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A multi-lateralapproach to provideFemale-Friendlybusiness support for all women
Business Supportwith the F Factor‘‘
Prowess is the UK association oforganisations and individuals whosupport women to start and growbusinesses through the developmentof an effective women-friendlybusiness support infrastructure andenterprise culture.
Prowess also:
• Lobbies to create a policy environment and opportunities which support the development of women’s enterprise
• Provides capacity building support and training
• Creates opportunities to share best practice and learn about new approaches
• Promotes and raises awareness of women’s enterprise and the organisations that support this key area of economic growth
• Puts women in touch with women-friendly business support and events in their area through our website www.prowess.org.uk
This report was funded by theEuropean Social Fund under the EqualCommunity Initiative Programme.
Prowess is supported by:The DTI Small Business ServiceNatWest and The Royal Bank of Scotland
AcknowledgementsThis report was written by Jayne Graham, Directorof 20:20 Consulting Limited and Prowess AssociateDirector. Edited by Erika Watson, Executive Director,Prowess.
Business Support with the ‘F’ Factor:A multi-lateral approach to providing Female-Friendly business support for all women.First printed in Great Britain in 2005
© PROWESS LtdLion House20-28 Muspole StreetNorwich NR3 1DJTelephone +44 (0)1603 762355Email: [email protected]
1. Executive Summary 5
2. Introduction andfundamental principles 7
2.1. Introduction – the economic case 7
2.2. Four pillars of success 82.3. Barriers facing female
entrepreneurs 82.4. Provide choice 102.5. Focus on the needs
of women 10
3. Business Support which is fit for purpose 113.1. Policy context 113.2. Transactional business
support 113.3. Transformational support 13
4. A proposal – BusinessSupport with the ‘F’ Factor 17
4.1. The ‘F’ Factors 174.2. Impact 204.3. A partnership for
transformation 21
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Business Support with the ‘F’ FactorA multi-lateral approach to providing Female-Friendly business support for all women
Contents
Objective: ‘To ensure that every woman in each region has access to highquality Female-Friendly business support from the pre pre-start-up stageonwards’, Women’s Enterprise Panel, March 2005
Foreword 4
Foreword from Pam Alexander,Chief Executive, South East EnglandDevelopment Agency
I am delighted to support this excellent report fromProwess defining the key principles of ‘BusinessSupport with the ‘F’ Factor’.
SEEDA, the South East Regional DevelopmentAgency, and our partners in the South East ofEngland have responded enthusiastically to theNational Strategic Framework for Women’sEnterprise. Indeed, we believe that this is anessential ingredient of long-term sustainableprosperity for all.
Our vision is to make the South East a dynamicplace for any woman to start and grow herbusiness and to ensure that women from allbackgrounds regard entrepreneurship as a realoption; have the confidence to take the leap; andknow where to go for support and advice.
We know that increasing the number of women-run businesses will make a significant contribution– maybe the largest of any measure - to closingthe productivity gap between the South East ofEngland and its world-class global competitors. Wealso know that the opportunities which enterprisewill open up could transform the lives of individualwomen, their families and their communities in themost disadvantaged parts of the region.
So the strategy which we are developing focuseson addressing the particular issues and barrierswhich women face and remedying the lack ofappropriate and women-friendly business support.
The principles proposed by Prowess in this reportcomplement and inform our vision for women’senterprise in the South East. I have been veryexcited by the early success of the EnterpriseGateway network, which reaches into our mostdeprived communities – and they do exist. It buildsconfidence as well as competence and is cited asan excellent model of ‘transformational’ support,
working alongside mainstream providers to fosterentrepreneurship within a local environment. OurFaringdon Enterprise Gateway was recentlyawarded Prowess Flagship status and we willencourage our other Gateways and partners toattain this status.
We fervently agree, however, that ‘one size doesnot fit all’ .This report sets out principles, nottramlines. I endorse and commend it and I hopethat it will have a widespread impact, for itdemonstrates how we can significantly increasethe numbers of women starting and growing theirbusinesses and that is an essential element of aprosperous and fulfilled future.
Pam Alexander, Chief Executive, SEEDA
Forward from Sue Kirby, Director ofPolicy and Communications, EastMidlands Development Agency andLead Enterprise Director forWomen’s Enterprise across the RDAs
We need to unleash the economic potential ofwomen if we are to achieve sustainable economicgrowth, and that is the ambition of each regionaldevelopment agency. More women-ownedbusinesses mean increased productivity, more jobs,and greater wealth. Evidence shows that women’sbusinesses offer innovative products and services,and increase the competitiveness of the UK. Wewelcome this report that identifies the factors thatwill ensure that together we achieve the vision ofFemale-Friendly business support for every womanin each region.
Sue Kirby, EMDA
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Foreword
4
Business Support with the ‘F’ Factor .
This paper is intended to explore the Women’sEnterprise Panel objective of ensuring that ‘everywoman in each region has access to high qualityfemale-friendly business support from the pre pre-start-up stage onwards’, and presents BusinessSupport with the ‘F’ Factor as the solution.
Economic potentialUnleashing the potential of women’s enterprise onthe economy will result in the significantlyimproved participation of women in enterprise,increased productivity and, as a direct result,economic growth in every region. The presentgender imbalance within business birth rates will,however, continue unless radical steps are taken tobreak the cycle and ultimately reverse the trend.
The Government’s objective of increasing thenumber of women-owned businesses to match orexceed the 30% achieved in the US is bold but,both in terms of overall business stock and GrossValue Added, it’s a prize worth striving for.
Cross-government agendaThe Regional Development Agencies (RDAs) havebecome the focal point for the strategicdevelopment of regional activity to promotewomen’s enterprise and they clearly have a criticalrole to play regionally, subregionally and locallythrough strategy and policy, however women’senterprise development is not exclusively a DTI orRDA agenda. This agenda needs a partnershipapproach. A genuine focus on addressing economicgrowth, productivity gains and overcomingdisadvantage and social inclusion throughwomen’s enterprise is an opportunity to achievekey priority objectives across Government.
Barriers facing womenBarriers which prevent women from setting up andgrowing businesses have been defined within theDTI’s Women’s Enterprise Strategic Framework.The combined effect of these barriers can preventbusinesses starting and/or growing; it thereforestands to reason that removing the barriers willhave a direct, positive impact on the economy.
Mainstream supportMainstream delivery organisations, includingBusiness Links, operate a ‘transactional’ model ofdelivery. In other words they rely fundamentally onbusinesses connecting with their service throughstandard marketing and tend to provide supportfrom an ‘arms length’ perspective. Specificbusiness development needs are identified,solutions designed and support brokered in.Although Business Link market penetration hasincreased over the last few years, the number offemale customers is disproportionate to male. Astep change is now required to support theBusiness Link network and their brokerage partnersto achieve the target of women-led businessesaccounting for 40% of their customers.
Specialist supportSpecialist support organisations deliveringtransformational support are critical in encouragingwomen to set up their own businesses. Oftentermed ‘grass roots organisations’, specialistproviders support local needs, predominantlyproviding services which transform peoples’ livesand/or attitudes. Transformational support is highlycustomer-focused and relational and takes intoaccount the impact of a new business on women’sother priorities and responsibilities. Most of thepeople accessing transformational support cannoteven see mainstream, transactional support; asmany of them do not even consider ‘business’ tobe within their reach at the outset of their journey,transactional support cannot, at that time, meettheir needs.
Multilateral approachTransformational support delivered by specialistproviders is not an alternative to transactionalbusiness support provided by mainstreamorganisations. The economic opportunity whichexists in specialist providers working on acomplementary basis with mainstream is evidencedin the US; specialist providers are serving a needand a population that would not otherwise beserved. Mainstream business supportorganisations and specialist providers must work
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1 Executive Summary
Conclusion
In June 2004, Gordon Brown, Chancellor of theExchequer, said “The key factor in increasingthe UK’s business start-up rates is gettingmore women to start their own business”.The Women’s Enterprise Panel recommended ‘everywoman in each region has access to high qualityfemale-friendly business support from the pre pre-start-up stage onwards’. Business Support with the‘F’ Factor is the solution. Awareness andunderstanding of the women’s enterprise agenda,and the critical role transformational support has toplay alongside mainstream provision in inspiringand supporting women’s enterprise, must besignificantly improved amongst policy-makers acrossGovernment nationally, regionally and locally. Amulti-lateral approach to provision and engagementacross all Government Departments is the onlyroute to securing an appropriate level of resource toget more women to start their own business.
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hand-in-hand, with female-friendly support being attheir core. One size doesn’t fit all. An equivalentinvestment to that being made by Government intomainstream support is required; without thisfunding, support for a large proportion of thepopulation will not exist, resulting in latenteconomic potential being untapped.
This multilateral approach, however, must not beallowed to operate as parallel, disparate models. A‘braided approach’ is required to enable mainstreamand specialist providers to work together to avoidtheir customers ‘falling between the cracks’.
Business support with the ‘F’ FactorProwess is proposing a defined set of clear guidingprinciples with the in-built flexibility to mould theframework to fit local and regional priorities andinfrastructure, building on progress which hasalready been made. These principles have beentermed the ‘F’ Factors.
Transformational support, with Female-Friendliness at its core, should beadopted in every region. An overwhelming demand already exists but asyet it cannot be met. Each region should take a pragmatic approach toidentifying its specific needs, and to filling the void.
The ‘braided approach’ should become the cornerstone of a strategyintended to proactively remove the current barriers to mainstream andspecialist support providers, joining it up to unleash its combined impact.The key enabler is the people and organisations delivering support, theway they operate and the links between them. The braided approach isnot a ‘euphemism for doing nothing’.
Prowess Flagship standards for all mainstream business support (BusinessLinks and their brokerage partners), significantly improving its female-friendliness. Combine this with targets relating to the proportion ofwomen-led businesses served. If adopted market penetration and overallcustomer satisfaction, will be improved.
A ‘bottom-up’ approach to fulfilling local needs is essential. Solutionsmust be driven by local demographics and economic priorities, andcritically must build on existing local and sub-regional infrastructure toavoid unnecessary duplication. There may, for example, be a local ruralfocus, or a priority to gear support to a predominantly BME population.
Integrating vocational skills with transformational support to provide thefuel to accelerate business start up and drive its ultimate success.
