britain.

We do worse than many other OECD countries when it We do worse than many other OECD countries when it comes to female entrepreneurship (with women starting comes to female entrepreneurship (with women starting only about 1/3 as many businesses as men). only about 1/3 as many businesses as men).

And across the UK, start-up rates in the best performingAnd across the UK, start-up rates in the best performingareas are ten times those of the worst, contributing to an areas are ten times those of the worst, contributing to an enterprise gap in our inner cities of 88,000 companies, £5 enterprise gap in our inner cities of 88,000 companies, £5 billion in turnover and tens of thousands of jobs. billion in turnover and tens of thousands of jobs.


This enterprise gap in deprived areas is This enterprise gap in deprived areas is further compounded by a lower survival further compounded by a lower survival rate of businesses compared with more rate of businesses compared with more affluent areas.affluent areas.

To put this into context, according to Feb 2006 SBS figures for the UK, 25% of VAT-registered businesses (i.e, the larger ones)do not survive 2 years; an additional 15% do not survive 4 years, and only 31% survive 10 years.


What helps businesses survive?What helps businesses survive?

Intensive support. Intensive support.

Start-ups in business incubation environments Start-ups in business incubation environments have a much higher survival rate than the UK have a much higher survival rate than the UK average. More than three out of four incubator average. More than three out of four incubator start-ups are still in business after five years, start-ups are still in business after five years, compared to one in three that did not start with compared to one in three that did not start with incubation. They have a survival rate of 90 per incubation. They have a survival rate of 90 per cent compared with a UK average of 33 per cent compared with a UK average of 33 per cent over five years for start-ups not using cent over five years for start-ups not using external support. (Oxford Trust Annual external support. (Oxford Trust Annual Innovation Census, February 2003)Innovation Census, February 2003)


Ian McCafferty, the Confederation of British Industry's chief Ian McCafferty, the Confederation of British Industry's chief economic adviser, said recently (January 2006): "Quality economic adviser, said recently (January 2006): "Quality business support is proven to boost survival and growth business support is proven to boost survival and growth prospects. [It] is essential to enabling an 'enterprise prospects. [It] is essential to enabling an 'enterprise revolution'. …revolution'. …

However, there are too many overlapping, confusing and However, there are too many overlapping, confusing and inconsistent schemes…. inconsistent schemes…. New and growing firms face a New and growing firms face a ‘baffling array’ of conflicting Quangos, grants and agencies, ‘baffling array’ of conflicting Quangos, grants and agencies, which spend more than £8 billion of public money every which spend more than £8 billion of public money every year.year.””


What can we do to provide cost-What can we do to provide cost-effective help?effective help?

We need to help growing businesses help one We need to help growing businesses help one another: another:

• by serving as customers and suppliers to one another,by serving as customers and suppliers to one another,

• by sharing best practices across sectors and regions,by sharing best practices across sectors and regions, • and by creating their own ‘old boy’ network to do so.and by creating their own ‘old boy’ network to do so.


Some ethnic communities do this already.

For example, in African-Caribbean communities, according For example, in African-Caribbean communities, according to a Bank of England report, ‘partnering schemes’ are to a Bank of England report, ‘partnering schemes’ are popular. These schemes are similar to the stockvelds in popular. These schemes are similar to the stockvelds in South Africa, which are family cooperatives of mutual South Africa, which are family cooperatives of mutual savings funds.savings funds.

In South Asian communities, a number of business In South Asian communities, a number of business organisations and clubs concentrate on provide support organisations and clubs concentrate on provide support and practical assistance in dealing with banks and in and practical assistance in dealing with banks and in lobbying at a regional and national level, again according to lobbying at a regional and national level, again according to the Bank of England report. It also indicates that in these the Bank of England report. It also indicates that in these communities, informal financial intermediaries are relatively communities, informal financial intermediaries are relatively common. common.


Online brokerage schemes thatOnline brokerage schemes that

• link individuals through shared interests or link individuals through shared interests or backgrounds, backgrounds,

• connect would-be employees to would-be connect would-be employees to would-be employers, employers,

• bring suppliers and customers together, bring suppliers and customers together,

can enable these informal networks to grow, can enable these informal networks to grow, expanding both the number of participants and expanding both the number of participants and the number of ways in which support can be the number of ways in which support can be provided.provided.


