/Final%20Report%20-%20June%202010 by Northwest Regional Development Agency

School of the Built Environment

Wealth Bringers: The Sustainable Value of Disabled Entrepreneurs

School of the Built Environment

Wealth Bringers: The Sustainable Value of Disabled Entrepreneurs

Professor Erik Bichard and Dr. Pamela Thomas – University of Salford For the North West Development Agency July 2008

Contents About the Authors.....................................................................................................4 Acknowledgements...................................................................................................5 1.0 Background to the Study...............................................................................7 Why Disabled Entrepreneurs? ......................................................................9 2.0 2.1 The Statistics ...................................................................................................9 2.2 The Value of Moving Potential Entrepreneurs off Disability Benefit ............... 10 2.3 Help to Make this Happen ............................................................................... 12 3.0 Understanding Disability ............................................................................. 20 3.1. Historical context............................................................................................... 20 3.2. Interpretations of disability ............................................................................... 20 3.3. Marginalisation ................................................................................................... 21 3.4. Disability as an equality issue ............................................................................ 22 3.5. Disability Research ............................................................................................. 23 4.0 Previous Research into Entrepreneurship ..................................................... 24 4.1. Measures of entrepreneurship............................................................................. 24 4.2. Self-employment and disabled people ................................................................ 25 5.0 Identifying the Participants............................................................................27 5.1 Definitions .............................................................................................................. 27 5.2. Conducting the interviews ................................................................................... 29 6.0 Experience of Disabled Entrepreneurs in North West England 31 6.1. Profiles of the Businesses .................................................................................... 31 6.2. Motivations for starting a business..................................................................... 33 6.3 Business Support................................................................................................... 36 6.4. The role of skills in business success ................................................................. 42 6.5. Skills or knowledge that would have been useful at the start.................................. 45 6.6. Contribution to the social sustainability of the region ............................................ 51 7.0 Conclusions ...................................................................................................56 8.0 Recommendations.........................................................................................59 References............................................................................................................... 61 Appendix 1 - Case Study: Lorraine Gradwell, Chief Executive of Breakthrough UK 63 Appendix 2 - Wealth Bringers 2 Questions for semi structured interview .................... 66 Appendix 3 â&#x20AC;&#x201C; Participating Partners in the Wealth Bringers 2 Study ............................. 71

About the Authors Professor Erik Bichard Erik Bichard is Professor of Regeneration and Sustainable Development at the Salford University, in Greater Manchester. During his career, he has worked as a sustainable development practitioner in the public, private, third and now academic sector. Until June 2007, and for ten years, he was Chief Executive of the UK National Centre for Business & Sustainability. In addition to his role at Salford, he has his own practice; Positively Responsible. In the past he has been Co‐operatives UK’s sustainability advisor, and currently performs the same function for the City of Liverpool. He is a member of the UK Sustainable Development Panel, and serves on several company boards as a non‐executive director including the social enterprise FRC Group, and Migrant Workers North West. He is a frequent contributor to newspaper, TV and radio programmes covering a range of sustainability issues from recycling and renewable energy to social cohesion and responsible business issues. His most recent written work includes texts on sustainable governance, social enterprise and the recycling sector, and the relationship between health in the workplace and business reputation on sustainable development. Doctor Pam Thomas Pam Thomas is a Research Fellow at the University of Salford. She specialises in disability equality in interdisciplinary qualitative academic research and teaching settings. She has a PhD in Inclusive Design (home owner occupation and disabled people). Formerly with Surface the Inclusive Design Centre, earlier research includes Access to the Work Environment (disabled people’s experience of barriers in the work place environment) and Building Opportunities Project (young disabled people and barriers to careers in the construction industry). Previously a qualified social worker, Pam also teaches health and social care professionals about disability equality, independent living and involving disabled people in service planning and delivery. Pam is a

disabled woman with long term active involvement in community organisations which are led by disabled people to campaign for equality.

Acknowledgements The authors would like to thank the North West Development Agency, especially Yvonne Sampson, for providing the funding and support for this study. Particular thanks go to all those disabled people who took part as interviewees, and those who made additional comments on elements of the work. The authors would like to acknowledge the tremendous contribution of our partners who found most of the interviewees. These include Breakthrough UK, In‐Biz, Blue Orchid, enterprise4all, mruk, UnLtd and JKP Enterprises. A special thanks goes to Janet Houghton at A4e who orchestrated much of the effort in the later part of the study.

Foreword

When the first Wealth Bringers report was published in 2005, it set out to show how enterprising people with ethnic backgrounds were not only enhancing the economic prosperity of the North West, but were enriching the social fabric of society. This report, into the sustainable contribution of disabled entrepreneurs continues to match evidence to the contention that a sustainable society is one that not only recognises, but celebrates and values the diversity of its citizens This report contains the experiences of people that have achieved remarkable things. And while they have achieved them within a challenging context, they are recounted because of their enterprising ideas, and not for any perceived heroic ability to overcome adversity. We provide this evidence to help policy makers and programme managers to take particular interest in providing support for start up propositions and continued business advice for an existing group of people that could swell into a significant economic force given the right conditions. The report shows that there is an untapped source of innovation and productivity ready to come to the fore, proving it is recognised and offered the appropriate resources. We are yet again extremely grateful to the North West Development Agency for giving us the chance to show the potential of a group of people that are eager to play their part in a prosperous society. Professor Erik Bichard, July 2008

1.0

Background to the Study

This project follows on from the first Wealth Bringers report (WB) which was completed in September 2005 and showed the sustainable contribution that ethnic minority owned businesses make to the economy and society of North West England. The WB project was undertaken because there was a belief in the region that a section of the entrepreneur community, namely those that had a family background that did not originate in Britain, contributed a great deal to the sustainable success of the North West. This belief was not supported by the evidence prior to the study which was sparse, and previous work had not explored issues such as the extent to which ethnic minority owned businesses contributed to, and supported community life. A research team from Sustainability Northwest, led by Erik Bichard and funded by the North West Development Agency (NWDA), sought to determine whether the assumption about the value of ethnic minority entrepreneurs could be confirmed. WB did indeed find that, far from being a drain on the economy and society as some would claim; ethnically owned businesses were more profitable, and just as generous as the average business in the region. The report helped NWDA to direct support towards this valuable yet previously under‐ supported group. However, it also led to new thinking about whether other groups in North West society could be revealed to have value far beyond the perceived view. Disabled people were the next obvious group to attract interest because statistics indicate that many are workless and on benefit. However, perhaps against uninformed expectations, many disabled people are self employed and some have set up successful businesses. The ability to show the sustainable value of disabled entrepreneurs has suffered from a severe lack of information about this productive group of people. In association with NWDA, the second Wealth Bringers (WB2) project was designed to assess the contribution made by disabled entrepreneurs to the regional economy and society. This project, again with funding from

NWDA and leadership from Erik Bichard (now a Professor at Salford University), set out to discover whether another group of people assumed to be a drain on the economic productivity of the region could have the potential to contribute to closing the economic gap between the North West and the South of England. The project had the dual aims of investigating the contribution that disabled entrepreneurs make to the North West economy, and ascertaining how useful disabled entrepreneurs find existing business support mechanisms and programmes. WB2 investigated the extent and range of businesses set up and owned by disabled people in the North West by locating and interviewing entrepreneurs. This was achieved, (following the methods of the original WB study), by telephone and face‐to‐face questionnaires carried out by agencies set up for, and often run by, disabled people. The intension of WB2 was to reach a better understanding of disabled people’s economic contribution, how they influenced wider society, and why they came to set up their businesses. The study also sought to record the experiences of disabled entrepreneurs during start‐up, and particularly about the nature of the assistance that they received. Finally, the study was interested to establish whether there were sufficient numbers of the kind of role model that could motivate those currently on benefits to set up their own businesses. 2.0

Why Disabled Entrepreneurs?

2.1

The Statistics

Statistics are not absolute statements of fact, but they are useful indicators of the situation under investigation. Two major government surveys, the Labour Force Survey and the Family Resource Survey, were used to establish the numbers of disabled people in Britain. The Labour Force Survey (LFS) offers useful information about the numbers of disabled people of working age in Britain. Since 1997, the LFS has defined disabled people as:

“…those with a long‐term health problem or disability which is expected last at least a year or more, and which either affects the amount / kind of work the respondent might do and / or substantially affects their abilities to carry out normal day‐to‐day activities.” The LFS is continually updated, and so provides more current information than the 2001 census. The Survey offers comparisons with non‐disabled people and regional variations. By comparison, the Family Resources Survey does not provide information about employment. These surveys were used by the Disability Rights Commission in an annual Disability Briefing (Twomey, 2007). The last version was published in May 2007. The Labour Force Survey indicates that there are 6, 871,000 disabled people of working age in Great Britain, that is 19.3% of the population. Approximately 8.9% of disabled people are from ethnic minority groups. The survey shows that 873,000 (or 21%) of the population of the North West of England are disabled people. Of the 6.9 million disabled people of working age identified nationally, 50.4% are in employment and 14.4% of those in employment are self employed. In the North West England, 45% of disabled people are in employment compared with an 80.2% employment rate among the non‐ disabled population. While around half of disabled people of working age in Britain are in work, 1.3 million disabled people are without a job, but want to work (Twomey, 2007). In the UK there are 2,640,000 (10% of the working age population) who claim Incapacity Benefit (ONS, 2007). In North West England 419,000 people are claiming incapacity benefit. Only the North East has a higher percentage (11%) of claimants (Twomey, 2007). Long term incapacity benefit is paid at the rate of £81.35 per week. The government has estimated that the cost of people claiming disability benefit (in 2006‐2007) was £12.5 billion (BBC News, 2007) We know that nationally at least one third of disabled people who are on benefits would like to work, and would therefore expect that around 140,000 want to work in the North West.

2.2

The Value of Moving Potential Entrepreneurs off Disability Benefit

The government has a stated aim to ‘help more people into paid work’. The Department for Work and Pensions’ Document Ready to Work states: Annual inflows to incapacity benefits have been falling for the last 10 years: from around one million in 1997 to around 600,000 currently. However, we must further reduce the number of people falling out of work onto benefits. This will require a change of culture across society: by healthcare professionals and the providers of health services, by employers, line managers, and by individuals themselves. The 2006 Green Paper and the 2005 Health, Work and Well‐being Strategy set out the first phase of our work across government, including the devolved administrations in Scotland and Wales, to bring about this change. (DWP, 2007: 67) Having collected the statistics about disabled people both in work and on benefit, it should be possible to construct an indication of how a shift into self‐employment from the existing disabled workless population might benefit both the region and the country. To do this, a number of the variables need to be established. These include: •

An estimate of the numbers of workless, but willing to work disabled people that would consider starting a business.

•

The amount of benefit that would no longer be required to be paid to disabled entrepreneurs that start their own business.

•

The economic contribution (in terms of gross value added, or GVA) that these new businesses would generate.