Secure the long-term sustainability of business support with the ‘F’ Factor,and develop a capability to demonstrate the economic impact of supportprovided.
‘F’ Factor 1
‘F’ Factor 2
‘F’ Factor 3
‘F’ Factor 4
‘F’ Factor 5
‘F’ Factor 6
2.1.1 The economic caseWomen in small business ownership contribute anestimated £50-£70 Billion annual contribution to thegross value added by business1. Extensive opinionand evidence suggests that a genuine focus onunleashing the potential of women will result insignificantly improved participation in enterprise,increased productivity and, as a direct result,economic growth in every region. Comparing levelsof enterprise in the UK and US2, the number of male-owned businesses per head of economically activepopulation is similar, however the rate of femaleentrepreneurship is vastly different; it is estimatedthat if the UK had the same levels of femaleentrepreneurship as the US, there would be aroundthree quarters of a million more businesses in the UK,equivalent to an increase of around 20% in thebusiness stock. The present gender imbalance withinbusiness birth rates will, however, continue unlessradical steps are taken to break the cycle, andultimately reverse the trend.
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2.1.2 The challengeEconomic potentialUnleashing the potential of women’s enterprise on theeconomy will result in the significantly improvedparticipation of women in enterprise, increasedproductivity and, as a direct result, economic growth inevery region. The present gender imbalance withinbusiness birth rates will, however, continue unlessradical steps are taken to break the cycle and ultimatelyreverse the trend.The Government’s objective of increasing the number ofwomen-owned businesses to match or exceed the 30%achieved in the US is bold but, both in terms of overallbusiness stock and Gross Value Added, it’s a prize worthstriving for.The current 600,000 women-owned businesses3 willneed to grow by a massive 50% to meet this targetassuming there was no change in the total number ofmale businesses which exist today.
2.1.3 RDAs as the focal point forstrategic development
Under the Regional Development Agencies Act 1998,each Regional Development Agency (RDA) has fivestatutory purposes which include: further economicdevelopment and regeneration; promote businessefficiency, investment and competitiveness; promoteemployment; enhance development and application ofskills relevant to employment; and contribute tosustainable development. This remit makes the RDAsthe focal point for the strategic development ofregional activity to promote women’s enterprise.4 The2004 Spending Review provided key policy changesaffecting women’s enterprise and the regions5 andthese changes are now underway. New levels offlexibility, and benefits arising from the targeting ofbusiness support policies and regional delivery asapproaches are reviewed, offering significantopportunities for improving support for women.
2 Introduction and fundamentalprinciples
2.1 Introduction
2.1.1 A genuine focus on unleashing the potential of women’s enterprise will result in an improved economy in every region - the creep must now become a sprint
2.1.2 The Government ‘s bold objective is to double the proportion of women-owned business to 30%
2.1.3 The RDAs have become the focal point for the strategic development of regional activity to promote women’s enterprise. A broader perspective across Government is explored in Section 4.3
1 DTI/Small Business Service Promoting female entrepreneurship March 20052 While we are able to learn tactical approaches from European and other countries, theUS is distinguished in having dramatically increased the number of female entrepreneursfrom 1.5 million in 1979 to over 6 million today. It is currently estimated that around 30%of businesses in the US are majority female owned
3 ASBS 20044 A broader perspective across Government is explored in Section 4.35 2004 Spending Review Chapter 23 outlines “Further increases to the RDAs funding(and) devolves to them additional resources and responsibilities”. It also explains thatGovernment would devolve “… responsibility to the RDAs for the delivery of BusinessLink services from April 2005;” and, “new responsibilities for the delivery of researchand development (R&D) grants and for parts of the successor to the Phoenix Fund,which focuses on enterprise in disadvantaged areas, to enable an integrated approachto business support at the regional level.”
The Government’s bold ambition, however, can beachieved, and in time exceeded, assuming theessential pillars of success are firmly put in place,underpinned by clear, timely communication.
Strong, focused leadership whichis emerging through theWomen’s Enterprise Panel andthe possible future NationalWomen’s Business Commission6.
SMART objectives, a substantialnumber of which are alreadyarticulated within the Women’sEnterprise Strategic Framework7,and a genuine accountability forachieving them.
Effective collaboration betweenmainstream8 and specialist9
support organisations throughadopting a braided approach10
Funding of transformationalsupport which will guarantee itslong-term sustainability andcontinuous development
This paper is intended to provide a pathway to assistregional and national policy-makers and funders toplan and implement Pillars Three and Four asdescribed above, building on existing policy andinfrastructure. The paper has been informed by theDTI’s Women’s Enterprise Strategic Framework forWomen’s Enterprise (‘the Strategic Framework’)published in April 2003, the Small Business ServiceInterim Evaluation of the Phoenix Development Fund2004, the Small Business Service draft proposals11
relating to the establishment of a pilot RegionalWomen’s Enterprise Unit and an earlier consultationpaper by Prowess ‘A National Network of Women’sBusiness Centres’,(October 2004).
The Strategic Framework published in April 2003summarises the main barriers experienced by manywomen when establishing their own businesses tobe:
• Lack of appropriate business support
• Access to finance
• The impact of caring and domesticresponsibilities
• Difficulties experienced in the transition frombenefits to self-employment or businessownership
• Lack of appropriate role models
• Low levels of confidence and self-esteem
The purpose of this paper is not to explore norvalidate these barriers which are now welldocumented. It will, however, consider the mostappropriate support mechanism to help women toovercome them to engender the increasedparticipation of women in the UK economy.A business development ‘journey’ ranges from thepoint where a woman is representing ‘latentpotential’ in terms of economic contribution
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2.2 Four pillars of successThe Government’s bold ambition is achievablewith strong leadership, SMART objectives,effective collaboration and, crucially, long-term funding for transformational support.
Pillar One
Pillar Two
Pillar Three
Pillar Four
2.3 Barriers facing female entrepreneurs• Barriers which prevent women from
setting up and growing businesses have been defined within the DTI’s Women’s Enterprise Strategic Framework
• The combined effect of these barriers can prevent business starting and growing
• Removing the barriers will have a direct, positive impact on the economy
6 Subject to the outcome of National Women’s Business Commission consultation andresultant proposals of the Women’s Enterprise Panel7 DTI, 20038 The term mainstream is used to define those organisations providing conventional,transactional business support. See section 3.2.1 for definition of transactional support.For the purpose of this report the Business Link service has been used as a proxy formainstream support9 Specialist support organisations tend to focus on delivery of transformational support tospecific groups including those facing social exclusion or disadvantage. See section 3.3.3 fordefinition of transformational support10 Phoenix Development Fund Interim Evaluation Conclusions – Small Business Service11 SBS proposals developed for presentation to the National Regional Partnership Board onBusiness Support
two particularly key phases in the journey: whenwomen are considering or trying to start abusiness, and at the point the business starts toplan further growth and development.
Barriers relating to confidence and not being ableto access support are common threads throughoutthe journey. Recent research12 undertaken by EastMidlands Development Agency (emda) finds thatdifficulties experienced by women in raising financeare particularly prominent if they are wanting togrow their business gradually, but are not yetdeemed as a ‘growth business’. The research alsoidentifies that women with care responsibilities whomove from welfare into self-employment also facedifficulties with finance.
Business Support with the ‘F’ Factor
through to that woman running a successful,growing business. Clearly every journey is uniqueand barriers faced by female entrepreneurs canarise at any or every stage. Illustration 1, however,provides a visual representation of the barriersidentified within the DTI’s Women’s EnterpriseStrategic Framework within the context of thevarious stages of the business developmentjourney.
The value of Illustration 1 is that it demonstratesthat the combined effect of these barriers, at anystage in the business development journey, canactually prevent the establishment or growth of abusiness, resulting in lost economic potential. Itillustrates that a profusion of barriers are faced at
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12 ‘Research into Access to Finance for Women Entrepreneurs in the East Midlands’, PatRichardson and Rhona Howarth, May 2005
Rolemodels
Benefitsgap
Access to support
Confidence
Access to finance
Caring responsi-bilities
Potentialbarriers
Not yetconsidering starting a business
Considering starting a business
Settingup abusiness
Businesshasstartedtrading
Businessplanninggrowth
PRE -START - major risk of not starting up
START UP - risk of not starting up
GROWTH - risk of failure or restricted growth
Illustration 1: Barriers faced by women on their ‘enterprise journey’ resulting in a negative impact on the economy
A fundamental factor in designing a multi-lateralapproach to the provision of accessible andappropriate business support which will meet theneeds of all women is that it should deliver whatwomen need. Although obviously a businesssupport infrastructure already exists, it should notbe assumed that, because it exists, it is fulfillingthe needs of women; a factor which should be thekey determinant in the design of the ultimatesolution. A ‘bottom up’ approach must beadopted, comparing the desired model againstwhat already exists and, critically, identifying the(potential) gaps. This principle can also be appliedto regions and sub regions; support must beappropriate to local demographics and strategicpriorities and should build on existinginfrastructure to avoid additional layers beingadded at significant cost which then ultimatelydilutes the potential to genuinely make adifference to women’s enterprise.
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Women are a heterogeneous group of people whohave diverse preferences and needs which changeon an ongoing basis as their personal andbusiness circumstances change. Women whomay need support have their own uniquerequirements; any of the barriers identified withinIllustration 1 may apply to them at any time, andtheir needs may be more prominent in specificareas. They may be experiencing disadvantageand they may not; they may be mature, disabled,of black and minority ethnic origin, or all of theabove. They will also have their own individualstarting point in establishing a business; they maybe unemployed, returning to work after having afamily or be employed in a high profile corporaterole. Each of these starting points brings with it awhole set of challenges which must be overcomeif the opportunity of self employment is ultimatelyto be realised. A further layer of differentiation isdetermined by business type, whether theobjective is to establish a small home-basedbusiness or to start up a company with highgrowth potential.
Access to finance is commonly known to be a majorbarrier to enterprise; a blueprint approach toremoving this obstacle, however, is unlikely to havethe desired effect. Research suggests that ‘differentwomen at different stages of their lives and differentstages of business ownership face specific financeneeds which are often different to their malecounterparts and other women’.14
A multi-lateral approach is required. A “one size fitsall” approach to supporting women could only everaddress a limited marketplace and services which tryto be ‘all things to all people’ invariably genuinelysatisfy nobody. Providing choice in the method ofaccessing support in addition to the type or source ofsupport available will determine a greater impactthan providing limited choice. Business support withthe ‘F’ factor will have the desired widespread andclear-cut impact that is required to achieve theGovernment’s objective of significantly increasing theparticipation of women in enterprise in the UK.
