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Start Up Britain – credit where credit is due…

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Well Startupbritain.org certainly splits opinion, at least amongst the twitterati and the blogger community.

Start Up Britain: Some love it, some hate it and some are just indifferent.  In 25 years of working on business support and enterprise in the UK and overseas I have never seen anything like it given such a ringing endorsement by Government.

Credit where credit is due.

They have shipped and made things happen.  And what a launch!  The Prime Minister, The Chancellor of The Exchequer and The Secretary of State for Business, Innovation and Skills and President of the Board of Trade all turning out along with assorted Dragons and celebrity entrepreneurs to offer their support and endorsement.

All of them want to see a more enterprising Britain.

More businesses starting up.

More businesses surviving and more businesses growing.

Now we might have an interesting conversation about the balance between economic growth driven by an enterprise led recovery, national well-being, and an environmentally sustainable future, but that would need us to take a holistic perspective on enterprise policy in the UK.  And I suspect, for the moment at least, this is all about wealth creation, employment, tax take and ‘a private sector led recovery’ rather than the wider role that enterprise can play in creating communities that people want to live in.

Startup Britain have shipped, and they have had feedback.  The makeover has begun.  Some of the typos have already been picked up and corrected.  I am sure the broken links (HP offer for example) will be mended and the links to malware (Growing/Staying Inspired/a bit of motivation/Warren Buffet) sites removed. (Although more than 24 hours since I first blogged and tweeted there has been no acknowledgement of the problem and no resolution)

I also suspect that a bit of a site makeover might be in order to make it a little less political and move the discount vouchers and special offers to a more discrete position.

But I think the challenges go a little deeper and wonder whether they will be addressed.

Surely Anything is Better than Nothing?

I do not subscribe to the school that says ‘anything is better than nothing’ – especially when that ‘anything’ is launched by half the cabinet and a host of celebrity entrepreneurs.  I work at the coal face of enterprise support in the UK, where regularly people lose their houses, marriages and occasionally their lives because the business that they were encouraged to start has left them in more debt.

And many more struggle on day after day living hand to mouth because they were encouraged to start a business that was at best marginal.  I have talked with many an adviser who have told me about the pressure they come under to make loans to would be entrepreneurs against their better judgement, because they have start up and loan making targets to hit.

Enterprise really is a double edged sword. And if we choose to promote it in our communities then we must do so with care, competence and compassion. Entrepreneurship is not all about computing in the cloud, venture finance and making the first million.  We love to promote the upsides of enterprise – but it also has a dark side.

A little more curation please…

If Start Up Britain wants to be a serious player in the long term they really do need to develop a professional approach towards site curation.  At the moment there are too many links to the same few sites, many of which are businesses affiliated to  Startup Britain’s founders and more vocal celebrity supporters with books and other products to shift.  When offering advice and support, impartiality matters.

I would strongly recommend that they appoint a credible curator/editor and possibly an editorial board that can ensure impartiality and quality of what gets listed on Startup Britain’s web directory and then a good folksonomy system that will ensure that the most useful content gets clearly flagged by the people that use it.   I used to argue that Business Link should have a folksonomy approach to rating both its own advisers and the third party service providers that they brokered out to – but this was seen as just too risky!

Sort Out an SEO Strategy…

At the time of writing if you Google ‘startup britain’ the main www.startupbritain.org site does not appear at least not on the first half a dozen pages, after which I gave up.  Instead www.startupbritain.co.uk and www.start-up-britain.co.uk take pole position.  Now that is enterprise.  Perhaps time to use some of those free adwords that you are entitled to…

Oh, and it would be lovely to actually link to a specific piece on the site.  But we can’t.  Think of all those lovely referrals that you are missing out one.

Re-think Peer to Peer and DIY Support

The Start Up Britain ‘peer support strategy’ needs a bit of a rethink.  It is great that the Supper Club and Prelude (both founded by Start Up Britain co-founder Duncan Cheatle) are offering free mentoring. (Free as long as you agree to provide 2 hours of free mentoring for every hour that you receive: it will be interesting to see the pathway through which mentee becomes mentor).

However we know that mentoring is not right for all, and a quick look at Prelude and The Supper Club suggests a certain emphasis on high growth strategies.  If I want to become a self employed window cleaner will I still get the mentoring?  Will I be invited to mentor others?

What about encouraging other forms of peer to peer support and an ethos of DIY?

What about helping entrepreneurs to become much more effective at managing their own learning rather than spoon feeding them courses and mentors?

