Greater Manchester Business Growth Strategy
The attached paper sets out the progress to date on implementing the Greater Manchester
Business Growth Strategy that was agreed in Spring 2011 and the development of the
Business Growth Hub and identifies the links to the new start up programme.
The paper proposes (section 3.3) a set of services that we would now want to develop
and/or expand as part of the next stage of the GM business growth strategy. These form the
basis for the current discussion with Government on business growth, trade and
internationalisation as part of the “Deal for Cities”.
The Growth Hub will closely link with a new GM Start Up programme, a partnership delivery
model that is likely to commence in early Summer 2012.
The Committee are invited to consider and comment on the paper.
Page 1 of 14
Development of the Greater Manchester Business Growth Strategy
1
Introduction
The North West Regional Leaders Board previously agreed to the development of a
network of Growth Hubs across the Northwest. These Hubs will act as the focal point
for all support services for companies that demonstrate growth potential.
This paper sets out the progress made to date on the implementation of our Business
Growth Strategy and development of the Business Growth Hub (the Hub) in Greater
Manchester and outlines the proposed priorities for the next stage of development of
the business growth strategy.
The Hub has been established to play a major role in the drive for strong, sustainable
business growth across Greater Manchester and the North West. It will act as the focal
point for businesses that wish to grow, providing co-ordinated and cohesive growth
programmes, business networks, growth groups and links to specialist information,
advice and services. Annex A illustrates the current operating model for the Hub and
the range of services developed and available to date.
The early stages of the Business Growth Hub’s development has been focussed upon
coordinating a range of private and public and local and national services for
businesses with significant growth potential. We have been successful in securing a
variety of public and private resources to support the development and operation of the
Growth Hub. The Hub’s services are described in section 3.1
We are now developing our strategy further. In particular we intend to develop the
strategy such that the Hub can:
 Deepen its diagnostic and advisory services to identify the growth barriers of
businesses and actions and services to address these.
 Expand existing and introduce new services to broaden the support available
for businesses that are major providers of employment and GVA, with a
particular focus upon improving their trading and exporting.
 Build on Manchester’s success in attracting foreign inward investment to create
additional and new employment opportunities.
 Work with existing business-finance providers to further expand and simplify
access to finance.
 Maximise the employment growth potential arising out of the development of
Greater Manchester’s low-carbon economy.
 Support employers to take a greater role in commissioning the support they
require for their workforce development and to implement high performing
workplace strategies.
 Revitalise the business base of our district and town centres.
Page 2 of 14
2
National Policy Development
Research published by NESTA shows that the 6 per cent of UK businesses with the highest
growth rates generated half of the new jobs created by existing businesses between 2002
and 2008. Based on this research BIS policy initially focused on the development of a series
of “growth hubs”. However, the policy evolved to focus on “coaching” as the principle means
by which BIS would encourage the development of more high growth businesses.

The national policy is no longer to create a number of geographically focused
“growth hubs”, rather it is to tender for largely national programmes such as
Coaching for Growth;

The coaching for growth programme will be focused on developing 10,000
additional businesses per year to add to the 20,000 naturally occurring, thus
avoiding “deadweight”. This policy will be implemented firmly and also over the
three years of the programme;

Contractors will be required to evidence an average of at least 20% growth per
year over three years;
Overall, this means that:

A large part of our and the national SME market will be left out of the national
picture because providers will be forced to adopt extremely selective methods.
Businesses which “only” have the potential to achieve growth of 10% or 15%
would not be eligible.

Businesses that do not suit or want a coaching approach will not take this up.
In the NW, we have many successful alternative approaches designed to meet
the diversity of growth and innovation needs within the SME sector, such as:
-

