SME engagement report Salford Business School 2014, Greater Manchester, UK

Salford Business School – supporting economic regeneration 1

SMEs thinking

– creative entrepreneurship in action

Salford Business School – supporting economic regeneration Salford Business School – supporting economic regeneration2 3

Foreword 4

Executive summary 6

1 Challenges to growth 12

– what is limiting SMEs reaching their full potential?

2 Bringing creative entrepreneurship to life 14

2.1 Accessing the brightest talent 14

2.2 Learning from others 16

2.3 Creating networks 17

2.4 Acquiring relevant skills 17

2.5 Embracing new business models 18

3 Creative entrepreneurship and the beautiful game 20

4 Conclusion 22Co

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Professor Amanda J Broderick Pro-Vice Chancellor (International Priorities) Executive Dean, Salford Business School

As a core component of the world economy, small and medium-sized enterprises (SMEs) play a critical role in innovation, advancement and sustainable development worldwide. In the UK alone, SMEs account for 99.9 % of all private sector businesses, 59.3% of private sector employment and 48.1 % of private sector turnover. They employ 14.4 million people and have a combined turnover of £375 billion*.

Clearly SMEs are the engines of UK economic growth and sustained UK recovery as we pull away from the 2008 downturn. Yet SMEs operating in today’s economy face a completely different landscape to that confronting those in the mid-1990s, the last time the UK was pulling out of a recession. We’re now in a faster moving international digital age which requires a different mindset to succeed. Success is no longer reliant on having a great idea and bringing it to market. In the fast moving age of the app, as soon as a product is brought to market, a competitor will see opportunities for improvement, make those improvements, repackage and the original product potentially becomes much less competitive. SMEs need to be nimble and continually innovative.

At Salford Business School, we believe that by adopting a ‘creative entrepreneurship’ approach to innovation, SMEs can tackle, very cost effectively, many of the challenges they face in growing their businesses.

The University of Salford is one of the top five UK Universities for SME engagement in the UK. In 2014 Salford Business School was awarded the Small Business Charter by the Department for Business, Innovation and Skills (BIS) and the Association of Business Schools.

More recently, Salford Business School won the Business School of the Year title at the Times Higher Education (THE) Awards in recognition of its sector-leading work in supporting small and medium-sized businesses and offering students innovative industry experiences.

This report outlines what we mean by creative entrepreneurship and captures some of the positive impacts on SMEs we have helped to nurture and grow. We want to share what we have learnt through working intensely with the SME community in our Year of the SME. We hope this report illustrates what our partner SMEs can achieve, sometimes with very limited resources, by adopting a creative entrepreneurship approach.

*Department for Business, Innovation and Skills (BIS) – UK Innovation Survey 2013

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Creative entrepreneurship is a mindset. It’s about thinking smartly, being resourceful, making and using connections, accessing expertise and research insights. It’s about accessing funding creatively – in partnership with others – universities or wider stakeholders. Creative entrepreneurship allows opportunities to be fully capitalised through new digital, creative and social media to reduce marketing costs. It brings companies closer to the customer and through university relationships, can provide them with access to more cost effective talent than their competitors.

Professor Kurt Allman Associate Dean Enterprise and Engagement, Salford Business School

Salford Business School – supporting economic regeneration 7Salford Business School – supporting economic regeneration6

Small and medium-sized enterprises (SMEs) play a critical role in innovation, advancement and sustainable development worldwide: they are the engines of UK economic growth as we pull away from the 2008 downturn. In a faster-moving digital landscape, SMEs need to be nimble and continually innovative to be successful.

By adopting a ‘creative entrepreneurship’ approach to innovation, SMEs can tackle, cost effectively, many of the challenges they face in growing their business.

The Department for Business Innovation and Skills UK Innovation Survey (2013) identifies a number of key findings:

❚ SMEs are not innovation active* enough despite the economic upturn

❚ SMEs are not maximizing opportunities to embrace process innovations

❚ SMEs are not benefitting from external R & D partnerships

❚ SMEs are reducing their co-operation agreements with external partners and are unsure which partners bring most value

❚ SMEs tend to rely on very close sources of information to support their innovation

❚ Businesses in the North West are among the least innovative in England.

Many SMEs are not making the connections they need to become active innovators and many fail to keep up with the required pace of change. Their potential sources of innovation are limited to pockets of their existing customer base and a very limited number of suppliers – this limits their innovation potential to incremental improvements in existing products and services.

(*The definition of innovation active as outlined in the BIS Innovation Survey 2013 is as follows: introduction of a new or significantly improved product (goods or service) or process; engagement in innovation projects not yet complete or abandoned; new and significantly improved forms of organisation, business structures or practices and marketing concepts or strategies and activities in areas such as internal research and development, training, acquisition of external knowledge or machinery and equipment linked to innovation activities.)

