Rural Economy Scoping Event

27th October 2008Rothley Centre, Rothley

Welcome

Event Chair – Martin Traynor, Leicestershire Chamber of Commerce

09.30 Welcome – Mrs Lesley Pendleton, Chairman LRP

09.40 Warm up

10.00 Sub National Review Overview – Tom Purnell, LCC

10.10 Rural Sectors in Leicestershire – Tom Gill, Ecotec

10.30 Supporting Rural Businesses – Eric Carveth, EMB

10.50 Coffee Break

11.10 Workshop Sessions 1 and 2

12.30 Feedback

12.45 Lunch and networking

Programme

Event Chair

Martin TraynorLeicestershire Chamber of Commerce

Welcome

Mrs Lesley PendletonChairman, Leicestershire Rural Partnership

Warm up exercise

Louise DriverRural Partnerships Manager, LCC

Tom Purnell – Policy, Performance and Research

New Sub-Regional Arrangements in Leicester

and Leicestershire

• Current Sub-regional Structures

• Sub-national Review of Economic Development and Regeneration

• What’s happening in Leicestershire

• Where does the LRP fit in?

What I’ll Cover

Current Sub-regional Structures

• 2 Sub-regional Strategic Partnerships • 9 LSPs, 9 SCSs, 2 LAAs• Leicester Regeneration Company• Leicester Shire Promotions (Inward Investment and

Tourism)• Well established Leicestershire Rural Partnership• Strong history of partnership working

Sub-national Review of Economic Development and Regeneration (SNR)Regional• More strategic role for RDAs - Single Regional Strategy• Regional Assemblies to be disbanded

Sub-Regional• Focus on functional economic areas (sub-regions)• Devolution of funding to (upper-tier) local authorities• New tools – multi-area agreements, economic development

companies

Local• Statutory duty – economic assessment

What’s happening in Leicestershire• L&L good approximation of functional economic area

• Partner commitment to work sub-regionally

• Development of Multi-Area Agreement (MAA) with economic focus, based on priorities in City and County LAAs

• Establishment of a Leadership Board and support structures to set strategy and oversee delivery

• Establishment of an Economic Development Company (EDC) as a delivery vehicle

Leadership Board

Co-ordination and Planning

Employment & Skills Board

Enterprise & Business

Rural Partnership

Housing Planning & Infrastructure

Transport

Funding:

Aligned and Pooled Funding e.g. RDA delegated funding, New Growth Point, Supplementary Business Rate, Local Authority etc.

Delivery Vehicles:

Economic Development Company (EDC), local authorities and partnerships, Leicester Shire Promotions, LSC, Job Centre Plus, Connexions etc.

Where does the LRP fit in?

• Detailed structures still to be agreed so opportunity to influence…but the LRP – Is recognised as strategic lead and delivery partner for rural

areas– Will be able to influence the Leadership Board– Should be represented on key partnership groups– Could be ‘commissioned’ by the Leadership Board to

oversee and manage delivery of priorities in rural Leicestershire…

– Would, as now, ‘sub-commission’ delivery agencies to deliver on its behalf – including where appropriate the EDC

Your views?

• Your views welcome

• Questions/ Comments Now

• The Rural Economy Questionnaire – ensuring the LRP is ‘fit for purpose’

Tom Gill, Consultant

Nikola Abbi, Consultant

Supporting Leicestershire's Rural

Economy- A Sector Scoping Study

Content of the Presentation

• Introduction to the Team

• Our Study Objectives

• Our Approach:– Desk Review– Stakeholder Consultations – Business Survey

• Questions and Discussions

About Ecotec

• The Company

• The Team

• Rural Renewal Programme

Purpose of the Study

• To undertake a scoping study which considers the strengths, barriers and opportunities for key sectors within the rural economy

• To identify the need and priorities for a Rural Economy Support Programme

• Focusing our research on five identified priority sectors:– Land Based Industries– Equestrian, Recreation and Outdoor Pursuits– Knowledge Based Businesses– Food and Drink– Renewable Energy

Study Objectives

• Objective 1 – identify whether there is need for specific sector development support across rural Leicestershire

• Objective 2 – identify the type of support that would beneficial for businesses

• Objective 3 – draft an outline for a proposed programme of sector support for Leicestershire’s Rural Economy

• Objective 4 – Make recommendations for future delivery options

Our Approach

• Desk Review– Contextual review of key documents– Supported by a snap shot statistical analysis

• Stakeholder Consultations – Mixture of telephone and face to face interviews– Approx 24 undertaken so far

• Business Survey– Short telephone survey with 50 businesses

Drivers for Economic Delivery in Rural Areas

• Taylor Review – “Enterprising rural communities”

• Rural East Midlands 2008

• Leicestershire Rural Economy Study – supporting key embedded sectors

• Lessons of Previous Evaluations

Composition of Leicestershire’s Rural Economy

• Knowledge sector relatively small in Leicestershire compared to regional and national figures.• Food and Drink, Equestrian and Outdoor Pursuits and Land Base important to the County.

