IMPACT Centre for Enterprise
Innovation Edition
Spring 2017
Centre for Enterprise • SMART Cheshire Innovation Programme • Cheshire & Warrington Business Growth Programme • Greater Manchester High Growth Network • Managers2Leaders
Universities’ role in Accelerating Business Growth The Business Growth Hub discuss the collaboration between universities and industry.
From Taxi Driver to Tourism Superstar Manchester Taxi Tours: Innovation in Traditional Sectors
Become Unstoppable with Innovation Acikem Managing Director talks embedding innovation in business practices
GO DIGITAL WITH YOUR TAX Amanda Swales from GoSimpleTax talks innovation
PUTTING KNOWLEDGE TO WORK TO GROW YOUR BUSINESS
Centre for Enterprise
IMPACT: Innovation
Welcome
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nnovation is the theme of this edition of IMPACT innovation in products, services and in transforming the way business is done. The UK Government has innovation as one of ten pillars which are important to drive forward industrial strategy across the economy (Green paper Building our Industrial Strategy).
Steve Jobs suggested that innovation marked the distinction between a leader and a follower - whether you work within an organisation or as the leader, innovation will be key to your development. As part of these stories, owners share views on what has helped them, including support from the Centre for Enterprise. See the details of our initiatives to help companies innovate and grow. Not only the range of courses from the Centre for Enterprise supported by European structural funds and the Managers2Leaders programme but also the new Hydrogen Fuel Cell project and the Business Growth Hub innovation project.
Innovation through investment in manufacturing, science and technology - and practical commercialisation of new ideas. Whilst there is a lot of attention paid to technology, as Dr. Val Antcliffe confirms, this edition shares alternative views of those building innovation into their businesses, through new ideas, new technology, new oppportunities, entrepreneurial decision-making - and through personal and company resilience.
Prof. Lynn Martin
Director Centre for Enterprise
Resilience is a quality often ignored but it is proving to be the key difference companies that develop and those that do not according to my recent research. Resilience characterises the thoughts shared by Oliver Caunt, leader of John Caunt Scientific, and GoSimpleTax MD Amanda Swale, in their stories of new technologies, determined growth and innovation and obstacles removed.
Dr. Jacqueline Carter
Research Associate Centre for Enterprise
Actikem MD Andrew Mooney and Synextra entrepreneur Michael Pyne base their companies on technological innovation, but in order to ensure innovation goes beyond technology; they embed it in their business processes, services and thinking. Manchester Taxi Tours owner John Consterdine and The Print Company MD Vicki Swinden, also show how innovation and resilience can transform a traditional business service.
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Centre for Enterprise
IMPACT: Innovation
Manchester Taxi Tours: Innovation in traditional sectors From taxi driver to tourism superstar, with John Consterdine
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y combining and refreshing the idea of guided tours and taxi services, John Consterdine has successfully built a new brand – Manchester Taxi Tours. With many years of taxi driving experience he qualified as a tour guide in 2009. The course he attended was intended for walking tours and coach tour leaders but he adapted it to become the first qualified Manchester taxi tour guide. He focused on the business from 2012, with tours designed to fit the needs of the client, often themed around uni client interests, e.g. music, sport, history, industrial revolution. In 2013 John was awarded the Manchester Tourism Star of the Year award and in 2014 he was entered in the National Tourism awards as the Tourism Superstar of the Year.
“It’s that getting out there and meeting people which is fantastic!” He also joined the first ERDF funded Greater Manchester High Growth Programme, which is available free of charge to Greater Manchester businesses to gain new ideas for growing his businesses. These programmes are known for evolving business leaders, developing strategic space to really focus on the business rather than being consumed by the day-to –day. They also offer great opportunities for support from fellow participants. John has gained reciprocal business from delegates that he has met on our programmes e.g. conducting taxi tours for visitors to the businesses that he met on our programmes.
“It’s encouraging people like me, who may have had a different job or maybe need to know about modern business techniques or modern business protocol. It gives you that experience in a very friendly relaxed environment.” The GM High Growth Programme helped John with sourcing suppliers for the souvenir products to add value to his business. At an individual level our programmes have given John the confidence to take his ideas forward and a broader perspective of the world of business. John’s Taxi Tours business continues to expand, the souvenir business complements the taxi tour business leading to more business growth.
