The Centre for Enterprise - IMPACT - Issue 4 - Business Growth by Kathryn Young

Centre for Enterprise

Business Growth Edition

mmucfe.co.uk

IMPACT SUMMER, 2014

North West LEP Chairs explain their business growth plans

Business Growth - Owners have their say from - Cheshire and Warrington - Greater Manchester - Lancashire - Liverpool

- What does the data say about North West SMEs? - Do entrepreneurs have a special growth mind-set?

Putting knowledge to work to grow your business

â&#x20AC;˘ Picture by Ade Hunter

CENTRE FOR ENTERPRISE IMPACT

UK Business Growth Stats

Hello and welcome to the Summer 2014 edition of our quarterly emagazine IMPACT. Small firm growth is something that is continually emphasised at policy level In the UK, the European Union and further afield. How to make it happen is more of an issue. So this is such a fun edition of Impact for me, due to its demonstration that business growth can and does happen across the North West.

254,600

• Information from New Economy North West Key Facts Report

Predicted growth in employment in all North West LEP regions over the next decade to 2023

7.0%

7.6%

4.7%

1.1%

Cumbria

Liverpool

TUESDAY, JUNE 12, 2014

Introduction from the Prof.

Total number of SMEs in North West reported in 2013

4.0%

mmucfe.co.uk

Lancashire

Cheshire & Warrington

Manchester

• Information from Greater Manchester Forecasting Model

Job Creation by 2023 in the North West

200k

• Picture by Ade Hunter

Professor Lynn Martin

I'm in great company with eight Professor of owner managers from different Entrepreneurship parts of the North West who have and Director of the not only set up and managed, but Centre for Enterprise also grown their firms significantly. Congratulations to all of those owner-managers. Whatever the national indicators and economic trends might say, it is people like these who make growth happen locally. I am always fascinated by the sheer variety of firms growing and thriving in our area, from the UK's largest coffin manufacturer on our front page to fire safety sprinkler systems, partnership between CERN and local 3D manufacturers and companies focused on energy saving. Of course, they aren't the only ones enabling growth to happen. I am also privileged to share space with four of the Local Enterprise Partnership chairs. These are four people whose focus is very much on growth and who have great plans to develop their areas and to provide the right environments for small firms to thrive and grow. It looks like a very promising future for our region. It all helps us to make sense of the research we are doing into growth and hopefully to make that research relevant to our firms. If you have ever wondered whether you have entrepreneurial DNA or have views on what growth really means, then our current research council projects will be of interest to you. Enjoy this quarter's edition of Impact and let us know what you'd like more of and whether there are topics you'd like to see covered, contact me or our editorial team led by Kathryn Young, k.young@mmu.ac.uk. Our next edition is all about a different aspect of our work - business start-up and supporting understanding of the process, so join us then!

200,000 jobs in the North West 99% of which are SMEs • Manchester Monitor Quarterly (January 2014)

“Putting knowledge to work to grow your business” The Centre for Enterprise at Manchester Metropolitan University is passionate about turning research into practical knowledge, which 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.

Impact│June 2014│1

◦◦Knowledgeable ◦ Enter

mmucfe.co.uk

CENTRE FOR ENTERPRISE IMPACT

TUESDAY, JUNE 12, 2014

CENTRE FOR ENTERPRISE MANCHESTER METROPOLITAN UNIVERSITY

Contents

IMPACT

INTRODUCTION Lynn Martin, Professor of Entrepreneurship and Director of the Centre for Enterprise - SMEs are the key to economic growth

CHESHIRE & WARRINGTON LEP REGION

Overview of the region’s statistics with comment from Cheshire LEP Chair, Christine Gaskell, with case studies from Croft Filters and Croft Additive Manufacturing Ltd. and FCE Projects Ltd.

GREATER MANCHESTER LEP REGION

Gary Vizard, Power Efficient Systems

• Picture by Ade Hunter

Overview of the region’s statistics with comment from Greater Manchester LEP Chair, Mile Blackburn, with case studies from BLISS Ltd. and AD Sprinkler Protection Ltd.

LANCASHIRE LEP REGION Overview of the region’s statistics with comment from Lancashire LEP Chair, Edwin Booth, with case studies from Power Efficient Systems Ltd. and Inteb Sustainability Ltd.

LIVERPOOL CITY LEP REGION Overview of the region’s statistics with comment from Liverpool City Region LEP Chair, Robert Hough, with case studies from Halliday Funeral Supplies Ltd. and Fleetsolve Ltd. Richard Halliday, Halliday Funderal Supplies Ltd

• Picture by Ade Hunter

INSIGHT Quantifying Local Growth - the

arithmetic of SMEs: What does the latest data say about North West SMEs?

RESEARCH Overview of North West regional

growth trends

COME & WORK WITH US We would love to work with you. The first step is to get in touch

NEXT ISSUE The next issue of ‘Impact’ will be

themed around business start-up enterprise

Amanda Ball, AD Sprinkler Protection Ltd.

• Picture by Ade Hunter

CONTACT US Want to contribute to Impact? Each issue of IMPACT carries a central theme, but also relies on contributions from the businesses we work with, our dedicated research team, the wider MMU community and our partners. We always welcome your input so please get in touch. For future IMPACT e-magazine issue themes and to submit a contribution for consideration please email: k.young@mmu.ac.uk 0161 247 3989

rprising ◦ Collaborative ◦

Ask the Prof a question? Questions will be printed and answered in the next issue.

Want to subscribe to Impact quarterly? Visit www.mmucfe.co.uk where you can sign up for our free new event and programme alerts. Join the Centre for Enterprise on LinkedIn

Professor Lynn Martin Professor of Entrepreneurship and Director of the Centre for Enterprise Direct Questions to: 0161 247 3989 k.young@mmu.ac.uk

General Enquiries? Telephone: +44 (0)161 247 3871 Email: cfe@mmu.ac.uk

Impact│June 2014│2

CENTRE FOR ENTERPRISE IMPACT

mmucfe.co.uk

TUESDAY, JUNE 12, 2014

Cheshire & Warrington LEP LEP Region Key Figures

Region at a glance ŸCheshire and Warrington LEP area covers

Population of 864,868

37,140 Active Enterprises in 2011

Economic Output per head

£23,700 in

2011 Economy Worth = £18.7 billion/year

871 square miles and contains a population of 864,868 within the Local Authority areas of Cheshire West, Cheshire East and Warrington. Locations include the historic town of Chester, Ellesmere Port, Macclesfield, Congleton, Crewe and Nantwich. The area benefits from a high quality strategic transport infrastructure – the West Coast Main Line, the national motorway network and proximity to international transport. ŸThe combined Cheshire and Warrington

economy is worth £18.7bn a year and outperforms any other part of the North West in economic output per person, at £23,700 per head in 2011.

professional services; life sciences and chemicals; and energy and environment. Their European Structural and Investment Funds Strategy 2014-2020 contains 251 references to growth. ŸOne-fifth of employment in Cheshire and

Warrington is in export-intensive industries, the third highest of any LEP area across England and has a high density of private sector jobs relative to its population, one of the highest outside of London. ŸThe area boasts a large private sector

business base, with business density rates well above the national average. The LEP Network report identified 37,140 active enterprises in 2011 with an above average 41 enterprises per 1,000 residents (2011).