What about helping entrepreneurs to figure out the type of support that they need and how they can best access it?

A truly British Campaign?

Start Up Britain needs to think a little more about developing a genuinely British presence.  Wales, Scotland, Northern Ireland?  I am not sure yet that it really covers England.  It needs to quickly move on from being Start Up London and the South East – remember that stuff about re-balancing the economy?

For example I spent a bit of time trying out Enternships.com (another Founding Partner of Start Up Britain) to see what enternships might be available in my home city of Leeds.  Answer = 0.  Bradford = 0.  Yorkshire = 0.  A search for enternships in Manchester did turn up 4, albeit 1 of them was actually in London.  2 were for telesales positions and one was to do social media for a recruitment agency.

A Little More Transparency Too…

Start Up Britain is variously referred to as ‘a not for profit company‘, ‘an independent collective of UK entrepreneurs and big business’ and a new campaign run by entrepreneurs for entrepreneurs.   It is described on the BIS website as ‘representing the private sector response’.   This leaves me confused.

So there we go.

I have been positive.

I only hope that we see a response.

A Future with HEART?

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Yesterday I went to the official opening of HEART – Headingley Enterprise and Arts Centre, an old Primary School, in a vibrant Leeds suburb which has been converted to a high standard by the Headingley Development Trust to provide:

  • 13 meeting rooms of various shapes and sizes
  • Exhibition space which local artists can use to hang their work
  • The Pulse Enterprise Space – shared workspace available on a membership basis
  • A Cafe, run by an independent operator, with 45 indoor covers and outside, off street, seating for 30 more

With, what seems to the untrained eye, excellent green credentials (solar panels, photovoltaic cells, grey water collection etc) the HEART Centre is a great new facility.  And with an eye to keeping costs down, using teams of volunteers wherever possible to run the building (very ‘big society’) and keeping debt as low as possible, the centre, with a lot of hard work, may just pay its way commercially and fulfil its vision – to create a vibrant and welcoming space for a wide range of people to meet, mix, work and play.

Similar in look and feel to both Hillside and Shine, I think there are several reasons why HEART has a chance of succeeding in the pursuit of its vision.

Firstly it is situated in a relatively prosperous part of the city, there are plenty of bright, young, and not so young things, with Mac Books, notebooks and iPads running small businesses who will almost immediately recognise the value of the Pulse Enterprise Space and find the £25 per month entry point both affordable and cost-effective.

It enjoys a wonderful location, with excellent footfall, and provides great spaces which fit well with the expectations and aspirations of many local people.

It really has been a carefully researched labour of love – the culmination of a 5 year project, led by local people, to keep the school in community use.

But perhaps most importantly I think it stands a chance of success because it is the flagship project of an established Development Trust led by local people who generally live in, and share insights into, the community that they exist to serve.  The Trust has developed over several years and those involved have already more than cut their teeth on a number of other projects including the Headingley Farmers Market, a Housing Project, a Community Orchard and even a Pig and Fowl Coop.  So the building is in the hands of a well established group of people committed to Headingley who have shared experiences over a number of years that have developed a real competence in their work.

Some Challenges to Be Met

Doing what pays – rather than doing what is wanted.  On my tour of the centre I was told about a significant demand from local people to have somewhere to practice their art, painting, drawing and so on – a community studio of some type.    However the centre was unable to respond to this demand because it is not commercially viable.  Local people want to develop their passion and skill and come together communally but this desire, at the moment at least cannot be catered for.  Perhaps in future surpluses from commercial activities could be used to cross subsidise such a resource?

We have to understand that financial viability follows on from the development of real craft.  It is not its pre-cursor.  If we could build a community of artists doing outstanding work then the revenues might start to flow.  Building skills and relationships lies at the heart of effective community development.  If we simply provide a home for those who are already economically viable perhaps we are missing a trick?

Displacement – There is a danger that money that gets pulled into the HEART Centre may be money that is pulled away from other local businesses and community groups offering similar services.   Of course competition is a good thing, as long as the playing fields are kept level between the private sector and community groups.  But if community groups are able to leverage volunteers, grants and subsidises not available to the private sector to compete with them then the results will not always be what we might hope.

Further Driving Inequality in the City? – Headingley, although not without the problems that come from a high population density including lots of students and ‘young professionals’, is not a deprived area.  Indeed it is the only part of the ‘Leeds Rim’ not to be amongst the most deprived wards in the country.   So we have a ‘successful community’ learning how to make itself more successful.  Which is to be applauded.