None of these statistics are readily available because of a lack of reliable survey data, the variability of disability and the variability of the productivity of small businesses. However, it is possible to employ a

number of assumptions in order to construct a useful figure that will indicate the sustainable return on investing in this community. The numbers willing to set up businesses can be taken as a nominal 10% of those that want to work. As we have stated, in the North West, there are 140,000 people who want to work and therefore 14,000 that would consider setting up a businesses. This is a conservative estimate based on the 14.4% of disabled people who are self employed nationally. The economic implications of shifting 14,000 people from benefit to generating their own income through their businesses can be calculated using the long‐term incapacity weekly rate of £81.35. The creation of 14,000 new businesses would therefore represent a saving to the public purse of over £59 million per annum in the North West alone. Finally, there is the estimate of the added value to the regional economy. It is assumed, and reinforced by the survey returns described later in this report, that most new businesses set up by disabled entrepreneurs will be micro‐businesses, employing less than five people, at least for the early years of the life of the businesses. While there are no GVA figures per employee for small business contribution to the economy, a crude estimate can be constructed by adding typical labour costs together with typical profits. For this, a conservative assumption might be that a two‐ person company could have labour costs of £37,500 and produce a 5% profit on an annual turnover of £50,000. Both these assumptions are well within the range of the responses gathered from this Wealth Bringers survey. The resulting GVA estimate for a new disabled entrepreneur business is therefore £20,000 per employee. This is well below the regional average of £33,800 (Regeneris, 2006) reflecting the lower productivity of any small business. It should be said that this method of generating a GVA figure for the contribution of small businesses is not comparable to the North West Regional Accounts GVA produced by the Office for National Statistics (ONS) due to the different methodologies. However, it does give a working indication of the potential sustainable return on investment for this community.

When the GVA assumptions are multiplied by the potential numbers that could be expected to set up their own businesses, the answer is that 14,000 new disabled entrepreneurs would add £280 million to the regional economy. Taking the net gain of GVA and benefit savings together, assistance to the prospective disabled entrepreneur community would be worth a weighty £339 million, or over one third of a billion pounds to the North West. Nationally, the corresponding numbers would produce 88,000 new entrepreneurs with a net economic benefit to the country of over £2.1 billion. 2.3

Help to Make this Happen

One of the questions that WB2 sought to answer was whether existing business support services were capable of assisting greater numbers of disabled people to set up and run their own businesses. There is undoubtedly a degree of encouragement from government for entrepreneurship through the Department of Business Enterprise Regulatory Reform (BERR)1: BERR has lead responsibility for small business and enterprise policy. The Department works across Whitehall, the Regional Development Agencies and key delivery partners to ensure that government ‐ national, regional and local ‐ understands and responds to the needs of small businesses and entrepreneurs. The Government's aim is to make the UK the best place in the world to start and grow a business. (Business Enterprise Regulatory Reform) The issue to be investigated was whether this general call to entrepreneurialism could be translated to anyone, and disabled people in particular. There are a number places where a disabled entrepreneur might turn to for help. Most commonly these would be the publicly funded Business Link and Job Centre Plus offices. However, others (including social enterprises) that are also available providing they can be identified.

2.3.1. Business Link The first port of call for people setting up business is often Business Link, which is a government funded business support service managed in the North West of England by the North West Development Agency. Business Link was reorganised in 2007 and is now ‘designed to promote enterprise and individuals’ by providing businesses with ‘relevant services from the broadest range of public and private sector business support services at a national, regional and local level’ (www.businesslink.gov.uk). Customers call Business Link if they want advice on how to set up a business, or how to improve their existing businesses. A Business Link broker will try to understand the customer’s particular query, analyse his or her need, before directing the caller to a specialist advisor. Face‐to‐face meeting may also be arranged in the callers’ area. The range of specialists is maintained on a ‘knowledge platform’ which is regularly updated depending on customer requirements. Roger Mitchell, Operations Manager at Business Link North West explains that brokers are required to be able to locate specialist help for all users of the service. He confirmed that the reorganised service is committed to helping any individual, regardless of their personal circumstances. A prospective caller will initially encounter a broker from the ‘Universal Services Team’. The broker will help callers to define their needs by asking about the nature of the business (existing or proposed), determine the level and degree of detailed advice they should receive and refer to the appropriate solution. The Targeted team at Business Link North West has approximately 140 business advisors to call upon once the nature of the query has been established. These brokers are often sector experts. This allows the Business Link service to match (for example) a person interested in help with their sportswear business to be matched with an expert in the retail clothing market. If a member of the universal team can not immediately deal with the enquiry, the procedure is to take as many details from the caller as possible, and to offer to contact the caller again when the broker has been able to find an answer to their question. This may be in the form of a referral to a specialist advisor once he or she has been sourced. The broker will research the query and contact the caller with the results.

Roger Mitchell confirms that the Business Link system is designed to ensure that all callers are treated equally. For example, for those enquiring about a business, callers will be asked if they have a disability as there are programmes of support for individuals meeting this criteria. The details are then recorded. However, to date, brokers do not routinely collect information about the entrepreneurs’ health or physical abilities of an existing business. This could be about to change as Business Link works closely with NWDA on developing a joint approach to ‘diversity’ and the sensitivity that the service will need to monitor details of all applicants more closely. However, the historic lack of data on disabled entrepreneurs’ needs has resulted in a dearth of specialist providers because the system has not recognised the need to keep them on the knowledge platform. Tom Bell, Relationships Manager at Business Link North West has a remit for disability issues. He explains that the Business Link culture has changed significantly since the organisation was re‐organised. Bell says that there is more ‘blank sheet’ thinking that is more open to exploring what the organisation needs to do to be more useful for its users. In particular there is a willingness to engage with partner organisations that may be in a better position to advise on the special needs of service users. He emphasises that Business Link does not wish to replicate existing services, but accepts that the organisation does not always know their full range of expertise, or sometimes whether they exist at all. Bell also elaborates on the point that Mitchell makes about monitoring when he says that there is an intention in the future to ‘win’ more and better information from callers. This needs to be done in a sensitive way. For example, instead of asking if the caller is disabled, the broker may ask if there are any specific personal factors that could be addressed in order to improve the profitability of the business. Bell also confirms that training brokers to be more sensitive and knowledgeable about the obstacles facing disabled people will inevitably improve the service. He points out that there are already two members of the Universal Service Team who have received this training. However, he concedes that awareness of individual training across the whole team was probably insufficient to

guarantee that colleagues would automatically refer disabled callers to these trained individuals. The historical short‐comings of the Business Link service is not a discrimination issue, but a in the system to identify a need. Business Link has not been geared to cope with callers who may not be able to take advantage of the advice because of their disability. In the ideal situation, the universal team member would have a good enough understanding about how different disabilities affect entrepreneurial individuals to know how to sign‐post their query onto a qualified provider, or partner organisation. This might be (for example) one the organisations contracted by Job Centre Plus to assist disabled people into employment, or with start‐up businesses. In the main, Business Link deals with overall business issues of an enterprise. Brokers will work with the owner/manager to identify particular issues in the business which may include matters relating to individuals in the business that have a disability. Roger Mitchell is confident that, with better intelligence as a result of more comprehensive monitoring, the Business Link system will be more responsive to disabled entrepreneurs. To date there has been very little research carried out into the effectiveness of business support organisations and disabled people. A 2007 study by the University of Warwick, Aston Business School and Kingston University into the Economic Impact of Local Business Link (University of Warwick et al, 2007) provided information on the experience of businesses which had used the service. The analysis took into account age, ethnicity and gender in all English regions, however disability what not considered at all. The website currently has a very small font which would be difficult to read, and will be a particular issue for people with visual impairments and others who cannot read small print. 2.3.2. Job Centre Plus Job Centre Plus (JCP) is part of the Department for Work and Pensions (DWP, 2006) it has a priority to get people off Incapacity Benefit and into

work. The Government Green paper, A New Deal for Welfare: Empowering people to work (Department for Work and Pensions, 2006) set out the policy intentions get disabled people into work. More recently another report Ready for Work (DWP, 2007) set out the government programme to implement the policy. However there tends to be a heavy focus on employers and employment rather than self employment or encouraging innovation and entrepreneurship. JCP includes the scheme Access to Work which provides advice, support and grants to employers and to self employed disabled people to pay for reasonable adjustments. This may be equipment or practical assistance. JCP has programmes that are intended to support people to come out of welfare and into paid employment. This includes a tax free Return to Work Credit of £40 per week for up to 52 weeks which provides added security for those making the move into work. (DWP, 2007: 63). Two schemes which are particularly targeted at disabled people are Pathways to Work: Pathways to Work for new customers is built on the foundation of Work Focused Interviews where new Incapacity Benefit customers meet with dedicated personal advisers to discuss their work ambitions, their barriers to work, and the support that is on offer. Personal advisers offer customers access to a wide range of support including the groundbreaking voluntary condition management programmes which enable people to understand and manage their health conditions or disabilities. (DWP, 2007: 63) and Workstep: We know that these specialist services, such as Work Preparation, Workstep, Access to Work and Disability Employment Advisers help transform the lives of many thousands of disabled people every day – people who would otherwise struggle to get a job or could be at risk of losing one they already have. However, we also know from

talking to disabled people and their representatives, from independent research and from analysis by the National Audit Office, that there is scope to improve the service currently offered. (DWP, 2007: 66) These programmes are contracted out to private and third sector businesses, although it is not always clear to the user that this is the case, and there may be an impression that the organisations (sometimes household name charities) are running schemes with their own resources. For disabled people, there are several very large charities which have their roots in paternalism and have been heavily criticised for their role in maintaining disabled people’s dependence and marginalisation. Although they have changed some aspects of their business there are still unresolved issues. For example they are now criticised for outbidding disabled people’s own organisations and free lance disabled people for contracts. JCP may also support test trading to facilitate people to move from worklessness to self employment – this is not just for disabled people. The JCP Prime Contract for self employment in the North West is with InBiz. 2.3.3. Financial incentives Disabled people who are in receipt of Incapacity Benefit may be concerned that if they try to set up a business and it is unsuccessful, they would have to reapply for benefit. They are often unaware of the linking rule, whereby for the first year they are automatically entitled to claim the benefit (PMSU, 2005:175). Permitted work rules mean that people on incapacity benefit may work up to four hours per week at the rate of the minimum wage, and up to 16 hours per week for the same money without having benefit reduced. Supported permitted work allows claimants to earn up to and including £72 per week for an indefinite period if they are receiving defined ongoing support or supervision (PMSU, 2006: 177). Disabled people working over 16 hours per week may claim working tax credit which has a disability element.

