Business support is ‘support to a business, group of businesses, organisations or to people starting or considering starting businesses.’ This includes free or subsidised advice, grants, reduced-interest loans, training and help with finding workspace. Business support helps develop entrepreneurs, businesses or organisations, while achieving broader economic, environmental or societal goals.

What is ‘Solutions for Business’?

‘Solutions for Business' is the government's long term, sustainable support offer to businesses. It consists of a streamlined portfolio of support products and services covering a range of a range of advice, loans and grants that will be provided collectively and consistently to businesses by all levels of government – nationally, regionally and locally via Business Link. Business complained there were too many publicly-funded products, brands and providers. They found government support confusing and were put off applying.

That is why the government streamlined the number of products available from an estimated 3,000 to an opening 29, and made Business Link the main access route to support. This makes it easier for companies to get the help that they need

The Product Portfolio

What are the products and how were they arrived at?

Products were arrived at through economic and equitable justification, and consultation with business. They are a mixture of existing and new products, combining the best of government support.

Products have been in place since March 09 and will help businesses deal with common issues such as finance, starting a business, exporting, innovation, skills and the environment. They are:

1. Export Credit Insurance
2. Grant for Business Investment
3. Maximising Foreign Direct Investment
4. Accessing International Markets
5. Developing Your International Trade Potential
6. Train to Gain
7. Business Collaboration Networks
8. Business Premises
9. Business Growth: Specialist Facilities and Environments
10. Starting a High Growth Business
11. Intensive Start-Up Support
12. Starting a Business
13. Manufacturing Advisory Service
14. Designing Demand
15. Innovation Advice and Guidance
16. Coaching for High Growth
17. Enterprise Finance Guarantee
18. Small Loans for Business
19. Understanding Finance for Business
20. Finance for Business
21. Enterprise Coaching
22. Improving Your Resource Efficiency
23. RDPE Business Support
24. Collaborative R&D
25. Networking for Innovation
26. Knowledge Transfer Partnerships
27. Innovation Vouchers
28. Low Carbon Energy Demonstration
29. Grant for Research and Development

Are there gaps in the portfolio?

Government does not provide help for every business problem and the bulk of support is provided by the private sector. However, where there is evidence of market failure the government will consider provision if there is a strong enough business case to do so.

Does this mean no new government products after March 2009?

No. It is important government support continues to evolve to meet changing circumstances and business need, particularly in a dynamic, global economy. The range of products will be regularly assessed to make sure it stays fit-for-purpose. Where there is a sound business case, new products can be assessed for inclusion. Equally, those not having the desired impact can be withdrawn.

What about economic shocks?

Whilst the economy is in recession, or in response to other economic shocks, it may be necessary for the government to introduce assistance in certain areas to help businesses survive and grow. These measures may be temporary. As the portfolio was built to be dynamic and flexible, temporary schemes can be launched alongside SfB. Tight monitoring and evaluation will allow for judgement on whether they need to be added permanently to the portfolio or lapse.

What is the relationship between 'Solutions for Business' and 'Real Help?

In the current economic climate we know many companies are struggling due to the global downturn. We have put in place a range of immediate measures offering support to businesses which are available through Real Help.

But it is also important to put in place the foundation for the future so that companies can seize the opportunities of the upturn. This is why it has been made easier for businesses to get government help with a range of problems by streamlining thousands of publicly-funded support schemes into one, transparent, easy to find portfolio of products under the readily identifiable banner, Solutions for Business.

Doesn't removing products and brands remove choice?

No. It removes complexity, confusion, duplication and low value schemes. Moving to fewer, higher impact schemes that work harder for customers will improve outcomes for businesses.

Some of the products are not new. What’s changed?

What’s changed is a simpler publicly funded support system for businesses – the concept of a single portfolio containing a range of products used across the board with a uniform look and feel and Business Link as the main route to access support. It would not have made sense to get rid of schemes that were successful. Some existing schemes have been fine-tuned accordingly, some have new names to better describe their purpose, others are new. This ensures businesses get the best help Government can provide.

Are products available to everyone?

Most products will be highly targeted with the nine English regions providing appropriate products according to need in their area, so making sure the right support reaches the right people and builds on local strengths.