Challenges to growth

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What is limiting SMEs reaching their full potential?

Salford Business School – supporting economic regeneration 98

A lack of investment in innovation is holding back many SMEs, inhibiting both domestic and international growth opportunities - what can creative entrepreneurship offer?

Accessing the brightest talent

Due to their size, skills gaps cause real issues for many SMEs. Accessing bright enthusiastic talent from academic institutions with a strong commitment to developing employability skills is key. New graduates or interns can inject new ideas and perspectives into a business, and as a result, both the business and student benefit greatly.

A University of Salford perspective – our range of degree programmes are designed to bring students alongside businesses. We have recently developed a six month placement nested within a three year degree - a radical innovation which will enable more SMEs to access students. Within our postgraduate degrees, businesses can benefit from a three month desk based student project, a group student project (up to five students) and a three month internship all at no cost. A six month placement also exists where a company can undertake a more substantive project or evaluate a graduate for a new role. These initiatives mean that there is strong demand for our students from SMEs: 41% of our graduating students work for SMEs. Those companies that take our students appreciate how ‘well rounded’ graduates can make an immediate contribution to their business.

Learning from others

Innovative businesses are continually moving forward, learning from others’ experiences, identifying and seizing new opportunities and being creative in how they access the knowledge they need. Knowledge Transfer Partnerships provide a sustained collaboration with businesses to help them improve their competitiveness and productivity. These are financed by the government and supported by a recent graduate and an academic.

The University of Salford is seventh in the UK for KTPs with SMEs. KTP projects are supported by funding which means that 60% of the costs of the partnership can be covered, and many deliver new products or services to customers at lower costs and more quickly. KTPs, on average, provide a 300% return on investment.

Creating networks

Connectivity is crucial to successful creative entrepreneurship and innovation – whether through online collaborative communities, face-to-face in shared workspaces or through taking up Continual Professional Development (CPD) opportunities.

Salford Business School has a total of 24 CPD courses which are accessed by over 265 companies and 2,500 participants in the last two years. Courses start from £199 and are available across the management piste – marketing, human resource management, search engine optimisation, crisis and risk management, project management.

Acquiring relevant skills

The business and trading environment is changing more rapidly than ever before. Keeping abreast of changes in the social, digital and international landscape, cost effectively, through Massive Open Online Courses (MOOCs), CPD and online resources has become increasingly important. Adapting business practice to take advantage of these changes is key to successful innovative businesses.

12,000 employers, managers and entrepreneurs have accessed our MOOCs, and over 760 companies have utilized our toolkits for international trade.

Embracing new business models

Creative entrepreneurs explore and embrace new business models to sustain and grow their business. There has been a huge growth in the number of social businesses, a model which provides a creative approach to funding. Businesses that maximize their cultural heritage within their business model can increase creativity in production and knowledge management, boost productivity and give competitive advantage to those SMEs with a long and rich history.

Our ERDF projects, LEAD, and Master Classes have helped over 926 companies to navigate the challenges of growth in the digital borderless age.

Creative entrepreneurship and the beautiful game

The economic environment surrounding football clubs is vast. A plethora of SMEs support ‘the beautiful game’. These include tourism, hospitality, media, commercial services, betting and the manufacture and retail of sporting equipment. There are many opportunities for football clubs and SMEs to embrace creative entrepreneurship. The University’s partnership with Manchester United’s Class of ‘92 to support them with their vision of taking Salford City Football Club into the Football League is a live example of this in action.

Salford Business School – supporting economic regeneration

Salford Business School is committed to supporting economic regeneration – regionally, nationally and internationally (in. In 2014 SBS was awarded the Small Business Charter Award in recognition of its role in helping to kick start the British economy). Central to this commitment is the support of SMEs through expert advice, addressing skills gaps, increasing access to finance, improving networks for innovation and resourcing opportunities through student projects. The School’s successful engagement hub provides responsive services to businesses through live student projects, internships and placements with SMEs. One-in-three of its academics regularly engage with SMEs as part of their core teaching provision or research.

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Salford Business School – supporting economic regeneration 11Salford Business School – supporting economic regeneration10

Many SMEs need to adopt a more outward-looking approach. They need to make the connections that support a continuously creative business model that will keep them relevant in the fast-moving digital age which allows them to outwit their competitors and delivers products or services that customers demand now, and crucially, in the future. For SMEs that master the opportunities of the digital age, accessing new customers and gaining insight into future challenges occur at lower costs and much more quickly than they did for businesses at the start of the recession.