2.4 Provide ChoiceWomen are a heterogeneous group withdiverse preferences and needs. A ‘one sizefits all’ approach to supporting women willnot have the required impact on the economy.A joined up13, yet multi-lateral, approach isrequired; business support with the ‘F’ factor.
2.5 Focus on the needs of women
A bottom-up, women orientated, approach todelivering business support should beadopted. When considering infrastructure,recognise what already exists and build on itto fulfil local needs.
13 See Section 4.1.2 The Braided Approach 14 ‘Research into Access to Finance for Women Entrepreneurs in the East Midlands’,Pat Richardson and Rhona Howarth, May 2005
3.2.1 Transactional supportMainstream, or conventional, business support iswidespread in the UK, and some mainstreamsupport organisations deliver specialist support.For the purpose of this paper, however, in order tofocus on drawing out the key characteristics ofmainstream support, Business Link will be referredto as a proxy for all mainstream support. TheBusiness Link network, now contract managed bythe Regional Development Agencies (RDAs), isbecoming broadly recognised as an agency whichprovides business information, diagnoses businessneeds and brokers the provision of identifiedsupport to customers; delivering the Information,Diagnostics and Brokerage (IDB) model.
The IDB model operates primarily a ‘transactional’model of delivery. Transactional support reliesfundamentally on businesses connecting with theservice through standard marketing and tends toprovide support from an ‘arms length’ perspective(which is often in line with the business’s preferredstyle of interaction). Specific businessdevelopment needs are identified, solutionsdesigned and support brokered in. Business Link‘market penetration’ has increased significantly inthe last few years, as has reported customersatisfaction. Currently female-led businesses
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The Women’s Enterprise Panel was appointed bythe Chancellor of the Exchequer and the Secretaryof State for Trade and Industry in October 2004 togive expert advice on how the numbers of womencan be boosted significantly. The recommendationsof the Women’s Enterprise Panel in March 2005include ‘The need for RDAs to ensure that everywoman in each region has access to high qualityFemale-Friendly business support from the pre pre-start-up stage onwards’. The Strategic Frameworksuggests that this would be achieved through thedevelopment of appropriate, integrated andaccessible business support, combining qualitymainstream and specialist approaches, andemphasises ‘the need for parallel development andimprovement of specialist and mainstream supportservices’; Prowess would term this a ‘multi-lateralapproach’ The Framework states that ‘Supportshould be customer-focused and if, for example,some women prefer gender-specific assistance (egwomen-only business training) this should beprovided.’ It goes on to call for all mainstreambusiness support services to be appropriate andaccessible to both women and men, and formainstream providers, wherever possible, to workin partnership with specialist women’s enterpriseinitiatives. In other words, business support withthe ‘F’ factor.
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3.1 Policy context
The need for RDAs to ensure that everywoman in each region has access tohigh quality Female-Friendly businesssupport from pre pre-start-up stageonwards ‘,Women’s Enterprise Panel, March 2005
3.2 Transactional business support
3.2.1 Business Links operate a ‘transactional’model of delivery and their customers are on average 20% female
3.2.2 A step change is now required to support the Business Link network and their brokerage partners to ensure their services have the ‘F’ factor15
3 Business Support which is fit for purpose
15 That they are accessible and appropriate to women
comprise on average 20% of the customers ofthe Business Link service16 relative to the 40%called for in the DTI’s Women’s EnterpriseStrategic Framework, though this proportion doesincrease where, through working with Prowess,Business Links have committed to activelyimproving their services for women17.
3.2.2 Women-friendly supportTransactional support is extremely useful to manyfemale entrepreneurs, particularly those whohave already established their businesses.The Business Link service will be significantlymore accessible and effective for women,however, if it has the ‘F’ Factor; it needs to beeffectively ‘gender proofed’ to ensure itproactively addresses the specific barriersencountered by women during the pre-pre startup, pre-start up and growth phases of thebusiness journey in particular, as identified inIllustration 1. A step change is now required tosupport the Business Link network and theirbrokerage partners18 to achieve the target ofwomen accounting for 40% of customers usingGovernment-sponsored business support servicescalled for in the Strategic Framework, and toeffectively measure activity and customersatisfaction from a gender and ethnicityperspective to inform future policy and servicedevelopments.
Funding to support women-friendly initiativeswithin Business Link networks is often short termand impetus on any scale is impossible whenprogrammes are fragmented and localised.Strong national and regional leadership isrequired to enable the step-change to take place.The DTI women’s enterprise toolkit – ‘The CASEfor women’s enterprise’19 (‘the CASE’) is awelcome step in this journey, but without aprogramme of further support behind it itsimpact will be limited. More, therefore, must bedone20.
Mainstream support must have the ‘F’ Factor ifthe gap between mainstream and specialistproviders is to be genuinely removed. To buildupon the improved understanding of women-friendly approaches gained through the CASEworkshops, the Prowess Flagship standard21, theframework on which the CASE is based, has nowbeen developed to provide a useful methodologyfor Business Links and their brokerage partners totake positive action. Any organisation achievingthe Prowess Flagship Award has an independentendorsement that they are providing effectivesupport to women, having been assessed against
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a rigorous and objective framework.
Up to Summer 2005, 19 organisations in the UKhave achieved the Flagship standard, virtually allof which are specialist delivery organisations.Business Link for Hertfordshire has achieved aFlagship Award for its New Horizons (InspiringSuccess for Women) programme, and like severalother Business Link organisations they haveexpressed an interest in working towards thestandard for their organisation as a whole,including Business Link Wessex who have receiveda Prowess Best Practice award. In the mainhowever other priorities have prevented them fromdoing so.
16 Prowess (June 2005) The Regional State of Women’s Enterprise in England.Source of data: Business Link aggregated customer satisfaction returns,Quarters 1 to 3 2004/0517 Prowess (2004) Show us the Money: the state of women’s enterprise support200418 Brokerage partners may include delivery organisations including EnterpriseAgencies, Local Authorities, Chambers of Commerce and are likely to have acontractual relationship with the Business Link organisation to deliver services19 The CASE for women’s enterprise is a toolkit supported by a programme of trainingworkshops intended to support mainstream business support organisations to becomemore aware of the need to make their services more accessible and appropriate towomen. The CASE is being rolled out during 2005 via RDAs, funded by the SmallBusiness Services with a budget of £20k per region.20 Refer to Section 4 A proposal – Business Support with the ‘F’ Factor:a multi-lateral approach to providing support to women21 The Prowess Flagship Programme has won SBS Phoenix Development Fund ‘BestSeller’ Award for promoting business support for under-represented groups. Refer toAnnex B for a summary of the Flagship standard Framework
3.3.1 IntroductionBuilding the capacity of mainstream providers to deliverwomen-friendly business support is important, but atransactional model will not deliver to all the womenwho may have the potential to develop a business.Transactional business support is simply invisible tomany women. Women in the UK remain grossly under-represented in terms of self-employment and businessownership. The long-term vision of the StrategicFramework is to ‘create an environment and culturethat encourages more women to start and growbusinesses, and where every woman with the desire tostart or grow a business has access to appropriate helpand support’. This will require a long-term, multi-lateral approach complementing women-friendlytransactional support with transformational approachesto engender the fundamental cultural change needed torealise the potential of women’s enterprise in everyregion in England.
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3.3.2 Removing the barriers toenterprise
Illustration 1 demonstrates that barriers facingwomen are particularly prevalent at the pre pre-startand start up phases of their journey. Not surprisingly,many women do not set up their own businesseseven though they have a genuine aspiration to do so.Transactional style support provided by mainstreamproviders cannot be effectively geared to removingthese barriers for women and to encouraging themto set up their businesses at pre pre-start phase;transformational support is therefore critical.
In addition to the critical mainstream (transactional)business support model, a transformational approachis essential, and delivery of this support is the domainof specialist provider organisations. The DTIInnovation Report, published in December 2003,highlighted the concept of specialist support in itsAction Plan. “We will … work with the existingnetwork of women’s enterprise initiatives … toensure that every region has a network of specialistwomen’s initiatives as part of the regional plan.”22
3.3.3 What is ’transformationalsupport’?
Often termed ‘grass roots organisations’, specialistproviders support local needs and usually find theirclients through ‘outreach’ rather than by traditionalmarketing methods. Transformational support ishighly customer-focused and relational. It fits withthe way many women choose to start theirbusinesses, enabling a slower and more tentativedevelopment and one that takes into account theimpact of a new business on women’s other prioritiesand responsibilities. As a result of transformationalsupport their customers may be able to set up theirown businesses or re-enter employment, both ofthese outcomes clearly having a direct economicimpact. Direct or incidental outcomes are frequentlyderived from transformational support in the form ofsocial capital.
The need to address specific local needs, combinedwith the often ‘patchwork’ of national, regional andlocal funding used to resource the service, results intransformational support not tending to operate to astandard delivery model; this in itself can result inconfusion amongst those who are seeking‘convention’ or ‘mainstream’ in delivery.
3.3 Transformational Support
3.3.1 A long-term, multi-lateral approach is now required to complement women-friendly transactional support with transformational approaches
3.3.2 The barriers facing women often deter them from setting up their own businesses
3.3.3 Delivery models are unique as they are developed to meet local needs.Demand for transformational support isexceeding supply, but because it does not tend to conform to a conventional delivery model specialist providers are facing extinction due to lack of funding
3.3.4 Transformational support is effective in reaching females, and is essential to the success of the brokerage model in providing start-up support
3.3.5 Improved collaboration between mainstream and specialist providers is essential to avoid people and businesses ‘falling between the cracks’
3.3.6 Prioritise the long term financial sustainability of transformational support
22 DTI Innovation Report – Competing in the global economy: the innovationchallenge. Published December 2003, www.dti.gov.uk/
Unique yet analogous service
Specialist delivery organisations which are offeringtransformational support23 tend to have synergy inthat they are likely to provide at least some, if notall, of the following services:
• Mentoring and peer group support
• Networking (including enabling access tomainstream networks)
• Provision of, and signposting to, business andemployment skills advice and training andincluding pre-pre and pre-start up counselling,confidence-building and promotion of positiverole models
• Business incubation
• Access to finance including micro-loans(including Community Development FinanceInitiatives which are also delivered by someproviders) and peer lending circles
Although transformational support can be targetedat specific groups or sectors, it is not necessarilyso. It will always, however, have the ‘F’ Factor, thatis it will have women-friendliness at its core.Support tends to be characterised by wrap-aroundservices which are usually subsidised or free ofcharge to customers, and which are designed toencourage access by women. Services can includeprovision or access to childcare including crèchefacilities, transport and resource/networking space.
