Training and business support should be the focus of new Local Enterprise Partnerships, says business group

8 September 2010

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With public and private sector organisations clamouring to form new Local Enterprise Partnerships (LEPs), the Forum of Private Business is arguing that the new bodies should focus on providing training as well as guidance on the support that businesses really need.

LEPs are being introduced following the demise of Regional Development Agencies (RDAs) and local Business Link services. Tasked with fostering economic growth, more than 50 bids have been tabled by collaborations of councils, city regions and business leaders. However, the way LEPs will operate - and how they will be funded - is far from clear.

In its consultation response on LEPs, submitted to the Government, the Forum indicated that the services provided by bidding authorities should include:

- Localised business support
- Supplier matching and inward investment
- Export preparations
- Regional infrastructure investment
- Skills and training information and promotion

Criticisms levelled at the proposed bodies include that, because there are so many bids, they could be too small to be effective, that they could be too parochial or even toothless ‘talking shops'.

"It is right that LEPs should be chaired by a prominent business leader, and that there should be cooperation between the public and private sectors.

"However, independence is key when it comes to delivering information, advice and guidance about the help that is already easily available to business owners through dedicated support organisations in the private sector" said the Forum's Chief Executive Phil Orford.

"The focus should be on allowing businesses to choose their own forms of business support from a fair and open marketplace, rather than competing to sell them services through a system which would be devoid of choice. Independent organisations like the Forum, which have to delight their customers simply in order to survive, are already out there, ready and willing to provide a complete range of business support services to small and medium-sized enterprises."

Whether it is dealing with banks, utilities companies or local authorities, many small firms believe they are paying more for reduced services. This is why the Forum believes it is important that LEPs engage properly with these businesses in providing the level of support to justify any increases in local taxation.

In addition to their function of fostering economic growth and providing local infrastructure improvements, many smaller employers want training to be one of the main remits of LEPs.

The Forum's new Training and Skills member panel survey asked members which elements of business support they would like LEPs to deliver.

In total, 56% want them to provide local, named advisers who can help with training needs.

Half (50%) want the new bodies to integrate training providers with business support and 46% called for regular consultations on local training and business support issues.

Further, 44% want more resources to be provided online to save on management time.

Local training provided in one place is desired by 42% of respondents and 38% want access to training courses provided by larger companies locally. Finally, 37% called for the creation of group training networks.

Some businesses would value being given information and advice when choosing training courses but feel they should retain autonomy in selecting providers. They believe they should be able to purchase training like any other service, supported by tax incentives or providing grants direct to the business.

Others want the current system of training and skills provision to be enhanced in order to reduce cost while improving access.

"The danger is a return to the parochial approach to business support of the 1980s and 90s. Close-knit networking is not enough and prescribed, vaguely-defined business support is not practical or cost-effective," added Mr Orford. "We want business owners to be armed with the full information they need to exercise proper choice. We simply want LEPs to provide a useful service that business owners want.

"Impartial guidance on the real support that is available would be one such service. Helping businesses to access the right training would be another, particularly as firms seek to recruit and grow."

The main suggestions the Forum has submitted to the Government on how LEPs could help fulfil training needs are below:

Assessing demand

- Training and business support advisers are seen as key and should focus on providing business owners with the information and advice they need to decide whether training is the best option and on the best training solution.

- Overall demand should be assessed locally using a short questionnaire once or twice a year, perhaps combining business support and training to save owners time. Standard questions would allow providers to assess the relative strength of their region compared to others.

- Training group networks could help colleges and training providers in prioritising courses needed based on the local business climate and any training needs due to regulation changes.

- Information about likely courses could then be sent out to business owners. Ideally this would be via email.

- More help in the form of template questionnaires should be provided so that business owners can find out from their staff if there are courses etc they would like to see.

Marketing of courses

- Marketing should be coordinated to reduce waste and avoid duplication through rival providers offering similar courses.

- Advisors should use links with key stakeholders, banks, accountants and business groups to promote courses.

- Courses should be provided on a website so that business owners could see what was available quickly. Ideally this would bring together most courses in the local area.

Take-up of courses

- A pilot scheme should be introduced so that rather than provide courses and then have to remove less popular ones, employers and employees would be encouraged to sign up to courses and once a critical number had confirmed they would be run.

- Greater emphasis is required on how skills can be used in the business to improve and develop their own organisation

Information

- Businesses want more information on course providers and quality – this may be collected at a national level and feedback could be provided to a main website rather than expensive evaluation exercises.

- Businesses also want simplified information on funding for training.

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