In 2016 he added a new business to his range - Manchester Souvenir Company Ltd., sourcing and selling trademarked designs both online and at the Manchester Markets.
Also, the e-commerce website for Manchester Souvenirs was developed by another business that John met whilst on our KAN programme.
“It’s a very proud moment when you see somebody walking around the streets of Manchester with a t-shirt or sweatshirt on, something that you have sold them, and you go, ‘that’s why I’ve done it!’”
This new business idea came from customer demand and was set up with a fellow participant on a Centre for a Enterprise course, which he attended to broaden his business skills and develop new contacts.
“It’s not only the course that you come on that’s fantastically useful, it’s also that meeting other people that you wouldn’t necessarily meet under any other circumstances.!”
For more details, please visit John’s websites:
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manchestersouvenirs.co.uk and manchestertaxitours.co.uk
Centre for Enterprise
IMPACT: Innovation
Innovation embedded in business practice to make you unstoppable. Andrew Mooney, Managing Director at Actikem talks innovation. “Innovation sits at the centre of what we do; everything can be improved.”
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ctikem Ltd is an ISO9001 certified, bespoke chemical services business. Working with some of the industry’s leading organisations, Actikem provides chemical manufacturing, processing and repacking services to the UK and European chemical supply chain, based in Warrington, Cheshire.
Carter Corson and CfE recently arranged a trial, as part of the FINCODA European Innovation Project, to develop a tool to measure an organisation’s Innovation Index. The index works by measuring innovation through creativity, critical thinking, initiatives, teamwork and networking.
Andrew Mooney, Managing Director is always looking for ways to improve their business operations. “Innovation is not always about creating something completely new, it can be about improving the way you do something. Innovation is about introducing change that delivers real tangible benefits that impact the bottom line.”
Andrew took part in this, and said; “I got a lot out of the trial. It got me thinking differently about the process of innovation and I believe the company and all of our employees can benefit from this project.” To compound their success, Andrew has been keen to work with the Centre for Enterprise to test ideas for innovation and business growth. Actikem recently participated in the ERDF funded Cheshire & Warrington Business Growth Programme shown on page ten.
One example of this is the use of new app technology to simplify the company expense tracking system. Staff photograph their expense receipt and this is added automatically to their monthly report, eliminating the need for paper expenses. Christine Gleave, Actikem’s Finance Manager said; “the app improves record keeping, costs are correctly allocated and staff get paid quicker. They have more time to devote to their core jobs, a win-win for company and employee.” This example of innovation in practice demonstrates why Actikem Ltd were recently awarded with the CorporateLiveWire - Innovation and Excellence Award for 2017.
The programme includes encouraging targeted strategic thinking about their workforce. As Andrew explains, “Significant changes in an organisation can only be made when all employees work together. Just think about how innovative our business could be if we mobilised our entire workforce. We would be unstoppable.”
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Centre for Enterprise
IMPACT: Innovation
Opening up new opportunities for innovation. Dharma Nurse, Business Development Manager at the Business Growth Hub, discusses the role our region’s university institutions have in accelerating business growth.
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or over a century, universities and industry have been collaborating, but in a globally competitive environment, innovation is key. The traditional role of the university has evolved and sees them opening their doors to the business community, offering facilities businesses might otherwise be unable to afford, filling gaps in expertise, and offering new perspectives on problems. Innovation is at the heart of research and knowledge exchange at Manchester Met, a Hub partner. The university works with local, regional and national businesses, public bodies and social enterprises. It solves technical, commercial and strategic problems, and provides practical help.
The Business Experience YouProductive is a cloud-based productivity tool scheduled for launch later this year. The business has been working closely with the Hub and Manchester Met, as part of the development of YouProductive. To improve their current product offering, the business took advantage of Manchester Met’s Usability Lab.
The remote eye tracking hardware, SMI RED 250, records a wide range of data from fixation point of the user’s gaze and pupil dilation to scan paths. BeGaze is used to analyse the output through wide range of statistics, heat maps and other visual representations of the data. The feedback received enabled YouProductive to rethink aspects of their product to enhance the usability and the user experience. In sharing access to such facilities, University partnerships have the potential to make a profound difference to the success of both the regional business community and wider economy.