Networking and identity fortransformational support
Though specialist providers do not take a ‘blueprintapproach’ to delivering transformational support,they do not need to be seen to be a ‘disparate’group. The common themes in objectives anddelivery can be used to network theseorganisations together and create a commonidentity. Successful, and fairly diverse, networkingmodels include Prowess member organisationsand Women’s Business Centers in the US24.
Prowess members: Prowess memberorganisations are a diverse group of targeted andmainstream providers, who share a high level ofcommitment to the provision of high qualitywomen-friendly business support services.
Women’s Business Centers, USA: A diversenetwork of 100 Women’s Business Centers iscoordinated by the Office of Women’s BusinessOwnership (OWBO). OWBO promotes the growthof women-owned businesses through providingbusiness training and technical assistance, andaccess to credit and capital, federal contracts, and
Business Support with the ‘F’ Factor
international trade opportunities. With a women’sbusiness ownership representative in every SBAdistrict office, a nationwide network of mentoringroundtables, women’s business centers in nearlyevery state and territory, women-owned venturecapital companies, and the Online Women’sBusiness Center, OWBO is helping unprecedentednumbers of women start and build successfulbusinesses.
3.3.4 Accessibility and demandSignificant demand exists for transformational supportdelivered by specialist providers. According to researchundertaken with Prowess Flagship memberorganisations providing transformational support25,most recent figures from year 1 to year 2 confirm a205% increase in enquiries from women26 and 104%increase in new women-led businesses supported.27
Transactional (or mainstream) business support is oftennot accessible to women, particularly at the pre-startup phase of the business journey. It tends (necessarily)to be marketed and delivered with a corporateapproach, and the approach which tends to be takenby mainstream providers frequently does not match thestyle and pace women often prefer when setting uptheir own business. US research28 suggests that womentend to make more visits and have a longer termrelationship with the support than, for example, thebrokerage model is designed to provide.
Transformational support is more effective in reachingfemales. It tends to be promoted through communitieson a localised outreach basis and can therefore bemore accessible to women, either by fulfilling aparticular need at the point of entry or, dependent uponthe needs of the individual customer, acting as a‘gateway’ to accessing mainstream support. The lattercan be achieved through sign-posting to mainstreamsupport which has been identified as appropriate tocustomers’ needs, or alternatively, following trainingand/or support the customer may be ready to accessmainstream (transactional style) support and can beassisted to do so.
The effectiveness of transformational support inreaching females is particularly well demonstratedthrough the success of the Small Business Service’sPhoenix Development Fund (PDF) which pioneered 93transformational business support initiatives aimed atunder-represented and disadvantaged groups between
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23 See Annex A for examples of specialist providers delivering transformational support24 Refer to Annexes D and F25 11 organisations included in the survey, all of which have achieved the Prowess FlagshipStandard Award26 6,623 enquiries were received from women27 891 new businesses were started up28 Refer to Annex D US National Women’s Business Council, Analyzing the EconomicImpact of the Women’s Business Center Program, September 2005
2001 and 2006. The majority of the projectssucceeded in attracting significantly higher proportionsof women than mainstream business support does29,even though only 16 of the initiatives werespecifically targeted at women. The PDFevaluation report also comments on ‘the inabilityof the major players in business support to deliverthe type or reach of service provided by thespecialists’. The report also suggests that totalmainstreaming would be “unable to deliver aservice capable of making a difference in raisinglevels of entrepreneurship among under-represented groups and in disadvantaged areas ...because the outreach approach used bymainstream agencies is not as localised, proactiveand innovative as that offered by more communitybased organisations.”
Transformational support delivered by specialistproviders is not an alternative to transactionalbusiness support provided by mainstreamorganisations. The economic opportunity whichexists in specialist providers working on acomplementary basis with mainstream is evidencedin the US where an evaluation of the economicimpact of Women’s Business Centers30 (WBC) findsthat there was no statistically significantdifferences in outcomes based on whether a WBCwas located near to a mainstream business supportagency or not. In other words “WBCs are servinga need and a population that would not otherwisebe served [by the mainstream].”31
Specialist provision can also be placed as key tothe success of the IDB model delivered by BusinessLink organisations and their brokerage partners.Pre pre-start and pre-start up training and supportis intended to be part of the Business Link brandedcustomer offer, yet the IDB model is based on the
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principle that the Business Link service is not aboutdelivery; it represents a vehicle for customers toaccess support and is therefore unable to fulfilcustomer needs independently. Therefore specialistproviders delivering transformational support areentirely complementary to the Business Link modeland critical to the satisfaction of its customers.
3.3.5 The need for a multi-lateral approach with effective collaboration
A combination of transactional andtransformational support is essential if theGovernment’s ambition of significantly increasingthe participation of women in enterprise is to beachieved.
As demonstrated by Illustration 2, the voidbetween the various mainstream and specialistsupport organisations, and therefore between thesupport they are delivering, results in women‘falling between the cracks’. It is not surprisingthat effectively guiding customers through thebusiness support maze is extremely difficult,fuelled by the patchy existence of specialistprovision, tensions in contractual relationshipsbetween mainstream and specialist providers, acontinually changing policy environment, and thesignificant, and ever increasing, agenda being
29 Over 50% of PDF supported customers were women – which compares with 20%of customers of the Business Link network according to research undertaken byProwess (June 2005) The Regional State of Women’s Enterprise in England. Source ofdata: Business Link aggregated customer satisfaction returns, Quarters 1 to 3 30 Refer to Annex D, US National Women’s Business Council, Analyzing the EconomicImpact of the Women’s Business Center Program, September 200531 National Women’s Business Council US 2004
TRANSACTIONAL SUPPORT
(mainstream providers)
TRANSFORMATIONAL SUPPORT
(specialist providers)
‘Void’
Illustration 2: Current model
addressed by Business Links. Furthermore, as aresult of lack of knowledge of existing provision,the opportunity for duplication has the potential todrain funds and increase competition rather thanencourage collaboration. This is a complexchallenge which needs a bespoke solution, the lackof which to date has resulted in a significant gap.
Some attempts to collaborate have already beenmade, but success has been localised and oftenlimited, determined in the main by whetherresources have been genuinely made available, andwhen people, process and partnership issues havebeen addressed head-on. Success is starting toemerge through the adoption of diverse, thoughcomplementary, regional models aimed ataddressing people, process and partnership issuesat different levels. Models developed to dateinclude Enterprise Gateways introduced by SouthEast England Development Agency (See Annex A)and the introduction of Women’s EnterpriseCoordinators into four regions to take on the roleof coordinating activity.
3.3.6 SustainabilityMainstream business support tends to be fundedon a relatively secure basis through (now) regionalfunding, resulting in the existence of, for example,Business Link organisations throughout England ona fairly uniform basis. Specialist providerorganisations delivering transformational supportrely on raising funds on an often opportunisticbasis, resulting in ‘patchy’ provision. It is criticalthat transformational support is designed to fulfilspecific needs driven by local demographics andthe resulting local economic strategies; without anumbrella women’s enterprise policy acrossGovernment, provision is likely to continue to beseen as provider-driven, and as a result is likely tocontinue to be severely under-funded.An illustration of this at its worst is the significantnumber of specialist providers, including Prowessmembers (and Prowess Flagship Standard Awardholders) which are facing closure presently becauseof changes in funding policy, and the imminentconclusion of funding orientated towards specialistsupport, in particular Single Regeneration Budget(SRB) and Phoenix Development Fund (PDF).Understandable if a lack of demand existed forthese services, but the opposite is true; they are inthe main massively oversubscribed and, withouturgent action, shortly they will no longer exist.
Between 2001 and 2003, the US Small BusinessAdministration provided $37 million to fund 92Women’s Business Centers across the country.In September 2004 an evaluation of the impact of
this investment reported that during the two yearperiod, clients reported starting 6,600 newbusinesses which created 12,719 new jobs andgenerated an estimated economic impact of$500 million turnover, with $51.4 million in profits.
Sources of funding for transformational supportmust be thought through thoroughly. Nationalleadership and some ‘thinking outside of the box’is needed to maximise opportunities fortransformational support to be recognised as anagenda item across Government.32
Although this issue is explored in detail in Section4.3, it is also worth noting that the positionrelating to lack of funding is further exacerbatedby the chosen method of implementing the RDAs’objective of ‘mainstreaming’ the allocation offunding. Specialist providers have beenmarginalised and the economic imperative ofpromoting and supporting female entrepreneurshipappears to be falling through the cracks. As aresult, tensions exist between mainstream andspecialist support provider organisations, affectingthe people and partnership factors which are socritical to successfully implementing the braidedapproach. As the much more focused positioningof Business Links as ‘independent brokers’emerges, it is simultaneously being distorted bytheir increasing role as Contractor and FundManager for transformational support.
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Business Support with the ‘F’ Factor
32 See section 4.3, a partnership for transformation
This proposal defines a set of clear guidingprinciples for achieving this vision, with the in-builtflexibility to mould the framework to fit local andregional priorities and infrastructure, to build onprogress which has already been made. Theseprinciples have been termed the ‘F’ Factors.
4.1.1 ‘F’ Factor 1Transformational support
Women who have the desire to set up their ownbusiness are often faced with a multitude of barriersto overcome; not surprisingly this frequently resultsin their aspiration not becoming a reality. Removingthese barriers will have a direct impact on theeconomy. The means for doing so, however, must bemulti-faceted. Women are a heterogeneous groupwith diverse preferences and needs, therefore a ‘onesize fits all’ approach to supporting women will nothave the required effect.
