Enterprise

Government statistics indicate the average British entrepreneur is a 36-year-old white man living in the South-east; it’s a statistic that chancellor Gordon Brown says is bad for business – and regeneration.

In the Budget, Brown emphasised the importance of enterprise in creating sustainable regeneration schemes, and to underline the point he announced a local enterprise growth initiative to support local enterprise. The initiative is worth £50m in 2006/7 and that could rise to £150m per year by 2009. So the government is lending its financial support to the growth of local enterprise, but how, in practice, can the entrepreneurial spirit be encouraged in communities that have little experience of business?

According to Phil Barton, director of the North West Regional Centre for Regeneration Excellence Renew, it’s a challenge that can be met with meticulous preparation and a long-term view. Here is his advice:

- The first step is to survey what services are on offer in an area – often there is a surprising amount of resources available for supporting businesses but they are not immediately visible. Make early contact with the local authority, skills council, business link and chambers of commerce. These organisations will have a detailed understanding of local market conditions and will be able to point out gaps in, for example, the accessibility of resources such as IT. Local colleges should also be contacted – they offer help with matters such as business plans and health and safety regulations.

- Larger organisations can also be of use; the Prince’s Trust, the Small Business Service (run by the DTI) and your regional development agency can all give advice – and you may be able to get funding from bodies such as the Phoenix Fund, which supports enterprise in disadvantaged communities.

- Once information about available resources, local market conditions and funding has been gathered; the next step is to consult the local community. Barton says consultation needs to be as hands-on as possible. “It’s not just about mailing people information. At Renew we have gone out to pubs and village halls to find out what local people think is needed.”

- To avoid spreading resources too thinly, target a specific group to help. Touchstone Housing Association aimed at young people in the case study below. Then consider how to support them in the long run.

Barton says: “Start-up companies are inherently risky endeavours and they could need considerable support to weather the first years. So consider where that support will come from – will there be mentors available or professional business advisers on hand?”

- Consider how a business could be helped to grow if it is successful. It’s no good building lots of small offices designed for one or two people – there needs to be space for the business to grow. So flexibility in the design and management of an enterprise scheme is very important. And consider what type of businesses might want to use the space.

- Finally, remember to make use of the help the government is giving to small businesses. In last month’s budget Brown announced that Regional Development Agencies, the Office of Government Commerce and the Small Business Service are to become more involved in helping small businesses tender for public sector contracts.