Programmes based on workshops for business leaders, managers and/or
senior teams
Course based programmes delivered by universities and other providers
with content designed to meet identified business needs
Mixed models, including groups of businesses working together to solve
problems, cross-sectoral networks
Sectoral programmes with specialised, more technical inputs
Programmes focused on innovation in products, processes, methods of
production/service delivery, management, work organisation, market
development
Some of the other national programmes such as UKTI, the Manufacturing
Advisory Service and the TSB supply chain programme provide good bases
upon which to develop and expand those services to support a wider range of
businesses; here we can combine the national resource with our own
resources, ERDF and RGF to provide a more comprehensive service offer that
best exploits the growth potential of Greater Manchester.
Page 3 of 14
This has led us to conclude that:
3
3.1

national programmes, notably the Coaching for Growth Programme, will only
be one “tool in the tool box” and that we need to continue to develop our own
services and approach to growth hubs as a much wider concept. The Business
Growth Hub will work with all companies that have the ambition and capability
to grow;

our and our partners’ delivery of national programmes provides us with a good
basis upon which to expand those programmes and develop new programmes
specific to Greater Manchester using our own and other nationally and locally
available resources;

and thus that the next stage of our strategic development is to put in place a
number of further programmes that both enhance the Growth Hub and
coordinate and resource programmes for those businesses that are major
providers of employment, contributors to GVA and strategically important to
Greater Manchester; these are set out below at section 3.3.
What our Business Growth Hub will achieve
The Business Growth Hub will:



foster a vibrant growth-led transformation of our local economy which unlocks,
expands and accelerates the growth potential of businesses;
become a core partner of all businesses with a strong focus on those existing
and future businesses that are key to employment and GVA growth;
brings together and develops a community of like minded companies and
growth support providers.
We now have in place many important elements for our Growth Hub. This includes
access to a range of publicly-funded and privately-provided support programmes
including:
Access to Finance
The North West Access to Finance service has transferred
into the MS group and will provide an independent service to
Hub clients. Delivery will range from workshops to intensive
individual company Access to Finance Coaching. The
service also provides direct access to the publicly backed
funds such as those operated by the North West Fund,
Business Finance Solutions and Bolton Business Ventures.
Responsibility for running the North West Business Angels
(NWBA) network has transferred to the MS group and will
form a core part of the Hub offer, complementing the existing
finance product offers of MS and its partners.
A GM Business Growth Grant scheme is currently the
subject of discussion with GM partners and will also form
party of the Access to Finance set of services.
Page 4 of 14
Resource Efficiency
& Low carbon
The ENWORKS service has transferred to Manchester
Solutions and together with the existing Chamber Plus
service will be developed to provide an ongoing support
service to businesses to assist them in reducing costs,
waste, CO2 emissions and use of materials, energy and
water.
Innovation
The Hub has partnered with a range of specialists to provide
innovation services that focus on IP, technology transfer,
innovation skills and R&D tax relief advice.
Mentoring
The Hub will run a mentoring service where clients are
carefully matched with a mentor who will provide pro-bono
advice and guidance to clients. The NWDA has agreed to
pass responsibility for the North West Mentoring Programme
to the MS group.
In partnership with external providers (e.g. Academy of Chief
Executives) the Hub will also offer peer to peer growth
groups.
Growth Coaching
The Government has identified the provision of paid-for
Business Growth Coaches, who provide tailored advice and
guidance to clients, as a key priority for investment. We will
work closely with Grant Thornton (who are the provider of the
service to BIS) on the delivery arrangements for the
Business Coaching for Growth programme such that the
service is integrated within the Hub offer. Winning Pitch,
Grant Thornton’s consortium partner, is committed to
working with the Hub re Business Coaching for Growth.
Manufacturing Advice
We are in final contracting stage with the MAC consortium
who have been chosen to deliver the MAS service. From
Spring 2012 MS will be delivering the national Manufacturing
Advisory Service (MAS) across the North West. MAS
provides companies, whatever their size, with practical
support on all aspects of manufacturing and offers direct
access to manufacturing experts with a proven track record.
The service includes advice, research, process reviews,
events and where appropriate, subsidised consultancy
assistance.
Start up support
The Hub will also closely link to the new Greater Manchester
start up programme which will help individuals consider,
prepare and start their own enterprises.
We also have in place a range of other services including support with Standards &
Accreditation, Purchasing & Procurement, Management Development & Higher Skills
and Workforce Development.
3.2
The Hub’s target market
The Hub will operate across the whole of Greater Manchester and, where appropriate,
will deliver programmes across a broader geography. The Regional Leaders Board
Page 5 of 14
has agreed that a network of Growth Hubs will operate across the Northwest. To-date
other LEPs are less advanced in the development of their Hubs but we have offered to
work with them to share our approaches and we have some pan-regional lead
responsibility including for business finance and low carbon/resource efficiency.
We already have account management and delivery relationships with over 8,000
businesses across Greater Manchester. These relationships and our delivery of
services such as