ŸKey employers include Bentley Motors,

251 Growth References

Tata, Vauxhall and Barclays. ŸThe area has one of the highest proportions

of employment in the knowledge economy at 20.6 per cent of employment and a high proportion of residents qualified to NVQ Level 4 or above. ŸThe LEP has identified four key sectors as

European Structural and Investment Funds Strategy 2014 - 2020

having the potential to grow further, faster: advanced engineering; financial and

Case Study: High-tech Warrington manufacturer grows in partnership with world’s leading physicists Additive manufacturing (AM), also known as 3D printing, is an ever-developing technology and debates over its use have dominated media headlines over the past twelve months. Neil Burns, Director at Warrington-based Croft Filters and Croft Additive Manufacturing (CAM), is using this technology to revolutionise his industry. “In 2013, we invested almost half a million pounds in a state-of-the-art AM machine and launched Croft Additive Manufacturing, a business specialising in the production of metal filters and components using this advanced AM technology. With more than 27 years' experience producing filters for

multiple industries, we found that certain items could not be manufactured using traditional methods. As such we turned to additive manufacturing, which provides a viable and cost-effective alternative when making certain, complex components.” Rewind to the early part of last year and Neil was considering the set-up of this radical innovation when he joined the Goldman Sachs 10,000 Small Businesses Programme, along with a diverse cohort of other businesses from a wide range of sectors, united in a desire to grow and develop here in the North West. During the course, Neil was able to apply his considerable experience in the industry to this new venture and used the learning to plan for new opportunities, to develop a management structure and review marketing strategies, for an emerging technological global market. “Our AM machine uses a selective laser melting process, depositing layers of metal powder that are melted in designated areas by a computer controlled laser beam. In addition to offering never-before-possible design flexibility, waste is minimised due to the additive production process and a more cost-effective product is manufactured.”

Impact│June 2014│3

The technological manufacturing expertise which Croft has developed in the region has drawn attention from some of the world's most prestigious scientific institutions, and Neil's business became the first small or medium sized enterprise (SME) to be inducted into the Science and Technology Facilities Council (STFC) at CERN Business

Get Involved Are you a small or medium size business looking to grow? We welcome any business who has growth aspirations. The first step is to get in touch with us, so please get in touch with us to find out about upcoming events or to discuss how we can support you. Centre for Enterprise, MMU 0161 247 3871 ¦ cfe@mmu.ac.uk Twitter: @mmucfe

Name: Neil Burns, Director Business: Croft Filters and Croft Additive Manufacturing Ltd. Industry: Manufacturing CfE Programme: Goldman Sachs 10,000 Small Businesses Turnover Growth: ü Employment Growth: ü

Incubation Centre. Following an in-depth application process, they were selected because of their 3D printing capabilities and commitment to researching and developing energy efficient solutions. “As an SME, working with the STFC and CERN, the world's leading particle physics laboratory, presents a unique opportunity for us to benefit from both organisations' extensive knowledge and drive leading-edge design innovation at Croft. Not only can we further develop our in-house expertise through access to technical resources, but we are also given vital financial and business support throughout the project to help fulfil our aims for growth.” Those aims have been furthered through strong local links and support from the business community Neil joined as part of the 10,000 Small Businesses Programme and the company have already seen turnover increase by over 35%. “Being located in the North West has helped us to further develop our strong UK customer base; however, our involvement with the Business Incubation Centre also offers us new opportunities to export overseas. AM looks set to continue to shape the global industrial landscape and we believe that those businesses that are open to exploring this technology, like Croft, will be at an advantage in the future.”

◦◦Knowledgeable ◦ Enter

CENTRE FOR ENTERPRISE IMPACT

mmucfe.co.uk

TUESDAY, JUNE 12, 2014

Viewpoint: Christine Gaskell, LEP Chair & HR Director of Bentley Motors Cheshire and Warrington enjoys a strategic location at the very heart of the United Kingdom. With 871 sq.miles of opportunity, innovation, ambition, inspiration and growth, this is a unique and diverse area. We have the best performing economy in the North of England and one of the most successful and fastest growing economies in the country. With an annual GVA of over £20bn, and employment approaching 430,000, collectively our economy is equivalent in scale to major cities like Birmingham and Leeds. Our key firms range from major manufacturers – Bentley Motors, Vauxhall – to global financial and professional services firms – Barclays, Bank of America – and on to energy and chemicals producers and R&D leaders – Tata Chemicals and Urenco. Established in 2011, The Cheshire and Warrington Enterprise Partnership is a private sector-led organisation responsible for speaking on behalf of businesses and championing important issues with government. Since then we have worked tirelessly to enable major growth and transformation in our economy. Our recent successes include the management of the Growing Places Fund

where we played a pivotal role in unlocking the Omega site in Warrington which had been stalled for more than a decade. The LEP provided a £3m loan towards the construction of the new £7 million “Lockheed” access road. This road has enabled the building of new units totalling over 1,000,000 sq. ft. creating 1,500 jobs on the site. T h ro u g h o u r C o n n e c t i n g C h e s h i re programme, we will also be bringing broadband to 96% of premises across Cheshire and Warrington. This will bring superfast fibre to over 80,000 additional premises mainly in outlying and rural areas by summer 2015. We have also recently submitted our Strategic Economic Plan to government outlining the three major projects which will benefit from the Local Growth Fund. Atlantic Gateway in Cheshire, the world trade, logistics, business and innovation corridor stretching from Deeside and Merseyside through the northern part of Cheshire and Warrington to Manchester, Cheshire Science Corridor - a string of interconnected centres of excellence located in Cheshire which are or have the potential to contribute significantly to national innovation in

Case Study: New phase of growth opens up for successful Cheshire partnership Based in Capenhurst, Cheshire, FCE Projects is a 10 year old power network construction company. Tim Whitehill is the Managing Director and started FCE with Ian Cole, both Civil Engineers and best friends from university. It started with the two of them sitting in an office on their own in August 2004. They now have £2.4 million turnover and employ 23 staff. They are a strong business partnership with complementary skills; Tim is strategically focussed and Ian is excellent with clients and the operational side of the business. They developed FCE with a specific focus on serving the power industry. When Tim joined the Knowledge Action Network (KAN) Programme, he was faced with a momentous decision, having recognised substantial opportunities in addition to those serviced by FCE. Having built such a successful business and partnership, Tim was seeking support and advice about the prospect of starting up a brand new and additional business. “When I came to KAN I wasn't sure which business I wanted to really grow, which one to spend more time on. Taking time out to come to the groups made me rethink my priorities for the business.” The peer-to-peer learning which is at the heart of KAN, and which draws together the experiences of a wide range of trusted business peers to focus on just such critical questions, helped Tim to make his decision.

rprising ◦ Collaborative ◦

science and Crewe High Growth City, placing Crewe at the heart of HS2 as a superhub central to the country's major infrastructure network. The programme also has a major focus on enabling transport interventions to unlock economic growth. The work of the Cheshire and Warrington Enterprise Partnership both now and in the future, clearly demonstrates our clear focus and commitment to ensuring that we drive further growth in the resilient and diverse economy of our sub-region. Name: Tim Whitehill, Managing Director Business: FCE Projects Ltd. Industry: Construction CfE Programme: Knowledge Action Network Turnover Growth: ü Employment Growth: ü

their roles and structure to support the goals and ambitions of both partners and both businesses. “The new company is already growing quickly in income and is taking on new staff. We are looking for 23 new staff at present!” Tim sees the impact of the programme in both businesses.