How can I or my customers get hold of products?

Business Link is the main access channel – by phone, online and in person. Businesses getting in touch with them will be assessed for their support needs and then brokered to suitable schemes be they from the public, private or third sectors. Its advice is free, impartial and online 24/7.

Have business been consulted on the products?

The teams designing the products have taken views from the business community and the product names have been tested. In addition, all products fall under a number of overarching economic themes that were subject to public consultation in 2007.

Transition to the new portfolio

Can I or my customers get products immediately?

The Solutions for Business products have been in place since March 09 and transition to these products taking place across the regions until March 2010. Business Link advisors, who provide brokerage to products, have details as they become available and information is also available on www.businesslink.gov.uk in the ‘Grants and Support Directory’ section. We have adopted this approach to ensure no business is left without appropriate support.

What will happen to existing schemes?

Schemes that are not part of the ‘Solutions for Business’ portfolio will close, or be marked for closure, by 2010. As schemes wind down businesses will be steered to the ‘Solutions for Business’ products that meet their needs.

What about EU funding?

EU co-funding of a business support scheme can place some limitations on the extent of simplification. However, in the North East we have agreed that all business support funded by ERDF or RDPE will fully comply with the new portfolio and broader principles of simplification.

What about local council support?

Solutions for Business has been designed for use by all levels of Government, including at Local Authority level, by making sure the products are capable of meeting local and regional as well as national needs.

Doesn’t this change make the support landscape even more confusing, not simpler?

Transition is being carefully managed to avoid confusion by the nine English regions so that businesses aren’t affected. Support is available through the ‘Solutions for Business’ portfolio, but old schemes will gradually phase out. By 2010 the business support offer across government - nationally, regionally and locally – will be consistent, coordinated and coherent.

The Business Link Service

What will the impact on the Business Link service be?

Business Link is the primary access channel for business support. A number of initiatives deliver Information, Diagnosis and Brokerage (IDB) in the region. As part of simplification, we will be considering the migration of the IDB elements of projects into Business Link. This means that Business Link will provide IDB for all businesses in the region and on a wider variety of business issues.

Skills Brokerage is already delivered by BENE and this will continue and this has been managed by One North East since April 2009. The Business Link service is also being developed to meet new challenges, such as increasing the knowledge of its frontline staff of a greater number of issues, including resource efficiency and globalisation, enhancing the network of referral organisations, developing innovative and more cost-effective ways of meeting business need, such as online diagnostics, and increased sharing of customer data, where permitted.

There may also be a need to augment the Business Link service, for specific issues, sectors or localities, which will be considered in consultation with local, regional, and national stakeholders.

What is the relationship between ‘Solutions for Business’ and Business Link?

‘Solutions for Business’ works hand-in-hand with Business Link, the former as the government’s guarantee of quality support, the latter as the main route to access this support.

Will I still be able to access support via my usual route?

Simplification is not about limiting the ways in which businesses and entrepreneurs get access to the support they need – the principle of ‘no wrong door’ and the focus on customer needs is paramount. Businesses and entrepreneurs will be able to access support via a number of channels, including Business Link, specialist deliverers and others – such as local authorities. Effective referral relationships – building on those in place already – will be developed so that businesses get a seamless service and their full needs met, wherever they access business support.

However, to make it easier to access a broad range of support, Business Link will be promoted as the ‘primary access channel’. This means that businesses will have access to the full range of products in the portfolio, and a wide range of private sector support, through one service. This will allow businesses and entrepreneurs to receive a holistic service that addresses their whole needs, based on information, effective and impartial diagnosis and brokerage to the right solution for them.

Isn’t Business Link just for SMEs?

No. Business Link is open to all businesses, and there are ‘Solutions for Business’ products for larger companies.

What about under represented minorities?

Better marketing and targeting of products will reach underrepresented communities and Business Link undertake out reach work with specific groups, offering their service in the community through local access points.

What is the quality of Business Link advice?

In recent years, Business Link has been successful in attracting new customers and its reputation as a truly impartial source of help is growing. Successive evaluations have found that Business Link improves business performance and that it provides value for money.