Trade and Investment

Investors in People

Manufacturing Advisory Service (from 2012)

Chamber membership services

North West Apprenticeship Company
have provided a strong base upon which to develop the Hub and it’s new, additional
services.
The table below summarises the current level of utilisation of existing key services
across the conurbation.
Number of Greater Manchester businesses using existing Hub services
(figures relate to twelve month period)
Service
Resource efficiency & low carbon
Apprenticeship
Workforce training
Investors in People
Chamber Membership
Business events, consultancy etc.
UKTI trade services
Export documentation
Access to finance
Businesses
321
981
834
2023
4549
1567
260
655
244
These businesses are already major providers of employment and GVA growth.
Together with those businesses that will locate here from abroad and create new
employment they are fundamental to our economy and prosperity and thus to the
Growth Hub.
In terms of those businesses that will contribute to major employment growth extensive
work has been undertaken by New Economy to assess the number and location of
high growth firms. There are over 1,200 companies across the North West that have
achieved 70% plus growth (turnover and/or employment) over the past three years
(BIS’ definition of high growth i.e. 20% per annum over three years) and a further 4,500
that have been identified as having high growth potential. Annex B provides data (from
the ‘FAME’ database) on growth at different %/year levels for Greater Manchester.
As would be expected, high-growth firms are notably concentrated in the core of the
conurbation, accounting for nearly 2.5% of the business base in the City of
Manchester, as illustrated below. Trafford also stands out as a district with both high
absolute and relative numbers of high-growth firms. Although the percentage
Page 6 of 14
difference between the districts appears small, such differences can be significant
given the disproportionate effect such firms have on growth overall.
Location of High-growth Firms within Greater Manchester
700
665
NUMBER OF HIGH-GROWTH FIR
600
500
400
339
300
269
220
218
218
200
172
145
133
124
100
BU
RY
E
ID
M
ES
TA
HA
M
O
LD
AL
E
CH
D
RO
W
IG
AN
BO
LT
O
N
O
RD
SA
LF
O
RT
O
CK
P
ST
FO
RD
TR
AF
M
AN
CH
ES
T
ER
0
Source: Business Link North West, 2010
Whilst smaller in terms of absolute numbers, Rochdale, Salford, and Wigan all have an
above average proportion of high-growth firms within their business base, as illustrated
below. In contrast, the two commuter areas of Bury and Stockport have relative low
proportions of high-growth businesses (though Stockport’s absolute number is third
highest in the conurbation) – a trend that may reflect the fact that entrepreneurs from
these areas are more willing to commute and to start businesses in the conurbation
core.
Page 7 of 14
Percentage of High-growth Businesses within GM districts
2.50%
2.42%
2.02%
2.02%
HIGH-GROWTH AS PERCENTAGE OF BUSINESS BA
2.00%
1.99%
1.90%
GM AVERAGE 1.82%
1.67%
1.63%
NW AVERAGE 1.73%
1.48%
1.50%
1.28%
1.26%
1.00%
0.50%
B
U
R
Y
S
TO
C
K
P
O
R
T
TA
M
E
S
ID
E
O
LD
H
A
M
B
O
LT
O
N
W
IG
A
N
S
AL
FO
R
D
TR
A
FF
O
R
D
R
O
C
H
D
AL
E
M
A
N
C
H
ES
TE
R
0.00%
Source: Business Link North West, 2010
3.3
Developing further the Growth Hub’s services
The ending/contraction of many regional programmes has provided us with an
opportunity to review and re-commission a number of new activities that build upon
and complement existing priority services.
In the next stage of development we will pursue a strategy that will:

Allow for an enhanced account management arrangement for high-growth and
strategically important businesses. The objective here is to ensure that services
are tailored to businesses needs and support their growth potential through
supported take up and utilisation of services as well as maintaining close
relationships with key businesses in order to support and influence their major
business and investment decisions.

Expand our trade and export services: Here we will utilise the recently
announced additional national funding to expand the existing UKTI service
preparing for the loss of NWDA funding from 2013 and extending the existing
service to improve the promotion and availability of export-specific finance
products including export-credit guarantees.