“We were able to use surplus funds from FCE to set up the new company. It would have been possible to try and grow FCE further into a big animal but we know and like our zone. From our work in the construction industry we knew that profitability is not the same in other areas. We therefore decided to diversify into another type of company rather than keep growing FCE into other areas of construction.” In the process of embarking on the new business venture, the partnership which had created such success for FCE, now needed to evolve. Drawing on the learning from the KAN action learning sets and masterclasses, the team were able to successfully re-define

“With FCE, we had a secure contract with a major client, which has seen us grow £500,000 per year even in recession. Now there is renewed growth in construction and increased spend in the power industry and in housing. FCE is well positioned to take advantage of both and we are taking on more permanent staff.” As Tim and Ian look to a continued growth journey with the group, the vital importance of that clarity of purpose that Tim honed as part of his work with Manchester Metropolitan University cannot be understated. “With any company you should develop a vision and stick to that vision. I knew from the outset what we wanted to achieve and it was therefore important that everyone shared that vision. Our real strength is understanding our business model and having the right business partner to complement each other's skills and abilities.”

Impact│June 2014│4

CENTRE FOR ENTERPRISE IMPACT

mmucfe.co.uk

TUESDAY, JUNE 12, 2014

Greater Manchester LEP LEP Region Key Figures

Region at a glance ŸThe

Population of 2,550,000

93,000 Active Enterprises in 2011

Economic Output per head

£18,100

geographical area the Greater Manchester contains the ten local authorities of Greater Manchester – Bury, Bolton, Manchester, Oldham, Rochdale, Salford, Stockport, Tameside, Trafford and Wigan with a combined population of 2.55 million.

ŸThe

Greater Manchester economy generates £47 billion GVA, accounting for around 40% of GVA in the North West. Economic output per head in 2011 was £18,100 .

2011 Economy Worth = £47 billion/year

127 Growth References

ŸThe GM LEP identifies its key growth

sectors as financial and professional services, health and social care, education, creative and digital industries, and advanced manufacturing. Manchester Airport City has been designated as an Enterprise Zone. ŸThe “Stronger Together Greater Manchester

Strategy 2013-2020” contains 127 references to growth and acknowledges, “Our success will depend on the capacity of our businesses to grow.” ŸGreater Manchester aims to engage with

The Stronger Together Greater Manchester Strategy 2013 - 2020

businesses through the Business Growth Hub, accelerating the growth of the 90,000 businesses with the greatest potential to

expand” and to “work with employers to a d d re s s g a p s i n l e a d e r s h i p a n d management skills so that all businesses are able to reach their growth potential.” ŸThere are an estimated 93,000 businesses in

Greater Manchester. The GM Strategy recognises that “since 2008, the number of active businesses has decreased by over 1,000”. According to the LEP Network report, Greater Manchester occupies the number one position for the proportion of jobs gained from new firm births between 2009-2011 accounting for 8.7% of jobs created. ŸAccording to New Economy, there are

around 552 companies per 10,000 resident working age population in Greater Manchester (and in 2011, 33 per resident 1000 population). This level of business density is lower than the national picture. The LEP Network report indicates high levels of births and deaths (what is called a high 'churn rate') of 23.1 per cent second only to London though this varies considerably at local area level.

Get Involved Are you a small or medium-sized business looking to grow? Get in touch: cfe@mmu.ac.uk or 0161 247 3871

Viewpoint: Mike Blackburn, LEP Chair & Regional Director for BT a good quality of life.

The Local Enterprise Partnership sits at the heart of Greater Manchester's governance arrangements, ensuring that business leaders are empowered to set the strategic course, determine local economic priorities and drive growth and job creation within the city region. It works alongside and in partnership with the Greater Manchester Combined Authority, offering leadership, insight, guidance and constructive challenge as we take forward our strategic ambitions. Last year the LEP and the GMCA refreshed and repositioned the jointly-owned Greater Manchester Strategy (originally produced in 2009) around the twin themes of Growth and Reform. Stronger Together sets out a vision to pioneer a new model for sustainable economic growth based around a more connected, talented and greener city region, where all our residents are able to contribute to and benefit from sustained prosperity and

Impact│June 2014│5

To achieve these ambitions, the strategy sets out a series of priorities that will drive sustainable economic growth and reform the way that public services are delivered. Those priorities include delivering an investment strategy based on market needs, revitalising our town centres, taking an integrated approach to infrastructure planning, improving connectivity, placing GM at the leading edge of science and technology, supporting business growth with a strong, integrated offer, improving our international competitiveness and reforming the way that public services are delivered to build independence and raise the productivity of our residents. With an economy worth around £50 billion, a population of 2.7 million people and over 90,000 businesses, Greater Manchester already competes on a global scale. An additional 1000,000 jobs are forecast to be created in Greater Manchester over the next decade. But we must do more to ensure that Greater Manchester achieves its economic potential, and it's the role of the LEP, working in partnership with the GMCA, to set the strategic direction that will enable us to maximise growth in Greater Manchester. We have a number of assets to build on: ·Outside of London, Greater Manchester is the UK's main centre for the business, financial and professional services sector, employing 265,000 people. ·Greater Manchester has the UK's largest cultural and creative cluster outside London, employing 162,000 people. Key assets include MediaCityUK, home of the BBC and

ITV. ·We have world leading research and development assets in areas such as advanced materials, health innovation, energy, biotechnology, high performance computing and interactive technology and robotics. · Greater Manchester is home to the only hub airport outside London and the South East, with Manchester Airport handling more than 20 million passengers per annum and offering flights to more than 200 destinations. ·There are over one million international leisure visitors to Greater Manchester every year, making it the third most popular destination after London and Edinburgh. ·Greater Manchester has one of the largest student populations in Europe. There are around 105,000 people studying at five Higher Education Institutions, of which 15,000 are international students. Our approach to achieving our ambitions is set out in more detail in the Growth and Reform Plan, published in April 2014. Developed in response to the Government's Growth Deal process, the Plan seeks greater influence over the levers and resources which impact on our ability to deliver economic growth and improve the quality our life of our residents. The overarching GM approach, in which economic growth goes hand in hand with public sector reform, seeks to create a platform for fiscal self-reliance in Greater Manchester, based on a new relationship with Government that enables local authorities to discharge their place-shaping

◦◦Knowledgeable ◦ Enter

CENTRE FOR ENTERPRISE IMPACT

mmucfe.co.uk

TUESDAY, JUNE 12, 2014

Like this issue? Tweet Us @mmucfe #IMPACTcfe

role to create high quality places that attract and retain more productive people and businesses and reforming the way that public services are delivered to improve outcomes for our people. Creating jobs and growth without reforming services or transforming places will not reduce the costs of dependency. Economic inactivity amongst the working age population is one key cause of Greater Manchester's productivity gap. In

order to maximise the benefits from the economic investment it is critical that there is investment to connect GM residents to that growth and to address both the productivity drag and to reduce the costs of public services. The Growth and Reform Plan is our proposal to work with Government to design and deliver growth and reform at a new level.