2.3.4. Other sources of support There does not seem to be any organisations which are comparable to those that specialise in supporting people in BME communities to take up and maintain self employment. However one organisation was found in North East England and this is described in Box 1. Box 1: Idea Tree In the North East of England, the Idea Tree, is active and current, it was set up by a disabled man to offer support and advice to disabled people wanting to set up social enterprises. David Colley, managing director of Idea Tree in Newcastle upon Tyne, an organisation which specialises in supporting disabled people to set up social enterprises commented: “We have been operating for two years and have had contact with about 80 disabled people who are interested in setting up a social enterprise. Of these about six are currently in the process of setting up. Feedback from their clients has suggested Business Link support is geared toward commercial rather than social business. Organisations which may support social enterprise in setting up, such as Social Firms UK, can view disability from a medical perspective, which ignores disabling systems, practices and attitudes. Because Idea Tree is run by disabled people and uses the social model of disability, we are part of the same culture and use the same language as other disabled people. We know without conscious effort what the barriers are, and so we understand and accept what people are saying. The importance of this should not be underestimated, the culture and language of business which is used in other support agencies, which are all run by non‐disabled people, do not seem to grasp the way in which the business world maintains disabling barriers. Feedback from disabled people shows that for these reasons they really appreciate support from an organisation run by disabled people. Disabled people have ideas for setting up services to support other disabled people, but still think the most effective way to make this happen is with grants. But this is not sustainable and disabled people are fearful of

business implications and business models. They are much more likely to set up and be employed by a charitable organisation, rather than be self employed, or directors of a social enterprise. “ (David Colley, 31st March 2008) Extensive searches found that there is no similar organisation to Idea Tree in North West England, and support for disabled people around innovation and entrepreneurship is at best patchy. There are schemes and systems in place to support disabled people into work. However the emphasis tends to be focussed on disabled people as employees, and is less helpful for those seeking to set up their own businesses. Boylan and Burchardt (2002) noted the preference for salaried or waged employment among disabled people and say the reason for this could be the emphasis that is put on securing a job rather than self employment: Disability employment policy has tended to concentrate on tackling discrimination by employers and securing jobs, while advice and support for self‐employment has been patchy. Business support agencies often have limited awareness of the needs of disabled people. Some parts of the social security system have been reformed with a view to easing the transition into employment, but the specific needs to those starting a business have received relatively little attention. (Page 18) One organisation interviewed for this study and run by disabled people and provides employment support specifically to disabled people, and this is described in Box 2. Box 2: Breakthrough UK Breakthrough UK is a social enterprise in North West England which was set up by a majority of disabled people with support from Manchester City Council. This social enterprise was featured in the Prime Minister Strategy Unit’s report Improving the Life Chances of Disabled People as a “Good practice example of a social enterprise” (PMSU, 2005:179). Lorraine Gradwell, the Chief Executive of Breakthrough UK, is a disabled woman, with an entrepreneurial approach. She commented:

“At the inception of Breakthrough UK it was recognised that support for disabled people to develop their entrepreneurial ideas into a real business is vital. So a key objective was and still is to have starter base and a venture fund. However funding bodies have focussed on getting disabled people into jobs and whilst this is a vital part of Breakthrough UK’s work, funding to support self‐employment has simply not been available. Disabled people are resourceful and encounter barriers everyday and have to find ways around them. However the consequences of systems and practices which exclude disabled people should not be glossed over, disabled people make more effort for less reward.” Lorraine Gradwell is not self employed but employed by the company. A case study of her role as Chief Executive is in Appendix 1 of this report. 3.0

Understanding Disability

3.1. Historical context

The meaning and status of disability in our modern western industrialised society dates back to the industrial revolution. At this time the requirement for a workforce that was dexterous, strong and quick became the priority. Those that could not meet these criteria due to impairment or long term illness were left out of the workplace, and the developing infrastructure of transport, housing and education. They were left without the means to support themselves, and their families needed to work long hours to make ends meet. The workhouses provided support for those considered to be deserving poor who included the infirm, defectives and the chronically sick. This fostered assumptions that people in this cohort were disabled by their individual conditions, and were incapable of work and in need of care. This assumption lingers to this day: Disability itself has come to mean ‘unable to work’ and as non‐earners disabled people are now fundamentally identified as incapable home makers and unsuitable love partners. (Finkelstein, 1991:29)

Many disabled people have a separate existence because often mainstream facilities are inaccessible. This has an impact on disabled people’s ability to travel to work, have a home of their own and gain qualifications. This exclusion is profound, for example disabled people with mobility impairments are simply not present in many activities that others enjoy, whether social, business or public and community life, simply because of physical barriers created by the inaccessible built environment. This in turn impacts on the extent and quality of important networks that are vital to people in business. Disability is integral to systems which do not take account of people with impairments or long term illnesses. 3.2. Interpretations of disability

3.2.1. Two main interpretations In order to understand why disabled people are excluded from work and other areas of life, it is necessary to know that there are several definitions of disability that fall under two main headings. Firstly, the dominant definition of disability is that it is caused by individual impairment or health condition, and means that an individual is not employable. This is an individual interpretation which is enshrined in legislation. For example, the Disability Discrimination Act defines disability as resulting from an individual’s inability to carry out normal day to day activities due to their impairment. This medical, individualised definition is widely used. The second major definition is that society does not take account of people with impairments or long term health conditions, thereby creating disabling barriers and perpetuating cultural exclusion. This is a social interpretation of disability, often known as the social model of disability. 3.2.2. The use of individual interpretations and social interpretations Knowing the difference between the two interpretations is important because it allows insight into the ways in which disabled people are excluded. The move away from an individual definition to a social interpretation is indicated in the definition of disability used in the Prime

Minister’s Strategy Unit’s report of 2005 ‐ Improving the Life Chances of Disabled People: Disability is defined as: Disadvantage experienced by an individual resulting from barriers to independent living or educational, employment or other opportunities that impact on people with impairments and/or ill health. A clear distinction needs to be made between disability, impairment and ill‐health. Impairments are long‐term characteristics of an individual that affect their functioning and/or appearance. Ill health is the short term or long‐term consequence of disease or sickness. (PMSU, 2005:8 – their emphasis) This social interpretation is not well known amongst the general population, or even disabled people themselves. 3.3. Marginalisation

The marginalisation of disabled people has been demonstrated in public policy and research relating to improving employment which in the past has not considered disabled people. However the government has started to make changes in some of its major policy documents which have recognised the profound exclusion of disabled people from mainstream economic positions and networks. There is a growing recognition of the way in which disabled people are marginalised into the realms of health and welfare. A major shift has been set in motion following the Prime Minister’s Strategy Unit report which states that: Supporting and empowering disabled people to help themselves will improve their participation and inclusion in the community, in the labour market and in wider society. This will deliver

social and economic benefits for all of society – and all of society needs to be involved. (Page 53) The report put forward four key areas for action to achieve this aim, one of which is by: Improving support and incentives for getting and staying in employment by ensuring that support is available well before a benefit claim is made; reforming the gateway onto entitlements; providing effective work‐focused training for disabled people; and improving Access to Work and other in‐work support – all of which will see more disabled people in work, contributing to the Government’s overall targets for employment. (Page 8) There is great emphasis on employment in this document, but it does not refer to business enterprise, and self employment is mentioned only in a list in relation to support from the Access to Work Scheme. As a result of the Improving the Life Chances report, the Government has set up an Office for Disability Issues (ODI): The ODI takes the disability agenda forward across government by joining up policy and delivery and driving collective ownership to ensure we deliver equality for disabled people. A more progressive interpretation of the meaning of disability has now been adopted, but only fairly recently, and thinking does not seem to have progressed to the point where it is likely to be very helpful to those seeking to start their own businesses. 3.4. Disability as an equality issue

The Equality Review (Cabinet Office, 2007) in line with the current political agenda uses work as a good indicator of equality:

Work remains the best and fastest route out of poverty. Its the most reliable way for an individual to achieve economic independence and prosperity. Its abundant presence is essential to the health of a community. (Page 62) In the same way that Black and Minority Ethnic, (BME) people, are less likely to be in employment than white British people, disabled people are less likely to be in employment than non‐disabled people: When merely comparing employment penalties at one point in time (in the 2001 Census) we find that the largest employment penalty is experienced by disabled people (as compared with non‐disabled), followed by mothers of small children (as compared with men) and Muslim women, including those of Pakistani and Bangladeshi origin (as compared with Christian/white women). Muslim and Pakistani/ Bangladeshi men (as compared with Christian/white men) and mothers of older children (as compared with men) are in a middle position in this ‘worse off’ comparison. (Berthoud and Blekesaune, 2007: 87) Disabled people experience exclusion, and research indicates that this is institutionalised in employment systems and infra structure. This is perpetuated by a culture and attitudes that accept the exclusion as natural and inevitable. Yet any support which is offered is largely within welfare and care systems, rather than from an economic, innovation or business support perspective. 3.5. Disability Research

Disabled people have been the subject of research for decades. Many disabled people and disabled academics have criticised this research as serving the purposes of the researchers and funding bodes whilst disabled people are no better off. Another criticism has been about the myth of

objectivity in research, most research about disabled people has been from a non‐disabled perspective that is taken to be objective. This has meant that research has contributed to rather than alleviated disabled people’s exclusion (Oliver, 1992; Barnes and Mercer, 2004). The more effective studies attempt to equalise the relationship between disabled people and researcher. This includes ensuring the authentic voice of disabled people is heard rather than their contribution being interpreted (Shakespeare, 1996). 4.0 Previous Research into Entrepreneurship 4.1. Measures of entrepreneurship

4.1.1. Government figures The self employed are a relatively small group compared to the whole of the national working population. The Office for National Statistics confirms that: The proportion of people in employment who are self‐employed remained steady, at just under 13 per cent throughout 2005 (ONS, 2006: 17). This compares to 14.4% of disabled people in employment who are self employed (Twomey, 2007: 7). 4.1.2. The GEM survey and measuring entrepreneurship in the North West The Global Entrepreneurship Monitor or GEM is a not‐for‐profit academic research consortium that has been compiling data on entrepreneurial activity since 1999. GEM provides information on gender, ethnicity and age. The questions asked in GEM are harmonised globally. There is a minimum requirement in relation to questions to be asked in all participating countries: Labour force status or current working situation, six categories preferred: •

Full‐time work, 26

•

part‐time work,

•

unemployed,

•

retired or disabled,

•

student,

•

housewives\ house‐husbands.

(Quill et al, 2006, Data Assessment Page 31) The first Wealth Bringers study used information provided by GEM, to compare what is happening in North West England with the rest of the UK. This was possible because the survey asked respondents about their ethnic origins. GEM does provide information on entrepreneurs in the North West of England, the UK and globally, with particular to reference to gender, ethnicity and age (Bosma et al 2008). However the survey is not broken down between disabled and non‐disabled people. For WB2, an electronic search of GEM documents for ‘disability’, ‘disabilities’ or ‘disabled’ was undertaken. This came up with just one result and showed that disability is considered only as a status similar to retired. This is in keeping with the individual definition which treats disabled people as an unemployable group, or to put it into Finkelstein’s (1991) words, ‘unable to work’. Furthermore, GEM considers business discontinuation, but does not ask whether discontinuation was related to health or impairment – either medically or due to societal barriers or negative attitudes. WB2 was unable to apply the kind of comparative analysis which was carried out for WB because GEM has not taken account of disabled people in its analysis other than as a reason for not being in work. 4.2. Self-employment and disabled people

Research shows that few disabled people are self employed. Nice et al (2008) carried out 25 in depth interviews with disabled people who had received job preparation premiums – an incentive to disabled people to come off incapacity benefit and into work. Only one person chose self

employment and this was part time, whilst still in receipt of incapacity benefit. Similarly Boylan and Burchardt (2002) in Barriers to self‐employment for disabled people, a report prepared for the Small Business Service on self employment amongst disabled people state: Little previous research has been published on disabled people and self‐employment. The 2001 Small Business Service Household Survey of Entrepreneurship indicated that 12 per cent of respondents who reported they had a health problem or disability which limited their ability to carry out paid work were self‐employed and that a further 10 per cent were considering it (Shurry, Lomax and Vyakarnam, 2002). These percentages were higher than corresponding figures for non‐ disabled respondents. (Page 16) Boylan and Burchardt’s (2002) report provides useful findings. They used existing data for quantitative analysis and interviewed 12 disabled people. Six were in established businesses while the other six were planning to be self employed. All were located in the Midlands or southern England except one who was in Yorkshire. None were in North West England. They reported that: Eight per cent of disabled men report self‐ employment as their main economic activity, compared to 12 per cent of non‐disabled men. Among women, 3 per cent of disabled women and 5 per cent of non‐ disabled women. This corresponds to an estimated 265,000 self‐ employed disabled individuals in England. (Page 22) And they add: As for men, Greater London shows a high proportion of self‐ employment, despite not

having especially high general employment rates, while the lowest proportion of women are in self‐ employment in the North West. (Boylan and Burchardt, 2002: 27) 5.0