A transformational approach to delivering businesssupport, with women-friendliness at its core, mustnow be adopted in every region to complementtransactional support . An overwhelming demandalready exists but as yet it cannot be met. Eachregion should take a pragmatic approach toidentifying its specific needs, and to filling the void.RDAs should therefore provide leadership to enablesufficient impetus to gather. This will make asubstantial impact on the regional economiesthrough significantly improving the number ofwomen setting up and growing businesses.
Sufficient and appropriate transformationalsupport33 must be delivered to meet local needs bybuilding on existing support, piloting, deliveringand/or sub-contracting delivery where gaps areidentified. They may also undertakecomplementary activity to be determined by localand regional needs and building on what alreadyexists, for example:
• Forming strategic alliances with private andpublic partners to extend the reach ofwomen’s enterprise support within the regionincluding into education
• Promoting female role models
• Identifying and sharing best practice withinand outside of the region and encouraginginnovation
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4 A proposal - Business Support with the ‘F’ Factor:a multi-lateral approach to providing support to women
Ambition: ‘To ensure that everywoman in each region has accessto high quality Female-Friendlybusiness support from the prepre-start-up stage onwards’,Women’s Enterprise Panel, March 2005
4.1 The ‘F’ Factors
4.1.1 Transformational support
4.1.2 The Braided approach
4.1.3 Flagship Standards for BusinessSupport Providers
4.1.4 Meeting sub-regional needs andpriorities
4.1.5 Integrating vocational skills
4.1.6 Sustainability
33 Refer to Section 3.3
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This complementary activity may be orchestratedby a ‘Women’s Enterprise Unit’34, or any otherappropriate vehicle determined by the localinfrastructure.
commitment. A focal point for women’s enterprisewill be required in each region to act as a hub forinformation and to perform an advocacy roleengaging with policy makers, funders and mainstreambusiness support.
4.1.3 ‘F’ Factor 3 Flagship standards for all business support providers
The Flagship standard framework (Illustration 4)provides a robust mechanism for ensuring allbusiness support is women-friendly; that it has the‘F’ Factor. It can assist mainstream providers toincreasingly ‘gender proof’ their services, whilemore immediately providing a framework for thecomprehensive delivery of specialisttransformational business support for women.For providers of transformational business supportthe Flagship Award acts as a golden threadproviding some commonality of their basicapproach and range of services while at the sametime enabling them to respond to sub-regional andlocal needs and priorities. Evidence and rationalebehind each of the key elements of the Flagshipstandard are detailed in Annex B.
4.1.2 ‘F’ Factor 2The Braided approach
The Small Business Service in their interimevaluation of the Phoenix Development Fund35
(PDF evaluation) has proposed a solution in theform of a ‘Braided approach’. This approach“attempts to bring together the strands ofspecialist and mainstream business support[providers] into a single system that links togetherthe specialist and mainstream agencies”36, and isone of the four pillars37 which will lead to thesuccessful achievement of the Government’sobjective of significantly increasing the number ofwomen participating in enterprise.
“The Braided approach is not a euphemismfor doing nothing”38. It should be the cornerstoneof a strategy intended to proactively remove thecurrent barriers to mainstream and specialist supportproviders being able to appropriately encourage andsupport women’s enterprise, unleashing the potentialof its combined impact on the national and regionaleconomy. Although the outcome of the braidedapproach will ultimately be the ‘joined up’ provision ofbusiness support, its key enabler is the people andorganisations delivering both transactional andtransitional support, the way they operate and thelinks between them. The braided approach, therefore,will be addressed through a combination of threefactors: people, process and partnership. Success willbe determined by genuine focus, resource and
34 Women’s Enterprise Unit model is being developed currently, and will be piloted bythe Small Business Service during 2005/0635 See Annex C for Conclusions of Evaluation36 The Small Business Service in their interim evaluation of the Phoenix DevelopmentFund37 Refer to Section 2.2 Four Pillars of Success38 See footnote 36
Mainstream Support Providers
Specialist Support Providers
Illustration 3: Braided approach
‘Braiding’
successful, growing business, must be fuelled. Theintegration of vocational skills withtransformational support provides this fuel,enabling personal and business skills developmentwhich accelerate business start up and drive itsultimate success.40
4.1.6 ‘F’ Factor 6: SustainabilitySecuring the long-term sustainability of businesssupport with the ‘F’ Factor will be key to itsultimate success. It will continually increasemomentum as a result of its genuine added valuewhich will be demonstrated through effectivesocial and economic impact evaluation.41
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The Small Business Service and RDA partners havemade significant progress in the last year onbuilding on the Flagship Standard to develop amore Female-Friendly mainstream business supportenvironment, in particular in the development androll-out of the CASE for women’s enterprise forwhich the Flagship standard is the foundation.39
4.1.4 ‘F’ Factor 4: Meeting sub-regional needs and priorities
A ‘bottom-up’ approach to fulfilling local needs isessential. Solutions must be driven by localdemographics and economic priorities, andcritically must build on existing local and sub-regional infrastructure to avoid unnecessaryduplication. There may, for example, be a localrural focus, or a priority to gear support to apredominantly BME population.
4.1.5 ‘F’ Factor 5: Integrating vocational skills
The business development ‘journey’ which mayrange from the point where a woman isrepresenting ‘latent potential’ in terms of economiccontribution through to that woman running a
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INCLUSION
1 Outreach
2 Access
CLIENT FOCUSSED
3 Segmented market knowledge
4 Listening organisations
5 Regular face-to-face service
6 Promotion of clients’ businesses
EQUALITY
7 Some women only provision
8 Women business support professionals
9 Commitment to diversity
QUALITY
10 Established programmes
11 Significant impact
12 Effective partnerships
13 Coherent range of services- Pre-enterprise- Business training or counselling- Access to finance- ICT- Networking or mutual support
Illustration 4 Prowess Flagship Award Standard framework
39 Refer to Footnote 1940 Refer also to Section 4.3.2 A partnership for transformation – Department ofEducation and Skills41 See Section 4.2.3
4.2.1 Projected unit costsBased on the experience of Prowess Flagshipmembers, the cost per woman returned toeconomic activity is £2,020 (for those becomingeconomically active, but not starting a business)and £5,000 per new business. Those figurescompare favourably with other programmes aimedat people starting in business, for example thedirect delivery cost of the New EntrepreneurshipScholarship (delivered by the National Federationof Enterprise Agencies and funded by the LSCnationally) average £4,500 per scholar supportedand around £9,000 per new business (excluding a£3,500 grant each scholar receives). This suggeststhat a cost of between £2,000 and £4,500 perbusiness support programme participant (and of£5,000 per new business) would be acceptable,with a value for money assessment based ondepth and intensity of the programme
4.2.2 Tangible outcomesThe fundamental impact of a multi-lateralapproach to providing Female-Friendly businesssupport to all women will be an increase in theoverall numbers of women entrepreneurs receivingassistance to set up and grow their ownbusinesses, and as a result an increase in thenumber of businesses, GVA contribution ofbusinesses and jobs created. Ultimate outcomeswill be determined by ultimate investment.
4.2.3 Social and economic impactA comparable social and economic impactevaluation framework must be developed toenable rich data to be collated nationally.. As wellas economic outcomes and outputs, this shouldenable a broader range of impacts to be assessedsuch as financial literacy and social return oninvestment. It should also enable the tracking ofprogramme impact over time.
The lack of resources faced by many specialistsupport providers has resulted in limited capacityto effectively gather and publish evidence of theirimpact from an economic or social perspective. Inpartnership with Prowess, New EconomicsFoundation (NEF) has developed a suitable ‘socialand economic impact evaluation’ methodology forwomen’s enterprise programmes, which is currentlybeing piloted by Prowess members. Broadadoption of this methodology will enable the realimpact of business support with the ‘F’ Factor to bemeasured and understood.
On a localised basis however, data is now startingto emerge42. Train 2000, a founder memberorganisation of Prowess and Flagship Awardholder, has recently published an enlighteningcost/benefit analysis of their services to women ineconomic terms, and without question the resultsspeak for themselves.43 In summary, with theircurrent business start-up survival rate of 76% afterthree years, they estimate that supporting 200businesses started up by economically inactivewomen results in a net saving to Treasury overthree years of £1.73m with an investment of only£800k (average £4,000 per business). They alsoestimate that this investment will result in 300new jobs and Net Value Added over three years of£9.26m. This is a genuine economic opportunity.
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4.2 Impact
“A pound invested in developingwomen’s enterprise provides a greaterreturn on investment than a poundinvested in developing male ownedenterprise.” Martin Wyn Griffith,Chief Executive, Small Business Service
4.2.1 Projected unit costs are £2,020 perwoman returned to economicactivity and £5,000 per newbusiness, comparing favourably withother current programmes
4.2.2 Ultimate outcomes will bedetermined by ultimate investment
4.2.3 An investment of only £800k willreturn Net Value Added over threeyears of £9.26m and 300 new jobs
42 Prowess is working in partnership with New Economics Foundation to develop asocial & economic impact evaluation tool specifically for women’s enterpriseprogrammes.
43 See Annex E Train 2000 Cost Benefit Analysis Briefing Paper, July 2005
flexible and comprehensive programme of businesssupport and training as well as start-up funding.44
LSC is also currently funding on a fairly localisedbasis networking and enterprise skillsdevelopment45; this is a further avenue forexploration, alongside the ‘gender proofing’ ofexisting learning & skills programmes to ensurethey are accessible to all women.
4.3.3 Department for Work and Pensions
The aims of the Department for Work and Pensions(DWP) include promoting opportunity andindependence for all, helping individuals to achievetheir potential through employment and working toend poverty in all its forms. DWP’s role in addressingthe needs of transition from benefits to business, andalongside several other agencies their involvement infunding, support and provision of childcare across theUK, is critical to this agenda. Job Centre Plus aims toprovide an integrated service to people of workingage with the objective of offering help to peoplelooking to move into work, and therefore has anatural fit with the delivery of transformationalsupport to encourage and support women to considerthe option of self-employment.
4.3.4 Office of the Deputy Prime Minister
The Office of the Deputy Prime Minister (ODPM) hasthe clear objective to create prosperous, inclusive andsustainable communities for the 21st century, placeswhere people want to live, that promote opportunityand a better quality of life for all. The Social ExclusionUnit, Neighbourhood Renewal Unit and LocalGovernment all have a key role to play in achievingthe ambition of equal numbers of women and menstarting businesses in the UK.
