Business support policy should not be driven by central Government, say advisers

In December 2009 Cobweb carried out its latest survey of UK business advisers to find out their opinions on whether business support policy and delivery should be driven locally, regionally or centrally (ie nationally).

The survey was carried out among subscribers to Cobweb's BAD News service and 254 individual business advisers participated. Respondents were located across the whole of the UK and were working for (or with) a range of support agencies including regional Business Links, local enterprise agencies, local councils, Chambers of Commerce, RDAs, charities and trade associations, as well as independent business advisers and consultants.

The headline results reveal that only 11% of respondents believe that support policy, strategy and delivery should be driven centrally, with over 80% saying policy should be decided and driven without any central Government influence or control. Almost half of survey respondents were of the opinion that business support should be entirely locally driven, as far from the centre as possible.

In addition, survey participants were asked for their professional opinion about which political party they believe is currently most capable of formulating a support policy and framework that will best deliver the needs of the UK's start ups and small business community. The Conservatives were the individual party chosen by the highest number of advisers at 35%. However, 38% of advisers believe there is no difference between any of the main parties in respect of business support.

The results of the survey are as follows:

• With regard to business support provision in the UK, what are your views on whether the strategy, policy and delivery of support programmes should be driven centrally (ie nationally), regionally or locally?

• In your professional opinion, which political party do you believe is most capable of understanding and formulating a support policy and framework that will best deliver the needs of the UK's small and micro businesses and prospective new start ups?

Summary

Opinion, bearing in mind the range of backgrounds of participants, was divided mainly between the local versus regional argument, with many advisers advocating a combined regional/local approach. The overwhelming view from participants however - who are mainly advisers working at the coalface of support - is that central Government policy and strategy does not meet the requirements of local (and regional) business needs, nor the needs of the advisers and local agencies (independent or otherwise) who have the capacity and capability of supporting them.

Local start up and existing business support needs vary considerably from one region to the next and also between local areas within each region. Many advisers and support agencies have expressed concern that local flexibility and adaptability, and the ability to innovate with new ideas to encourage entrepreneurship have been gradually eroded over the last ten years - if not eliminated entirely in some areas - following the regionalisation of business support through Business Link and the RDAs in 2007.

Continued centralisation of policy and standardisation of the national Business Link services into "one size fits all" provision across the UK have left scores of experienced independent agencies, hundreds of advisers with specialist local and sectoral expertise, and tens of thousands of prospective start ups and business owners high-and-dry, where previously there was appropriate, tailored and effective face-to-face support available on the ground.

The national Business Link website is claimed (by national Business Link) to have reached and supported millions of businesses and entrepreneurs - but at a cost of £35 million per year. Some business advisers are concerned that the tens of millions of pounds spent on this website has been at the expense of face-to-face support and advice that had previously been provided on a local basis in all regions of the UK.

The headline opinion among business advisers is that support has shifted too much and too far away from where the actual need exists - which is at a local level to meet local business needs.

The full survey and individual written comments (anonymously contributed) by respondents is available in the following PDF:

Download report

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