Identifying the Participants

5.1 Definitions

There were two criteria that needed to be set before the interviewees for the project were chosen. The first was the project definition of an ‘entrepreneur’. The second was a project definition of ‘disabled’. The definition used for those to take part in WB was: Individuals with origins in any country other than UK who have set up their own business. (Sustainability North West, 2005:8). The definition of entrepreneur is the same in both studies and is restated here as ‘people who have set up their own business’. The definition of ‘disabled’ is taken from the Improving the Life Chances of Disabled People (PMSU, 2005:8) which states that ‘disabled people are people with impairment who are disabled by societal restrictions which are imposed on top of individual limitations’. The definition of ‘disabled entrepreneurs’ in this report is therefore ‘disabled people who have set up their own businesses’, as qualified by the previous definitions. 5.2 The Partners

The WB2 project used the same partner identification strategy that was employed in the first WB study. This assumed that those involved in the daily support of the target group would meet with more success than researcher in both finding the entrepreneurs, and in gaining their trust to give open answers to the questions. WB had drawn on six business support agencies which had been set up to support ethnic minority businesses in North West England. Whilst there are many agencies supporting disabled people into employment, none have specific remit to

support self employment. Partners were sought that were closely associated with the study group (in this case organisations that support disabled people, particularly in relation to employment). These were approached to see if they had an interest and the capacity to identify and carry out the interviews. Work began by seeking to identify organisations around the region which have direct contact with disabled people. The approach was to identify organisations that would be in a position to identify and interview disabled self employed people. A number of organisations expressed confidence that they knew that disabled entrepreneurs were operating in the region, and that they would be able to recruit interviewees for the study. Leonard Cheshire was identified as a potential partner on the basis of their national Ready to Start initiative, which drew on 5,000 of their own contacts. They knew that only 250 (5%) had taken the self employment route, their research did not state how many disabled self employed people actually took part. However they were not responsive to the offer to take part in the study. When active recruitment commenced, early predications about the numbers that would be identified for the study were shown to be over optimistic. Subsequently the study found that many organisations did have direct contact with disabled people, but very few of these were self employed. This was confirmed by one disability equality consultant, who declined to be a partner, and said that those disabled people who were active in support organisations tended not to be in work, while those who had a job were less likely to spend time assisting the type of organisations that were approached by the study. This is similar to the findings of Dodd et al (2006) who stated that: Organised groups tend to work with the most dependent and disability care structures are less in touch with relatively autonomous disabled people. (Page 34) Organisations that support social firms, not specifically for disabled people, were also approached. Again there was little success. One reason seems to be that some entrepreneurs choose to set up businesses as

companies limited by guarantee and then serve their company as Chief Executive, effectively handing over ownership to a Board of Directors. Those that were selected for this study retained ownership and served on the Board as Managing or Executive Director. Social Firms UK7 gave this as the reason why many of their contacts were ineligible for this study. In hindsight, WB2 should have included this group of entrepreneurs as their set‐up experiences would have been very similar to those of an owner‐ manager. Some organisations were already fully committed with their current work loads, and so were not in a position to take part. The final partners list comprised social enterprises, charities, a private sector consultant and an individual disabled disability consultant. A list of partners and contacts is contained in Appendix 3. 5.1.3. Identifying Individuals Many of the partners that agreed to seek out self employed disabled entrepreneurs had little response. Part of the explanation for this could be that the individual interpretation of disability locates the problem of disability with individuals. Many individuals with impairments and long‐ term medical conditions know only of the individual interpretation and reject it as applying to them. This has implications for people with impairments and long‐term medical conditions who want nothing to do with the term ‘disability’ and disabled people. They may not know any other disabled people, and they may prefer to identify with non‐disabled people than disabled people thus actively avoiding organisations of and for disabled people: Disabled people for example may feel that they have to ‘pass’ as non‐ disabled to be acceptable to society and avoid stigma and isolation. (Dodd et al, 2006: 21) WB2 also found examples of entrepreneurs who did not want their clients to know that they had a disability in case it affected confidence in their ability to deliver their service. This can lead to disabled people being very isolated and making it more difficult to locate and recruit them for the

study. In this case the social interpretation of disability may have been more useful in identifying societal, cultural and attitudinal barriers, and may be more acceptable to disabled people who reject the medical interpretation. Finally, the WB2 recruitment process throws doubt on the government statistics which indicate that as many as 15% of disabled people who work are in self employment. Research by the Leonard Cheshire organisation found the figure to be only 5% (Leonard Cheshire, 2002). If this is a more accurate measure of the situation, then the lower numbers of entrepreneurs, coupled with their lack of interaction with disability support agencies and an unwillingness to be identified as disabled would explain the difficulties experienced by the partners. 5.2. Conducting the interviews

A semi‐ structured interview was designed and two disabled people’s organisations were consulted on the content. Their recommendations were subsequently incorporated into the final versions of the questionnaire. Two agencies had extensive contact lists via an e‐group and sent around a flier asking for self employed disabled people to respond. Only one of these was successful in obtaining any response. Four organisations contacted self employed disabled people already known to them. In addition, direct contact was made with self employed disabled people by WB2 researchers. Later, a study carried out for the NWDA into the experience of people setting up new companies was able to offer a subset of their survey that had identified themselves a disabled. The responses from all the interviews were written up and compared to find replication of experience and any differences. These were then identified and recorded under the relevant themes. These findings were then considered and compared to the literature, and conclusions and recommendations were derived from this. The semi structured interview questions are included in Appendix 2.

6.0 Experience of Disabled Entrepreneurs in North West England 6.1. Profiles of the Businesses

Thirty four disabled people took part in the interviews, comprising twenty two males and twelve females. Eleven were from in Greater Manchester, eight from Cheshire, and there were seven from both Merseyside and Lancashire. As described in 5.1.2 and 5.1.3, the identification of disabled entrepreneurs proved to be more difficult than anticipated. After consulting with NWDA, the search period for interviewees was increased and additional partners were contacted. While there was a hope that at least 50 individuals would be interviewed, the research team found that, when the first 30 interviews were analysed, there was a large degree of uniformity within the answers. The research team also knew that more than 30 responses still constituted one of the largest surveys of disabled entrepreneurs conducted in the UK to date. It was therefore decided that the study would not benefit from a further search for interviewees due to the uniform responses, and the final conclusions were based on an interview set of 34 individuals. All participants were running private businesses, while one was managing two businesses. None described their business as a social enterprise or a co‐ operative. The types of business were quite diverse and included: •

Arts and training

•

Deaf training consultancy.

•

Baby BSL signing franchisor business

•

Driving instructors

•

Car sales

•

Plumbing / Painting and decorating

•

Judo training for schools, youth groups and businesses (diversity/disability awareness). 33

•

Diversity Trainer / Consultant

•

Dental hygienist

•

Counselling services

•

Disability Equality consultancies

•

Creative media/Photographer/Web Graphic designer

•

Nursery and pre‐school hospitality

•

Equestrian centre

•

Accountancy

•

Cutting timber / Charcoal production/ Ground Maintenance

•

Computer electronic sales

The average age of the businesses among the entire interview set was just over four years, although one third had been trading for more than five years. One business has been running for 20 years, and another for 17 years. Nine businesses had been running for between five and nine years, and another 13 had been running for between two and four years. The remainder had been running for one year or less. Three did not say how long they had been in business. Most of the interviewees were sole traders, however 13 businesses employed at least one other member of staff. The largest employer had eight members of staff, with another employing seven people, and a third employing five full time and three part time people. The remaining 10 companies employed six full time and 23 part‐times workers between them. One business did not employ staff but the owner had personal assistants who provided the support he needed to run his business. They were self employed and he paid them with finds from outside of the business. Of the businesses that employed staff, 69% of the employees were disabled people. Most interviewees did not wish to disclose salaries, but those that did indicated that they were providing salary ranges of £1, 000 to £15,000

per annum. Entrepreneurs own salaries were in the range of £6,240 to £40,000. Many of the interviewees did not wish to disclose financial matters relating to the business. Those that did showed a turnover of up to £285,000 per annum. However, the average turnover approximated £37,000. Some pointed out that income fluctuates throughout the year and while some months see no income, other months were very busy. Outgoings also varied with the lowest income trader having the highest percentage of outgoing at 60%, and another trader having no outgoings as all materials are met by the customer. Eighteen traders gave North West suppliers priority, while others were not able to source in the region. Six businesses prioritise purchases from other disabled people’s businesses as far as possible. For the consultancy and training businesses, the public sector made up the main client group. However other services were provided to private individuals or the private sector and the third sector to a lesser degree. The remainder of this section described the experiences of individual disabled entrepreneurs four are featured in the accompanying Summary Report. Others have been given pseudonyms to protect their identity. 6.2. Motivations for starting a business

6.2.1 Necessity vs. Opportunity Seven of the self employed disabled people who took part in the study had set up new businesses following redundancy (three voluntary). Eight had been unemployed, and two more began businesses following retirement on health grounds and age respectively. Seven entrepreneurs wanted more flexibility, while another five set up their business following an injury or impairment. Five had identified a specific opportunity. The responses show that while there were a few opportunity entrepreneurs, most set up their businesses through necessity. The necessity entrepreneurs felt that setting up a business was the best way to generate income and was a preferable means of financial support

compared to the benefits system. Recent work by Cass Business School’s Centre for New Technologies, Innovation and Entrepreneurship (CENTIVE) also shows that businesses that are set up by disabled people are more likely to survive compared to average survival rates (Logan et al, 2008). Survival represents excellent value for money in terms of return on investment, and on this evidence, should be an incentive for business support agencies to seek out entrepreneurial disabled people for training and support. 6.2.2. Leaving public bodies The reasons why respondents were motivated to set up their own businesses varied, but broadly they came under two main groups ‐ those who felt restricted in their work with public bodies and those that were out of work, including being made redundant. Four interviewees had previously worked for a public body and made comments about unacceptable attitudes or working environments. Terry was working as a local government officer and became disillusioned with what he saw as the double standards. The Council was good at saying they supported disabled people, but treated him unfairly. When he returned from a secondment to the Manchester Commonwealth Games project, he found that the job he had been doing previously was no longer available and he accepted severance pay and left the Council. Judo was a hobby when he left his job. Terry had competed in the three Paralympics Games ‐ Seoul, Atlanta and Sydney ‐ and won bronze medals. He had understood that there was a gap in the market for a business that would cater for disabled people and used some of his severance money to buy a van to deliver his services to clients. He then approached a number of potential host venues such as the Greenbank Sports Academy, a purpose‐ built sporting complex for disabled sportsmen and women in Liverpool, and with ‘word of mouth’ from teachers who were aware of Terry’s skills, soon began to generate work. The various delivery strands cater for every ability and age, however, the business was set up to ensure that disabled people could become active Judo players in a safe, supportive, inclusive environment. This includes young people who have sensory, physical and/or learning disabilities.