Case Study: Small

this business I had built and what it could be, I suddenly thought, yes, I want this!”

business doubles turnover in one year

A major thing the programme gave Amanda was confidence, in herself, her business and her team. Talking to other entrepreneurs helped her to identify that there was an opportunity to really go for growth. “The skills the programme helped me to develop have been invaluable.”

“When we wrote the Growth Plan we hoped to grow from £1.5 million to £3 million over the first three years, but when I went back to the staff, they took the challenge on the chin. We are on track to hit this target at the end of our first year post-programme, in April 2014. That's 100% growth in 12 months.” AD Sprinklers, headed by Amanda Ball, supply and install fire-safety sprinkler systems to well-known brands throughout the UK. The company she was working for at the time had changed hands in an MBO and Amanda saw an opportunity. The industry is governed by legislative barriers to entry and, at the time, she describes that it was very much an “old boys network.” “For a woman to get in meant knocking on the door, kicking the door and barging down the door over a period of 14 months – but I got in.”

Amanda made sure that the staff at AD Sprinklers were also involved in the programme, too. After each module, Amanda would think about how to take the activities and lessons from the day and share them with the team to get their buy in. The results speak for themselves.

The company was doing well when Amanda thought about joining the 10,000 Small Businesses Programme, but she felt that she had “fallen out of love with it a bit”. The interview itself was the first spark, which reignited that. “As I heard myself describing

“I have also been working with the University directly to support my team members. My general manager has just started on a management development programme, Managers2Leaders, and came back from the first day with a list of other

Case Study: Creative agency builds growth through being BLISS-ful to work with With the tagline “a friendly digital agency in Manchester that's a pleasure to work with,” BLISS are a creative and digital agency for whom relationships and partnerships are a core ethos. Founded 4 years ago and based in the creative hub that is Manchester's Northern Quarter, this focus on forging great relationships with clients and staff has seen turnover grow from £330,000 to £450,000 and staff from 4 to 14 employees. The business is built on a core partnership of 3 directors, but it was Jon Stutfield, the Creative Managing Director who first reached out to Manchester Metropolitan University (MMU) for support in achieving their growth ambitions. Jon applied and was selected to be part of both the Goldman Sachs 10,000 Small Businesses Programme and the Knowledge Action Network (KAN), on the basis of the great growth potential that BLISS displayed. However, that great potential was built on the partnership, successfully striving through the difficult early years, as with so many truly successful small businesses. When Jon proposed the business to his partners initially, the situation was very different to today's growth story.

rprising ◦ Collaborative ◦

The vision is for Greater Manchester to become a financially self-sustaining city, closing the gap between the tax that is generated through growth and the cost of delivering public services. The strength of our leadership (both political through the GMCA and private sector through the LEP, working as one for the benefit of GM) means that Greater Manchester is uniquely positioned to achieve that vision. Name: Amanda Ball, Director Business: AD Sprinkler Protection Ltd. Industry: Manufacturing CfE Programme: Goldman Sachs 10,000 Small Businesses Turnover Growth: ü Employment Growth: ü

staff we should put on the course too!” Amanda acts as host for monthly meetings of her Programme Cohort, where they have around 4 hours of mutual support, ideas and best practice sharing every time. “The Growth Plan we developed as part of the programme continues to be extremely helpful. We refer to it internally and use it to make decisions, but it has also come in handy with external people. We recently had our bank in to visit us who informed us in advance that unfortunately 'there was no way they could lend us any money.' Having talked them through the Growth Plan they left offering us a very substantial loan at a fabulous rate (though, as it goes, growth has been so strong that we haven't needed it).” The future looks good for AD Sprinklers. With 10 new staff on board, hitting their three-year target after 12 months just means bringing their next target forward too. “£5m here we come.” Name: Jon Stutfield, Creative Managing Dir. Business: BLISS Ltd. Industry: Digital Design CfE Programme: Knowledge Action Network & Goldman Sachs 10,000 Small Businesses Turnover Growth: ü Employment Growth: ü

“Of everything we experienced, the thing that really made a difference to me was the peer-to-peer learning. This was so good for us that when I had finished the 10,000 Small Businesses Programme I signed up straight away for KAN.

“I told them that if they came with me I could get them work, but might not be able to pay them! We started in the recession with three accounts but, fortunately for us, one was huge. Even so, I needed money up front to pay the wages and managed some creative negotiations with our landlord, to let us off the rent for a time while we got going. I am pleased to say, we are still with him now and in much larger premises! The partnership prevailed over these early hurdles, but it was the access to wider networks of other ambitious small business owners that the programmes provided, which helped to accelerate BLISS's current growth trajectory.

“Taking part in the programmes was a major time commitment, at a time when I was very, busy, but I just took so much away from it about funding and investment, about structure, about so many things. Martin Nolan was my Coach and has been incredibly useful. I am having further sessions with him now.” With success already flowing into BLISS, Jon and his partners' vision for the future is clear. “The company name BLISS is based on the idea that an agency should be a pleasure to work with, being supportive to clients rather than just ruthlessly trying to grab money. We have no Sales Directors or Account Managers to get in the way so we don't really 'sell', but instead build relationships.”

Impact│June 2014│6

CENTRE FOR ENTERPRISE IMPACT

mmucfe.co.uk

TUESDAY, JUNE 12, 2014

Lancashire LEP LEP Region Key Figures

Population of 1,400,000

49,345 Active Enterprises in 2012

Economic Output per head

£16,100 in

2011

Region at a glance ŸThe Lancashire LEP area cover the fourteen

ŸIn 2011, there were 34 businesses per 1,000

Local Authority areas of Blackburn with Darwen, Blackpool, Burnley, Chorley, Fylde, Hyndburn, Lancaster, Pendle, Preston, Ribble Valley, Rossendale, South Ribble, West Lancashire and Wyre. The combined population is around 1.4m.

resident population according to the LEP Network report.

ŸLatest figures show Lancashire's Gross

Value Added (GVA) is around £23bn, with some 670,000 people in work. This makes it the second largest economy in North West England. Economic output per head 2011 was £16,100. ŸThe Lancashire aerospace sector alone

Economy Worth = £23 billion/year

103 Growth References

contributes £851m to the economy. Major employers in this sector are BAE Systems, Rolls Royce and Aircelle. Land at BAE Systems' Samlesbury and Warton sites has Enterprise Zone status. ŸThe LEP expect the “aerospace, nuclear,

chemical polymer, automotive and shale g a s ” s e c t o rs t o e xc e e d n a t i o n a l performance benchmarks. ŸIn 2012, the Lancashire LEP area had 49,345

European Structural & Investment Funds Strategy 2014-2020

active enterprises. Preston's share of these was greatest with nearly 5,000 active enterprises.

ŸThere is variation within the LEP area with

regard to business “birth”, “death” and “survival” rates. Pendle, Ribble Valley and Blackburn with Darwen recorded more business births than deaths. Ÿ42.6% of businesses established in 2007

survived five years compared to the national rate of 44.6%. ŸThe

LEP's “Lancashire Growth Plan 2013/14” aims to “establish Lancashire as a natural home for high growth companies” and to “develop complementary Local Growth Accelerator Strategies, focussed on delivering change at the sub-area level”.