Of course, this doesn’t eliminate the need for Of course, this doesn’t eliminate the need for professional business support for the businesses professional business support for the businesses but… but…

• It enables such support to be more financially It enables such support to be more financially efficient, efficient,

• focusing on identified areas of need, and focusing on identified areas of need, and

• providing some services to a broad category of providing some services to a broad category of companies, companies,

so that one-on-one support can be reserved for so that one-on-one support can be reserved for the areas where it can be most effectivethe areas where it can be most effective


On line networks are the modern technological On line networks are the modern technological version of good old-fashioned word of mouth, and version of good old-fashioned word of mouth, and they are cost-effective ways of reaching the large they are cost-effective ways of reaching the large number of SMEs who currently get no services at number of SMEs who currently get no services at all. all.

The CBI’s study found, for example, that Business The CBI’s study found, for example, that Business Link was used by only 1 in 7 firms.Link was used by only 1 in 7 firms.

Our own research at IEA has found that many Our own research at IEA has found that many SMEs fail without knowing why, and go on to SMEs fail without knowing why, and go on to make the same mistakes again, without seeking make the same mistakes again, without seeking help, without even knowing where to seek help.help, without even knowing where to seek help.


We at IEA are setting up We at IEA are setting up sector specific online sector specific online ‘brokerage networks’‘brokerage networks’, that motivate participation , that motivate participation by enterprises in the sector through entertaining by enterprises in the sector through entertaining multi-media content and competitions that draw SME multi-media content and competitions that draw SME contestants and larger corporation buyers. contestants and larger corporation buyers.

The first of these is The first of these is HybridLabHybridLab


HybridLab is an interactive, international web channel is an interactive, international web channel scheduled to go live in April 2006.scheduled to go live in April 2006. The purposes of HybridLab The purposes of HybridLab are:are:

To promote and support new creative enterprises,To promote and support new creative enterprises, especially especially those developed by black and minority ethnic, refugee, women and those developed by black and minority ethnic, refugee, women and other disadvantaged entrepreneurs in advanced economies and those other disadvantaged entrepreneurs in advanced economies and those developed by entrepreneurs in emerging economies. HybridLab developed by entrepreneurs in emerging economies. HybridLab enterprises are the cutting edge – and they’re located where you enterprises are the cutting edge – and they’re located where you might not expect to find them – in emerging markets from Barbados to might not expect to find them – in emerging markets from Barbados to Brixton to Bulgaria, wherever new creativity is crackling.Brixton to Bulgaria, wherever new creativity is crackling.

In addition to innovative narrative programming content (outlined In addition to innovative narrative programming content (outlined below), HybrdLab’s platform hosts a multi-themed gallery, showcasing below), HybrdLab’s platform hosts a multi-themed gallery, showcasing carefully selected creative enterprises. HybridLab members have carefully selected creative enterprises. HybridLab members have access to focused business support and mentoring, high quality online access to focused business support and mentoring, high quality online training and professional development opportunities, collaborative training and professional development opportunities, collaborative forums and other peer interactive opportunitiesforums and other peer interactive opportunities


To encourage collaboration and innovation among creative To encourage collaboration and innovation among creative entrepreneursentrepreneurs by providing them with opportunities to participate in by providing them with opportunities to participate in cross-sector and/or cross-cultural ‘fusion’ projects. cross-sector and/or cross-cultural ‘fusion’ projects. HybridLab brings HybridLab brings together traditional and new creative sectors together traditional and new creative sectors (video animators and (video animators and landscape architects, fashion designers and CAD-based industrial landscape architects, fashion designers and CAD-based industrial designers, garage musicians and traditional marionette troupes, electronic designers, garage musicians and traditional marionette troupes, electronic game designers and live theatre performers, folk crafts persons and new game designers and live theatre performers, folk crafts persons and new media advertising specialists…and so on) media advertising specialists…and so on) as members of an interactive as members of an interactive community with online learning and business mentoring as well as community with online learning and business mentoring as well as peer supportpeer support by sharing experience, promoting one another across by sharing experience, promoting one another across sectors and doing business with one another.sectors and doing business with one another.


HybridLab’s programming is an innovative use of new media HybridLab’s programming is an innovative use of new media reachingreaching audiences that include consumers, wholesalers, audiences that include consumers, wholesalers, buyers and promoters. buyers and promoters. It provides these audiencesIt provides these audiences with some of with some of the very best of undiscovered creative talent. HybridLab’s exciting the very best of undiscovered creative talent. HybridLab’s exciting multi-media narrative programming format multi-media narrative programming format is a is a series of online series of online sector-focused interactive reality shows with a ‘competitive sector-focused interactive reality shows with a ‘competitive edge’. edge’. Each show will be a Each show will be a contest in a narrowly defined creative contest in a narrowly defined creative sector,sector, with awards of sector-relevant promotion (press, events, with awards of sector-relevant promotion (press, events, buyers) and/or collaborative contract opportunities. buyers) and/or collaborative contract opportunities. Sample awardsSample awards include a gig at IEA’s co-sponsored Caribbean Creative Enterprise include a gig at IEA’s co-sponsored Caribbean Creative Enterprise Conference and inclusion on a CD with newly developed technology Conference and inclusion on a CD with newly developed technology (made available to us by University College London) for virtual (made available to us by University College London) for virtual

presentation to be distributed to sector buyers at a major trade fair.presentation to be distributed to sector buyers at a major trade fair.