Laurence also was disillusioned with the rhetoric around equality in the public sector: I was sick of working for a public body. I wanted to do a diversity of work that would not be allowed to do. There is no job where I could do a bit of comedy, a bit of consultancy and a bit of training, they do not usually sit well together for an employer. For a while I had two CV’s to cover the work and for a while I was thinking about having another website for training and consultancy. But I have not been desperate for work so no point in getting training website. (Laurence) Shameem too worked in a public body, and like Laurence found there to be a lack of commitment to equality and diversity: I had worked for national government in the field of equality and diversity and discovered a niche in the market – that there was a dearth of good equality and diversity trainers/consultants. I felt that with my previous work experience, skills and qualifications I would have a good chance of succeeding in this area. Susan had also worked in the public sector but her reasons for wanting the flexibility of being self employed were to do with child care rather than disability: I used to be employed by a dental hospital and I decided to set up on my own so that I had more time to be with my children and so that my working hours could be flexible. 6.2.3. Out of work Those that were without work, including those just made redundant, also opted for self employment. Eight interviewees were in a redundancy situation (including three who had chosen voluntary severance):

I had been made redundant and the local jobcentre plus referred me to InBiz who has the contract for self employment. (Robert) I became redundant in 1991. I had worked in engineering, but could not get a job back into engineering. I worked as a driving instructor for a company and eventually I bought the name off them. (William) I was made redundant. I had served my time as a painter and decorator before so I thought to carry on doing that. (David) Two interviewees had been unemployed and also received help from the same organisation contracted by Job Centre Plus to give advice on self employment:I was registered unemployed and was claiming JSA through Ellesmere Port JCP, Inbiz has the contract with JCP for self employment and a referral was made to them. (Neil) 6.2.4. Retirement Frank decided to set up in business after retiring: Because of my medical condition I found it difficult to obtain employment. I was in receipt of Incapacity Benefit and my G.P. would not sign me off as fit to work. I am now retired and love photography so I decided to set up a company with my son. As we are both disabled we decided that self employment was the best option available to us as we can have flexible working hours. Laura was also retired from her job on health grounds before starting to work for herself:

I was deputy director of Planning and Development in a local authority and I retired on grounds of ill health. I was invited to do small pieces of work around economic development, regeneration and housing and this has continued. Similarly Mike could not continue is his previous occupation, and identified a niche: I had been driving for 36 years including motor sport and I never saw a disabled driver competing. I knew of disabled people who said they would love to drive and found that no one would teach them. I decided to change direction, I had identified a niche and went for it. I had the knowledge and had the right experience, the times was right for me to give something back Matthew also had come to the end of road with his employer: I used to work in computer games, and for ethical reasons, couldn’t continue at place I was working. They couldn’t offer me anything else, so I took the opportunity to explore self employment. 6.2.5. Flexibility Other participants had different reasons for setting up, but flexibility is a theme that repeatedly arises. Sarah had been working in an agency but felt she would be better off doing the same thing and have more flexibility running her own business: I was employed by an agency and I had to take compassionate leave. When I returned to work I found that I wasn’t getting any clients and therefore I was not getting paid. So I decided to set up on my own and this meant that I could choose my hours and work around my disability.

Others wanted flexibility to suit their personal circumstances: I wanted more freedom and control and to work in a way that I felt was more appropriate to me. (Paul) I am unemployable, because I need time off due to my illness. (Jeanette) Julie identified a gap which related directly to her own experience of hearing loss: HearFirst was set up as a direct result of my acquired hearing loss. I felt I could train, educate and encourage service providers to meet needs of deaf and disabled people and help them implement the DDA. TalkFirst after spotting a niche in the market. (Julie) 6.3 Business Support

6.3.1. Seeking help from Business Link The role of Business Link in assisting people in setting up their own businesses was referred to by the respondents and the responses showed that people had a mix of experiences. Two of the respondents said that they did not know there was any support for people wanting to start their own businesses. Three felt that the advice was not helpful, while five had found Business Link did assist them in a number of areas: I sought help from Sheffield Business Link as I was living in Sheffield when I set up my business– my experience was excellent. I was appointed a business link advisor who explained the practical steps of setting up a business in a clear way, gave guidance on writing a business plan, setting up a business bank account and my advisor was extremely encouraging as she had set up her own business as a sole trader as well. I was also

awarded European Funding for marketing materials, design of business logo and specialist consultancy services in marketing. I would not hesitate to recommend Business Link. (Shameem) I sought help from Business Link after I set up my business. They provided me with practical support such as Financial Administration, Bookkeeping and general awareness of running a business. (Sarah) I sought help from Business Link during start up. They were actually quite helpful. They ran me through a tax course so that was useful. That was the basic thing I needed and was pleased with what I was shown. There were no problems at all. (Richard) When I first started up I approached Business Link. I found them to be very informative. They put me in touch with Solicitors, Accountants, Banks and also helped me to identify funding sources. They also gave me a lot of practical help with regards to running a business. My experience is that whilst Business Link appears to be good with start ups I haven’t found them to be particularly useful once I was established. (Paul) Julie did not specify where her support came from, but found it helpful despite an apparent lack of understanding of the access requirements of disabled people: I have had good positive experiences although services are not set up with disabled people in mind. A lot of the mainstream work needs to be generally more accessible to meet more people’s

needs for example consideration to training room accessibility. (Julie) However the experience was not always positive, and some found Business Link unhelpful. For example, in Terry’s words, it was ‘a complete waste of time’. They told him there was no financial help for him and did not offer any other advice or assistance. Likewise, Les was very upset that his time was wasted. He sought information and advice for filling in forms in order to get a grant. He claims that Business Link delayed him, and later he was informed that he missed the deadline. Jeanette’s hopes sank and her aspirations vanished after she ‘struggled with Business Link to get any sort of help’. While she did receive advice, she felt that she was not given the assistance she needed. 6.3.2. Job Centre Plus Job Centre Plus contracts other bodies and agencies to support disabled people. Five of the interviewees had been referred to these bodies. While most were satisfied, some were disappointed with the help they received. One of the interviewees said: [The organisation] couldn’t even manage their own business and the advisors were former and failed entrepreneurs. The disability advisor at my particular Job Centre and the [organisation’s] advisor were both completely abusive bullies, prejudiced and with no understanding of mental health difficulties. I suggested they needed training and they said that ‘we don’t have time’. I should have sued them under the disability discrimination act – they nearly destroyed me. I decided I would never get help from any business agency linked to my local Job Centre again – most of these so called business advisors do not have the courage to stay in self‐employment themselves, they cannot ‘walk their talk’ and are

highly negative about entrepreneurship. I now get help in terms of my social enterprise from UnLtd (a social enterprise)– and they are excellent, very positive and supportive. The other people I get business advice from are self‐ made multi‐millionaires who are still in self‐ employment. (Maria) Job Centre Plus also contracts out programmes such as Workstep to organisations that specialise in certain groups of disabled people, but not specifically self employment. For example, Terry’s main help came from Action for Blind People which assigned a business advisor to help him to set up the business. Terry said that the advisor was not much help as a business advisor, but did offer some moral support and some practical help on how to access funding. Matthew also went to Action for Blind People which gave good initial support: I contacted Action for Blind People, and was assigned a self‐employment advisor. He assisted me in set up. Initially he was pretty useful, there were some difficulties due to nature of my business. I have Christian products, my view of business is not the same of secular standard of business. It is not just about earning money. AFB encouraged the fast generation of profit, and felt I had a longer term goal for ethical reasons. However, originally AFB were good, and easy to get hold of, they are not as useful now. Another organisation which is funded to provide a service on behalf of Job Centre Plus, is Shaw Trust. Mike found them to be helpful: When I was first setting up I found Job Centre Plus to be a good help and they referred me to Shaw Trust, who were also helpful. The Queen Elizabeth Foundation training course for Advanced Drivers was very good, they hold a

register of all Advanced Drivers who will teach disabled drivers. The Department for Work and Pensions also has a scheme called Access to Work, that offers advice and practical support to disabled people in relation to employment, including self employment. However, not all of the interviewees knew about this service even after being in business for many years: I did not know about Access to Work until the Interviewer made me aware of it. (Sarah) The experience of Access to Work also varies. Laurence had quite a lot to say about the way in which support services can create added problems: I have used Access to Work. They were a barrier because before they would give me any help I had to show I was a viable business before they would fund me. When you set up you do not have a lot a work to start up. It was three or four months before I got support. I get support to pay for taxis because public transport is not accessible to me. I have to produce taxi receipts to get the money back. I get 15 hours for PA support; this is no where near enough. I have to keep a diary to show how much support I actually use, I fill in two diaries as PA support for non work hours is for the Local Authority and the Independent Living Fund. I show that I need 25 to 30 hours for work and the Local Authority and Independent Living Fund is not meant to cover work time, but is in fact paying for it. Laurence also talked about how the support offered does not cover what is actually required and he has to find ways of covering the cost either from the business or passing it onto the customer: Another problem is that Access to Work are only giving me £6 per hour for PA support and this

includes on costs like National Insurance so the PA only get £5.70 per hour. This has not gone up since I was assessed 5 years ago – no inflation. I subsidise this because I pay £7 per hour on Merseyside and £7.40 outside of Merseyside, because it is long days and this gives them extra as a subsistence allowance. Access to Work doesn’t take that into account. I know there are times when I have not been picked for some contracts because my costs are that bit more, even more that other disabled people who do not use pa for work. However, Terry was able to obtain funding under the Access to Work scheme for a driver and an assistant/equipment manager. Harry also obtained a grant to start hospitality. Another accredited provider of business support and consultancy is Blue Orchid. Greg found them an equal opportunities organisation. Blue Orchid provided business planning advice without any prejudice. They took into consideration the limitations that mental health issues put on the overall planning process and took the process bit by bit. The Jobcentre Plus referred Keith to Blue Orchid. The latter helped him to develop, although the Jobcentre Plus has tried to get him into employment rather than starting up a business. He claims they said ‘it takes too long to set up’. The Stepping Stones project managed by Jobcentre Plus employs specialist advisers to offer help. They refereed William to Blue Orchid: I was on long term incapacity benefit and was becoming increasingly depressed. I visited Stepping Stones, I had no idea assistance was available to help start up on my own. They

referred me to Blue Orchid and they helped me immediately by having a business plan set out in a way that would take into consideration my disability. Gary also found that Blue Orchid offers help through training advice, motivation and other routes to move into work: I found it difficult to move from the employed sector into self employment initially due to the uncertainty about how much help would be received. Blue Orchid helped with the business planning which was invaluable. The experiences of the interviewees shows that many organisations that partner with pubic sector sign‐posting bodies such as Job Centre Plus or Business Link can play a very supportive role. The negative experiences of some may have resulted in a cultural miss‐match where the entrepreneur could or should have gone to a more entrepreneurial source such as a social enterprise. The presence, or a least an awareness of social enterprises on pubic sector databases and knowledge platforms may improve the choice that can be offered to disabled entrepreneurs, particularly those that are at an early stage in their start‐up plans. 6.3.3. Other support A number of interviewees sought support elsewhere, and their experience varied. A selection of responses includes: I have received help from my local Chamber of Commerce and I continue to do so. They were very supportive and gave me assistance with running a business, marketing and tendering for contracts. I have also been supported by the St Helens Coalition of Disabled People who gave me work. (Ken) I applied to UnLtd and the Community Champions fund for support to help with

increased expense of running the business. The experience was extremely helpful. (Toni) I sought help during start up from Burnley Enterprise Trust, local charitable groups and local authority. Overall it was a positive experience except for the Chamber of Commerce. They just never get back to you. You have to email them and really email is the means of communication in the modern day and you expect a prompt reply, but they never did. They either did not respond, or responded too late. (Hazel) I used Wigan Business Enterprise. It was OK. I learnt a few things, mainly about the tax side of things and what I had to do regarding tax, just basic things I needed to know. It was helpful. There were no negatives. (David) Some did not need formal business support because they already had access to the expertise. For example Laura said: No I did not need this as my dad was an accountant, and my husband is a commercial lawyer, so they were able to sort out that side of things. But it must be scary for people who do not have the support I have. I found my networks have been most useful and I have a high profile without having to do any marketing or bidding for tenders. Local authorities advice the auditors that I am the only suitably qualified person, there is no one for me to compete against. I have had support from Access to Work to employ a personal assistant and a secretary, I have also had help to pay for the adaptations on my wheelchair accessible car. I use the Leeds office who were quite good – I am not sure if the Bolton office is as supportive.