Usability Lab
Opportunities to get involved
The Usability Lab is a facility designed to capture and analyse human behaviour as users interact with a host of technological devices including computers, mobile devices and video game consoles.
The Hub is working with MIDAS to host a series of Innovate Manchester events. These will provide a forum for Greater Manchester’s large companies, SMEs and universities to collaborate around a current or emerging business challenge.
Connecting the Dots The Business Growth Hub has business development managers based at four of the region’s key university institutions; Manchester Met, Bolton University, Salford University and the University of Manchester and uses its capacity within the business community to support innovation and accelerate growth. They work with the universities engagement teams and academic schools to help businesses access expertise that can help develop new products, design new services or reinvigorate their business model.
a piece of behaviour analysis software.
The equipment at the usability lab helped the company test several aspects of YouProductive, which would otherwise have been impossible. Research included full user experience and usability analysis, eye tracking for website assessment, and user-centered design. The Usability Lab features an observation lounge and suite with recording technology to capture user behaviour and facial expressions during evaluation. This data is digitised in real-time and fed into the world-leading Noldus Observer XT 10;
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If you’re interested in finding out more, or want wider innovation support, contact the Business Growth Hub on: info@businessgrowthhub.com.
Centre for Enterprise
IMPACT: Innovation
John Caunt Scientific demonstrates that beyond opportunity, recognition, energy and technical knowledge resilience plays a large part in continued success and innovation.
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CS has met customer needs in nuclear radiation detection, measurement and shielding products since 1975. This is an evolving field with stricter safety rules than ever, and increasingly high customer expectation for innovative solutions.
JCS constantly work towards technological innovation, which is emerging through partnerships with the University of Liverpool and the University of Lancaster, supported by Research Council funding. Oliver explains:
Resilience, agility and optimism have been key for JCS. As Oliver Caunt explains, 2016 was an eventful year. It began with potential disaster. When the floods that affected so many in the north west over Christmas and New Year had a severe impact on our offices - the old pub next door to our building finally succumbed to the swollen river Irwell and collapsed and the area flooded. We were in the old Gatehouse building next door and we were very lucky that the water did not breach our walls - all our equipment, stock, computers and furniture was safe. However, we had to move right away, as it was no longer operational. Oliver was a judge at the Made in Bury Business awards, along with leaders of Bury Business Lodge, a serviced office complex in the heart of Bury.
It is tough but exciting to be a small business in a market dominated by large organisations. JCS has remained fiercely independent while collaborating with global enterprises. What we do best is solve problems in strategic partnerships, bringing agility to supply chains and working flexibly with partners to help drive forward innovative solutions, not just as a supplier, but as a strategic partner. The research we engage in develops highly innovative products with real market benefits. Our newest project, worth £1 million, will help to develop a system to build a new monitor for internal processes within nuclear reactors. This is a real game changer for a six man SME, of which we own 50 % and which is now attracting worldwide attention.
Oliver is also grateful for the opportunities a growth programme at the Centre for Enterprise provided. “The timing of this small business growth programme couldn’t have been better and the immediate impact was gamechanging. We were able to implement strategies I learned with great success and the support network continues in 2017.” This led to his participation in the Fincoda Programme in Finland, with Manchester Met and fellow CfE Alumnus, Carter Corson as the UK team. Now in our 3rd and final year of the project, the Innovation Assessment Toolkit developed by the project is in its final stage. There is a huge amount of work going around Europe to continue the work on the toolkit and we have confidence in its success at the end of 2017. (www.fincoda.eu).
“We were anxious about how we could continue, during the floods, but Kate Holt, Director of the Business Lodge, called me and offered a temporary office. We moved in a week later and have truly settled here ever since. It’s a brilliant set up, and it’s especially good to be part of a thriving Bury business community”.