At IEA, we are also using on-line ‘brokerage At IEA, we are also using on-line ‘brokerage networks’ to provide otherwise unavailable content networks’ to provide otherwise unavailable content to to small construction companiessmall construction companies through our through our Conexus websiteConexus website, enabling these SMEs to meet , enabling these SMEs to meet sector regulatory requirements cost effectively (even sector regulatory requirements cost effectively (even saving money) as well to provide other web-based saving money) as well to provide other web-based business support services (including collaborative business support services (including collaborative consortia to bid for jobs) in a virtual context.consortia to bid for jobs) in a virtual context.


We at IEA think that this is the way of the We at IEA think that this is the way of the future. Not to eliminate face-to-face support future. Not to eliminate face-to-face support but to raise awareness of the need for such but to raise awareness of the need for such support – and to encourage business-to-support – and to encourage business-to-business supplementary support – to maximise business supplementary support – to maximise the opportunities for SME survival.the opportunities for SME survival.


www.seriousreaders.com

[email protected]


Alex PrattChairman, Business Link for Milton Keynes, Bucks & Oxon


3 Key Messages to take away-

a) It‘s about Supply AND Demand

b) Solves Consumption Inertia

c) Customer Driving


www.seriousreaders.com

[email protected]


‘‘ ‘‘PROMOTING ECONOMICPROMOTING ECONOMIC

BUSINESSBUSINESS andand

COMMUNITYCOMMUNITY

REGENERATIONREGENERATION””

Through PARTNERSHIP----- in Acton, Through PARTNERSHIP----- in Acton, Ealing Ealing and adjoining West London and adjoining West London Boroughs.Boroughs.


John BlackmoreChief Executive, Action Acton


A potted historyA potted history• Action Acton evolves from Central Acton Partnership Action Acton evolves from Central Acton Partnership

formed 1996 to tackle the decline in Actonformed 1996 to tackle the decline in Acton• 1999 - Partnership secures £11.7million SRB grant 1999 - Partnership secures £11.7million SRB grant

for regeneration of Acton -with 'match' funding for regeneration of Acton -with 'match' funding exceeds £47 million by end of SRB in March 2004exceeds £47 million by end of SRB in March 2004

• Action Acton successfully delivered all SRB outputsAction Acton successfully delivered all SRB outputs• SRB ends-- Action Acton continues as CHARITYSRB ends-- Action Acton continues as CHARITY• Since 2004 wins funding from LDA, ESF, ERDF, Since 2004 wins funding from LDA, ESF, ERDF,

EQUAL, LSC,Home Office, Big Lottery, Ealing CouncilEQUAL, LSC,Home Office, Big Lottery, Ealing Council• CHALLENGE –to become Sustainable organisationCHALLENGE –to become Sustainable organisation



BUSINESS PLAN KEY THEMES BUSINESS PLAN KEY THEMES 2005-20082005-2008

1. JOB BROKERAGE1. JOB BROKERAGE—helping disadvantaged —helping disadvantaged individuals into employmentindividuals into employment

2 . BASIC SKILLS2 . BASIC SKILLS---helping disadvantaged individuals ---helping disadvantaged individuals improve basic skills/job skills for disadvantagedimprove basic skills/job skills for disadvantaged

33. . BUSINESS SUPPORTBUSINESS SUPPORT4. REGENERATING ACTON TOWN CENTRE 4. REGENERATING ACTON TOWN CENTRE 5. ECONOMIC REGENERATION—5. ECONOMIC REGENERATION—Borough wide and Borough wide and

sub regionally.sub regionally.6. COMMUNITY DEVELOPMENT - 6. COMMUNITY DEVELOPMENT - for disadvantaged for disadvantaged

communities communities 7.Action Acton - SUSTAINABLE ORGANISATION7.Action Acton - SUSTAINABLE ORGANISATION