One key issue of the post recessionary environment is access to finance and funds – which remains stubbornly problematic for SMEs and is something the government have acknowledged across several policy dimensions. There are many organisations and sources of funding SMEs can tap into. Help is out there, but to access that help and make the necessary connections to grow their business, many more need to adopt the mindset of a creative entrepreneur.

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The government recognises that growth and innovation amongst

SMEs is central to the UKs economy and future prosperity. As such,

every two years, the Department of Business, Innovation and Skills

(BIS) publishes The UK Innovation Survey. The latest survey (2013)

highlights some concerning statistics in terms of how far SMEs

are embracing innovation across their activities, a particular issue

in the North West, where SMEs are the least ‘innovation active’ of all

English regions.

Key findings:

❚ Too many SMEs are not ‘innovation active’ enough despite economic upturn. Innovation is increasing in larger companies as the economy improves: with 50% of larger firms identified as innovation active. However, SMEs are not making the most of the recovery - only 45% are innovation active.

❚ SMEs are not maximizing opportunities to embrace process innovations. There was a 4% fall (from 27% to 23%) in SMEs exhibiting process innovations which were new to the industry.

❚ The majority of SMEs are not benefitting from external R & D partnerships. Across all businesses just 14% are making use of external research and development, a 10% fall since the 2011 survey.

❚ SMEs are reducing their co-operation agreements and are unsure of their value. For those identified as innovating enterprises, there has been a 6% decline in the number of co-operation agreements in place to support innovation activities. Worryingly, nearly two-thirds are not able to say which of their co-operation partners they found to be most valuable.

❚ SMEs tend to rely on very close sources of information to support their innovation activities. Institutional sources such as higher education institutions and government and public research institutes feature very low for SMEs in comparison to market sources (clients and customers) and internal sources.

❚ Businesses in the North West region are the least innovation active in England. All regions have increased their innovation activity between 2011 and 2013 but the North West and London at 42% ‘innovation active’, lag 8% behind front runner the East Midlands.

In summary, SMEs are not making the connections they need to become active innovators and there is a worrying tendency for SMEs to fail to keep up with the required pace of change. In a global context this is a concerning trend and will mean that many SMEs will not be competitive in key European markets, and particularly in fast growing markets in developing economies.

SMEs in the North West

The contribution of SMEs to regional economic performance in the North West is significant. There are 480,000 SMEs in the region and in 2012-13 it was the only region to see double digit growth in enterprise formation. Despite this growth, there is a tendency to focus domestically rather than internationally. There is also a skills gap exacerbated by socially disadvantaged communities which reduces access to the social capital SMEs need. Reports by the RSA (Connected Cities – the Link to Growth July 2014) and Greater Manchester Chamber of Commerce’s Campaign for 2015 also highlight the impact of region specific infrastructure issues.to

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1.1 What is limiting SMEs reaching their full potential?

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If a lack of innovation is holding back many SMEs’ future

sustainability and growth, what can creative entrepreneurship

bring to the table? Outlined opposite are some of the ways in which we have helped SMEs become more creative, and for

entrepreneurs to think more creatively.

2.1 ACCESSING THE BRIGHTEST TALENT

Skills gaps can cause real issues for SMEs. Having access to bright, enthusiastic talent can really make the difference. At Salford, there is a very strong commitment to employability skills and an emphasis on activity based learning with real world application. Internships are a proven way to inject new ideas and experience into a business – both the student and business benefit hugely.

2.1.1 UNITE with Business – accessing talent at low cost

Short term internships can result in the creation of new jobs and contribute to improvements in financial performance. Established in 2010, UNITE with Business is an ERDF funded project bringing together six universities in the North West – the largest SME engagement project in the region.

The consortium funds short term (20 days/150 hours) final year, postgraduate or recent graduates internships and has engaged with over 1,350 SMEs so far, 215 of these through Salford Business School. To date, 48 jobs have been created and of these 20 were filled by the interns. Most importantly, more than 50% of the companies have shown improved financial performance. Feedback suggest that these young ‘digital natives’ bring a new perspective to the businesses they join.

2.1.2 Business Innovation Project – accessing skills and energy

Both businesses and students can benefit hugely from internships. Salford Business School’s Business Innovation Programme (BIP) gives Masters students the opportunity to work in a business for three to six months. BIP gives businesses the chance to take advantage of the skills and energy of bright ambitious Masters students and an opportunity to talent spot for future graduate recruitment.

Digital fashion company UK Tights had a very positive experience of the BIP programmes:

“We liked our MSc placement student so much we gave her a permanent job! Marta joined us to help us develop the digital side of the fashion business – particularly social media and Google analytics. Previously we weren’t doing much on social media but now we have a massive number of followers on all manner of networks, from Twitter and Facebook to Polyvore, Instagram and YouTube. We can see the impact of social media on our business growth.”