Will advisors understand my business?

Yes, the majority of advisors have direct business experience. In addition, the Government/RDAs has been working in partnership with SFEDI and the newly formed Institute of Business Consulting to create a new set of national standards for all organisations involved in the delivery of business support. These new standards aim to improve the quality of advice and introduce a process of continual professional development for business support professionals.

Do I still have to apply for products?

Yes. Once Business Link has advised which products might suit your needs you will then have to apply directly to the product provider. Allocation will be according to selection criteria.

Will ‘Solutions for Business’ change Business Link’s service?

No, it won’t change the basic information, diagnosis and brokerage model. But, has resulted in the alignment of brokerage under the Business Link brand e.g. Train to Gain skills brokerage has been delivered under the Business Link brand since March 09.

The new brand – ‘Solutions for Business – funded by government’

How are business support services going to be marketed and branded?

Business support simplification is designed to simplify awareness and understanding of publicly funded business support. A new national branding framework has been developed based on the ‘Solutions for Business – funded by government’ brand. The intention is to make it easier for businesses to identify publicly funded support through a consistent approach to branding. This will also reduce unnecessary spending on new brand development, releasing more funding to the front line.

How will well-known products and brands fit with ‘Solutions for Business’?

Some well-known products will be co-branded e.g. they will carry the ‘Solutions for Business’ logo and the name of the product provider or funder e.g.Train to Gain or UKTI.

Simplification in the North East

How will businesses in the North East benefit?

Businesses in the North East will benefit from having a clearer path to finding the support they need. Through a process of review, funders, users and deliverers will work together to ensure that the region’s businesses and entrepreneurs can access business support from the public, private and third sectors that meets their needs. By reducing the number of programmes of support, and simplifying branding and access, it will be easier for businesses to understand.

Who is managing the simplification process?

BERR is leading simplification nationally, working with other public and private partners. One North East is leading business support simplification in the region. The North East Transition Management Board (NETMB) has been established to oversee and assist with the design and delivery of business support in the region. The Board is made up of key stakeholders who will be able to help identify business support needs and help to deliver a fit-for-purpose support landscape.

Who makes the decision on what will close?

In reality, the funders themselves will need to take the action, and this is why engagement and buy in to simplification and rationalisation is so critical.

Are businesses being consulted as part of this process?

Businesses are represented on the NETMB and there will be a range of events/sounding boards held throughout the region to ensure that businesses have a voice in the development of business support; it is recognised that it is crucial to the simplification process that the support delivered meets business need.

When will businesses see the benefits?

There are some benefits already being witnessed in the region, for example with the alignment of Business Link into a single regional body, the alignment of solutions funding through the North East England Investment Centre (NEEIC) and the amalgamation of the MAS NE service. Further benefits can be expected throughout the whole process, up to 2010, and thereafter.

How are we engaging with Local Authorities?

There are already good relationships with local authorities established across the region. The Association of North East Councils (ANEC) provides a central point of contact with all the LAs for the NETMB.
However more individual level engagement is planned with Local Authorities to build better awareness and understanding of the business support needs of specific localities.

How are we engaging with the private sector?

Private sector organisations are engaged with and represented in a number of ways. The Private sector is represented on the NETMB by, Chair, Ian Dormer, Managing Director of Rosh Engineering, Hugh Morgan-Williams, representing the CBI, Simon Hanson, representing the FSB and Andrew Sugden, representing NECC. Task and Finish groups have now met on several occassions to consider business support needs in depth.

How are we engaging with the third sector?

Third sector organisations will be engaged with and represented in a number of ways. The Third sector is represented on the NETMB by Kate Welch OBE, Chief Executive of Acumen Development Trust. Third Sector organisations will also be engaged to ensure that the Business Link service meets Third Sector needs.

What is the role of Government Office?

Government Office has a key role to play in supporting the development of Business Support Agreements, through its lead role in LAAs and MAAs, and also plays a significant role as the voice of government in the region. Government Office is represented on the Transition Management Board and will provide an interface between government, the Board and local authorities, alongside other stakeholders.

BSSP and Local Authorities

What is the local authority role in business support?