The Local Enterprise Growth Initiative (LEGI) will beworth £50 million in 2006-07, rising to £150 millionper year by 2008-09 and will provide flexible, devolvedinvestment in some of the country’s most deprivedareas to support local strategies to developtransformational support to stimulate economicactivity and productivity growth through enterprisedevelopment.
4.3.1 Introduction to the partnershipfor transformation
RDAs have a critical role in providing leadership andfocus on the women’s enterprise agenda regionally,subregionally and locally through aligning both theirown and their partners’ strategies and policies,including the Regional Economic Strategy, theRegional Skills Strategy, and within the Northernregions the Northern Way growth strategy. Women’senterprise development is not, however, exclusively aDTI or RDA agenda. A genuine focus on addressingeconomic growth, productivity gains and overcomingdisadvantage and social inclusion through women’senterprise is an opportunity to achieve the aims of allGovernment Departments.
4.3.2 Department for Education and Skills
One of the three key aims of the Department forEducation and Skills (DFES) is to encourage adultsto achieve their full potential through learning,with a specific strategic goal relating to adult skillsfor ‘individuals [to be] able to get the training andskills they need for employment and development’,yet enterprise does not clearly feature within theDFES ‘Five Year Strategy for Children and Learners’.Transformational support by its very nature mustinclude the development of new skills; skills forlife and in many cases for business leading toeither employment or self-employment. The DFES‘New Deal for Skills’ programme is just onepotential avenue to explore to part-resource thedevelopment of skills for self employment as aroute out of unemployment.
The Learning & Skills Council also have a key rolein influencing attitudes to start-ups. EnterpriseInsight and the recently launched National Councilfor Graduate Entrepreneurship (NCGE) contributeto this, as does the New EntrepreneurshipScholarship (NES) – a national programmesupported by the LSC which aims to encourageenterprise in disadvantaged areas by providing a
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4.3 A partnership for transformation
A genuine focus on addressing economicgrowth, productivity gains and overcomingdisadvantage and social inclusion throughwomen’s enterprise is an opportunity toachieve aims across Government.
44 The NES programme is funded by the Learning and Skills Council and managednationally by the NFEA in partnership with the Association of Business Schools andPrince’s Trust.45 One example of female targeted provision being part-funded by Learning & SkillsCouncil South Yorkshire is the £1.2 million Advancing Women in South Yorkshireproject led by Beta Technology Limited, a Prowess Flagship Award holder. The projectdeveloped from Beta Technology’s involvement in the European ProWomEn projectand has the objective of encouraging greater numbers of women to enter self-employment, management roles and public life.
4.3.5 Department for Environment,Food and Rural Affairs
The Department of Environment, Food and RuralAffairs (DEFRA) is a focal point for all rural policyrelating to people, the economy and the environment.GEM Research 2004 claims there is higher femaleentrepreneurial activity by women in rural areas thanin either urban or suburban areas (5.1% TotalEntrepreneurial Activity in rural areas compared to3.8% and 3.4% in suburban and urban areasrespectively). DEFRA must focus on removing thebarriers still being experienced by rural women tomaximise the potential of rural femaleentrepreneurship. Women should feature significantlyin RDA implementation of DEFRA’s strategic priority todevelop sustainable rural communities through‘Encouraging sustainable regeneration indisadvantaged rural areas, promoting social inclusionand reducing deprivation’.
Annex A
Case studies oftransformational supportorganisations in the English Regions
IncreditIncredit delivers an excellent range of business supportservices to men and women across Hertfordshire,recognising that flexible services, community basedoutreach, quality provision and client focused serviceswill make a real impact on currently under-representedgroups. A range of services and resources includingmicrofinance, business incubation and 1-2-1 businessadvice are provided through their Business in Prisonsprogramme, workshops focused on enterprisedevelopment in 5 women’s prisons are beingdelivered.
Website: www.incredit.org.uk
Beta Technology’s South YorkshireFemale Entrepreneurs NetworkprogrammeBeta Technology delivers women’s networking andmentoring opportunities through their delivery of theSouth Yorkshire Female Entrepreneurs Network, partof the wider Advancing Women in South YorkshireProject. Their particular strengths are large scale highquality networking events and a mentoringprogramme that closely matches mentors andmentees which together have helped to raise theprofile of female entrepreneurs in the region.
Website: www.betatechnology.co.uk
Bolton Metro’s Ethnic MinoritiesBusiness ServiceOperating in the borough of Bolton, the EthnicMinority Business Service provides tailored andtargeted business support for black and minorityethnic (BME) clients. For the past six years anEthnic Minorities Women’s Business Support Officerhas been employed to specifically target the needsof BME women. Services are delivered in aculturally sensitive and relevant manner and canhelp women to develop a business idea, raisefinance and develop business skills. Themultilingual advice and support programmeincludes seminars on pre-enterprise training, selfemployment awareness, business development,book-keeping and taxation and ICT programmes. Afree crèche can be provided for under 5’s. Womenwho are already running a business can receive
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Illustrations
1 Barriers faced by women
2 Current model of mainstream and specialist support
3 Braided approach
4 Prowess Flagship Award standard
Annexes
A Examples of specialist delivery organisations providing transformational support
B Prowess Flagship Standard
C The Small Business Service interimevaluation of the Phoenix Development Fund
D Cost Benefit Analysis of Business Start up – briefing paper,Train 2000, July 2005
E US National Women’s Business Council, Analyzing the Economic Impact of the Women’s Business Center Program, September 2005
F US Women’s Business Center models
advice on expanding a business, breaking newmarkets, raising finance and pursuing internationaltrade.
Website: www.embs.co.uk
Gateways, South East EnglandThe Enterprise Gateway model introduced by theSouth East England Development Agency (SEEDA),in partnership with the South East Business Links,is an example of transformational support. AnEnterprise Gateway is a network of people andorganisations, who come together to provide anintegrated and structured incubation process forentrepreneurs and young companies within thegeneral business community. Gateways areparticularly focused on developing business skillsand entrepreneurship in deprived and rural areas,and amongst groups who are currently under-represented in business, and supports all types ofbusiness models, including social enterprise andnot-for-profit businesses.
Website: www.seeda.co.uk
Train 2000Train 2000 develops and delivers a range of highquality innovative business support measuresthroughout Merseyside. It works with a crosssection of the community, particularly with women,disabled people and minority communities. Train2000 offers free, women-only pre-enterprisetraining, business training courses, workshops andbusiness counselling and operates a business loanfund. It can also help with childcare and travelcosts for training.
Website: www.train-2000.co.uk
WEETUWEETU strives to help women deal with economicchange and to develop and extend women’s accessto quality employment, education and trainingopportunities. It offers an extensive range of freebusiness support, training and advice programmesthroughout Norfolk and operates a pioneeringmicrocredit loan fund.
Website: www.weetu.org
Annex B
Flagship Best PracticeStandardsBusiness Support Providers
INCLUSION
1. OutreachEvidence: An effective outreach programme (e.g.talks/visits to places women go)
Rationale: It is a big step for a lot of entrepreneurialwomen to describe themselves as ‘businesswomen’.Those women will not be attracted by traditionalmethods of marketing.
2. AccessEvidence: Deal with access issues adequately, forexample:
Timings – all day courses may not suit women whohave to collect children from school, many peopleneed to start a business on top of a job and daytimecourses exclude them.
Location: women are less likely to have access to avehicle so venues should be accessible by publictransport and in locations which take personal safetyinto consideration.
Costs: Women are more likely to be on lower incomesor benefits and may be excluded by the cost of care,travel or course fees.
Taking care responsibilities into account – womenwith care responsibilities will need access to a crècheor help with childcare costs without too manyrestrictions. Elder or dependents with other care needsis a growing issue where women are most likely tohave primary responsibility.
Culture: some cultures will not attend mixed gendercourses
Rationale: Inaccessible programmes can effectivelydesign women and other groups out
CLIENT FOCUSSED
3. Segmented Market KnowledgeEvidence: Disaggregate client statistics by gender,ethnicity, disability and any other relevantunderrepresented or disadvantaged groups and onbalance they reach an adequate number of these.
Rationale: To effectively target market segments, youneed to measure the effectiveness of your marketingapproach.
4. Listening OrganisationEvidence: Client focused – constantly working to
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improve the service and meet client needs, with goodmethods for listening to clients experience andconcerns. Will have procedures such as social audits orclient surveys.
Rationale: Women in business often feel invisibleand not listened to – best practice organisations reallydo listen to and act on feedback from their clients.
5. Regular face-to-face serviceEvidence: A well promoted programme of menu ofbusiness support services, which clearly states the typeof service available e.g. training courses, workshops,business advice sessions etc.
Rationale: Lack of confidence is an issue for a lot ofwomen starting their own business. In the early stagesface to face services are crucial. Regular face to faceservices will also build trust and help ensure thatbusinesses feel that they can help shape the service.
6. Promotion of client’s businessesEvidence: Clients are assisted to promote andcelebrate their businesses where possible e.g.encouraged to apply for awards; directories ofmembers; press coverage of case studies.
Rationale: Such promotion has the dual benefit ofboth promoting the business (and many women findsales and marketing a particular problem) andcreating relevant role models for other women lookingto start a business.
EQUALITY
7. Some women only provisionEvidence: There is an option of women-only supportin terms of either pre-enterprise training, businesstraining or networking.
Rationale: Women often feel more comfortable indiscussing broader issues affecting their businesses ina woman-only session. This can enable strong andeffective networks to develop, which are a source ofongoing support during the process of starting anddeveloping a business. Women-only can be anessential option for some cultural groups.
8. Commitment to Diversity Evidence: At least 40% of clients should be womenand a proportionate % of BME women to localpopulation, (except in organisations specifically aimedat BME groups). There should be a clear commitmentto promoting diversity through organisational policiesand practice.
Rationale: If services are effectively specialist atwomen and are meeting their needs this will start totranslate into greater numbers of women taking upthose services. Within the Strategic Framework forWomen’s Enterprise, the government’s target for
women using government funded business supportservices is 40% and mainstream business supportorganisations need to be meeting this target. Theframework stipulates that the number of womenfrom BME communities receiving business supportassistance should be proportionate to theirrepresentation in the relevant local/regionalpopulation.