Jonathan Barber, Co-founder, UK Tights

Other programme advocates say:

“Communicate Better have benefitted greatly from utilising the enthusiasm of the interns recommended to us. Their fresh approach and ideas have helped the way our website looks and feels.”

Jordan Needham, Marketing Manager, Communicate Better

“The BIP programme at Salford Business School is an excellent way for local companies to connect with some of the brightest talent in the area.”

Chris Sutton, Partner, JMW Solicitors LLP

2 CASE STUDY: Crushed UK

Crushed UK is a small start-up company with a fruit snack product recently launched in Waitrose. They have had several student interns through the UNITE with Business project and have benefitted hugely from the experience.

“We are a new brand, so forging links with Salford Business School means we get to tap into the latest ideas in the business world. It enables us to get feedback from enthusiastic people that are keen to learn about new business ideas. The students bring an energy with them which is great. Fresh minds have made us think more about what we are doing, and why, and have given us a new way of looking at things. The students we have encountered are totally at ease in the world of social media, and this has opened up a whole new channel for us to reach our consumer. Their enthusiasm and knowledge in this area has given us the confidence to embrace it, and has underscored the importance of it for our target market.”

Deborah Ewing-Chow, Director, Crushed UK

CASE STUDY: Let’s Go Global

Creative media company Let’s Go Global took on a Salford Business School Masters student through the BIP programme to develop and deliver a social media and communications campaign for their Poppy project – an ambitious digital project to provide a contemporary, conceptual view on the commemoration of the First World War. It will mark the anniversary of the War by linking libraries, artists and arts organizations across Greater Manchester, stimulating creative collaboration and innovative artistic output.

“Having the opportunity to work together with Salford Business School has meant we are also developing new networks and links to connect with others to support our business ambitions for the future.”

Karen Shannon, Director, Let’s Go Global

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2.2 LEARNING FROM OTHERS

Innovative businesses are continually moving forward, learning from others’ experiences, identifying and seizing new opportunities.

2.2.1 Knowledge Transfer Partnership - improving competitiveness and productivity

While all businesses regard themselves as ‘experts’ in their chosen industry, input from an objective third-party organisation provides another dimension to maintaining that expert position. Knowledge Transfer Partnerships (KTPs) provide a sustained collaboration with businesses – supported by a recent graduate and an academic, and co-financed by the government – to help them improve their competitiveness and productivity.

As one KTP Executive writes:

“I’m currently the KTP Digital Marketing Executive at Pennine Telecom - a company that offers tailored business communication services. I joined in June 2013 with the aim of developing a multi-channel digital marketing strategy, which would allow Pennine to present a seamless journey for their clients. Key achievements so far include; the establishment of an in-house digital steering committee and a company customer journey user-experience map.

I’ve also worked closely with the sales team to understand their sales processes enabling us to hunt for future development opportunities. One milestone in the project so far was a series of digital media education seminars held in-house for all Pennine staff. I curated the content with assistance from Salford academics including Wilfred Darlington, a former BBC employee. I have also had the opportunity to develop as a professional by delivering guest lectures, attending a variety of courses and registering for an MSc in marketing. ”

Fianna Hornby, KTP Digital Marketing Executive,

Salford Business School/Pennine Telecom

CASE STUDY: Fast Web Media – Knowledge Transfer Partnerships

Fast Web Media entered into a KTP to try to expand the industry standard on the use of tracking and management tools, which could deliver greater efficiencies to the digital sector and interact in real-time with campaigns that are already live. The KTP provides the SME with the tools for research and data analysis, but also offers guidance on other elements such as software engineering, product development, identification of market requirements, and advice on structured maintenance procedures. By partnering with an institution like Salford Business School’s Centre for Digital Business, SMEs can access a level of academic rigour and independent view that would simply not be available without a Knowledge Transfer Partnership.

“Forming a KTP is beneficial for both the company partner and the knowledge-based partner. Working in partnership with Salford Business School has added another dimension to Fast Web Media’s research and analysis, giving us a unique opportunity to help shape the future of digital media practices, allowing a more holistic view of buyer behaviour. It’s helped us to broaden our horizons by adding an academic discipline to the way we analyse and use web metrics for our clients, helping us to add value to their campaigns. That’s a knowledge transfer which is truly worthwhile.”

Mike Flynn, CEO at Fast Web Media

CASE STUDY: Sigma Consulting Solutions – Knowledge Transfer Partnerships

Jessie Blaynee joined Sigma Consulting Solutions - a digital agency – as a User Experience Research Co-ordinator / KTP Associate. The company designs, develops and supports information-rich websites, intranets, portals and applications that “adds genuine business value and brings people together”.