Area England (%) East Midlands (%) Leicestershire (%)

G : Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods

17.0 17.7 19.8

D : Manufacturing 11.0 15.8 16.9

K : Real estate, renting and business activities 18.0 14.9 13.7

M : Education 9.3 9.5 10.1

I : Transport, storage and communication 6.1 5.9 8.0

F : Construction 4.7 5.4 5.6

E : Electricity, gas and water supply 0.4 0.6 1.2

A : Agriculture, hunting and forestry 0.2 0.4 0.5

C : Mining and quarrying 0.1 0.3 0.5

N : Health and social work 11.8 11.5 6.8

H : Hotels and restaurants 6.7 5.9 6.0

O : Other community, social and personal service activities 5.3 4.6 4.6

L : Public administration and defence; compulsory social security 5.4 5.3 4.2

J : Financial intermediation 4.0 2.2 2.1

Emerging Themes - Recognising Success

Activities through the Leicestershire Rural Partnership:

• Initiatives put in place through the LRP over the last 3 years have been effective:

– Defined with clear objectives– Brought considerable benefits to a range of business sectors

• The programmes have met clear gaps in regional funding programmes for rural areas

• But – need to consider how these activities are addressed in the future!

Emerging Themes - The Barriers

• Difficulties for successful businesses to expand across rural Leicestershire

• Continued frustrations are experienced when engaging with the planning system to support economic development

• Areas of the County lacking employment space

• Areas of the County affected by a shortage of skilled workforce

Emerging Themes - The Barriers

• Limitations of, and poor connectivity to high speed broadband

• Effects of increasing regulation – particularly influencing the land based sector

• Challenges for business to have an accessible and local workforce – transport and affordable housing

• Effects of increasing input and resource costs for all businesses

Emerging Themes - Opportunities

• Existing good practice and an excellent track record

• History of Leicestershire:– Tradition– Under estimated quality, natural environment

• Unique Brands – specialty food and drink – Supported by improved distribution across the supply chain

• Geographic opportunities – such as The National Forest

Emerging Themes - Opportunities

• An accessible county to ‘undertake business’

• Strengthening the integration between key sectors and tourism offer

• Taking advantage of urban rural interdependencies – particularly Food and Drink and Renewable Energy

• Entrepreneurial and proactive businesses – looking for new opportunities

Emerging Themes - the Future • Dovetailing with regional programmes that adds value to:

– Business-led innovative networks (INETS)– Rural Development Programme for England (RDPE)– Land Based IDB function delivered through Andersons, Brown & Co

Consortium

• A need for catalyst support to small medium businesses in rural areas below £25,000

• The LRP providing a ‘Rural Proofing function’ at a number of levels

• Clear, fit for purpose structure to oversee a rural sector programme

• Increased alignment and collaboration with key partners – CLA, NFU, The National Forest, Melton Food Partnership

What is the Business Community Saying?

• Our Approach

• Conducted a telephone survey with 38 businesses so far!– 10 Food & Drink

– 10 Land Based

– 9 Knowledge

– 8 Equestrian, Recreation and Outdoor Pursuits

– 1 Renewable Energy

What is the Business Community Saying?

• Locational Factors

– Successes: Accessibility and Location

– 92% of businesses remaining in their location in 5 years time

– Weaknesses: Customers and Clients getting lost! And Constraints of expanding property

• Barriers to Growth

– Current economic climate

– Cost increase vs. price reduction

– Availability of funds

– Planning restrictions

– Increase of legislation

What is the Business Community Saying?

Current Needs:• One third of businesses felt they had specific training or skills gaps

Future Needs:• Approx two thirds considered sector specific support was necessary • Types of support required as important were:

– Sales and marketing– IT and connectivity– Regulation advice

Delivery Mechanisms• Currently access information and advice from Forums• Face to face, web, telephone, • Accessing a single point of information for advice

What is the Business Community Saying?