9. Women business support professionals Evidence: At least 1/3 of the business supportprofessional staff in the business supportorganisation are women.
Rationale: Support organisations need to makeefforts to reflect the characteristics of their clients.Women business support professionals can bepowerful role models to clients and women clientssometimes feel happier seeing another woman.
QUALITY
10. Established Programmes Evidence: The programme of women’s businesssupport has been established for at least one year.
Rationale: Reflecting on experience and feedbackfrom clients is an important part of the process ofdesigning a quality programme of women’sbusiness support.
11. Significant impactEvidence: Programme assists a minimum of 50women a year (30 in remote areas).
Rationale: Best practice is about making animpact as well as effective programme design anddelivery. Quality programmes need to becommitted to supporting a reasonable number ofbusinesses.
12. Effective partnershipsEvidence: Where an organisation is dependenton partnerships to deliver elements of its service,the organisation will be able to influence thepartner’s delivery and will receive operationalreports.
Rationale: Referral relationships are important,but best practice organisations will seek closerworking relationships with organisations whichenable them to deliver a coherent service. Andthey will expect the same high standards from thepartner organisations as they set for themselves.
13. Coherent Range of ServicesEvidence: Directly or in the type of partnershipsoutlined in point 12, the organisation is able toprovide the following services, including at leastone women only option (see standard 8).
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a. Pre-enterprise training or counselling
These sessions build confidence and personal effectiveness skills such as time management and negotiation. Essential foundations for people who are starting a business after a long period out of paid work.
b. Business training or counselling
Standard building blocks of most effective business support programmes.
c. Help accessing finance (either the provisionof grants and/or loans for business startup and development, and/or informed signposting to appropriate sources of finance and business advice input to ensure women are investment-ready).
Women’s businesses are disproportionatelylikely to be undercapitalised. Business support providers can help by providing direct access to loans and grants or advice which understands women’s position.
d. ICT training
Some reports find that women are less likely to use ICTs in their business. Business ICT should be a core element of business training programmes and clients should be encouraged to use ICTs to research and promote their business whereappropriate.
e. Networking or mutual support groups
A lot of business is conducted through informal and formal networks – but women have traditionally been less likely to participate in business or other networks. Women-only networks can be a stepping stone to engage in a range of networks and in themselves provide opportunities for important mutual supportwith other women in the same position.
The services identified above are the minimumlevel required. In addition organisations areencouraged to think about providing:
• Assistance in making the transition from welfare benefits to self employment.
• Mentoring or coaching services.
• A managed workspace/incubation environment.
The Prowess Flagship quality standard isfocussed on the structure of effective business
support services. It may be used to complementother quality standards such as:
• SFEDI (Small Firms Enterprise Development Initiative) quality standard http://www.sfedi.co.uk/
• IIP (Investors in People) http://www.iipuk.co.uk/
• Customer First standard http://www.customerfirst.org/
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Annex C
Interim Evaluation of thePhoenix Development Fund –Small Business Service. (PeterRamsden FREISS Ltd 2004)Conclusions p68
6.2 The future system for businesssupport: mainstreaming or separatedevelopment?
Three positions on a spectrum of business supportservices are described below to illustrate how thebusiness support system could evolve:
• Separate development of specialist services
• Total mainstreaming
• A braided system
Separate development of specialistservices
The option of separate development describes the waythat the business support system has largely beenevolving up until now. Many organisations have beenaccessing independent funding that is not controlledby RDAs or the Business Links. Examples ofindependent funding streams include SRB, ERDF andlatterly the EQUAL community initiative and thePhoenix Development Fund itself. Sectoral businesssupport has often trodden this path; the emergence ofspecialist provision for the cultural industries, andsocial enterprise are both examples. There has alsobeen a strong focus on specialist support for certaintarget groups – particularly development of a raft ofgovernment policy for their development has reducedthe need to go it alone.
Separate development has major weaknesses as along-term approach. It fails to deliver good spatial andtemporal coverage as many projects are linked tospecific funding streams that only cover parts of a sub-region and expire after a few years. As an approach itis inherently opportunistic rather than strategic. In itsfavour it has been responsive and flexible inresponding to needs. But critically, the lack of linkage,not least in funding terms, to the mainstream BusinessLink backbone means that there is rarely a strongconnection between the two systems. This can be seenin the lack of referral, client graduation, localcontracting or exchange of knowledge about localconditions. Moreover, in the medium to long termfinancial sustainability is likely to be a problem –especially as existing funding regimes such as SRB,
Phoenix Fund and ERDF phase out and RDAs exert astronger grip through their Single Pot andrelationships with the Business Links.
It has been in the specialist support areas that that somuch innovation has been carried out and where thegreatest advances in supporting enterprise indisadvantaged areas and for disadvantaged groupshas been made. The challenge is to develop a morenuanced business support architecture that canrespond to diverse client needs within a singleframework. Finally there are strong forces at regionaland national policy level calling for a moremainstreamed approach.
Total mainstreamingTotal mainstreaming is intellectually attractive tonational and regional policy makers because at astroke the crowded platform of support could be‘tidied up’. But, previous attempts, including theoriginal launch of Business Link suggest that suchtidiness might be more in the eye of the policy-makerthan the user.
The preliminary results of the PDF evaluation suggestthat total mainstreaming would be unable to deliver aservice capable of making a difference in raising levelsof entrepreneurship among under-represented groupsand in disadvantaged areas. This is because theoutreach approach used by mainstream agencies isnot as localised, proactive and innovative as thatoffered by more community based organisations. Thedifficulty of mainstream agencies achieving the levelof cultural change needed should not be underestimated. Although problems with managing culturalchange are not a reason for not trying to makechanges inside the mainstream.
It is also likely that important growth sectors andcontributors to the UK economy such as creativeindustries would fail to thrive within a totallymainstreamed approach. The specialist strands ofbusiness support have developed because the existingsupport infrastructure was not meeting the needs ofwomen, minority enterprise, social enterprise andcreative enterprises. This message has been constantlyemphasised in interviews with agencies and clientsand we are satisfied that deep knowledge of theneeds of particular client groups and sectors may befound closer to the ground than is possible in a singlestructure.
The braided approach The braided approach attempts to bring togetherthe strands of specialist and mainstream businesssupport into a single system that links together thespecialist and mainstream agencies. The idea of abraided system is not new, but it perhaps describes
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better where the business support system needs togo. It fits well with the idea of Business Link as abrokerage service and would aim to do thefollowing:
• Strengthen links between local specialist organisations and Business Link operators
• Integrate the funding and output relationships
• Stimulate stronger two way relationships so that learning and knowledge transfer both ways
• Use local organisations focus on provision of specialist services either to target groups or areas
• Encourage aspects that can be delivered across larger areas to grow beyond their immediate locality (e.g. women’s and BME support structures)
The key question is to find a new balance betweenthe specialist and mainstream providers so that thesystem is comprehensible to the user and canprovide good spatial coverage in specialist areas.This will require proper mapping of existingprovision at Local Strategic Partnership, SubRegional and Regional levels to analyse gaps andoverlaps. The braided approach is not a euphemismfor doing nothing. All parts of the system wouldneed to be adapting to grow into their new roles.To take the example of women’s enterprise. Thebraided approach might involve the RDA workingwith Prowess, Business Links and specialistregional women’s organisations and local partnerorganisations to define a strategy and set oftargets for women’s enterprise.
A second stage might involve using the ProwessFlagship accreditation tool to review delivery bymainstream agencies and other providers and tomap the overlaps and gaps in provision. The thirdstage would be to draw up delivery agreementsaround pre-start, start-up, existing and growthbusinesses and to contract for delivery with themost appropriate partners. The delivery itself couldhappen in a community group, in a Business Link,in a specialist women’s business agency, a genericagency or in the private sector.
The braided approach fits well into the brokeragemodel being developed for Business Links.Following the 2004 budget announcement of theextension of the three RDA Business Link pilots to
the other six RDAs a regionally directed braidedsystem linking specialist and generalist providers iswithin reach. Significant resources are alreadygoing into business support activity. But too fewresources reach people that want to start-up orgrow a business in disadvantaged areas and ingroups under-represented in enterprise.
The Phoenix Development Fund has demonstratedthat there are sound techniques that work tosupport such clients but these techniques need tobecome more widespread. But this activity willneed to be paid for. A major reorientation oftargets and resources is required to bring thestrands together and deliver a comprehensivebusiness support service that delivers whoever youare and wherever you live.
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Annex D
Women’s Business Centers, US
US National Women’s Business CouncilAnalyzing the Economic Impact of theWomen’s Business Center Program,September 2005
Executive SummaryIn Spring 2004 Quality Research Associates (QRA)undertook an alalysis of the economic impact ofthe Women’s Business (WBC). Using primarily theWBC data provided by the Office of Women’sBusiness Ownership (OWBO) for 2001, 2002, and2003, the analyses were largely based on internaland external factors. Internal factors includeddemographics and outcomes – number ofbusinesses started, gross receipts, profits, losses, andnew jobs created – geographic location and years aWBC has been in existence. External factors includedbusiness assistance alternatives, city/town size, race-ethnic composition, and poverty rate.
The WBC program has gained great momentumbetween 2001 and 2003 in terms of clients served,those counseled and trained, gross receipts, profits,the creation of new jobs and new firms started. Thisinvestigation uncovered phenomenal growth in bothactivities and impact. Contacts rose 61 percent andclients served almost doubled from 2001 to 2003.From these increasing numbers of nascent andexisting entrepreneurs and small business owners,WBCs generated a total economic impact of nearly$500 million in gross receipts with profits of $51.4million and losses of only $11.8 million. WBCs alsocreated 12,719 new jobs, and started 6,660 newfirms.
Economic impact growth is substantial. From 2001 to2003, the total number of clients servedincreased by 91 percent. The economic impactindicators generated by these clients, however,resulted in increases from 376 percent to greaterthan 800 percent! The greatest increase was found intotal gross receipts, which increased by 824percent. Profits increased by 490 percent;losses were less than two percent of grossreceipts; the number of new jobs createdincreased by 481 percent, and the number ofnew firms increased by 376 percent.