“In this industry there is a growing lack of relevant academic-based research because of time and budget constraints, but my role at Sigma includes developing digital solutions based on the psychological motives behind behaviours. The user-orientated research I’m doing helps Sigma deliver user experience design projects more robustly, quickly and effectively – offering inclusive solutions for our clients. The research aspect of the project is to explore how older users interact with digital services. 10 million people in the UK are over 65 years old, which will grow to nearly 16 million by 2034. As society becomes more web-enabled, user experience will be more important for social scientific analysis, and ensuring this demographic can engage with these services will be key to their success.”

Jessie Blaynee KTP Associate

2.3 CREATING NETWORKS

Connectivity is crucial to successful creative entrepreneurship. It can both help provide the ‘spark’ for new ideas and provide cost-effective solutions to challenges. Connectivity comes in many guises - whether through online communities or face-to-face in shared workspaces or through taking up Continual Professional Development (CPD) opportunities.

2.3.1 Creative Hive Network – online communities

Creative Hive (creativehive.org) is a free-to-use and advert-free way for anyone to blog or set up a showcase of their work. Creative Hive supports collaboration by enabling a personal web space to be created and producing a searchable central pool of creative ideas and projects. Anyone is welcome to join and it currently has 1,167 members. Creative Hive provides a way to create your own web space and to promote your work, share ideas and find out what others are doing, providing links to people, opportunities and information.

“I’ve been a member of Creative Hive since its early days when I was doing a Masters in Contemporary Fine Art at Salford. It gave me a great platform for my artwork and initially a forum to blog. I liked the fact that it was affiliated to the university and was impressed by what it was setting out to do. I can catch up with projects that other creatives are engaged in and it has been great for networking. I’ve been able to make contact – and meet – creative people via the site that I wouldn’t otherwise have come across in fine art including a furniture designer and a composer, giving me some interesting possibilities for future collaborations. The spin-off Creative Hive live events, where I’ve presented several times, are also really good.”

Angela Tait, Fine Artist and Creative Hive member

2.3.2 Student start-ups – sharing creative space

Start-ups often struggle to find premises for their business. At Salford, very low cost, quality office space is made available to students and graduates to set up their own business. 48 student start-ups are currently in residence in two incubator units at Spark Studio and at MediaCityUK. All the start-ups can access professional support from both the University and the Business School about how to be more entrepreneurial including business bootcamps, one-to-one professional advice and seedcorn grants. Individuals are also put in contact with external business networks and local SMEs that can help them develop and grow their start-ups.

CASE STUDY: LAMPLIGHT STUDIOS

Lamplight Studios, a games development company comprising graduates from the University of Salford’s BSc Computer and Video Games programme, is based at The Landing, a technology and innovation hub located at the heart of MediaCityUK. Having been nominated for a video games BAFTA, Lamplight were chosen for a Channel 4 prize and were commissioned to turn their Dare to be Digital title ‘A Pixel Story’ into a full release.

“We’ve had a lot of experience of working remotely, it simply can’t compare to being in a room - at the same time - working together. Without the assistance of the University of Salford we wouldn’t have this chance to have an established office, where we can work and have meetings, as well as bring in others to see our operation. Simply by being here we have already witnessed some of the benefits; making connections with some of the veteran studios with opportunities for further work and, most importantly, some words of wisdom and advice to help us as we develop.“

Martin Cosens, Director, Lamplight Studios

2.4 ACQUIRING RELEVANT SKILLS

The business and trading environment is changing more rapidly than ever before and therefore the digital and social media landscape has become increasingly important. Keeping abreast of changes – through online courses, resources and staff involvement in CPD - underpins the necessary steps to adapt business practice that is key to successful innovative businesses.

2.4.1 Massive Open Online Courses – low cost upskilling in a digital age

One in three SMEs don’t have a website, two thirds do not market or sell online and many struggle to maintain a dynamic digital and social media presence. The increasing popularity of MOOCs (Massive Online Open Courses) capitalises on increased broadband speeds, video channels and other social media to provide learning resources to new and massive audiences – an accessible resource for SMEs.

CASE STUDY: Massive Open Online Course (MOOC)

Four Salford postgraduate students developed an award-winning MOOC in the use of search and social media marketing for international business helping SMEs to enhance their online presence. The entire MOOC was produced, rolled out and marketed on a very small budget, utilising students to film the video material and a student team to coordinate and promote the MOOC. This free online course allows anyone interested in social media, to get advice and learn from academics and digital agencies: Nearly 12,000 individuals have visited the site so far.