ŸThere are 103 references to growth in the

plan.

Get Involved We welcome any business who has growth aspirations, so please get in contact for upcoming events or to discuss how we can support you. Centre for Enterprise, MMU 0161 247 3871 ¦ cfe@mmu.ac.uk Twitter: @mmucfe

Viewpoint: Edwin Booth, LEP Chair and Chairman of E H Booth & Co Ltd. Whether for an individual business or a local economy, growth is the key to success, so I was delighted to be asked to contribute on this subject. And it's particularly pleasing to see local Lancashire businesses doing so well. Here in Lancashire we have a compelling story to tell about the progress the Lancashire Enterprise Partnership (LEP) has already made and our plans to continue to drive growth in the county. Lancashire has one of the largest local economies in the North of England, valued at more than £23 billion and is home to more than 40,000 businesses. The county has experienced sustained growth in the last decade, with particular hotspots such as the cities of Preston and Lancaster, with places like Burnley developing sustained programmes of renewal. However there is much still to do to ensure the whole county benefits from growth. Since the LEP was established in 2011, we have worked hard to bring forward our key priorities, all of which are aimed at encouraging growth and creating the conditions for prosperity. One of our first successes was to gain approval for an Enterprise Zone to be established on BAE Systems' land at Samlesbury and Warton. The Zone will build on the county's strengths, focusing solely on the advanced

Impact│June 2014│7

engineering and manufacturing sector. It will create up to 6,000 high-value, highskilled jobs over its lifetime, with a further 5,000 to 7,000 high-value, high-skilled jobs generated in the wider supply chain. T h ro u g h t h e S u p e r f a st L a n c a s h i re programme, we are in the forefront of rolling out high-speed fibre broadband. The project will provide 97% of the county's homes and businesses with access to high-speed fibre broadband by the end of 2015 and has a particular focus on supporting SMEs to capitalise on the opportunities this technology creates. Our commercial focus is demonstrated by the successful Growing Places investment fund which is making economic development schemes happen by tackling i m m e d i a t e i n f r a st r u c t u re a n d s i t e constraints to unlock jobs, development and housing growth. Through the fund we have invested £20m million in seven schemes across the county, which has leveraged in more than £100m of initial investment from the public and private sector, creating 3000 jobs and 150 new houses, as well as half a million square ft of commercial and industrial space. In September the LEP formally launched Boost Business Lancashire, a £7.2million Business Growth Hub whose aim is to give ambitious businesses simple access to leading-edge business support from experienced public and private sector

partners in order to fuel growth. So far, more than 1,100 local businesses have benefited from signing-up with Boost. Most recently, work has just started on the ground on the first road scheme funded through the £434 million Preston, South Ribble and Lancashire City Deal, a ten-year project to deliver substantial new roads and other transport and infrastructure improvements. Agreed with Preston City Council, South Ribble Borough Council and Lancashire County Council, along with central government, the City Deal will bring economic growth to the area through the creation of more than 20,000 new jobs and 17,000 new homes. The City Deal will provide around £1bn growth in Gross Value Added (GVA) and £2.3bn in leveraged commercial investment. As far as we have come in the last three years – and these are just the highlights – we recognise that we still have work to do, which is why we recently submitted our

◦◦Knowledgeable ◦ Enter

CENTRE FOR ENTERPRISE IMPACT

mmucfe.co.uk

TUESDAY, JUNE 12, 2014 Like this issue? Tweet Us @mmucfe #IMPACTcfe

Growth Deal plan to central government. The plan sets out growth ambitions for the next ten years and builds on the momentum we have established to create an overarching framework for economic success. Our focus is on improving the capability and capacity of our local economy, seizing new market opportunities and overcoming barriers that constrain growth will help re-

establish Lancashire as a national economic leader. We will also look to maximise the value of the “Arc of Prosperity” that sweeps across Lancashire, which links key economic assets, high value business clusters, centres of research and training excellence and new housing growth opportunities. The plan will strengthen Lancashire's

Case Study: Philip Hargreaves, Chief Executive, Inteb Sustainability Ltd. Inteb Sustainability are now in their 4th year of trading and are in a period of vast growth, led my MD Philip Hargreaves. “Over the last two years we have seen revenues grow tenfold and we are now very near the £10m turnover mark.” Philip joined the second Cohort of the Goldman Sachs 10,000 Small Businesses Programme in 2012 and since then, along with exceptional growth in turnover, has more than doubled the team at Inteb, creating 14 new jobs within the business. Based in Bilsborrow Rural Business Centre, Lancashire, Inteb provide energy reduction services, expertise, training and management services across the UK. Their mission, however, is global: “To help to create a world in which our children can live and work sustainably without fear of climate change”. They started out by working directly with businesses, but have expanded in a number of ways including into the domestic sector. Inteb were selected as one of the first providers in the North West for the government's Green Deal and have been

working on the initiative ever since.

Philip made sure to take the learning back to the rest of the business, running workshops with the wider staff teams, to share tools and ideas. He also encouraged one of his key senior managers to participate in MMU's Managers2Leaders programme. “It was really beneficial. She has gone from strength to strength”. “Strength to strength” sums up the trajectory for Inteb. They are building on their explosive growth with even more services and targeting new markets. They even have their eye on an acquisition. With so many companies and homes interested in being more sustainable and making energy savings, it seems the grass is only going to get greener for Inteb's growth.

to grow with energy efficient technology into a new 12,000 sq. ft. premises to support their growing business. Growth for PES was steady for the first 10 years and, although it was perhaps not as much as they had hoped, it was still encouraging and during the same period, energy costs were rising.

rprising ◦ Collaborative ◦

Name: Philip Hargreaves, Chief Executive Business: Inteb Sustainability Industry: Energy Consultancy CfE Programme: Goldman Sachs, 10,000 Small Businesses Turnover Growth: ü Employment Growth: ü

“Taking part in the Goldman Sachs 10,000 Small Businesses Programme helped to give me strategic space. I think that was the key factor. The structure was great and so was working with so many thought leaders, but it was investing that time in really focussing on growth strategy for the business which stands out.”

Case Study: Lancashire firm continues

Power Efficient Systems (PES) is a 12-yearold energy efficiency and manufacturing company based in Skelmersdale, Lancashire. Gary and his wife Eileen set up PES from home in 2002 with one engineer. Since working with Manchester Metropolitan University (MMU), Gary has already grown his business by 36% and is projecting £3 million turnover in 2016. PES employ 12 staff and are currently recruiting 5 jobs before the end of April 2014. They have also just moved

position as one of the UK's leading export centres and we intend to capture new investment and employment opportunities in the international market place. By doing so, we will realise our potential as a destination of choice for new investors and growth businesses and deliver the economic and housing growth that local communities in Lancashire require to thrive.