6.4. The role of skills in business success

It is known that disabled people encounter societal and attitudinal barriers, and disabled people develop skills in order to deal with such issues. Some recognised that they had these skills, and were able to recognise this as a contributing factor to their business success: Yes, a large part of the nature of the business is about tackling barriers whether it is training consultancy, performing and writing; ability to identify barriers not just from my impairment but wider and trying and pass on this knowledge; project management around day to day living, negotiation skills, awareness handling extra long of red tape; problem solving skills. (Laurence) Similarly Shameem recognised the skills she has as a result of tackling barriers: I identify as a disabled woman and as I work in the field of equality and diversity – providing training and consultancy services in the field of disability equality amongst other areas of E & D ‐ tackling such barriers is part and parcel of my business with clients. Therefore it has contributed to my skills and business success. Julie recognised the importance of tackling stereotypes that suggest disabled people are not capable of running a viable business: Definitely – the fact that HearFirst and TalkFirst are completely sustainable and run by deaf MD tackles stereotypes from the word go. Also Terry felt that his own experience at the Local Authority helped his determination to do better for disabled people. His standing as an athlete, and his disability was a benefit to him when setting up a Judo coaching business that welcomed disabled people.

For Matthew tackling the barrier of transport remained, and his skills and experience did not help with this, but he did realise he would have to find another way to make it work: Not really, I found it very difficult. I was advised to get products out quickly but I found that as I tried to get things to market it was difficult as travel. I couldn’t make travel viable. I needed larger contacts. The original design wasn’t working, so I am now more internet based, which has increased business success. I am now more lateral in terms of tackling barriers, e.g. advertising / communication. Ken considered the barriers to be about the lack of understanding about the need for his service, which is disability equality training: I have not actually faced barriers because I am disabled, but I have faced barriers with regards to the work I do as many people do not class disability equality training as high priority, which makes me feel sad. Frank recognised that he had developed skills based on earlier experiences: I think that facing the barriers I had with regards to becoming employed before I retired has made me more determined to set up my own business and do well. Mike also recognises that he relied on his own skills, and had advice for other disabled people: I am very skilled at dealing with barriers that do not come down, you have to keep at it until they see your point of view. Eventually the dust settles

and they can see the true picture. People realise after a while that maybe they can learn something. To be successful, you have to show what you can bring. Spirit and determination got me through. Given the opportunity disabled people do want to do things. For me my job is very rewarding because disabled people appreciate having another disabled person supporting them My advice to disabled people is to do something you are good at and enjoy; we are learning and supporting each other. Hazel also had advice for other disabled people. Hazel’s view is that disabled people should aim at being taken seriously by the society: If you have got the motivation then do it. I was diagnosed with dyslexia early on and it taught me to think outside the box, and see it as an advantage, not a disadvantage. I have got all sorts of different techniques and strategies for bending the rules for what society deems as normal. Despite using different words, Maria accentuated this issue calling for a certain shift: You have to keep believing in yourself, when everyone else has a very stereotyped and discriminatory view of disabled people who have spent a long time in psychiatric hospitals and residential care homes. My business is all about changing attitudes, but fundamentally it’s about saving lives. I think I feel I have to succeed, because I owe it to other people who are experiencing the same difficulties I faced – not just for myself, but for others. I am driven to

succeed, because I want to show people the positive aspects of mental and emotional distress. Laura’s business is successful, and she is very much aware of the skills she has developed through dealing with disabling barriers: As a disabled person you have to be tolerant and deal with barriers in different ways. For example I was recently due to Chair a conference for Housing Associations about their Disability Equality Schemes. The organisers of the event had to change the venues several times to make sure I could get in. People do not believe the barriers caused by lack of car parking, getting into through doors, blocked dropped kerbs, high reception counters. If you do not let people know before hand then you can’t get into places. I find I get patronised a lot too – people do not know what to do or say, they want to hug me! I do not over charge for what I do – but I do charge a reasonable fee without being greedy. So I get recommended in the networks. Disabled people are often surprised to find I am a wheelchair user to, but it does give me much more credibility with them. Not everyone – but with a lot of disabled people. The skills and knowledge that disabled people have are used in different ways. It seems that sometimes disabled people have not recognised their own expertise, simply taking for granted the skills they have developed in order to survive and thrive. 6.5. Skills or knowledge that would have been useful at the start

6.5.1. Financial and management

Several entrepreneurs identified many things that would have been useful to know when they were starting their business. Knowledge and skills around finances and management were mentioned several times: I wish now I could have written a business plan at the time it seemed daunting. (Laurence) How to get over the red tape with reference to the driving school (Sam) How to start, the paperwork side – tax, books etc. (Neil) Knowing how taxation works and keeping proper financial records. Having access to a list of accountants with a good reputation for working with sole traders in my area. (Shameem) I wish I known more about taxes. I needed financial knowledge as I was not too sure. (William) Financial assistance would have been beneficial. (Harry) It would have been beneficial to have had a bit more on legislation re employers’ rights and contracts. They were what we struggled with. (Richard) Terry wishes that he had more experience about how to set up a business, and general administration skills (invoicing, diary‐keeping) in particular would have been extremely helpful. For example, he would have liked to know that buying a new vehicle was not financially sensible, and should have gone either for a lease deal or bought a second hand van. The importance of having finances ordered was recognised by Sarah who felt she was well placed from the start because: I have a good accountant who takes care of my accounts for me.

6.5.2. Access to advice and information Some interviewees did not know about the business support that could have been offered to them until they took part in the WB2 study. When Robert became self employed, he felt alone and needed assistance when tackling some of the hard questions. Three others also said they did not know what was available: I did not know about Business Link. More networks at the beginning it would have been easier. (Laurence) I wish I knew about the help available to disabled people with regards to setting up their own businesses. My interviewer has given me information about what’s available so I am going to find out more. (Frank) I did not know about Access to Work until the Interviewer made me aware of it. (Sarah) Information about markets is something Terry would have welcomed advice, five other interviewees also commented on this: Lots – I am still learning. Main thing I needed at start was knowledge of my market – how much would clients pay? When do they set budgets and commission training? etc. I have gained that through experience. (Julie) Knowing where to market and advertise my business in local, regional and national publications, which would be free or at little cost. (Shameem) I would have liked to have been more proficient at Marketing, knowing where to advertise and knowing who to go to for further funding. (Paul)

If I had experience of internet marketing, I wouldn’t have wasted energy on other marketing and promotion tools. (Matthew) I wish I’d had more marketing skills and business acumen when I started up. (Ken) I wish I had more expertise and more advice on how to market the business correctly. (Mel) Two more already had the skills they needed: I had all the skills and knowledge I needed. (Mike) I had all my qualifications and contacts before I acquired my impairment and this does make a difference to attracting work. (Laura) While many interviewees had developed the skills they needed along the way, an early intervention from a knowledgeable business support advisor would almost certainly have improved almost all of the WB2 participant’s businesses. 6.5.3. Where others could have been more helpful. Access to Work Laurence felt he could not emphasise enough the required improvements of Access to Work because commissioners are not willing to cover the cost of PA support: Access to Work needs to be more helpful, they do not recognise that whether employed by someone else or self employed no one wants to pay for the additional cost of a PA. When I am commissioned to work away from home and I say I am going to bring a PA they are fine until they realise they will need a second bedroom. Access to work won’t pay for PA accommodation often

accessible hotels are often the most expensive. Usually I end up paying PA costs myself, another example is train fares e.g. train fares. Neither commissioners nor Access to Work will pay for PA train fares, even though it might be cheaper that mileage. Accommodation and travel for PA’s. you feel like a criminal like you are doing something wrong. It affects how much money I make they think it is frivolous because it is a hotel. They are too slow to deal with a lot of things, often you don’t know until you get there that there will be an extra expense they want to know well in advance this is not always possible. In a competitive market which you are in self employed, Access to Work is obsessed to passing on cost to employers impacts self employed in particular in public authority work where they have a duty to best value cost is a factor. So effectively they are making you more expensive to potential clients. Matthew also thought Access to Work could have been more helpful: Yes, I wanted support for travel and market research, networking. I wished there had been channels (for standard markets) where disabled entrepreneurs can market and try out new products to alleviate effort of trying to do so. I needed to enable to gauge what is right quicker. Access To Work pay for taxis which works out better than contributing per mile to use my wife’s car. So it is not viable. Alternative to driving costs 2.5 times as much per mile!

Julie thought that positive attitudes are fine, but that does not necessarily mean professionals have a good understanding of and / or commitments to ensuring access requirements are met: For me it is about professionals giving me the service/ advice/ knowledge in a way that is accessible to me. Standard services and information need to be more accessible to a wider range of people. More thought could be put into it e.g. leaflets with just a phone number on to contact someone are no use to a deaf person. Networking events in a dimly lit, noisy hotel are inaccessible to deaf people. Professionals generally have had a good attitude towards me but there has been little thought into the accessibility of the service they provide. Two interviewees said help with access would have been good: I would have liked help with access Issues. Especially with regards to parking as I cannot walk very far without feeling severe discomfort. However, the practises have been very supportive and try to give me a parking space close to the door. (Susan) Lack of knowledge of disabled people’s issues Paul identified a global lack of knowledge about disability and disabled people in mainstream provision so that disabled people are siphoned off to specialist provision, or are left to find out for themselves: From a personal point of view the people who have supported me have not present any barriers. Anyone offering advice and support should become more disability aware and have knowledge of what organisations and individuals are out there to support self employed disabled people. However, my perception is that external

bodies, individuals and organisations perhaps don’t take Disabled people who want to be entrepreneurs seriously. Ideally I would like to see an in‐house service that is able to meet my business needs fully rather than having to be passed on to other groups or having to carry out research myself. There is also a tendency to steer you towards becoming a social enterprise or charity. Also I feel that small companies and sole traders tend to lose out to the larger organisations when it comes to tendering for contracts. Laurence also noted the lack of knowledge about disability and disabled people and he believes that there are parts of the region that are less helpful than others or other regions: It would be easier if I lived somewhere where disability equality is taken seriously, despite the public duty it is very poor in this part of the North West, they are not interested, Other issues Mike commented on a range of issues. Firstly, that the driving standard and DVLA could have been more helpful, but he also he spoke about the importance of disabled people being the best support for other disabled people: When someone becomes disabled they need the right counselling, at the moment it is being done by the wrong people, able bodied counselling is not what is needed. We need more disabled people to be counsellors. Disabled people know best how to support each other – we’ve been there, done that, got the t‐ shirt and sent a post card. Businesses which are owned by disabled people should be used more.