Enhance our inward investment offer and resource. Here we will increase our
already stretching targets for securing jobs growth from inward investment activity
and enhance our ‘after-care’ support for foreign-owned firms to maximise
retention and their growth.

Build upon the new Technology Strategy Board supply chain programme for
advanced manufacturing and low carbon industries and build on this by extending
this to other key sectors for Greater Manchester including construction, food &
drink and creative, media & digital.
Page 8 of 14
3.4

Extend our public-private business finance offer to include access to early-stage
finance to support new high-growth, innovation-based business formation and
secure the long-term development and future for the existing access to finance
services.

Extend and secure the existing cost-reduction, resource efficiency and low
carbon services for business to improve business competitiveness and reduce
carbon use.

Support employers to implement their own programmes for high-performing
workplaces including leadership and management development, workforce
development strategies underpinned with Investors in People and manufacturing
excellence skills.

Contribute to business success and retention in those district and town centres
that are experiencing trading decline including debt and financial advisory
services, business diversification and collaboration, marketing support, reducing
supplier costs and property advice.

Expand the existing national coaching service to encompass a wider set of
businesses (than the national eligibility currently permits) and complement this
with a business-to-business mentoring programme to support early-stage
businesses.

Respond to the demand for business start-up advice and support following the
demise of the previous regional programme with two “sub-programmes”
focussing upon start-ups with growth potential and “one-person” start-ups.
Business Growth Hub Referral Network and Assessment arrangements
Hub clients will be sourced through an extensive Hub Referral Network. We have
developed relationships with a bank of referral partners which comprises business and
professional service providers including many high profile accountancy, legal, banks
and finance companies. This will be expanded over the coming months through an
ongoing targeted programme. A Hub Referral Partner Information Pack has been
developed and is now in use.
Local Authorities will be critical referral partners and, through TMEG, key staff will be
briefed on the services of the Hub and how they can refer clients to it services.
Discussions are taking place with some LAs to explore the possibility of working with
LAs to ensure that any firm that is seeking planning consent for expansion is fully
linked into the wider growth support that is available through the Hub.
We are also working closely with Chambers of Commerce, Enterprise Agencies,
business representative and professional bodies, Pro-Manchester, science parks and
universities. An internal referral mechanism has also been established within MS.
The central Hub team will run an IT and telephone based service which assesses highgrowth business’ needs and provides such companies with a report that outlines a
recommended package of growth support. It will undertake proactive, targeted
campaigns to promote programmes and deal with the application, assessment and
Page 9 of 14
selection of clients. Our intention is to now introduce a dedicated team of Business
Growth Managers who will undertake face to face support/advice with clients.
The core Hub team will also manage the referral network and supplier base.
4
Funding
4.1
The first-phase development of the Business Growth Hub has been, and is currently
being, funded by Manchester Solutions. Other sources of funding and the progress
made to date are outlined in the table below. This has included the funding of the:

core team of 5 Business Growth Hub staff who are responsible for the
development of the referral and delivery network, maintenance of the web site,
handling of enquiries, implementation of the Hub events network and
monitoring impacts;

development and maintenance of the Hub’s website,
www.businessgrowthhub.com, and associated social media platforms;

Hub’s launch and the inaugural Manchester Conference for Growth;