Supply Chains• No consensus at the moment

Reporting and Timetable

• Consultation with LRP partners – 27th October

• Draft Report – early November

• Final Report completed in November:– Analysis to be fed back to participating businesses within

the Survey

Support for Rural Business

Eric Carveth – Business Link

Business Support across Leicestershire

• Train to Gain

• Business Link

• EMITraC

Business Link - gateway to business support

• Single number - 0845 058 6644

• www.businesslink.gov.uk/eastmidlands

• Information services

• Business news and events “Newslink”

• Workshops and seminars

• Rapid response e.g. flood recovery fund, Post Office closures

• Diagnose issues and broker to solutions

Support for those thinking of starting a business in the rural community

• Information “is it for me?”

• 1-2-1 advice - typically up to 5 sessions

• Up to 7 training workshops to develop business knowledge/skills

• Mentoring for <12 months from start

• All FREE

15 Business Support Advisers

• Accredited professionals

• Working with established businesses

• Business reviews

• Identify issues and needs• Agree action plan• Help to identify support - private/public sector• Broker to solutions - funding?

• Follow-up

• Keep in contact

Some of the solutions

• Grants for R&D

• Selective Finance for Investment

• Regional CDFI

• Mentoring for All

• Manufacturing Advisory Service (MAS)

• High Growth East Midlands

• Business Transformation Grants

• Graduate recruitment

• Resource efficiency diagnostics

• E-Business Programme

Working locally and rurally

• From 5 “access points” offices – Coalville, Loughborough, Melton, M. Harborough, Hinckley.

• Shared with Start-up, Generalists, & Skills Advisers.

• Advisers carry out 1-2-1 meeting on these sites for Pre-starts and Starts individuals.

• Advisers identify with a district to maximise local knowledge and partnership working

• Local information specialists to gather local knowledge

The Team based in the Market Towns

•N.W. Leicestershire

Alfred Bawak Victoria Murphy Jacqui Tillyard

•Loughborough

Julie Townsend Samantha DalbyJoe Forster

• MeltonDaren Solly Liz Foxwell- CanningDavid Moore

•Harborough

Amanda Bell Karen GallagherDavid Moore

The Team based in the Market Towns

•Hinckley

Tim Underwood Paul Humphreys

Ken Horn

• Oadby, Blaby &Wigston

Rita Kisob Paul Humphreys

Tom Conway

Supported in each area by a Skills Adviser

Key Performance Indicators

Measure 2007/8 Actual

2008/sept08 Target

Number of individuals and businesses receiving services

1,192 658

Number of businesses assisted (T4) 8,824 1,560

Number of businesses intensively assisted

1,235 452

Number of jobs created 303 41

Number of businesses created (surviving >12 months)

150 23

Customer satisfaction (determined by independent survey)

90% 90%

District Council

Measure B C H H&B M N.W. O&WNumber of individuals and businesses receiving services

188 248 170 201 93 160 132

Number of businesses assisted (T4)

1151 2061 1485 1243 870 1330 684

Number of businesses intensively assisted

161 241 231 168 140 220 71

Number of jobs created

63 48 30 12 26 105 19

Number of businesses created (surviving >12 months)

22 23 27 26 20 25 7

Customer satisfaction (determined by independent survey)

90% 90% 90% 90% 90% 90% 90%

A Universal Service

Initiatives to mainstream support for:

• Social enterprise

• Land-based business

• Tourism

Grants availability & other support offered by:

• Leicestershire County Council

• East Midlands Development Agency

• Local trusts.

Summarising

• We are here to support Businesses and individuals who want to start businesses in the Rural areas

•Through our model of working we try and match the needs of those requiring Business Support

•We have advisers in the field to cover all business support needs.

Questions and Answers

Martin TraynorLeicestershire Chamber of Commerce

Workshop SessionsSession 1

Supporting Rural Sectors (Ecotec) - Back Room

The Role of Market Towns (LCC and HBBC) - Side Room

Rural Development Programme for England (emda) - Main Room

Session 2

Supporting Rural Sectors (Ecotec) - Back Room

Supporting Rural Enterprise (LCC and Business Link) - Main Room

The Role of Market Towns (LCC and HBBC) - Side Room

Feedback and Summary

Martin TraynorLeicestershire Chamber of Commerce

Thank you for your participation

Lunch is available in the Back Room

Presentation slides available at http://www.oakleaves.org.uk/presentations.html

We will upload notes from workshops as soon as possible