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Centre for Enterprise
IMPACT: Innovation
£4million technology hub for Manchester SMEs launched. Developing high-tech hydrogen fuel cells and the city’s low carbon sector
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£4 million technology hub for Manchester companies to create the next generation of carbon-neutral hydrogen fuel cells is being launched at Manchester Metropolitan University. The Manchester Fuel Cell Innovation Centre (MFCIC) will house the latest equipment for SMEs to develop hydrogen fuel cells to create green and emissionfree energy, powering everything from our homes to our cars. The Centre has been awarded £1.6 million from the European Regional Development Fund for state-of-the art equipment currently unavailable to the city’s buoyant low-carbon SME sector. The Manchester Metropolitan University will fund the remaining cost. MFCIC will produce advanced materials for fuel cells and next generation energy storage, utilising nanomaterials and 3D printing for example, and plan hydrogen and fuel cell infrastructure for the region. It will speed up the research and development of the high-tech fuel cells – which convert hydrogen into water and oxygen to produce electricity – to accelerate testing, prototyping, scale-up for industry and create routes to market. MFCIC builds on the establishment of the Greater Manchester Hydrogen Partnership (GMHP), which Manchester Metropolitan University launched in 2013 as a venture
venture between academia, industry and government. It will also draw on expertise in the University’s Faculty of Science and Engineering and the SME-focused Centre for Enterprise.
Japan, USA and Germany and major car manufacturers continue to refine new models of hydrogen fuel cell vehicles. Initially, the Centre will work with 50 Manchester-based SMEs over a three-year period. The facility will be fully operational by December 2017.
Hydrogen Unlike internal combustion engines, the fuel in a hydrogen fuel cell is not combusted; instead, energy is released electrocatalytically. Fuel cells generate clean and efficient electricity by creating an electrochemical reaction in which hydrogen-rich fuel combines with oxygen to form water. Dr David Lambrick, Interim Pro-ViceChancellor for the Faculty of Science and Engineering, said:
Amer Gaffar, MFCIC Partnership Director, added: “This is very timely for Manchester with UK hydrogen infrastructure continuing to grow. Our aim is to provide the correct conditions for SMEs in the sector to develop new technology but also provide the space and support for new start-up companies to flourish.” In addition, MFCIC will continue the outreach work of GMHP, engaging with regional schools to promote hydrogen science and new generation technologies.
“This is truly a ground-breaking initiative to drive forward innovation in our SMEs, develop emission-free energy and firmly position Manchester as a worldwide centre of excellence in fuel cells.
For more information, or to register your interest in MFCIC, please contact:
The big challenge for the 21st century is how we create a sustainable future while meeting demand for energy, which will only continue to rise in the coming years.”
Email: ian.gibbs@mmu.ac.uk Tel: 0161 247 3610
The global fuel cell market is projected to grow by 10% over the next eight years. There are key government-backed hydrogen fuel cell projects in the UK,
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Ian Gibbs, Enterprise Fellow Manchester Metropolitan University
Centre for Enterprise
IMPACT: Innovation
Innovation and the Cloud New technologues and new solutions at Synextra, with Michael Pyne
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ynextra is primarily a Managed Cloud Service Provider which grew from an idea put to Michael Pyne and business partner, Chris Piggott by NHMC Investments around 3 years ago. Here innovation in inherent in the use of new technologies and in innovative solutions to customer needs. In addition to providing cloud services, the company employs software developers who create leading edge applications for clients. One of the largest customers of the business is a private healthcare provider. Synextra manages their full infrastructure and has developed software applications to replace many of the paper driven processes that previously existed in the company. Such as an incident management system for use in caring for mental health patients and an electronic audit system. The new applications have resulted in considerable time and efficiency savings. Synextra has developed a small electronic device, about the size of a mobile phone, into which clients plug in a keyboard, monitor and mouse to gain access to a secure virtual desktop. They hope that in the future this will offer a low-cost alternative to purchasing a standard PC. Developing applications in conjunction with cloud services drives further business by differentiating the firm from other cloud storage providers. The cloud storage offered by Synextra is UK-based which is attractive to those with security concerns.
Synextra also works with many third sector organisations, including youth charities, and has recently created call management software for handling helpline calls from young people, for the charity, Papyrus. Low-cost cloud based IT solutions are attractive to third sector organisations and allow them to satisfy compliance requirements while having access to up-to-date computer software. Michael joined the SMART Cheshire innovation programme, an ERDF funded programme available at the Centre for Enterprise.