bidding teams who have been responsible for securing external public funds to
further enhance the development of the Hub;
In addition to the funding provided by Manchester Solutions, other potential sources of
funding and the progress made to date are outlined in the table below:
Source of Finance
Progress to date
Next steps
Commercial
revenue
The Hub offers a paid for recruitment and
assessment service for other providers, as
was the case with the Goldman Sachs
programme and LEAD at MMU.
The Hub has been established to also be able
to offer services to clients on a commercial
basis and a list of suppliers has been
identified with whom we are negotiating
commercial deals. These include various
models: payment for referrals; joint revenuesharing; “pay as you grow”. We are also
exploring the option of loans linked to growth
outcomes.
Target organisations
who are seeking to
recruit companies to
their own growth
programmes.
Develop the paid-for
event programme.
Finalise commercial
revenue sharing deals
with suppliers.
Page 10 of 14
Source of Finance
Progress to date
Next steps
Sponsorship
Initial discussions have been held with a
range of corporates across Greater
Manchester to identify potential sponsorship
opportunities.
An draft sponsorship prospectus has been
developed which outlines the opportunities to
become:
Main sponsor:
Prime sponsor
Programme sponsor
Business to business sponsor:
Media partner
Hub/Chamber team to
promote opportunities
to targets identified for
each category.
Relationship Manager
to manage
sponsorship network
and seek future
opportunities.
Regional Growth
Fund
The GM LEP submitted the overall:
“Manchester Business Growth Programme:
Delivering National Rebalancing and
Recovery”.
A core-team has been
introduced within
AGMA to enhance
GM’s ability to develop
a strong pipeline of
projects.
National
Government
procured
programmes
MS/Hub:
– Will work with Grant Thornton to integrate
the BIS’ Business Coaching for Growth
programme within the Hub arrangements.
(This is a £208 million national service
which will aim to increase the number of
high growth businesses by 10,000.)
– Is part of the Grant Thornton consortium for
the delivery of the Manufacturing Advisory
Service. This is a £57 million programme
which has been procured at a national
level.
Through MS and Greater Manchester
partners the Hub already has direct access to
a range of national government programmes
including: UKTI Trade, UKTI Invest, Investors
in People, Skills Funding Agency programmes
etc
Page 11 of 14
We are keeping in
close contact with BIS
to identify any other
future opportunities but
we do not anticipate
any major
announcements in the
coming months.
Source of Finance
Progress to date
Next steps
ERDF
MS is planning to submit/has submitted ERDF
bids which will support the Hub operation.
These include:
- Business Growth including core funding of
the Hub as well as growth programmes
- Investment readiness to support the
continuation of the Access to Finance
service
- Expansion and novation of existing
international trade contract
- Expansion of the current ENWORKS
programme
- Greater Manchester Start Up programme
- SME Micro Finance
- High Performance Workplace
- SME competitiveness programme in
deprived wards
If necessary and not “done at source” we will
also seek to match national programme
resources with ERDF.
Bids will be submitted
over the course of the
next 3 months.
GM
LEP/AGMA/Local
Authority
The majority of LAs have indicated that they
will provide match funding and/or staff
resources to the GM start up programme.
At this stage there are no additional GM level
resources for business support.
NA
Page 12 of 14
Annex A
Page 13 of 14
Annex B
Growth Rate (last accounting year)
UK Total
Industrial
Service
Other Key Sectors
Totals
Sector
Automotive
32,784
Logistics and Transport
113,913
Engineering
78,877
Manufacturing
80,616
Construction
251,692
Business and Financial Servic915,647
Education
23,601
Health and Social Care
57,040
Public Sector
3,108
Retail
115,128
Hairdressing
14,896
Other Services
80,093
Hospitality & Tourism
156,538
Aviation
7,550
Sport
32,840
ICT
150,361
Creative Industries
119,996
2,234,680
GM Total
1273
4,673
3180
2,549
8,572
34,445
790
2,446
105
4,205
582
3,065
5,048
208
965
4,526
3,371
80003
1 - 5% GM Penetration 6 -10%
75
198
157
118
318
779
20
96
2
202
7
72
209
10
56
170
129
2618
6%
4%
5%
5%
4%
2%
3%
4%
2%
5%
1%
2%
4%
5%
6%
4%
4%
Page 14 of 14
72
170
91
104
238
838
22
118
5
160
6
70
291
10
40
118
112
2465
GM
P enetration
6%
4%
3%
4%
3%
2%
3%
5%
5%
4%
1%
2%
6%
5%
4%
3%
3%
11 -15% GM Penetration
64
127
114
119
227
642
8
56
2
112
10
42
123
8
26
100
79
1859
5%
3%
4%
5%
3%
2%
1%
2%
2%
3%
2%
1%
2%
4%
3%
2%
2%
16 - 20% GM Penetration
62
108
92
83
168
794
15
44
0
77
8
43
93
8
21
104
71
1791
5%
2%
3%
3%
2%
2%
2%
2%
0%
2%
1%
1%
2%
4%
2%
2%
2%
Total
273
603
454
424
951
3053
65
314
9
551
31
227
716
36
143
492
391
8733
Total GM
Penetration
21%
13%
14%
17%
11%
9%
8%
13%
9%
13%
5%
7%
14%
17%
15%
11%
12%