But can we do more to ensure that gaps between the rich and the poor do not further open up in the city?  How do we work successfully in more deprived areas to ensure that they too share in successful economic and social development.  I am not sure that similar buildings in more deprived parts of the city will have the same chance of really making a difference.

Keeping the Doors Open and On Mission

Buildings, especially ones that are open long hours, cost a lot of money.  Centre managers, caretakers, security, insurances, rates, utility bills and servicing debts all add to the overheads.  It is easy for the imperative to generate income to over-ride the social mission of such spaces.  Bills have to be paid.  But sometimes the desire to pay the bills takes the building away from what it was intended to be.  So, instead of being a place for the local community more of it is made available to affluent outsiders.

Hopeful…

But I am hopeful for HEART.  I think it has an excellent chance of doing great work in Headingley.  The host development trust seems well run.  It is embedded in the local community.  It will be hard work, and I suspect not without real scares along the way.  But I have a suspicion that HEART and the Headingley Development Trust will be a part of the Leeds infrastructure for some time to come.  It may be hard to make the managed workspace/meeting room combination work in more deprived areas of the city – but with a bit of tweaking it may be just right for Headingley.

Developing Enterprising Artists Using Open Space

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Yesterday I was invited to help Axis and the ever wonderful Culture Vulture to run a ‘Cultural Conversation’ to help a group of around 60 artists, project managers, collectors and gallery managers to explore the role of social media in supporting their work.  The group included some social media users and ‘experts’ (I use that word cautiously) and one or two technical types.  Peopl trsavelled from all over the north of England to take part and the venue at Project Space Leeds was rammed!

Instead of using the default setting of finding some experts to explain it all to the numpties we went with an open space meeting.  In this format groups of people meet to explore as peers the issues and topics they wish to explore.  They set the agenda, in real time on the day, and learn by exchanging experiences, insights and challenges.  They talk to each other, like human beings, in conversations.

In under four hours the group of 60 were each able to attend 4 conversations chosen from a schedule of 18 or so.  The topics included:

  • ‘What is Twitter and How Do I Use It’
  • Social Media Dialogue as Artwork’
  • I am Completely Overwhelmed! Where Do I Start?
  • Using Social Media for Critique

and many more.

Despite the fact that there are no experts holding forth, no lectures and no exhibitions the feedback from those who attended was excellent.  They enjoyed the process, they learned a lot, and most (perhaps all?) went away enthused about increasing or changing the way they use social media either to produce or attract and audience to their work.

This kind of open space conversation that builds relationships amongst participants and fosters enquiry and peer learning, rather than sitting passively while an expert holds forth, seem to me to be consistently effective ways to both build the social capital that forms the bedrock of an enterprising community and enable them to access the insights that they need to know, right now.  Indeed as the afternoon wore on a few new conversations were added as people though ‘Right, know I need to find out about….’

60 people smiling, laughing, talking, challenging, enquiring and advocating.  In short being human and exploring the implications of social media for something that they love.

A low cost, high value and extremely productive contribution to the enterprising ecosystem.  At a time when we need to be creating more value for less cash I can’t help that the world of enterprise development needs to embrace this type of peer to peer learning event.  We not be able to do much to improve the transport infrastructure in the city without a great big dollop of cash from government, but we can surely improve the enterprising infrastructure for next to nothing!

Some more thoughts were captured on the day in this audioboo – Why Open Space Works for Artists

A Community Ecology of Enterprise

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Enterprise is not just about ‘entrepreneurial types’ and ‘business ideas’.
It is not just about business and commercial endeavour.
If I want to make something happen to improve things in my community I may start a business, but I may start a campaign, or a festival, or a local action group.  I have worked with many people whose motivation was not to develop a business, but to make a difference, and in some cases setting up a business has been a means to that end.  No more than that.  It is simply a means to an end.
Well managed and run these kinds of community based activity all contribute to a more enterprising community and provide the kind of community ecology and practice ground from which commercial endeavours may spring.  They also help to build the social capital that is essential to building a sustainable and resilient local economy and community.
If LEPs were to think more about the kind of community ecology that supports enterprise and how this can be developed I suspect they would get a much greater ROI than on more traditional approaches of advice, managed workspace (we are awash with these in Leeds, mostly under-used and inappropriate for the communities they were built in) and access to finance.
Yes the web matters.  But it won’t be primarily because either a LEP or the national Business Link site offer generic advice and guidance (which to be frank just replicates what is already out there in most cases) but because local sites and sites of shared interest will provide highly specific and contextual advice – usually in the form of dialogue and conversation rather than factsheet.  The web will provide a platform for conversations that cannot easily take place face to face.
We have to start to think differently.  We have to innovate. We have to be prepared to try new approaches.  I hope LEPs are up to the challenge.
For me this means getting away from thinking about one to one advice for high growth, one to small group for lifestyle and start-up (in deprived areas) and one to many (content led websites) for the rest, and instead seriously building the networks, social capital, self belief and self-reliance that will allow our communities to become much more enterprising.