For example, Michael has introduced SCRUM software development framework into the business and lean business practices, which he has picked up from the programme. “We’re looking at strong growth and looking to expand going forward into 2017.” For further information, please visit the Synextra website: www.synextra.co.uk
“I would advise any sort of entrepreneur to get on the programme, it’s like having a boardroom at your disposal. You can bounce ideas off other people who are in the same position as you are or have been, and can offer advice and guidance.” The financial module enabled Michael to apply for R&D Tax Credits to support innovation in his firm. The SMART Cheshire programme also offers free coaching services and Synextra’s chosen professional business coach, Isla Wilson, and Pete Wild who leads the Finance module, both advised Michael to focus on sector-specific targeting of their products and services to enable business growth. Michael has introduced behavioural changes into his business as a result of attending SMART Cheshire and through his own personal business research.
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Centre for Enterprise
IMPACT: Innovation
Can digital tax returns really be made simple? Business service online innovation from GoSimpleTax
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ersonal resilience and continued product innovation have been key for the success of Oldham company GoSimpleTax, led by Amanda Swales, with customers including Which?, NLA, PDA and Seedrs. Leaving school at 15 with few qualifications, she educated herself, while working, through different qualifications until she completed an ACCA qualification. Her 30 years of financial software experience, led to a focus on self assessment software for the past 16 years. This has been accelerated by the U.K. government’ switch to digital tax returns. The Government is concerned that part of the “tax gap” in the money it receives is down to poor record-keeping, particularly by small firms and that quarterly digital reporting will help to address that. Many small businesses keep handwritten records but from 2018, they will have to go digital, reporting quarterly rather than the traditional annual scramble with paper records. The government explains the benefits of Making Tax Digital as: •
cash-basis accounting - thousands more will be able to pay tax based simply on the difference between money they have taken in and what they have paid out, meaning tradesmen will pay tax on cash received rather than invoices issued
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prompts and alerts to help businesses get tax right and giving advice on tax reliefs they might be missing out on greater certainty over tax bills so businesses don’t have to wait until the end of the year to find out how much they have to pay
GoSimpleTax’s business service Innovation - using an app to help with self assessment for tax - was a rapid response to the UK Government’s move to all digital tax returns for self employed people. The app allows individuals to be able to calculate and submit from a mobile device direct to HMRC.
“This software has developed with individuals in mind and not just accountants and their terminology. SimpleTax does not just allow you to calculate and submit your tax, it also calculates your liability as you go, recording ongoing income and expenses on your desktop or via our mobile App, which also allows for the scanning of receipts and invoices, and even displays potential tax tips and savings too.” The need for this software was also clear when Amanda enrolled her first customer – her husband! “My husband is a self-employed Joiner who has for years waited until January 20th to find his receipts some would
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be in his van, some in a drawer, some at the back of a cupboard, some in a bag what couldn’t be found and some lost forever because a gust of wind has blown them from the door well of his van“ “As soon as the New Year celebrations were over, it was on his mind and the anxiety would build but still he put it to the back of his mind. Then the massive push working on recording income and expenses, chasing the bank for statements that had also been misplaced. The anxiety growing each day worrying that he will be late and wondering if he will have the money to pay the tax owing because he has no idea how much income or expenses have gone through for the year. Finally he submits promising himself that he will do them MUCH sooner next year to save the anguish. But no – the whole cycle started again! Now he has started using SimpleTax all that stress has gone as he can see his liability at any time”. Amanda is looking forward to further innovation and more success with her business - and to joining the next GM Growth cohort. Find out more: http://l.gosimpletax.com/impact-mag/
Centre for Enterprise
IMPACT: Innovation
Are you seeking growth or innovation in your business?
Cheshire and Warrington Business Growth Programme
Increase revenue, recruit better staff or simply get off the ground by registering as a company with this programme. The programme supports businesses that are registered in Cheshire or Warrington, that are pre-starts (i.e. those wishing to start a business), new start-ups or small/medium enterprises.
Greater Manchester High Growth Programme
This is a programme of business support for small-to-medium enterprises interested in achieving high growth. providing a programme of five knowledge workshops, peer growth group sessions and action planning for growth, the Growth Network will help support your ambitions.