ACTION ACTON--Current DeliveryACTION ACTON--Current Delivery

• EXODUSEXODUS-EQUAL prisoners into employment project-EQUAL prisoners into employment project• CEMENTCEMENT-EQUAL –’target’ groups into Construction -EQUAL –’target’ groups into Construction • LIVEABILTYLIVEABILTY –ODPM- –ODPM-Ealing Council - Safer, Cleaner, GreenerEaling Council - Safer, Cleaner, Greener• Language Resource CentreLanguage Resource Centre-LSC contract Basic skills, ESOL-LSC contract Basic skills, ESOL• Home OfficeHome Office--Citizenship, IAG,Job brokerage Somali and --Citizenship, IAG,Job brokerage Somali and

refugeesrefugees• Acton Business ForumActon Business Forum- support for SME’s—BID etc- support for SME’s—BID etc• TALLO CENTRETALLO CENTRE—Big Lottery funding for Somali and refugees—Big Lottery funding for Somali and refugees• BOSSBOSS-Construction Jobs Brokerage for unemployed residents-Construction Jobs Brokerage for unemployed residents• BUSINESS INCUBATOR UNITBUSINESS INCUBATOR UNIT—creative and media hub—creative and media hub• Crime and community safetyCrime and community safety developments developments• MEGANEXUS—Business Improvement Web NetworkMEGANEXUS—Business Improvement Web Network



BUSINESS BROKERAGEBUSINESS BROKERAGE• Engaging with SME’sEngaging with SME’s

• Establishing local networksEstablishing local networks

• Acton Business Improvement District (BID)Acton Business Improvement District (BID)

• Engaging BME businessesEngaging BME businesses

• BME NetworksBME Networks



Business NetworkingBusiness Networking • West London Business-meetings/events/strategiesWest London Business-meetings/events/strategies• Chambers of Commerce (West London), Chambers of Commerce (West London), • Regeneration partnerships/groups (SRP; Regeneration partnerships/groups (SRP;

PRP,BOSS,BECK)PRP,BOSS,BECK)• Ealing Council Business engagementEaling Council Business engagement• Acton Business Forum, Acton Town centre Task Acton Business Forum, Acton Town centre Task

group; Acton Markets.group; Acton Markets.• Business Breakfasts/corporate social responsibilityBusiness Breakfasts/corporate social responsibility• Win it in A MinuteWin it in A Minute• Business LinkBusiness Link



JOB Brokerage and SME’sJOB Brokerage and SME’s

• Employer engagement through free Employer engagement through free job placement-listening to employer job placement-listening to employer needsneeds

• Employer engagement through free Employer engagement through free trainingtraining

• Links with Colleges (TVU, EHWLC)Links with Colleges (TVU, EHWLC)

• Information /adviceInformation /advice

• Be Your own Boss trainingBe Your own Boss training



Voluntary sector as a Voluntary sector as a BusinessBusiness• Action ActonAction Acton• Old Donut Factory Business Incubator Old Donut Factory Business Incubator

Unit (Creative and Media hub)Unit (Creative and Media hub)• Street market developmentsStreet market developments• Community centre developmentsCommunity centre developments• Contracts in economic and Contracts in economic and

community regenerationcommunity regeneration• Social enterprises Social enterprises



MEGANEXUS BUSINESS IMPROVEMENT MEGANEXUS BUSINESS IMPROVEMENT NETWORKNETWORKBusiness Networking and ITBusiness Networking and IT• GOL/ERDF PROJECT IN WEST LONDON AND THAMES GOL/ERDF PROJECT IN WEST LONDON AND THAMES

Gateway Objective 2 areas. £850KGateway Objective 2 areas. £850K

• Developing UCL Meganexus web technology for Developing UCL Meganexus web technology for business networkingbusiness networking

• Linking businesses across these wardsLinking businesses across these wards

• Exploiting all the benefits of new technology and the Exploiting all the benefits of new technology and the webweb

• Based on business, economic and community Based on business, economic and community networksnetworks

• Business focused –responding to what Business focused –responding to what businesses tell us they wantbusinesses tell us they want



DOING IT IN PARTNERSHIPDOING IT IN PARTNERSHIPACTION ACTON, MEGANEXUS LTD, IEAACTION ACTON, MEGANEXUS LTD, IEA

Software development/trials/business testingSoftware development/trials/business testing

E mail and text serviceE mail and text service

Sales pitch to SME’sSales pitch to SME’s

Achieving ambitious targetsAchieving ambitious targets

Business advisers/ trainersBusiness advisers/ trainers

Partnership with Business advice agenciesPartnership with Business advice agencies

FREE promotion of services/products/training FREE promotion of services/products/training



