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Olympic Gold – It all starts with a dream….

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Shaa Wasmund is a renowned enteprise guru whose own achievements both as an entrepreneur and as a provider of enterprise support have massively outweighed my own.   Shaa asserts that…

Every athlete once had a dream to stand on an Olympic stage. But, they didn’t just talk about their dreams, they put in the hours, hard work and dedication to make them a reality. They gave all they had for one moment in time.

In my experience many who achieve excellence entered their field because they loved it rather than because they wanted to stand on an Olympic podium or to be a millionaire before they reach 30.  Sometimes it IS the big dream that allows you to put in the hours of dedicated effort.  But much more frequently it is the hours of dedicated effort that eventually allow you to dare to believe in the big dream.  Most of us, to begin with at least, were not motivated by thoughts of winning on the big stage, but by pursuing our interests and exploring possibilities….

Our progress is driven by the dedicated development and exploration of passion and identity.  A journey that often begins with no real clarity over where it might lead, or how far it might go.

I think this openness to journeys that start in different places with different intensities and ambitions is absolutely critical to make the most of all potential, whether it is in sport, business or any field.

And where should we invest our time and money?  In helping people to navigate the ealry stages of their journeys.  Because late stage development is, relatively speaking, child’s play.

Improving Employability…

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Businesses reading the future of the labour market and feeding employment needs back in to the education system sounds like a great plan.

Except we haven’t yet found a way to do it.

We do not know enough about how the labour market will shape up with enough ‘notice’ to make any real difference to the educational process at all.

And then there is the small matter that education is not all about employability and entrepreneurship.

Few teachers join the education system as a kind of prep school for employers and have an innate suspicion of employers looking for ready made employment ‘fodder’. The vision for education is larger than slotting people into jobs. It is about the realisation of potential. In the heads of many education professionals the two goals of realising potential and developing employability make uncomfortable bed-fellows.

I have been involved in Vocational Education and Training, both on the policy side and in practice for over 25 years. Not one of those 25 years has gone by without similar diagnoses and prescriptions:

  • A stronger role for employers,
  • more business in the curriculum,
  • better specifications of what it means to be employable (whole careers can be developed in this field),
  • reformations of the careers service,
  • more employability projects, internships, mentoring, and so on.

And while our engagement as ‘business people’ may help us to feel like we are doing our part, and there are plenty of awards to be won, in the grand schemes of things it makes very little difference. 20+ years of ‘improving school standards’ and still employers complaining about the product…..

If we are serious about improving the life chances of our young people we need to radically revise the nature of the education process and system, not bolt on another committee.

We need to encourage young people to know themselves, their passions and and their potential (almost impossible when you are asked to turn interest on and off at the call of the school bell).  Instead of trying to take slivers of the real world into school we should do much, much more to get children into adult company in real work and non-work settings, public, private and third sector. It is not just business that needs to be more involved with schools, but adult society in general.  Personally I think that post 14 most young people should spend more time being educated outside the school than in it.

There is an argument to say that the only thing children really learn at school is how to relate to an authoritarian system, either through compliance or defiance.

If we are serious about the potential of all our young people then tinkering with the curriculum and the occasional day of smoothie making is just not going to cut it. We need to re-think how we prepare young people to play full lives in adult society. And as a nation that is a debate that we not seem to have the political will to hold.

How Should We Recognise a Successful Economy?

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Seems to me that everyone thinks a ‘successful economy’ is critical to our future, but what characteristics would a ‘successful economy’ exhibit?

The Ideal?

  • It would exhibit private sector led growth
  • Environmentally sustainable
  • Reducing levels of relative poverty
  • Reducing levels of health inequalities
  • Increasing levels of health and well-being
  • Increasing levels of employment with jobs that are doing ‘good work’ or as Cllr Walshaw suggests ‘dignity of endeavour’
  • Providing opportunities to work based on the culture, skills and passions of people as well as the commercial goals and employability demands of employers
  • It would serve all people – rather than distort them to serve its demands
  • It would provide access to services necessary for all to live a becoming existence
The Current Reality?
  • It would exhibit private sector led growth

That’s it. The wealth created may then be used to build a better society.

 

 

Inward Investment – What’s the problem?