Dear Lord Young…

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Congratulations on your appointment as the new enterprise csar.  I am sure that the unpaid and part time role will keep you engaged.

I am pleased that you will look at how to ‘encourage people to start businesses rather than find jobs as employees’.  It makes a refreshing change from the usual line of the ‘private sector creating jobs’.  As we know big businesses have, on the whole, been laying people off over recent decades rather than taking them on. And just how long can we keep going with the mentality of ‘gizza job’ and ‘on yer bike/bus’ in a 21st century globalised and localised economy?

Can I suggest you take an early look at the semantics of ‘encouraging people to start businesses‘  and the very practical consequences that are likely to flow from it.  When a figure in authority, never mind Government, sets out to ‘encourage us’ to do something, some of us come over all suspicious.   Are you really interested in our well-being, or is there a more self centred game being played?  There is a good chance that in the very act of ‘encouraging us’ you serve to engender resistance to the very idea you wish us to entertain.  Psychologists call this reactance.

I have not read in detail the guidance on the Regional Growth Fund.  But I understand, from correspondence with someone that has, that it specifically says that self-employment is not something it should be used to promote.  Instead it should be used to encourage jobs created by employers.  There seems to be somewhat of a contradiction here.

But back to the point of encouraging  people to start businesses.  I believe that what you really want to achieve is a society where more people do start businesses that survive and thrive.  This should be the real policy goal.

So how to get there?

I would advocate that you should dissuade as many people as possible from starting new businesses.  Only for those people who insist that this is something that they have to do should we roll up our sleeves and help.  By working in a focussed way with a relatively small number of highly committed people we might have a chance of getting some real success stories.  And as we know, success breeds success.  More positive role models out there leads to more people following in their wake.  This contrasts with the current approach of offering a little support and encouragement to a lot of people, resulting in high business failure and loan default rates and a widespread perception that a journey into enterprise is likely to leave you worse off than when you started.

Can I also suggest that you do not wave money at people, New Enterprise Allowance style,  in a bid to encourage them to start a business?  The reality is that we have armies of advisers out there wading through thousands of appointments with people who are often half-hearted in their aspiration to start a business, but whole hearted in their commitment to securing the money that they see themselves as entitled to.  Instead of offering them a carefully calculated economic incentive (calculated to make things cheaper for the treasury I suspect rather than enabling people to start businesses with a decent level of working capital), offer them nothing, except excellent and committed advice, coaching and support that they need to put together an idea that is worth investing in.   I suspect that almost overnight the numbers of individuals engaged in ‘enterprise development’ would fall dramatically, but those that remained engaged would be there for the right reasons – to develop long term and sustainable strategies for self employment or entrepreneurship – and not just to secure a grant or a loan that they can default on with relative impunity.   NB don’t expect many of the enterprise support agencies to support this idea.  They have developed business models that survive on a mass market for enterprise development.

Of course access to finance matters.  But let others be the gatekeepers to it, not those who are supposed to be coaching clients to develop their enterprising ideas.

Then of course we have the challenge of helping the hundreds of thousands of people who will be faced with redundancy over the next few years.  Can I suggest that we put in place a service that does not ‘encourage them to start a business’, but that does encourage them to fully explore and understand all of their options?  I am sure that many of them have the potential to become successful, if initially reluctant entrepreneurs, if only we can provide them with the right kind of support.

And finally, don’t get all hung up with ‘national voluntary mentoring schemes’ and traditional business support organisations.  Instead get interested in what you can do to encourage communities to provide the support that local people need in pursuing their enterprising ideas (these may be much wider than self employment and business start ups).  Some of the more imaginative enterprise coaching schemes have started to develop community panels to provide practical assistance to local people.  This is an approach that can certainly be developed further.

There is tons of potential out there – and at the moment we are wasting much of it.