BUSINESS SUCCESS THROUGH BUSINESS SUCCESS THROUGH INNOVATIVE WEB NETWORKINGINNOVATIVE WEB NETWORKING• MARKETING AND SUPPLY CHAINSMARKETING AND SUPPLY CHAINS • EASY ACCESS TO FINANCEEASY ACCESS TO FINANCE

• ON LINE JOB BROKERAGE MEGANEXUSON LINE JOB BROKERAGE MEGANEXUS

• EASY ACCESS TO TRAININGEASY ACCESS TO TRAINING

• EASY ACCESS TO BUSINESS ADVICEEASY ACCESS TO BUSINESS ADVICE

• ZONES—Creative and Media, Construction, Manufacturing, ZONES—Creative and Media, Construction, Manufacturing, Retail, Olympics, BME, Women,Crime prevention.Retail, Olympics, BME, Women,Crime prevention.

• PROCUREMENT ADVICE/CONTACTSPROCUREMENT ADVICE/CONTACTS

• PREMISES AND PROPERTYPREMISES AND PROPERTY

• BUSINESS ‘BLOGS’BUSINESS ‘BLOGS’



MEGANEXUS BUSINESS MEGANEXUS BUSINESS IMPROVEMENT NETWORKIMPROVEMENT NETWORK

ACTION ACTON, UCL MEGANEXUS & ACTION ACTON, UCL MEGANEXUS & IEA WELCOME YOUR VIEWS AND IEA WELCOME YOUR VIEWS AND IDEAS IDEAS

ON MAKING IT WORK ON MAKING IT WORK



How New Technology can AssistHow New Technology can AssistBusiness BrokerageBusiness Brokerage

Dominic PinkneyDominic PinkneySenior Consultant, MegaNexusSenior Consultant, MegaNexus


MegaNexus NetworksMegaNexus Networks

• Improving social & business networks by connectingImproving social & business networks by connectingindividuals and organisations togetherindividuals and organisations together

• The power of networks - Limited networks limit successThe power of networks - Limited networks limit success

• MegaNexus networks facilitate connections that otherwiseMegaNexus networks facilitate connections that otherwisewould have been impossible or difficult to achievewould have been impossible or difficult to achieve

• Our Projects: Helping Socially Excluded & Our Projects: Helping Socially Excluded & Business Support NetworksBusiness Support Networks


Business Support NetworksBusiness Support Networks

• Create a Virtual Infrastructure for Business Support/BrokerageCreate a Virtual Infrastructure for Business Support/Brokerage

• Match & Connect businesses to organisations that canMatch & Connect businesses to organisations that cansupport, advise & offer guidancesupport, advise & offer guidance

• Match & Connect business to other businesses!Match & Connect business to other businesses!

• Match & Connect businesses to information & opportunitiesMatch & Connect businesses to information & opportunities


A Virtual Market PlaceA Virtual Market Place

• Localised Online Business CommunitiesLocalised Online Business Communities

• New & Growing Businesses can engage with each otherNew & Growing Businesses can engage with each otheras well as find support & useful informationas well as find support & useful information

• Pro-active distribution of Information promotes interactivityPro-active distribution of Information promotes interactivity

• Match & Connect businesses to information & opportunitiesMatch & Connect businesses to information & opportunities


Making ConnectionsMaking Connections

Quick & Easy connections to information & Quick & Easy connections to information & support:support:

• Support OrganisationsSupport Organisations

• Raising FinanceRaising Finance

• Finding Office PremisesFinding Office Premises

• Business Plan SupportBusiness Plan Support

• Protecting Ideas/CopyrightProtecting Ideas/Copyright

• Employment OpportunitiesEmployment Opportunities

• Events/WorkshopsEvents/Workshops

• Tax InformationTax Information

• Marketing/PRMarketing/PR

• Employment LawEmployment Law


How it WorksHow it Works

• Searching: Free Text, Common Questions, FeedbackSearching: Free Text, Common Questions, Feedback

• Matching Technology: Online Profile MatchingMatching Technology: Online Profile Matching

• Businesses receive automatic recommendations based onBusinesses receive automatic recommendations based ontheir profile and preferencestheir profile and preferences

• Support Organisations receive recommendations of newSupport Organisations receive recommendations of newbusinesses based on the services they offerbusinesses based on the services they offer

• Automated Email NotificationsAutomated Email Notifications


Tracking and MonitoringTracking and Monitoring

• Usage Monitoring; InteractivityUsage Monitoring; Interactivity

• Searching ReportsSearching Reports

• CRM – Client/Beneficiary TrackingCRM – Client/Beneficiary Tracking

• Output ReportingOutput Reporting

• Feedback MonitoringFeedback Monitoring

PANEL Q & APANEL Q & A

Thank youThank you