“This was my first ever MOOC. I was very impressed by the structure and content. I hope to apply what I have learned to my own business.“

Business Owner

“I feel this MOOC course covered all areas of social marketing to the right level of detail, particularly Search Engine Optimisation and Google Analytics. It also makes me feel more comfortable using social media such as Facebook or Twitter within a business context.“

Small Business Manager

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2.4.2 Passport to Trade - maximising opportunities for internationalisation

There has always been potential for SMEs to expand their horizons and trade in different European countries. However, mobility is often inhibited by the lack of knowledge about a country and an inability to read information in the official languages of Europe. Led by Salford Business School, the Passport to Trade 2.0 project provides free online training materials including European business culture guides across 31 countries to help European SMEs and students seeking work or placements and those wishing to do business abroad.

”Our MSc courses in Management and International Business attract students from around the world. SMEs wanting to crack overseas markets have found our students’ knowledge and experience invaluable. Recently, we placed a Russian student with a local leather garments firm who wanted to expand into the Russian market. Not only could the student research Russian language websites for contacts but could also advise on product design – Russian consumers will chose brighter coloured leather goods over the pastels preferred by the UK customers. Under the supervision of a Salford Business School tutor, the student completed a market research report, helped in international strategizing, and went on to work for the company.”

Dr Mohammed Amjad, Lecturer in Strategy, Salford Business School

2.4.3 Continual Professional Development – acquiring key skills for business

A challenge for UK SMEs is a tradition of command and control leadership style. Creative entrepreneurs want the skills and tools that add value to their business. Short courses and CPD training for SMEs has long been a core strength at Salford and remains an extremely important way to engage, assist and partner with SMEs. The Business School is currently the only institution in the North West approved by the IoD to offer its courses which focus on the key skills needed to lead a business.

CASE STUDY: Leading Enterprise and Development Programme- Spectrum Plastics

Salford offers business-focused open programmes that are geared to SMEs’ needs and goals and offer practical solutions to overcoming barriers to growth. Since the inception of the ten-month Leading Enterprise and Development (LEAD) programme at the University of Salford in 2004, over 150 businesses have benefited from this course.

LEAD was developed in the North West for SME owner-managers and equips them with additional skills and ability to run a successful and profitable business. Participants have a proven track record of delivering improved business performance, with 90% of pilot delegates saying they had witnessed an average £200,000 increase in turnover, with a similarly impressive rise in profit growth. Some have expanded into new markets, whilst others have used the lessons and experiences to become more profitable.

One LEAD participant, Kath Doran from Spectrum Plastics says:

”The LEAD programme takes an integrated approach and focuses on dual needs - those of the business itself and my personal development by giving hands-on help and advice, one-to-one coaching, active learning, sharing with and learning from peers and learning from other successful businesses and experts. When you start making decisions based on facts and not just what you feel then that makes a difference. The more calculated the risk you take, the more likely the business is to grow.”

2.4.4 Employability learning through international entrepreneurship (ELIE)

Interacting with new cultures can prove an obstacle to business growth. The ELIE project was set up with ERASMUS (EU) funding to provide higher education institutions across Europe with a new set of teaching and learning tools based upon well-founded research to reinforce the link between studies and future skills and employment needs. As well as providing accessible learning opportunities for SMEs first within the pilot countries and later across Europe, the programme also supported SMEs in developing their levels of entrepreneurship and creative thinking.

One of the major outputs is a set of online materials to help individuals develop the skills needed for self-employment as well as for interaction with new cultures. The materials are targeted at both students and SMEs across Europe. Based on the real experiences of almost 200 immigrant entrepreneurs in Europe, topics for the guides, which are translated into four European languages, include how to communicate in a new country, how to start up a business in a new country, and how to boost your entrepreneurial intentions.

www.elie-project.eu

2.5 EMBRACING NEW BUSINESS MODELS

2.5.1 Social business – a creative approach to funding

There has been a huge growth in the number of social businesses - those that sell products and services for profit with a clearly defined purpose to meet a social need. Salford Business School’s Centre for Social Business not only has a remit to nurture and support SME social business, but to assess the model within the university itself with the aim that 1% of the university’s activity will deliver a direct social impact in the local community. The Centre for Social Business has provided business planning advice to the following initiatives.

❚ Salford University’s Saturday Music Club was established to teach people to play brass instruments. A major recurring issue is the huge cost of buying the expensive instruments needed. Led by Brett Baker in the School of Arts & Media, a new social business has been formed, run by staff and students in Music, with the purpose of delivering free music instrument tuition to local school children. Income from the Saturday Music Club is used to buy much-needed instruments and to fund Salford students to provide tuition free in local schools.

❚ Income from the University’s Commercial Conference Service (recently restructured as a social business) now helps to fund the University’s local social impact. Staff are more motivated, and the local community benefits.