It takes 3.3 contacts to generate a client who,in turn, will produce economic impact. While we donot know which contacts will turn into clients, theimportance of continually and consistently providinginformation and materials to prospective clients iscritical.
For every 14 clients a WBC serves, 1 new job iscreated. Given the mix of clients that WBCs serve,multiple industries, and growth goals for individualowners, a 1:14 ratio is excellent.
In addition to the high levels and growth of activitiesand economic impacts, the WBC program is reachingits targeted population. While one in five womenbusiness owners nationally is a woman of color(Center for Women’s Business Research 2002estimates), in 2003 WBCs had a client mix which was46 percent women of color. And, 2003 is just onepoint in time. Over the three years, we found thatmore than two-thirds of development of new andexisting businesses. This is also a hallmark ofprogram sophistication and integration – a WBCshould reflect the individual uniqueness of its localarea and the assets and needs therein.
Further analysis with more comprehensive data willallow a greater understanding of the factors whichlead to success – for the individual starting orgrowing a business and for the WBCs who providebusiness assistance services. Future data shouldinclude specific programs or services used by varioustypes of clients in order to map success pathways;more detail regarding existing business owners andtheir firms; job quality; motivational influences;investments into the business; technology; and socialcapital of the owner. These analyses, in turn, will laya solid foundation upon which WBCs can provide thehighest level of support to nascent and existingwomen entrepreneurs across the country regardlessof geographic location, industry, race or ethnicity.
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1. IntroductionThe purpose of this briefing paper is to consider theeconomic benefit of the creation of women’s businessto the economy, compared with the cost of providingthe business start up support to the women.
These calculations are based upon the experience ofTrain 2000 supporting women to start up in businesssince 1996 and specifically through the PhoenixDevelopment Funded Programmes 2001-2006.
The calculations are based upon an assumption of thecreation of 200 and 3000 businesses. The profile of theentrepreneurs will be
• 100% female
• 55% employed
• 45% economically inactive
• 27% lone parents
• 6% disabled
• 21% BME women
2. Analysis2.1 Economic inactivity costs thegovernment
The following calculations are based upon 2005benefit rates:
• Annual income of woman living alone, inaverage RSL property, in receipt of JSA andassociated benefits £6,683.56
• Annual income of single parent with twochildren, in average RSL property, in receipt ofJSA and associated benefits £9, 867.52
• Annual income of single disabled woman, inaverage RSL property, in receipt of incapacitybenefit and associated benefits £7,736.56
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Annex E
Cost Benefit Analysis of Start-Up supportBriefing paper, July 2005
Fig.1 Profile of economically inactive women
Fig.2 Estimated savings to the treasury
Profile of women starting up businesses
Single women 61 904
Female lone parents 24 365
Disabled women 5 81
Total economically inactive 90 1350
At 200 businesses At 3000 businesses
Single women£403,019 £6,045,280
Female lone parents £239,781 £3,596,711
Disabled women £41,777 £626,661
Estimated net saving year one £684,577 £10,268,652
Estimated net saving year two at 76% sustainability £520,278 £7,804,176
Estimated net saving year three at 76% sustainability £520,278 £7,804,176
Total net saving over three years £1,725,134 £25,877,004
At 200 businesses
At 3000 businesses
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2.3 Net Value Added The Net Value Added has been calculated as advised by Government Office for the North West
2.2 Gross Value Added The GVA is calculated assuming the new businesses have an average annual turnover of £50,000.
Fig.3 Gross value added over three years
Estimated Gross Value Added in year one £10,000,000 £150,000,000
Estimated Gross Value Added in year two at 76% sustainability £7,600,000 £114,000,000
Estimated Gross Value Added in year three at 76% sustainability £7,600,000 £114,000,000
Total GVA over three years £25,200,000 £378,000,000
Fig. 4 Net value added over three years
Turnover growth £10,000,000 £150,000,000
Cost of sales estimated at 50% of GVA £ 5,000,000 £75,000,000
Adjustment for dead weight x 0.3 £3,500,000 £52,500,000
Adjustment for displacement x 0.3 £2,450,000 £36,750,000
Adjustment for multipliers x 1.15 £3,675,000 £55,125,000Estimated Net Value Added in year one £3,675,000 £55,125,000
Estimated Net Value Added in year two at 76% sustainability £2,793,000 £41,895,000
Estimated Net Value Added in year three at 76% sustainability £2,793,000 £41,895,000
Total NVA over three years £9,261,000 £138,915,000
2.4 Jobs created Assuming that every business creates 1.5 jobs then 200 businesses will create 300 jobs and 3,000businesses 4,500 jobs.
2.5 Cost of delivery The cost of the integrated programme of support offered by Train 2000 is, in total, £4,000 per business start.This equates to £800,000 to create 200 businesses or £12,000,000 to create 3,000 businesses.
3. Conclusions• There is a real cost benefit to the public purse in investing in the women’s enterprise agenda.
• The service, provided by Train 2000, offers good value for money when considering the client group that wework with.
• The real opportunity lies in the ability to deliver the model on a large enough scale to impact upon economicinactivity (i.e. 152,000 economically inactive women of whom 35,000 women are economically inactive butwant to work) and benefit dependency (and in particular incapacity benefit) in Merseyside.
• Train 2000, and similarly other women’s enterprise support organisations, have developed and proven theimpact of this model through Phoenix Development Fund and European Social Fund investment. There is nowan opportunity to build upon this learning and intensively pilot the model in three or four of the mostdisadvantaged areas in England.
• It is proposed to disseminate this information to key Government Officials with a view to exploring theopportunity further and perhaps having Women’s Enterprise as a priority in the forthcoming spending review.
At 200 businesses At 3000 businesses
Annex F
Women’s Business Centermodels, US
Women Entrepreneurs of Baltimore(WEB)WEB, a non-profit organization, is anentrepreneurial training program designed to helpeconomically disadvantaged women become self-sufficient through business development. The maincomponents of the WEB Program include: anintensive, three-month business-skills trainingcourse; mentoring; financing strategy development;community networking; resource sharing;professional business consultation; Internettraining; government certification andprocurement, and information and referral services.
Women’s Business DevelopmentCenter, ChicagoFounded in 1986, the Women’s BusinessDevelopment Center serves women businessowners in the greater Chicago area, and advocatesfor women business owners nationwide. TheWBDC has helped establish women’s businesscenters since 1989 in Illinois, Ohio, Florida,Pennsylvania and Massachusetts. The Centerprovides a variety of entrepreneurial trainingcourses and seminars: one-to-one counseling;financial assistance and loan packaging formicroloans; the SBA Loan Prequalification Program,and other SBA and government loan programs,technology, e-business and equity financeprograms; WBE certification, and private- andpublic-sector procurement; an annual conferenceand Women’s Buyers Mart; and extensive advocacyand policy development for women’s economic andbusiness-development issues.
A strategic alliance with private and publicpartners extends WBDC’s reach to the most needycommunities. The WBDC also provides servicesthrough a local bank’s “Wheels of Business” van,which travels to low-income neighborhoods andoffers training and counseling.Web site: www.wbdc.org
Wisconsin Women’s BusinessInitiative Corporation (WWBIC)The Wisconsin Women’s Business InitiativeCorporation has served over 10,000 individualsand funded more than 120 business startups andover 150 business expansions since it began in
1989 as a women’s demonstration site. More than800 jobs have been created and retained byWWBIC’s efforts. WWBIC is an economic-development corporation providingbusiness education, training and technicalassistance. Its unique programs include peerlending, “Coffee with a Conscience”, a businesslaboratory, business incubation programs, andindividual development account initiatives.
WWBIC is also the state’s largest micro lenderunder SBA’s MicroLoan Program. WWBIC hasexpanded its operations to an additional site inMadison and provides ongoing training in theMilwaukee, Madison, Janesville, Beloit, Fox Valley,Green Bay, Racine, and Kenosha areas.Web site: www.wwbic.com
The Iowa Women’s Business CenterThe Iowa Women’s Business Center is part of aconsortium of all the major business-developmentorganizations in Iowa and serves every level ofwoman business owner across the state in aunified and intensive way. The consortium, whichhas locations in six cities plus 15 SBDC sub-centersand a Web site, is led by the nonprofit ISED, whichhas a long history of providing self-employmenttraining programs, especially to the socially andeconomically disadvantaged.Web site: www.ised.org
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Business Support with the ‘F’ Factor
The PROWESS Flagship Awards are a best practice standard of excellence in women’s enterprise development.Their aim is to help business support organisations identify, measure and improve their services for women.
Developed and administered by PROWESS, there are 14 core standards for business support providers.
InclusionOutreachAccessCommitment to diversity
EqualitySome women-only provisionWomen business support professionals40 per cent of clients should be womenand a proportionate percentage ofethnic minority women to localpopulation
Client focusedSegmented market knowledgeListening organisationsRegular face-to-face servicePromotion of clients’ business
QualityEstablished programmesSignificant impactEffective partnershipsCoherent range of services – pre-enterprise, business training orcounselling, access to finance, ICT and networking or mutual support
Other PROWESS initiatives to boost women’s enterprise
PROWESS won the ‘Best Seller’ category of the Phoenix Development Fund Awards 2004. This awardrecognised the organisation’s success in promoting best practice and sharing good ideas; achievedthrough the development of a pioneering training programme and the Flagship quality standard.Assessment against the Flagship standard is available free to all PROWESS members.
Mapping women’s enterprise supportThe Flagship Standards criteria has been adapted into a methology to map the supply of business support forwomen on a local or regional basis. It enables effective comparisons and identification of gaps in provision.
Directories of Women’s Enterprise SupportIn association with Integra Communications, PROWESS has also published user-friendly regional directoriesof women-friendly business support, based on the Flagship Standards criteria.
For more information about any of those services or joining PROWESS go to: www.prowess.org.uk/about/join.html or call Ann Nicholls on 01603 762355.
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PROWESS Ltd Lion House 20-28 Muspole Street Norwich NR3 1DJTelephone: +44 (0)1603 762355 Fax: +44 (0)1603 227090 Email: [email protected]
www.prowess.org.uk©PROWESS 2005
PROWESS is a member of the Accelerating Women's Enterprise (AWE) Mainstreaming Partnership, which is part-funded by the
European Social Fund under the Equal Community Initiative Programme
Design: Richard Johnson Printed by Norwich Colour Print