Confidence boosting comes better from other another disabled person. Disabled people’s businesses lose out to the big organisations, small businesses were not invited to bid for a contract. For example Motability has given the contract for teaching disabled learner driver to the AA – but they don’t have any adapted vehicles or the experience I have. So they have to sub‐contract it. But it is taking the choice away from individuals who may prefer their custom to go a disabled driving instructor. I am awaiting the outcome of an interview with a North West Local Authority on doing some work around road safety. For Neil it was the bank: The bank could have been more helpful. For Hazel it was the University: I went to a supposed health and safety training session at Liverpool University, but there was only a bit about health and safety, they were more interested in literacy and understanding the literature around it. And the literacy was practically key stage one. Jeanette suffered from the treatment she got from the Council: I have been knocked back for disability benefit because they said I was too big and have muscles to be disabled! I have Spina Bifida but I am quite beefy, I have muscles and they thought I was not disabled because of that. I have struggled constantly with this. I have struggled for a year to get the riding school on a green site, they were saying no,I was saying where else is it to go? I have struggled with council for all sorts of

planning. They took a year to give us planning permission and so we had no stables or premises for the horses during winter as they were taking so long. We told them this, but they did not listen so then they said oh, you have no premises for your horses! So we had to close over the winter, because they did not listen to us and took so long. For Laura it was not just about start up but on‐going support. She says there are still many things that need attention, for example: People are starting to think about getting wheelchair users into places – but not how to get you out in an emergency. Sometimes they point to the e‐vac chair, but they are no use to me as I can’t transfer. Harold recognises that networks he had built when he was in work were vital in setting up his own business: As previously stated I was a social worker for many years and I have built up a good network of contacts within the local council. This has helped me greatly during my transition to self employment. I feel that if I hadn’t had this network in place that I would have struggled as a disabled person to set up my own company. Phil also did not feel he had needed anything from others: “No, not really I am self motivated.” Similarly Terry could not think of anything that others could have been more helpful with. He was grateful for the opportunity to build his business himself, as the combination of his experience of disability and the way he was treated in his former job had brought him to a low point in his life. It was still hard work to run the business, but he does not regret his decision. His focus is on what he can do rather than what he can’t do. Shameem did not think anyone could have done more:

Nothing. As I have a hearing impairment – a non visual impairment, when I worked with Business Link – all my meetings were face to face and I did not have any access requirements. 6.6. Contribution to the social sustainability of the region

Of those interviewees who spoke about their contribution to the wider community, some talked about the direct impact of their business. All of those that provide consultancy and training referred to making a difference in terms of diversity and equality, for example: It may be being a bit subjective but I think I have approved awareness of disability issues in the area both directly and indirectly and my online newspaper has had quite a lot of positive feedback from people contributing to it directly or people reading articles. (Paul) I have made non disabled people aware of the barriers that disabled people face on a day to day basis. (Ken) With HearFirst ‐ apart from employing people from the North West we have also made an impact in the location that we have delivered training. We have trained and educated service providers so they are more aware of disabled peoples needs and are able to offer a more inclusive service and one which values diversity within their organisation. With TalkFirst – offers business opportunities to Mums who want to work term time and part time. TalkFirst currently has 2 Mumpreteneur franchisees in the North West. (Julie) Laura recognised that her very presence has an impact: I raise awareness without even trying, just my presence means people have to think about

disabled people and our requirements. Having a disabled person who is assertive makes them think. We challenge assumptions, erroneous perceptions get in the way of us doing what we can do. I am an ambassador for disabled people. I know what it is like to live and work in the non‐disabled world as a non disabled person. There is a need to work along side disabled people to empower them. I have been working with a group of disabled people to help them set up their management board. I am gradually withdrawing, but I still need to put them on trackside sometimes. Maria spoke about what she does to support someone who is experiencing mental distress in the community. My business is more about helping people on an individual level (even though training may be in groups) – obviously by helping individuals who have experienced mental distress (and those who support them) survive, thrive and achieve their best – then this is going to have a profound effect on the community. It’s hard to measure, but I know that many of the people I have trained have gone on to set up their own peer groups, self‐management groups and to speak out about mental distress and recovery. Many have also gone into self‐employment, and others have returned to employment after a long break. Course participants have reported increasing improvements in family relationships. Practitioners and Practitioners in training have reported that they have changed the way they view and work with mental distress. If I’ve helped

one person survive, when they would normally have fallen apart or resorted to suicide, then that’s what’s important to me. Richard provides child care for working mothers’ children in their absence, to comfort the parents and support the children development. Children come to our nursery and we have adapted the nursery to the community needs. Regarding the opening hours, we open early so people can go to work. We also open during the holiday so people can continue working. There are only 10 or 12 that come during the holidays but we feel we owe it to the community to do that and provide that service. Terry’s company MIJ is a rare example of a commercial concern that caters for a mixed intake of clients. Disabled people are often integrated into able‐ bodied groups. Where young people are concerned, this benefits every participant as it breaks down barriers and contributes to greater understanding between individuals. It is hard to measure this added value, but it undoubtedly facilitates a more sustainable community. Also being part of the community could be recognised for example a recent venture undertaken by Terry looking into the feasibility of setting up a service to deliver wheelchair basketball sessions to schools/community groups, resulted in the donation of a number of adapted wheelchairs with funding from the Community Foundation for Merseyside. This project is in the early stages, current interest shows a demand for this venture. Matthew’s contribution to sustainable communities is in relation to faith: I try to get across a Christian message which I hope has a positive impact, and the internet shopping goes wider than the North West. I hope to make a positive impact through use of the internet. There were also comments about employment:

I have also over the years employed disabled people on a full time, part time and voluntary basis, thereby playing a small part in improving the lives of disabled people with regards to economic and social inclusion. (Paul) Other comments related to the direct outputs of the business and the business it generates for others: In the course of my work I have had to hire out office space and purchase equipment locally so I have contributed to the economy of the area in this way. (Sarah) The business enables festivals by considering the organising of health and safety and the first aid aspects which we provide for the community groups. This in turn benefits the community, also take into account the people needs in travelling to the festivals, e.g. spending money there, the petrol, buying foods from supermarkets, etc. (Hazel) To pursue my business I have maintained a couple of businesses by buying the machinery and keeping them in business. I sell probably 10,000 tons of wood a year, thereby reducing imports of coal probably by 5000 tons a year. (Charles) Two interviewees were aware of the way in which their business has a direct positive impact on disabled people and their lives: For disabled people learning to drive can mean the difference between getting a job and not getting a job. A lot of disabled people cannot use buses or they live where there are no busses, so I make a difference in increasing the number of disabled people available to work. Attitudes are starting to change, gone are the days when disabled people are told they can’t drive or do other things, disabled people can drive so long as it is safe and given the right adaptations and instruction they are safe. People

can’t be pigeon holed or adapted to fit, the important thing is to find out what people can do and adapt to them. (Mike) I and my father were diagnosed with Centronuclear Myopathy around 1998; I struggled to find information about the condition, so I set up the Information Point (http://centronuclear.org.uk). I believe the Information Point has brought the Centronculear / Myotubular Myopathy community together. It acts as an information portal and gets people talking to one another. (Toni) These experiences show that disabled people can and do set up their own businesses in a wide range of markets. Some accounts show that their business vision was achieved because of the help they got from support bodies. However, there are others that could, and perhaps should have had better and timelier advice. These entrepreneurs struggled unnecessarily because they either were not aware that help was available, or were counselled by people who did not have the relevant experience. The WB2 study shows that disabled people are well placed to facilitate other disabled people to be socially included in line with the current political agenda. However it is not clear whether resources which are being used to progress that agenda are having a direct and positive impact. In particular, whether disabled people who have the skills, knowledge and experience, are still being marginalised. There is little evidence that there is recognition in the mainstream business support community about the role that disabled people have to play in promoting disability equality and removing disabling barriers for disabled entrepreneurs. 7.0

Conclusions

There is, potentially, a large group of entrepreneurs who are encountering barriers which make it too difficult to engage in business enterprise.

Bringing just 10% of disabled people who are currently receiving Incapacity Benefit into productive economic activity through new business start‐ups could both reduce public expenditure, and improve economic productivity. For the North West, this could mean over one‐third of one billion pounds towards narrowing the economic gap with the South. For UKplc, this could mean an improvement of £2.1 billion to the national economy. Disabled entrepreneurs have chosen self employment as a way of gaining greater control and flexibility. They are necessity entrepreneurs with the belief that staying in business is the best way to support themselves. This is why it is hardly surprising to find that disabled entrepreneurs have much better survival rates that the average business. WB2 concurs with earlier findings that disabled people experience discrimination in employment, and are more likely to consider using their businesses to reverse some of the difficulties they experienced before they became entrepreneurs. Disabled people are resourceful and have skills developed as a result of simply trying to cope with the system. They have found ways around barriers and used their skills and experience to set up their own businesses. However, a more aware and supportive business advice system could make it far easier for those that need more encouragement to be successful. There are examples of good practice and strong role models in businesses that are run by disabled people. Where disabled people do not feel obliged to conceal their perspective, their very presence brings about a change in culture and subsequently practice. Disabled entrepreneurs are hidden and hard to find. This is partly because some do not wish to broadcast their disability or do not accept that they are disabled. Others are simply getting on with their businesses and have not registered or networked with any support organisations. This is further exacerbated by the fact that few business support or entrepreneurial surveys monitor the existence of disabled entrepreneurs. Measures of entrepreneurial activity currently interpret disability as ‘not able to work’, and disabled people as entrepreneurs are consequently

invisible and in danger of not being taken seriously by planners or decision‐makers. This assumption derives from individual and medical, interpretations of disability which lead to erroneous assumptions that charitable, rather than business approaches are most appropriate to help disabled people to support themselves. Sources of information on entrepreneurial activity such as the Global Entrepreneur Monitor need to include disabled people as a category of business people who are self employed – not just a reason for not working. WB2 has identified that the marginalisation of disabled people in relation to self employment and entrepreneurship is more extensive than realised. The lack of any significant work on the value of disabled entrepreneurs in economic policy or studies is profound. Disabled people’s exclusion is pervasive in all areas of life, so issues such as transport, education and housing impact on disabled people’s ability to obtain and keep employment of any type. Disabled entrepreneurs contribute to the wider sustainability of society in a number of ways. Some seek to trade with other businesses that are owned by or employ disabled people. Others devote some or all of their business time to addressing societal gaps in the support mechanisms for disabled people. However, the sheer ordinariness of trading normally with a business person who happens to have a disability will also have an effect on some who had previously assumed that disabled meant unable to work. WB2 shows that disabled people the have skills, knowledge and experience to run organisations to support other disabled people into employment – but find the tenders go to organisations which are not managed by disabled people. Similarly Boylan and Burchardt, 2007 :91) found “Commercial interests conflict with the social agenda of Business Links and their sub‐ contractors, thus undermining the diversity objectives of the Small Business Service”. Disabled people are rarely taken into account in international, national and regional policy, research and practice of business enterprise and related activities. It appears to many that disabled people are considered to be outside the remit of business enterprise because the medical, individualised interpretation of disability is dominant. While reports such

as the Prime Minister’s ‘Improving the Life Chances of Disabled People’ have attempted to shift awareness, many public sector attitudes remain unchanged about the sustainable value of this large community. Although participants in this study did not specifically mention issues of the conflict between work income and benefits, this is known from earlier studies to be a barrier to disabled people from off benefits and into employment. Many disabled people may not aware of business support services and they have not been consistently supported in mainstream networks such as Business Link and Job Centre Plus. Those that participated in this study have expressed confidence that this situation is about to change, but policy will need to be linked with sufficient time and resources to enable business advisors to improve their service to the disabled community. Some business support agencies have been able to assist disabled people during their start‐up phase, but generally the experience has not always been a positive one, and quality of support becomes less consistent for those seeking help with established businesses. Some people perceive that certain charities are providing a service from charitable objectives, when in fact they are contracted by Job Centre Plus to deliver Workstep. Business support agencies, including those supported by BERR, need to make a specific effort to target potential disabled entrepreneurs, at least to the same level as people in BME communities to encourage them to set up their own businesses. 8.0