SMART Cheshire Innovation Programme
How are unconventional ideas treated at your company? Does your team feel free to innovate? The SMART Cheshire Innovation programme will help you develop innovation in your business. Work with ackowledged business leaders, and gain direct access to proven innovation processes and activities.
Register your interest for one of our ERDF funded programmes at mmucfe.co.uk
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Centre for Enterprise
IMPACT: Innovation
Welcome to Managers2Leaders Prepare for the future by developing the leadership skills of your staff Truly great small businesses have inspiring leaders at all levels within the business. This does not happen by accident; it has to be planned, supported and developed.
“I have a totally different mindset - I feel calmer at work - I think outside the box which makes me not make impulsive decisions.”
Programme Details
Tracey Rawlinson Northpoint Ltd
• • • • •
Gain knowledge from inspiring leaders over four months Improve your own leadership practice through action focussed peer-to-peer learning Acquire new tools and techniques to improve motivation and performance within your staff Improve effective recruitment, management and retention of staff Become more strategic and less operational through better leadership
What does the programme include? • • • • • •
“A learning programme that gives you space, time and the tools to reflect on your personal leadership style and business culture.”
Nichola Stead Axion Consulting “I am better in people management situations now than before. It was empowering to be with like-minded delegates.
Immersion Day Knowledge Days Action Days Learning Days Observation Days Online Forum
Andy Dwyer Active Tameside
How do I join? To register your interest, please complete the online expression of interest available at: http://bit.ly/m2lmanmet Contact: Claire Pattison - c.pattison@mmu.ac.uk Abigail Knox - a.knox@mmu.ac.uk Please note, this programme costs £745 per delegate.
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Centre for Enterprise
IMPACT: Innovation
Innovative approaches to traditional sectors. Vicki Swinden, The Print Company talks innovation in a failing industry As with John Caunt, resilience is a quality seen in the setting up and growth of The Print Company. Setting up in 2010, with only £2500 in cash and 3 children, Vicki Swinden knew she had a product could be sold at a high gross profit; a custom printed tablecloth, produced to high standards with rapid turnaround times and linked to online sales routes.
7 years later the Print Company employs 14 local people of varying ages, all of whom would have otherwise been unemployed. The Print Company supplies unique products to around 60% of the FTSE 100 – and more companies besides, with a continually growing turnover presently around £500k and an increasing Gross Profit, presently around 64%.
Despite a lack of funds from traditional high street bank, she built a rudimentary website on a Thursday and launched it on the Friday with a £10 spend on Google Adwords to promote it, a £4.99 mobile phone and a Paypal account. She borrowed £4500 from friends and purchased a second hand printing machine.
Innovation came from meeting a gap in a failing industry, characterised by poor quality control and bad service. The Print Company set a completely different bench mark. Vicki took an industry average quote success rate of 18% and turned it to a Print Company success rate of 60%. She took an industry average net profit of 4% and turned it to a Print Company net profit of 11% while industry standards were 3 months wait on orders, The Print Company turns them around in 24 hours.
A friend; Mark Walker, who was an experienced printer joined Vicki immediately in order to produce the product and, with the help of Cat, Vicki’s partner, The Print Company started to take orders. With the kind support of Warrington Borough Council a suitable premises was secured at an advantageous rate and a down payment of £750 with a further £1000 to follow in a month.