CASE STUDY: Visible Outcomes 4 U

Visible Outcomes 4 U is a social business set up by three Salford residents (of which two are Social Work students) with support from Salford Business School’s Centre for Social Business. Developed in response to needs identified in the local migrant, refugee and wider communities in Salford, Visible Outcomes 4 U’s founders are passionate about supporting people from diverse communities to achieve positive personal outcomes with a mission to embrace, educate, and integrate. Projects undertaken include diverse diet training in hospitals, work clubs and IT support in the community, interpreter courses and community projects in Poland, Israel and Russia.

“We’ve been up and running a year now. The help and support we received from Salford Business School’s Centre for Social Business was pivotal in us creating and registering Visible Outcomes 4 U as a social business and making sure everything was set up correctly. We’ve also received ongoing support in terms of identifying funding opportunities.”

Irfan Syez, co-founder, Visible Outcomes 4 U

2.5.2 Enterprise Cultural Heritage – boosting productivity for SMEs with rich histories

Effective enterprise cultural heritage management (turning the history of your company into a unique selling point) can create sustainable competitive advantage, allowing SMEs to innovate by drawing on their past by re-inventing themselves, and highlighting their uniqueness in doing so. However, the majority of SMEs with rich histories find it difficult to identify and exploit the economic added value of their cultural heritage. Salford Business School leads a European consortium of universities which is working with SMEs across Europe to develop online training materials to help SMEs identify and exploit their heritage.

CASE STUDY: Caracciolo

Caracciolo has been operating at the South-end of the Ionian Calabria coast in Italy since the end of the 1960’s. Founded by Giovanni, the company produces almond paste (used in making cakes, pastries and ice-cream) and an almond milk drink called Amandula. Today, Giovanni’s son Bruno and his wife Emanuela, run the company and have extended the market sector to beverages with the Amandula brand.

Two years after taking part in the online Enterprise Cultural Heritage (ECH) training, the company shows significant results and improvement in their business. In particular, focusing on the heritage Management and Brand Management training modules has meant the company is able to certify their production process to show craft processing and the use of natural raw material (almonds). They are still in the process of re-developing a new website and focusing on their product packaging to create a coherent brand identity to make them attractive to new business contacts.

“The principal lesson learnt is to look at new ideas for company business development. Enterprise Cultural Heritage is an important area of investment showing our customers the unique identity of our products and services in contrast to the massive homogenisation of the market.”

Bruno Caracciolo

CASE STUDY: J Atkinson & Co

J Atkinson & Co, an artisan coffee roasting and tea blending business based in Lancaster was founded by Thomas Atkinson in 1837; the company is now run by Ian and Sue Steel, who have made a distinct virtue of its heritage and history. For example, when it became apparent that they were suffering from capacity constraints on the volume of coffee they could roast, they opted to buy a larger model of their 1930s Whitmee Roaster rather than choose a modern machine. The rumbling noise of the roaster and the smell of freshly roasted coffee preserve the intangible cultural heritage of the store and are strategically positioned in sight of visitors.

Two years after the initial training the company is expanding rapidly. One of the key aspects now being exploited is their status as the ‘Oldest Retailer in Lancaster’. By enjoying J Atkinson & Co coffee, the customers are buying into a local brand that supports local people as well as those suppliers who have sustained this business for generations. The use of new communication technology such as Twitter and blogs blends nicely with a vintage coffee roaster creating a special atmosphere for visitors whether they are browsing online and purchasing from around the world or just happen to be physically in the vicinity.

By exploiting their heritage status the company has nearly doubled in size in two years (from 12 to 20 full time employees) and is reporting 40% growth, year-on-year, over successive quarters.

“To modernise (...our process) would have been to throw the baby out with the bath water, losing the very thing that makes our product unique and so much loved by our loyal customers. I have taken the principles that I learnt from the old recipes, about how they are put together, and used contemporary thinking about what goes together.”

Ian Steel, J Atkinson & Co

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Salford Business School – supporting economic regeneration20 Salford Business School – supporting economic regeneration 21

Professor Chris Brady, Director, Centre for Sports Business highlights the opportunities for football clubs and related SMEs.

Though their business exploits enjoy unchallenged column inches, most non-Premiership North West football clubs, and even some in the Premiership, can be classed as medium-sized businesses. This means clubs face some of the same challenges as their less scrutinised SME equivalents. The most obvious of these is the need to maintain competitiveness in an environment where huge corporate entities also operate.

The trick for an SME is to pick out a niche market – one that they are ideally positioned for, which the big corporates are not interested in. Creativity in entrepreneurship is key to these decisions.

To give a non-football example, how does a small independent coffee shop compete with Starbucks? It is likely to sell itself on its non-corporate credentials – homemade cakes, a unique interior and affiliation with local customers. In football terms, smaller regional clubs like Salford City offer their supporters a sense of community and belonging.

