EMRA published its first Scrutiny Panel Review ‘ Business Birth Rate and Survival’ (720KB PDF) in May 2004. The report considered emda’s performance in encouraging business start-up and survival.

The Panel consisted of;

Chair Cllr Ken Joynson, South Kesteven District Council

Lyn McGinn, Kettering Business Venture Trust Limited

Vaughan Galt, Nottinghamshire Research Observatory

Brian Holdsworth, Nottinghamshire County Council

Sylvia Tidy-Harris, thespeakersagency.com

The review made 22 recommendations to support improvements, which are listed below. The Panel picked out Recommendations 2, 3, 5, 6, 8, 9, 10, 12, 13, 14, 21 & 22 as being of key importance (denoted with * below).

RECOMMENDATION 1

The panel recommends that a more comprehensive and responsive consultation process should be implemented by emda to promote effective relationship management, support the development of a business birth rate strategy, policy implementation and associated initiatives.

RECOMMENDATION 2 *

The panel recommends that emda should clarify the relationship between this strategy and the wider objective of increasing the regional level of Gross Domestic Product (GDP).

RECOMMENDATION 3 *

The panel recommends that a more clearly structured approach is required to demonstrate how emda will address issues related to the simultaneous improvement of regional economic efficiency and local pockets of socio-economic deprivation.

RECOMMENDATION 4

The panel recommends that strategy development should have clear focus, address specific regional priorities and focus resources where potential impact is greatest.

RECOMMENDATION 5 *

It is recommended that emda place more emphasis on business sustainability/survival rather than principally on rates of business start ups. Accordingly, the strategy should establish an appropriate support framework available to businesses throughout all stages of their business development cycle.

RECOMMENDATION 6 *

The panel recommends that the development of a regional business birth-rate strategy should, similar to the principles of the FRESA (Framework for Regional Employment and Skills Action), be demand/client led rather than supplier driven. The panel, however, recognises the efforts of emda to ensure these principles are central to the development of a regional business support framework.

RECOMMENDATION 7

The panel recognises the efforts already made by emda to address data limitations, in particular the commissioning of bespoke research into specific regional performance. However, it is important that any data relating to regional performance should be rigorous and comparable at both the regional and national level.

RECOMMENDATION 8 *

The panel recommends that the Business Birth Rate Strategy for the East Midlands should be aspirational and realistic. It should identify realistic regional objectives and establish appropriate targets that are relevant, transparent and comparable. It is also important that the strategy should be able to adjust to the trends that emerge during the life of the strategy.

RECOMMENDATION 9 *

The Panel considers that there is a need for a range of high quality assured specialist and generalist services available to start-up and small businesses throughout the region.

RECOMMENDATION 10 *

The Panel considers that, operating within a regional framework, sub-regional networks and partnerships of business support agencies could offer real benefits, e.g. structured information dissemination on the range of start-up and survival services that exist, building links between a range of providers and acting as a ‘referral network’ for support services.

RECOMMENDATION 11

The Panel considers that there is a need for a cross regional infrastructure that provides a trusted point of reference for potential start-ups and service providers about the range and quality of services that are on offer to the potential start-up.

RECOMMENDATION 12 *

The Panel considers that there is a need for regional co-ordination of business support services. Business Support East Midlands should undertake this role and its objectives should be to:

• increase the number of potential start-ups and existing small businesses accessing appropriate support;
• ensure that those accessing services enjoy an improvement in the quality of the services provided; and
• ensure that start-ups and existing small businesses from all parts of the region can enjoy access to services that meet their needs

RECOMMENDATION 13 *

The image and reputation of public sector business support requires substantial improvement. However, the image will not improve unless it meets the needs of customers who, in turn, share their positive experience with business peers. This is dependent upon increasing the quality of the support service on offer rather than the funds spent on promoting it.

RECOMMENDATION 14 *

The Panel finds that, subject to appropriate quality checks being in place, to promote a long-term vision, supplier organisations would benefit from the certainty that longer funding commitments from Business Support East Midlands would bring.

RECOMMENDATION 15

The Panel finds that there is a clear need for a comprehensive, accurate and accessible regional system of consultation and needs diagnosis for individuals wishing to start a business. This should not be constrained by any conflict between diagnosis of need and incentive to supply in-house services.

RECOMMENDATION 16

emda may wish to consider the implications of these findings.

RECOMMENDATION 17

An accurate performance management framework should be implemented to evaluate the effectiveness of regional business support activity. The Panel recognises that this is an area that emda are currently reviewing and supports the work taking place.

RECOMMENDATION 18

The development of the strategy and its subsequent implementation should reflect the value that businesses place on face-to-face relationships with trusted individual(s) or organisation(s) that support their progress from pre-start-up through to survival and growth.

RECOMMENDATION 19

emda should develop initiatives to address problems of market failure associated with mid-range funding gaps.

RECOMMENDATION 20

The Panel supports the links made with educational and training facilities, and believe that emda’s work in developing links with University and College ‘spin-outs’ has been beneficial and such activity should continue to be strengthened.

RECOMMENDATION 21 *

The Panel considers that emda, as the regional lead on the Framework for Regional Employment and Skills Action, should develop strong links with schools and appropriate institutions, including Learning and Skills Councils, Connexions and the Princes Trust. Those undertaking education and/or training guidance should be aware of business start-up as a career option and have access to appropriate information and guidance and the opportunity to develop relevant skills.

RECOMMENDATION 22 *

Business Links should implement a quality assurance mechanism and ensure they are seen by the private sector as the trusted co-ordinator and broker of services and networks rather than as a competitor within the same market.

At the time that the Business Start-Up Review was published, in May 2004, the Regional Scrutiny Protocol did not clarify how emda should respond to Scrutiny Reviews nor how emda and EMRA should work together to monitor the implementation of review findings.

The Regional Scrutiny Board considered emda’s initial response (80KB PDF) to the Business Start-Up Review in February 2004. 

The Regional Scrutiny Board considered emda’sevaluation of progress (50KB PDF)against the recommendations in December 2004.