Vicki was determined that she and her team could do everything to a higher standard whilst making the company a great place to be, which would have a very positive impact on her staff and customers. Staff morale is very high,
everyone receives a tailored package of remuneration to suit their needs; interest free loans, loans of vehicles, crisis loans, support with unique medical needs and more are all available to the team as well as above average salaries. Plans for the next 5 years show continued growth through business innovation, bringing turnover up to £3 million and employing 15 more staff. She is building a systematic operation implementing digital and cloud based products to work alongside very traditional printing methods. These strategies were supported by her attending the ERDF funded Cheshire & Warrington Business Growth Programme in 2016, which she shared with her employees after every session. She found the leadership and management content of the programme valuable to herself and her business. www.theprint-company.co.uk
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Centre for Enterprise
IMPACT: Innovation
Innovation in the North West By Dr. Valerie Antcliff, Research Fellow at the Centre for Enterprise, Manchester Metropolitan University Britain will be the ‘global go-to-place’ for innovation, promising substantial increases in R & D investment. But read beyond the headlines and the narrative focuses on innovation in science and technology. We see this in the recent Industrial Strategy and in May expanding on her comments, saying that Britain should be the ‘go-to-place for scientists, innovators and tech investors’. All of this is good news, but what does innovation mean to the majority of small businesses? Does innovation always mean science and technology? And what does it mean for the UK northwest? The Office for National Statistics (ONS) collects information about innovation in UK from a sample of around 30,000 businesses every two years, measuring across : •
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How does the Northwest compare with other parts of the UK? While Yorkshire and Humberside was the most ‘innovation active’ region with 65% of businesses reporting some kind of innovation activity, the Northwest was ranked 8th out of 9 English regions with 54%. The good news, however, is that the NW showed one of the largest increases in businesses engaging in innovation, up from 43% in the previous survey (2016 UKIS report). More detailed geography of innovation from the Enterprise Research Centre at Warwick University, used data from the 2010-12 UK Innovation Surveys as seen in the graph below of innovation activity across the five NW Local Enterprise Partnership regions.1
outdated processes and products was the most frequently mentioned driver of innovation among innovation active SMEs. While finance is often cited as a barrier to innovation, research in the US shows that money alone will not enable innovation, unless there are already the right levels of knowledge, key resources and a market niche already identified. Enablers include market niche and applied knowledge, with these two driving technical innovation. In Greater Manchester, recent research by Professor Lynn Martin from the Centre for Enterprise suggests that public procurement processes still disadvantage small firms, limiting their engagement with new products and services and their ability to participate in developing new solutions to problems. Further work carried out by colleagues in the West Midlands and London shows the same
technical innovation (e.g., new or significantly improved products or processes, investment in R & D, training or acquisition of machinery, equipment or knowledge related to innovation; wider non-technical innovation includes improved business processes and procedures, entering new markets and changes to marketing strategies.
In 2016 this report showed that 53% of small and medium enterprises in the UK were innovative, compared with 61% of those businesses with more than 250 employees, up from 45% in 2014. Technical innovation was reported in 54% of SMEs, through investment in R & D and acquisition of innovation knowledge and resources; wider innovation was reported in 42% of SMEs, mainly related to the introduction of new business practices and new methods of organising work responsibilities. Source: Roper, S., Love, J., Bonner, K. “Benchmarking Local Innovation: the innovation geography of the UK” Enterprise Research Centre, University of Warwick https://www.gov.uk/government/uploads/system/uploads/ attachment_data/file/506953/bis-16-134-uk-innovationsurvey-2015.pdf
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Are there enablers or barriers to Innovation? With lower percentages of innovative firms than most of the other English regions, this suggests barriers preventing innovation in the Northwest. The most recent UKIS data suggests that financial concerns are the most important barrier for SMEs attempting technological innovation. These same findings are seen in other countries. On a positive note improving the quality of goods and services, and replacing
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pattern, however, so this cannot be the whole reason for lower comparative innovation rates. Fortunately despite the gloomy overall figures, there are still inspirational firms developing new products and services, new ideas and new knowledge to help them growth their firms, as seen in the companies within these pages. For more details about procurement issues, or to take part in the next family business research session which is all about innovation, please contact Jackie Carter on j.k.carter@mmu.ac.uk
“Putting knowledge to work to grow your business� The Centre for Enterprise at Manchester Metropolitan University is passionate about turning research into practical knowledge that can be applied to improve regional businesses. Our areas of expertise are growth, leadership, entrepreneurship and sustainability. We offer a range of programmes around these themes, many of which are fully-funded. Register with us to access our knowledge, our business network and to grow your business.
Contact Us Centre for Enterprise Manchester Metropolitan University Telephone: +44 (0) 161 247 3871 Email: cfeshortcourses@mmu.ac.uk www.mmucfe.co.uk @MMUCFE
Design Tacita Wilcox Amina Mufti Photography Mike Simensky Shahrokh Nael Director Lynn Martin Editor Jacqueline Carter Email cfe@mmu.ac.uk
How to find us Centre for Enterprise Manchester Metropolitan University Business School All Saints Campus Oxford Road Manchester M15 6BH