Eighteen months ago they decided to launch several new energy saving products, for both commercial and domestic use. At the same time, Gary was accepted onto the Knowledge Action Network (KAN) and then the Goldman Sachs 10,000 Small Business Programme, both programmes run by MMU's Centre for Enterprise. Gary says that these programmes have assisted greatly with the growth of the business: “It has been really useful to have other company Directors to bounce ideas off. It gives you an opportunity to look at the business from outside, instead of just struggling with the day to day. We have had advice on setting up proper contracts, on

Name: Gary Vizard, Managing Director Business: Power Efficient Systems (PES) Industry: Manufacturing CfE Programme: Knowledge Action Network & Goldman Sachs, 10,000 Small Businesses Turnover Growth: ü Employment Growth: ü

business planning and now on funding.” PES have secured pilots with a leading retailer, a well-known Fitness and Leisure chain and a large Housing Association. These are proving extremely successful, with the clients saving 12.5% on energy bills. PES are now rebranding and rolling out their products to 100 sites for just one customer. Further growth is imminent. “We received brilliant advice from Peter Wild at MMU regarding tax allowances for Research and Development, which immediately saved PES £9K and allowed us to press ahead with further product development. My advice to anyone would be that if you think you may be eligible ring the Tax Office – they have a special department just dealing with Research and Development for SMEs.”

Impact│June 2014│8

CENTRE FOR ENTERPRISE IMPACT

mmucfe.co.uk

TUESDAY, JUNE 12, 2014

Liverpool City Region LEP LEP Region Key Figures

Region at a glance ŸThe Liverpool City Region LEP area has a

Population of 1,500,000

38,000 VAT Registered Businesses

Economic Output per head

£15,600

population of 1.5m and covers the boroughs of Halton, Knowsley, Sefton, St. Helens, Wirral and the City of Liverpool. The city region generates a GVA of £19bn, 17% of the NW total. Economic output per head was £15,600 in 2011. ŸThe City Region is home to many leading

international businesses such as Jaguar Land Rover, Unilever, Cammell Laird, Peel Group, Novartis, Prinovis, NSG Pilkington, Stobart Group, Shop Direct Group, Santander, Maersk and Atlantic Container Lines.

The growth focus is set upon four sectors:

2011

ŸLow Carbon Economy ŸKnowledge Economy

Gross Value Added (GVA) = £19 billion/year

(including Life Sciences, Advanced Manufacturing, Creative and Digital and Financial and Professional Services) ŸVisitor Economy ŸThe SuperPort

ŸThere are two Enterprise Zones - The

Mersey Waters and Sci-Tech Daresbury. ŸThere are 38,000 VAT registered businesses

in the area. In 2010, there were 38.6 enterprises per 1,000 working age population and 26 per 1000 resident population. ŸThere has been a recent rise in self-

employment growing by 3.2% in 12 months almost twice the equivalent national level of 1.9%. In 2011, the proportion of public sector employment though declining was still higher than in some other LEP areas at 26.9 per cent of total employment. (GM 22.3, C&W 17.3). ŸThe LEP recognises the need to support

entrepreneurship and has a proposal to establish a 'Growth Hub' as well as initiatives such as the Liverpool Vision Business Growth service.

Viewpoint: Robert Hough, LEP Chair & Non-Executive Director of Peel Holdings As Chair of the Liverpool City Region's Local Enterprise Partnership (LEP), I am delighted to have been asked to contribute to this feature on business growth. The challenge for Liverpool City Region LEP, as with all England's LEPS, is how do we deliver substantial and sustained growth for our economy? How do we accelerate the rate of growth in our economy and substantially accelerate the rate of improvement in productivity? For Liverpool City Region, recent figures are encouraging – growth is happening. Over the last five years, during the most severe financial and economic crisis in the UK since the 1920s, Liverpool City Region's economy has out-performed pretty much every City Region of the UK outside London, and the UK average, by some considerable margin. Our economy actually grew by over 10% during this period (2007-2012) - as measured by Gross Value Added (GVA) where many others have contracted. So just what has driven this impressive economic performance? Six years ago we were European Capital of Culture. The Echo Arena and Liverpool ONE were opened. In those six years, Liverpool's confidence has surged alongside the number of visitors – establishing itself as an international tourism, conference, music and theatre destination. Liverpool is now one of the most visited and popular City Region in the UK and the growth in business and employment in its Visitor Economy reflects this. And in 2014, Liverpool hosts the UK largest Business Festival since 1951 in the International Festival for Business (IFB 2014) in June and July with well over 200 major business conferences taking place in and

Impact│June 2014│9

around the City Region – led by the Mayor of Liverpool. Cammell Laird, the world famous shipbuilders in Wirral, is making a substantial contribution to the offshore windfarm market together with global energy companies and a cluster of smaller suppliers. Sci-Tech Daresbury in Halton, is expanding rapidly with its world recognised science base. Our universities and specialist institutions are recognised for tropical medicine, oceanography, life sciences, advanced manufacturing, pharmacology and much more. At a time when the UK has rediscovered its interest and appetite for manufacturing and export, Liverpool City Region has embraced it with a passion. Jaguar Land Rover (JLR) is building one of the best cars in the world at Halewood – the Range Rover Evoque. Such has been the worldwide critical acclaim and demand for the vehicle that increased production has generated some 3,000 new jobs directly and thousands more in the supply chain. As a LEP we have established a “Making it” programme to support the growth of manufacturers across our City Region. Another key driver of our economy is our Ports and Logistics Sector. SUPERPORT is creating a Global Freight and Logistics Hub for Northern UK, centred on the City Region. This is being driven by £1 billion of investment in port and logistics assets including Liverpool2 - a new deep water port - and the Mersey Gateway, a £600m project to deliver a new Mersey crossing. Alongside major exporters like JLR, we are supporting local smaller businesses to realise their export potential through our recently launched New Markets Programme, funded through ERDF. Like many Northern

UK economies, too many of our businesses trade predominantly locally and regionally. Our New Markets Programme helps businesses gear up to tackle national and international markets, by finding appropriate commercial advice and support to enable them to achieve their potential. We have also developed an online service www.advicefinder.co.uk to help businesses find the right adviser from the many commercial providers in the market . Our aim is for these matchmaking services to stimulate the take-up of high quality, commercial, value added advice – supporting business growth whilst growing the professional services market in the City Region. Our focus as a LEP and a City Region is on being clear what we are good at, then supporting and investing in it, through a business-led partnership with the public sector. Despite the fantastic progress we have made in recent years, there remains much to do – not least in increasing business density, skills and employment levels. No easy tasks these and we know they will require a sustained and focussed approach to delivering them. But we're getting used to doing that and with our Members, partners in business, Local Authorities, Universities and Colleges we are working together to continue our City Region's remarkable economic transformation.

◦◦Knowledgeable ◦ Enter

CENTRE FOR ENTERPRISE IMPACT

mmucfe.co.uk

TUESDAY, JUNE 12, 2014

Like this issue? Tweet Us @mmucfe #IMPACTcfe

Case Study: Renewables power growth for Merseyside manufacturer

Renewable energy company Fleetsolve is the brainchild of Anne and Keith O'Connor. The Wirral-based business builds liquid biomass Combined Heat and Power systems (CHP) that turn waste products into energy. “In simple terms, CHPs are small power stations. We use them to power very large buildings, either off the national grid or in parallel with the grid, and they can provide heat, electricity, cooling, and steam.” Fleetsolve's CHPs have already powered construction projects ranging from the world's first carbon neutral superstore for Tesco to the Harrogate International Centre – “the greenest conference centre in Europe”. They have even powered the Glastonbury Festival. When Anne joined Cohort 4 of the Goldman Sachs 10,000 Small Businesses Programme,

the business had already come a long way. Fleetsolve was founded in 2002 without any external funding. Keith, who previously worked in the fuel industry, provided the ideas and technical innovation, while Anne supplied the business skills. The business was based on the second floor of their home – a world away from the factory on the Wirral from which Fleetsolve now operates.