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Inward investment – the short cut to a prosperous and fair city where all of our communities can flourish?

But, what exactly is it?

It is the process where an investor believes that this is the best place to put their money to get a secure and sufficient return.  They may invest by setting up a factory or, more likely these days, an office or call centre.  And most cities employ specialist teams to attract inward investment – to present the best case for their city or region as an investment proposition.

But it can go further than this.

We may be able to offer specific incentives to investors to bring their money and their jobs to our city.  We may provide them with low or no-cost infrastructure, or other benefits such as an enterprise zone where they may enjoy high speed broadband, simplified planning requirements  and reduced business rates.

So inward investment becomes a highly competitive, and sometimes very expensive process to get those scarce investors to being their money to our city.  Inward investment teams are under pressure to deliver, and the dynamic gets interesting as sassy ‘investors’ play country off against country, region against region, city against city and even neighbourhood against neighbourhood.  But just look at the prize for the winners.  They get ‘investment‘ and even better ‘jobs‘.

But, we must remember the investment comes because there is an expectation of a return.  And it has to be a good return.  The net flow of cash over time will be out of the local economy and into the pocket of the inward investor and their shareholders.

But, inward investment brings many gifts…

Inward Investment brings Wealth to the City

This of course is true.  But it does little to distribute wealth.  It concentrates it with the lucky few.  Inequalities of wealth and health are, in my opinion, increased by inward investment rather than decreased.  It drives social stratification and is unlikely to be a great policy for a city that wants all its communities to thrive.

Inward Investment Brings Jobs to the City

This too is true.  But usually the jobs that go to local people are largely low skill, low wage. Often inward investment can increase local unemployment rather than decrease it as investment tends to create relatively few jobs and automates as much as possible.  Lets face it if employment costs are a large part of your business and you require large volumes of low skill workers then you are not going to be looking at the UK.  And if you do create high wage, high skills jobs what are the chances of local people being able to take them up?  It is likely that these jobs will go to incomers too.

Inward Investment Builds Houses

Very true.  Inward investors may take over a problem community – demolish or refurbish it and turn it into an aspirational address.  House prices are driven up and often beyond the reach of many local people

Inward Investment Creates Dependency

We become a blue collar community reliant on employers and investors.  They become powerful influence on the politics, economics and education in our communities as they demand more and more ’employability’, better and better conditions for business.  We end up with much time and energy being put into retaining our 100 largest employers and continually tipping the playing field in favour of ‘business’…. Becoming a dependent client class I believe has negative impacts on the wellbeing of community and acts as a significant barrier to the development of innate potential as we are shaped to meet the demands of employers.

Loss of Local Control

Not only are we dependent on the presence of inward investors in our communities but we cede control to them.  They manage their investments on the ground and if they choose to create redundancies in our communities there is precious little we can do about it.

Inward Investment is Fickle

The mobility of much modern business means that inward investors can go almost as easily as they come.  You might have to have very deep pockets to retain them in the face of all that competition for their ‘jobs’.

Inward Investment can Undermine Local Business

By competing for talent and skills and by driving up land values and costs beyond the reach of local independents.

It Plays a Zero Sum Game

If an inward investor moves from one part of the county to another there is not net gain in jobs.

Put More Strain on Local Services

Schools, hospitals, roads and other infrastructure may all face increasing demand as a result of inward investment. These costs are seldom met by the inward investor but is funded from other budgets.  Meanwhile in the community that the investor has just left services may lose viability and be forced to close.

It is Resource Hungry

Playing the inward investment game is a high stakes, high cost business. Renting a yacht at MIPIM and taking a high powered delegation there does not come cheap.  But that is just surface.  Someone has to pay for the business rate subsidies and the infrastructure demanded.  And every pound spent on helping an inward investor to realise a profit is a pound that is not spent elsewhere in supporting the local community and its economy.

But I am not Against Inward Investment…

It has a role to play in bringing ideas, innovation and fresh blood to our city.  What I am against is a political and business narrative that says it is really the only game in town, and one that says it is the only strategy worthy of real investment.   Instead of economic hunting perhaps we need to look at nurturing the potential our own communities a little more, and recognising that there is much more to creating sustainable and fulfilling lives than the ever increasing growth of GDP and a touching faith in the trickle down fairy.