In the football industry a team’s position in the league can be mapped against its ability to pay high wages. With a wage bill one tenth of Manchester United’s, Burnley has very different parameters of success. Fourth from the bottom in the Premiership may equal success for some teams while fourth from the top would spell failure for others. Your local coffee shop isn’t aiming for the turnover of Starbucks. Regular profits, a loyal local customer base and status as a community hub are more likely to fit with its expectations.

While football clubs individually may be relatively small in a business sense, the economic environment surrounding them is vast. A plethora of SMEs support ‘the beautiful game’. These include tourism, hospitality, media, commercial services, betting and the manufacture/retail of sporting equipment – though this is by no means an exhaustive list. Football-related activities, including football clubs and the businesses whose markets depend on football, contributed around £330 million in gross value added (GVA) to the Greater Manchester economy in 2010/11 .

At the University of Salford, we’re working with both football clubs and related SMEs to help them navigate some of the challenges mentioned in this report.

❚ We’re currently working with an online spread betting company to develop and deliver training programmes for its in-house traders. Betting is becoming more technologically driven and the company owner was keen that his employees understand the rationale behind these technologies, so they are well placed to make the corresponding human judgements required. Through a mix of online and face-to-face learning, Salford academics are helping the company understand the mathematics, probability and risk management behind these systems and how the technology supports their decision-making.

❚ We’re delighted to have entered into an exclusive partnership with the Class of ’92 – the group of legendary Manchester United players including Ryan Giggs, Paul Scholes, Gary Neville, Nicky Butt and Phil Neville - in their Salford City ownership project, with their vision to take the club into the Football League. We are advising on many areas including sports science, their business plan and administration. The ambitious programme of partnership activity will also create some fantastic internship, placement and research opportunities for Salford undergraduates and postgraduates.

The partnership with the University of Salford is a central part of our vision, and we’re really lucky to be able to make the most of the enthusiasm and skills of some fantastic students and the incredible facilities at the University.

Gary Neville, Class of ‘92

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Creative entrepreneurship

Professor Amanda Broderick and Gary Neville exchange pennants at the Class of ‘92 v Salford City friendly to mark the partnership


Salford Business School – supporting economic regeneration Salford Business School is committed to supporting economic regeneration – regionally, nationally and internationally (in 2014 it was awarded the Small Business Charter Award in recognition of its role in helping to kick start the British economy). Central to this commitment is the support of SMEs through expert advice, addressing skills gaps and through access to finance, network and resource opportunities. The School’s successful engagement hub provides responsive services to businesses through live student projects, internships and placements with SMEs, and this supports one-in-three of its academics to regularly engage with SMEs as part of their core teaching provision or research.

❚ Salford Business School is England’s third strongest University for SME engagement

❚ The University of Salford is a top 10 university for KTPs – establishing strong and sustained relationships with SMEs.

❚ 50% of staff engage in international projects – many with SMEs across Europe.

❚ In 2013, 41% of our graduating students selected SMEs in their choice of employment (a 13% year-on-year increase).

❚ Around 1,700 students each year participate in business/entrepreneur supported enterprise programmes.

❚ 48 micro start-ups started by our students and graduates are in residence in our Origin (MediaCityUK) and Spark Studios.

❚ A top 10 university for the information economy – Salford Business School has a Centre for Digital Business which is a leading European centre for promoting and refining digital business practice and strategies – particularly in SMEs.

❚ A socially committed institution – the Centre for Social Business is researching and supporting a grass movement that is transforming communities and lives through micro and small institutions.

❚ 120 countries represented in our student population – giving unprecedented market insights from across the globe.

❚ A state-of-the-art MediaCityUK presence, which gives access to creative content and communication.

Contact us

University of Salford Salford Business School The Crescent Salford, M5 4WT United Kingdom

t: +44 (0)161 295 2222

Follow us on Twitter: @SalfordBizSch #SalfordBschool

www.salford.ac.uk/business-school

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onMany SMEs survived the 2008 downturn

by hunkering down and successfully concentrating on what they knew best – their

core business and core markets. However, the very qualities that saw them through the

recent tough times may be hampering their ability to take advantage of the opportunities

now on offer. SMEs need to adopt a more outward-looking approach. They need to make

the connections that support a continuously creative business model that will keep them

relevant in the fast-moving digital age: SMEs need to embrace that technology to help make

those connections and reduce business costs.

There are many bodies and sources of funding they can tap into, the help is out there, but to access that help and make the connections to

grow their business, they need to adopt the mindset of a creative entrepreneur.

Salford Business School – supporting economic regeneration24