“Now I go back to the plan at least once a week. I keep focusing on our key goals.”

The big break for the company came from a key client. “Tesco took a punt on us at a time when this was breakthrough technology. They were really brave. We now power 15 stores and distribution centres for them including the world's first carbon-neutral superstore.”

These goals include raising investment, beefing up the company's sales and marketing efforts, offering more flexible payment options to clients, and creating a manufacturing hub, which will double as a showcase for Fleetsolve's innovative technology.

But Anne's participation in the 10,000 Small Businesses Programme gave her additional tools to ensure that future successes for the firm are in her and Keith's hands, and having grown by almost £1M since joining the course, the successes are already coming to fruition.

“One of the key things we have done is to create a sales and marketing function for the first time. This meant taking on new staff, bringing in new skills and trying out new marketing approaches. It has given us real growth and helped us to manage flexibly.” The results of the strategy can be seen in the figures, but also in the factory itself, which may be in line for a mezzanine floor or extension to support the additional business. But the biggest change, in Richard's eyes, is the approach the family are now taking to the business.

rprising ◦ Collaborative ◦

Anne pictured with Prof. Ruth Ashford, Dean of Faculty of Business & Law, MMU (left)

The course helped Anne to look at the

achieves record growth for family business

Established in 1979, Halliday Funeral Supplies Ltd. is an independent family manufacturing business, which has developed an unrivalled reputation in its industry for quality and service. That reputation has served it well over the last three decades, but Richard joined the 10,000 Small Businesses Programme to gain a little support in his aim to take the company on a growth journey. Since taking part in the programme last year, Richard has seen the business grow by more than 30% and has taken on 5 new team members.

business critically, and to identify its weaknesses, as well as to create a plan to take the business to the next level.

“As a small business owner, you're so busy working in the business, but you have to realise that unless you start working on the business you're never going to achieve your goals.”

Case Study: Merseyside manufacturer “This time last year, when we were on the programme, we were working through several issues – not least a complete rebranding. This year it feels so different. We have grown hugely but it just seems so much smoother.”

Name: Anne O’Connor, Director Business: Fleetsolve Ltd. Industry: Manufacturing CfE Programme: Goldman Sachs 10,000 Small Businesses Turnover Growth: ü Employment Growth: ü

Name: Richard Halliday, Director Business: Halliday Funeral Supplies Ltd. Industry: Manufacturing CfE Programme: Goldman Sachs 10,000 Small Businesses Turnover Growth: ü Employment Growth: ü

“We had run the business really tightly for so many years. It had worked well for us and seemed like good business sense. But taking time out, on the Programme, made us see we also needed to invest in growth. You would think that stepping out would have a negative impact, but in fact it challenges you, it inspires you, it makes you do things. For us, it was the prompt to take a punt on employing new staff, new infrastructure and new systems – and the risk has really paid off!” Richard highlights the other people he met on the programme as a lasting benefit. He still meets with his cohort regularly, has taken on other participants as suppliers and rates the ongoing support from MMU academics. “Pete Wild (Senior Lecturer in Accounting and Finance) has been great. We took on board all of his advice and will be posting our best annual accounts ever this year…..though I think I'll just drop him an email for a final check!”

Get Involved Are you a small or medium-sized business looking to grow? We would love to work with you. The first step is to get in touch with us: cfe@mmu.ac.uk or 0161 247 3871

Impact│June 2014│10

CENTRE FOR ENTERPRISE IMPACT

mmucfe.co.uk

TUESDAY, JUNE 12, 2014

Insight

• Dr. Jackie Carter, Dr. Sue Baines and Dr. Val Antcliff

Quantifying Local Growth - the arithmetic of SMEs What does the latest data say about North West SMEs? To examine growth in SMEs in the North West researchers from the Centre for Enterprise wanted to look at the five Local Enterprise Partnerships (LEPs) in the North West region: Greater Manchester; Cheshire & Warrington; Liverpool City Region; Lancashire and Cumbria. What business data are available? Producing up to date statistics for SMEs at a regional level is a not simple. There is no single database in the UK that contains details of every active business. One of the most widely used sources of data is the annual “UK Business: Activity, Size and Location” dataset produced by the Office of National Statistics (ONS). This is based on the Government's Interdepartmental Business Registers (IDBR). The IDBR is compiled annually, using VAT registered trader and PAYE assessment data from HM Revenue and Customs returns and details of incorporated businesses from Companies House, but it excludes sole traders. There were 2.2 million UK businesses in the IDBR data for 2013.. Business data such as employee numbers and turnover are available on a regional and Local Authority basis, so it is possible to compile data for each of the NW LEP areas. But what about the sole traders? The Business Population Estimates (BPE) from the Department for Business Innovation and Skills includes a category for sole traders.

Many are not registered for VAT, and of course they have no employees on PAYE. The sole trader category therefore contains estimates of unregistered businesses based on assessment data from HMRC and the Office for National Statistics' Labour Force Survey. But data aren't publically available at a sub-regional level, so it's not possible to produce figures for LEP areas. A third set of data is the English Business Survey. This is still considered as 'experimental data' by ONS. Data are based on workplaces rather than businesses, but as they point out 97% of business are located in a single workplace. A Statistical Overview of North West SMEs We compared data from the“ Business: Activity, Size and Location UK Office of National Statistics (ONS) for the years 2010 to 2013 to look at recent growth patterns in the North West. The data show that over 99% of businesses in the region in 2013, and in each of the LEPs, fell into the category of SMEs based on the number of employees. Next we looked at change in the number of SMEs in the LEP areas over the last 3 years. The graph below shows that, after a slight dip in 2011, the number of SMEs has recovered to 2010 levels in Liverpool and exceeded those numbers in Greater Manchester and Cheshire and Warrington. In Cumbria and Lancashire the numbers of SMEs have struggled to recover to 2010

levels, but are showing a steady increase. Overall there has been an increase in the number of SMEs in the North West over the last 3 years, especially in the Greater Manchester LEP. Manchester's strong growth was confirmed in a recent report on cities by New Economy.