Local authorities have a clear economic development role, part of which will involve business support regardless of the spatial level it is delivered. BSSP will support local authorities in promoting economic development by enabling them to better understand the support provided by national and regional bodies and articulate local priorities within this framework, as well as identifying where local funding can be deployed to greatest effect.

What is the relationship between BSSP, SNR and LAAs?

BSSP supports the aims of the Local Performance Framework, as delivered through LAAs, and the Review of Sub-national Economic Development and Regeneration (SNR) by encouraging greater collaboration, co-ordination and co-investment between the different tiers of government to better support business in creating wealth and jobs for local communities.

Where LAAs prioritise enterprise related indicators and targets requiring business support, central Government will be looking for the proposed business support activity to be consistent with the Solutions for Business portfolio.

Will local authorities be expected to use the new business support portfolio?

Yes. The SNR said Government will expect local authorities, like other public bodies, to ensure that any business support they provide or procure will be from the agreed portfolio, and accessed via Business Link as the primary access channel. In the event that funding for business support is delegated, One North East will need to be satisfied that plans for spending these funds are fully compliant with the Business Support Simplification principles and portfolio.

LAs, via the LGA, have been involved in the development of the Solutions for Business portfolio while some LAs have worked with Product Design Teams, commenting on the design of products. This will help ensure products meet LA requirements. However, not all LAs offer business support and it is unlikely that LAs will utilise all the products in the new portfolio, some will be of higher interest.

LAs are crucial to the success of business support simplification and are playing a key role in regional groups looking at simplification and implementation of the new portfolio. This includes the Task and Finish Groups which have looked at specific products and business support initiatives, and the NETMB overall.

How can local authorities ensure business support reflects local priorities?

Local authorities will retain a continued role in identifying business support requirements in their areas, including for products and services local authorities do not deliver themselves. The “duty to co-operate in the determination of targets" means that One North East will need to take account of local authorities requirements in terms of the delivery of business support.
In future the new, Regional Strategy will provide a firmer base for the co-ordination of business support across the region. One North East will lead the development of the strategy but will need to agree the draft with a forum of local authority leaders.

Rationale

Why has the government done this?

Money was being spent on support at all levels of government – national, regional and local - with little or no co-ordination. This led to lots of government organizations delivering similar services in different ways. Businesses found it hard to know what support best met their needs and they spent a lot of time and often money looking for it. The Annual Small Business Service Survey 2005 found that over 50% of small businesses wanted government help but struggled to find their way through the maze of provision. A simpler, focused system will make support easier to access and have greater impact.

Why does the government offer support when there is lots of commercial support available?

Private support is valued by businesses and government support does not compete with this. It exists to fill a gap where the market does not provide, e.g. in deprived areas or to meet social and environmental aims.

Is this a cost cutting exercise?

Streamlining is about efficiency and impact – getting more for the money spent – not about cutting costs.

So will there be savings from simplification?

Yes. Analysis from the DTI's earlier business support transformation programme showed that small schemes with smaller budgets use a greater percentage of their budget in admin costs than larger schemes. So, fewer high impact schemes shared across government should lead to efficiencies and economies of scale.

How much money does the government spend on support?

Until now, it has been hard to identity the exact number of schemes and spend due to the number of products, brands and providers. Simplifying support will make it easier in future to account for spend, and to make sure money is spent on schemes that work for businesses.

Managing Performance

Isn’t government funded business support a waste of time?

No. Businesses actively use government funded support for a wide range of reasons from simple information to more complex business development. Research has shown it has sufficient impact to justify the spend. For example, for every £1 the former DTI spent on business support in 2004/05 there was a positive impact on Gross Value added to the economy of at least £2.

How will ‘Solutions for Business be measured?

On-going evaluation will assess how well products are performing over time and will include product success criteria and other measures to make sure the intended outcomes for business customers, and for government providers of support, are achieved.

Is there correlation between business support and business creation?

A number of surveys show that a large proportion of pre-start and start-up businesses make good use of business support and value its advice. In 2006, three quarters (76%) of new businesses had used some form of business support and advice (not just government funded) to help them start-up (Annual Small Business Survey 2006).