Total SMEs in the North West 71k

2011

2010

40 33

4k 3 42

72k

Impact│June 2014│11

2012

74k

Liverpool

41 k 34 k

Cheshire & Warrington

Lancashire

41 k

Greater Manchester

70 k

LEP Region

2013

◦◦Knowledgeable ◦ Enter

CENTRE FOR ENTERPRISE IMPACT

mmucfe.co.uk

Research

TUESDAY, JUNE 12, 2014

• Dr. Tamara McNeill, Dr. Sue Baines, Dr Val Antcliff and Dr. Clare Schofield

Do entrepreneurs have a special growth mindset? Manchester Metropolitan University (MMU) investigate the mindset of high growth entrepreneurs in the UK through complexity and make decisions quickly. Metacognitive ability enables people to know when to go with their 'gut' and when to take a more considered and rational approach to making decisions. As well as helping to moderate risk without crushing entrepreneurial creativity, metacognitive strategies may help people with their reflective processes and assist learning

Businesses that attain unusually highgrowth have captured the imagination of policy makers. This is unsurprising in view of the promise that high growth businesses will create jobs and drive economic recovery. G ro w t h h o w e v e r i s c o m p l e x a n d multifaceted. The processes by which it is achieved and maintained are not very well understood. Much past research has focused on determinants of growth within the firm but, increasingly, interest is concentrating on the role of leaders. Could understanding the role of the owner - or owners - be the key to supporting sustained high growth in small and medium sized firms? Following on from publication of its Annual Report 2013: Where High Growth Happens, GrowthAccelerator has commissioned the Centre for Enterprise (CfE) to carry out research examining this very question. In the latter half of the 20th Century, there was a tradition of scholarship on entrepreneurship concerned largely with the personality traits. Since then more dynamic notions came have to the fore with a focus on entrepreneurial behaviour, cognition and learning. Traits looked set to make a comeback with impetus from geneticists who claimed to have found an entrepreneurship variant gene but this has not been supported by further research. A wide range of research literature on entrepreneurship suggests a framework for the 'growth mindset' underpinned by three interlinked concepts: intention, expertise and “metacognition”. Growth intention: The notion of “Entrepreneurial Intention” is

Implications of all this for business growth s u p p o r t p ro g r a m m e s i n c l u d e : t h e importance of motivation and identity development, and interventions that increase metacognitive awareness. A series of blogs in which Centre for Enterprise researchers reflect on each of these ideas can be viewed at: based on psychological theory, which argues that intent is the key factor in behaviour. Another important area is the significance of identity for what entrepreneurs choose to do. To make sense of identity we need to consider that entrepreneurs and other small business owners do not exist in isolation, but instead live and work in the context of the way society talks about businesses and business growth. Growth expertise: Research on entrepreneurial expertise says that, over time, entrepreneurs get better at things like spotting new opportunities, bringing together resources and working out how to see things though. Metacognition: There is evidence that instead of carrying out lengthy cost benefit analysis of a situation, entrepreneurs tend to use mental shortcuts such as rules of thumb to cut

h t t p : / / w w w. m m u c f e . c o . u k / w h a t - we do/investigating-the-mindset-of-the-highgrowth-entrepreneur To test and further develop these concepts the Centre for Enterprise research team has undertaken 30 in-depth interviews with selected 'growth stars' followed by a survey. The whole study will be completed in August 2014 and results available to share soon after.

#AskTheProf: Questions and Answers Professor Lynn Martin, Director of the Centre for Enterprise, answers your questions:

Kathryn Young @KYoungcfe “Do you think anyone can be a leader? Are there traits that make people unfit to be a leader?”

Lynn Martin @proflmartin “Over a lifetime most people will lead in some situations. Some start earlier than others, but often it's the context and culture they are in that makes the difference. Personality traits do impact on this but it is a balance of external and internal factors working together. Communication is a big part of this - you can't lead without people willing to be led!

Mike Simensky @MikeSimensky “What is the difference entrepreneur and an inventor?”

between

Lynn Martin @proflmartin “Both may be innovative, creative and discover things, but the big difference is that the inventor may not be able to capitalise on their invention. An entrepreneur may not invent anything new, but will still be able to seize and opportunity and capitalise on it. What an inventor often needs is a partner who is entrepreneurial. Given D-Day anniversaries, my example here would be Geoffrey Pyke (Google search ‘Pykrete’ if he isn't familiar), truly creative and inventive but not known for commercialising his ideas. Anyone else have any better examples?”

rprising ◦ Collaborative ◦

Carolyn Branston @Myfriendarchie Professor Lynn Martin Professor of Entrepreneurship and Director of the Centre for Enterprise Send your #AskTheProf questions to:

Twitter: @proflmartin Email: cfe@mmu.ac.uk Phone: 0161 247 3989

“ What’s your top tips for motivating your staff?”

Lynn Martin @proflmartin “Staff are people too and like the same things you do! Be honest, consistent, appreciative and brave enough to have vision, share it and take them with you to achieve it. And put your hands up if you are wrong.”

Impact│June 2014│12

CENTRE FOR ENTERPRISE IMPACT

mmucfe.co.uk

TUESDAY, JUNE 12, 2014

Work with us? To find out more, why not get in touch for a chat? “It has been like having your own Mastermind group - it can help you identify and define a problem, then discussing around the issue helps you to a greater understanding. The best thing about it is that you take time out to think about the problem from the outside”

Growing Businesses Engage with other business leaders, use our expert business knowledge and access the latest research available to help you grow your business. Whether you are a small firm, large firm or third-sector firm, we can support you. If you would like to find out more, please don’t hesitate to get in touch.

“The 10,000 Small Businesses programme has made me recognise my strengths and it has helped me put processes in to place”

Supporting Enterprise Turn your idea into a business with entrepreneurial knowledge and skills. We work with undergraduates, graduates, alumni and academics to embed enterprise learning in the next generation of business leaders. Find out more here.

“I’ve been supported all the way by my coach who helped me with some crucial decisions, even giving me phone advice outside of sessions. We are in a very exciting place at the moment”

Embedding Research Our specialisms are growth, leadership, entrepreneurship and sustainability. We are successful at generating high quality, original research, generating research impact and have a strong track record in research council funding. You can access our research here.

“Meetings with our wonderfully supportive group and facilitator made me realise that although we are different businesses, we are all in similar boats - objective problem solving diminished our seemingly insurmountable problems.”

Informing Policy We use our business engagement and research to practically impact upon regional and national economic growth, UK and European policy development and international academic advancement of knowledge. To find out more, please get in touch with us.

“The Centre has given me the opportunity to understand the latest research, network with other companies and get our views heard by key stakeholders in the North West.” • All pictures by Ade Hunter

We would love to work with you. The first step is to get in touch with us and tell us a bit more about you and your business. Why not arrange a visit and perhaps we can tell you a bit more about the options available to you.

Impact│June 2014│13

◦◦Knowledgeable ◦ Enter

CENTRE FOR ENTERPRISE IMPACT

mmucfe.co.uk

TUESDAY, JUNE 12, 2014

Next Issue Business Start-Up:

Like this issue? Tweet Us @mmucfe #IMPACTcfe

IMPACT Featuring: - Excellence in Business Start-up from a graduate perspective and from staff - Case Study: Exciting fashion designer Andrea Zapp (pictured here) shares her personal story from concept to new fashion label AZ.andreazapp - Students and Graduates share their experience of growing from graduate to business owner - Growing pains: Practical tips for recruitment in the early stages - What does the data say about start-ups in the North West? Putting knowledge to work to grow your business

rprising ◦ Collaborative ◦

Impact│June 2014│14

Contact us: Website: www.mmucfe.co.uk Telephone: +44 (0)161 247 3871 Email: cfe@mmu.ac.uk Twitter: @MMUcfe Address: Centre for Enterprise Manchester Metropolitan University Faculty of Business and Law, All Saints Campus, Oxford Road Manchester, M15 6BH, United Kingdom