Recommendations

The Wealth Bringers 2 study into the sustainable value of disabled entrepreneurs covered a range of issues. These included an exploration of societal attitudes towards disabled people and, by association, to disabled people that own or would like to set up a business. It documented the experiences of disabled people who did manage to set up their own businesses, and the way they have been able to contribute to society while

making a living. It asked both the entrepreneurs and those seeking to help them how support has been offered in the past, and how it might improve in the future. Finally, it confirmed that the potential for this large and innovative community to contribute to the sustainable success of the region and the country is very high providing that sufficient resources and better awareness are devoted to helping existing and prospective disabled entrepreneurs to be more productive. The study’s key recommendations are: •

All business support agencies should formally and actively adopt the social interpretation of disability and reject the dominant medical, individualised interpretation.

•

Develop learning and awareness programmes on disability and entrepreneurial opportunity for all parts of Business Link and associated business support agencies.

•

Give recognition to the resourcefulness, skills and experience disabled people have, often gained from negotiating and avoiding widespread disabling barriers.

•

Follow the guidance of the Office for Disability Issues to ensure the removal of disabling barriers.

•

Actively encourage entrepreneurship amongst disabled people who want to be self employment.

•

Take action and direct resources toward sustained support for disabled people who are currently running their own businesses. These entrepreneurs could in turn provide role model encouragement for those disabled people who are considering starting a business, but need added confidence to make the commitment. Examples of good practice with positive role models are Breakthrough UK and Idea Tree.

•

Set up fully accessible incubator pods and intense business support and skills development; at least some of which to be under the control of established and experienced disabled people’s businesses.

•

Facilitate disabled people’s participation in vital networks which nurture and support business enterprise.

•

Target disabled people in the promotion of Business Link and other business support services.

•

Add more specialist advisors and partner organisations to the Business Link Knowledge Platform with a view to improving sign‐ posting capabilities.

•

Commission further detailed research into the barriers faced by disabled entrepreneurs. The extent and depth of this exclusion should not be underestimated and realistic time scales should be set.

•

The new NWDA Single Equality Scheme should be used to seek to increase the number of disabled people in the organisation.

•

Work within the NWDA should continue to define the impact that its policies and programmes have on disability diversity in general, and on the opportunities for disabled entrepreneurs in particular.

•

Ensure that disabled entrepreneurs are considered as valid and valued bidders for all contracts and programmes promoted by NWDA. Improve the access to start up loans, venture capital low interest loans, and other secured loans for prospective disabled entrepreneurs.

•

Amend the Global Entrepreneur Monitor protocol to ensure that disabled entrepreneurs are recorded and monitored to enable decision‐ makers to study accurate data sets and plan for their support.

•

Roll out and extend (beyond one year) those bridging initiatives (including Test Trading Pilots) that offer new disabled entrepreneurs the chance to start their businesses without the fear of losing their benefits.

•

Review the Access to Work programme so that it becomes more useful to a wider range of entrepreneurs.

•

Make it a condition for Job Centre Plus Workstep contract holders that they should explain that they are running a government funded programme. This should apply to any other programme.

•

Set up Master a class that brings business support agencies, disability support bodies, and disabled entrepreneurs together to discuss how assistance for disabled people could be improved for those considering a start‐up, active start‐up candidates, and those already running a business.

References

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Appendix 1 - Case Study: Lorraine Gradwell, Chief Executive of

Breakthrough UK Breakthrough UK Ltd is a unique social enterprise which was set up over twelve years ago by Chief Executive Lorraine Gradwell. It is based in Manchester. The business has two basic functions, firstly to support

disabled people on a one‐to‐one basis to be independent and find and progress in work. In addition Breakthrough UK seeks to influence policy and practice in the “wider world” in line with the principles of organisation, (namely, the Social Model of Disability and the Principles of Independent Living). The business was established originally by Manchester City Council through partnership work with local disabled people and through looking for a better way to provide employment support to disabled people. They came up with a plan to have an employment support and training project and to set up a new company controlled by disabled people to deliver this. Lorraine Gradwell said, “They advertised for “somebody to make this happen”, and I got the job. I was then appointed to the “shadow board” and then was invited to stay on in the capacity of Chief Executive”. Breakthrough UK employs 38 people 70% of whom are disabled people. Five of the senior staff are disabled people. The company has an annual turnover of £1million. The main client group is mostly public sector, and some third sector. Breakthrough UK does not have a formal policy regarding the use of local suppliers. Expenditure to run the organisation is mostly paid to local suppliers, and there is a preference for that. There is a conscious effort to use businesses which are run disabled people. The quality of service / product is taken into account, expenditure on suppliers is around £700,000. Business Support

Lorraine Gradwell reports there has been a mix of support to Breakthrough UK and herself as Chief Executive from Business Support agencies. “I have received good support from the Chamber of Commerce, in different guises, with lots of change. One advisor has been with us for probably eight or nine years and understands Breakthrough UK very well and has also learnt a

lot about disability issues and has been very helpful to the company. I have generally been opportunistic and looked for what I needed at any one time. In the early days, I had access to Manchester City Council resources, for example, legal support. Prior to Breakthrough UK’s formation, the business community was represented on the shadow board. I’ve avoided reaching out to established support organisations, as my past experience tells me that they may have a lack of understanding. “I belong to ASCEVO, which provides support, resources and facilities. Some years ago, I went with the then Chair to their AGM/Conference and found that their approach to us as disabled people was patronising and that they didn’t take into account our access requirements. We also entered into discussions with other organisations that might deal with disabled people and we strongly voiced the side of the ‘service user’ and were really patronised about that. Frankly, I thought it disgraceful, and I remain a member for information purposes only, and am not hugely involved. This was compounded last November when the current Chairwoman and I were again attending their AGM/Conference, and we were told that they couldn’t afford a Palantypist, but had organised a BSL interpreter, which wasn’t appropriate. As they couldn’t secure provision of a Palantypist, we decided not to go which cemented my feelings toward them. I get the impression that this is more the norm than the exception, and my perception is that they don’t have an understanding of our employing a majority of disabled people and indeed, the

nature of our organisation. I prefer to seek out “tried and tested” individuals, and I know that recommendations from our Chamber of Commerce advisor can be trusted.” Economic contribution

It is known that disabled people encounter societal and attitudinal barriers, As a Chief Executive the experience of tackling such barriers contributes to skills and business success. Lorraine explains that: “My approach when faced with barriers is one of stubbornness; I don’t give up easily, and like a challenge. I won’t put up with being told “no” or being disregarded. For instance, at a large event, when trying to network, it can be quite hard, psychologically, to look up to people looking down to you. Anything that involves travelling is harder, and inaccessible venues, or part of a venue or event being inaccessible. People don’t expect the CEO of an organisation to be a disabled person, and this is not really helpful. People don’t expect disabled people to be running businesses.” Useful knowledge at the start “Access to independent business advice right from the start would probably have been helpful. I had good networks established in terms of the nature of business. If I’d known then what I know now I would never have taken it on I sometimes think, due to the size of this undertaking. Good job it grew on me! I would have liked business advice from people who understood the nature of our business – they all think we are about “care”!

“The barriers that I have experienced and my response to these were already formed; it can be difficult to achieve credibility as someone who can run an organisation and be in charge of up to 40 people. It gets tedious when I come across the same views that I encountered ten years ago when things should have moved on. My entrepreneurial spirit makes me go out and face it; it’s the nature of the game. I will go out and confront and deal with attitudinal barriers. But there is more to do, extra layers on top of the role. For example, on the whole, it can be harder to network and build links. It can hard to be viewed as credible, a business person, for example, people you attempt to network with patronise you.”

There are seven key areas where Breakthrough UK has contributed to sustainability of communities, and/or the economy of North West England. The organisation has:

1. Employed disabled people who have since gone, moved on in their careers to other jobs. Hopefully they go on to influence other employers. 2. Influences in terms of clients, people who have got jobs, doing things they may have never done, even voluntarily. 3. The variety of ways we influence public sector bodies e.g. local Jobcentre Plus, Connexions provision locally, local strategic partnerships, those kinds of bodies. 4. Influence through Training and Consultancy services – this is too early to see, but it will cascade, hopefully in ways that we can measure. 5. Through operating the building [the Business Employment Venture Centre], we have worked closely with disabled people’s organisations in

Manchester. People First were based here too, so there is lots of cross‐ over at all kinds of levels. 6. Policy Work – we can trace the impact direct to government policies which then have beneficial impact as they flow back out into community 7. In the future, we are planning to work on independent living issues and develop partnerships with other organisations which will have a beneficial impact of raising disabled people’s and non‐disabled people’s understanding of how disabled people can be a regular part of the community and contribute to community. That is one of best things we can do. Appendix 2 - Wealth Bringers 2 Questions for semi structured interview

The University Salford, Regeneration And Sustainable Development Team, have funding from the North West Development Agency to investigate, define and promote the contribution of entrepreneurs who have long term health conditions, are disabled people or deaf people, and have set up businesses in North West England. We would be very grateful if you could spare a few minutes to complete this short questionnaire. We will combine the information we receive from all participants and information you provide will not be attributed to you. We may use specific quotes with a pseudonym, but you can say if you do not want this to happen. It will be used, alongside information gathered from over a hundred other businesses in the region to produce a report in the late spring / early summer. Might be interested in taking part? Do you run your own business, either profit or not for profit? YES E NO

Is the business head office in North West England (regardless of locations of other offices or clients?) YES E NO Do you have a long term health / medical condition, or are you deaf or a disabled person, or similar? (We do not require medical details) YES E NO * If no to any of these then thank you for your time and interest – but we require only people who answer yes to the above questions. If you answered yes to all of those questions ‐ Please describe yourself: Please indicate how you would describe yourself, we do not require medical information, we are interested because we want to find out more about the different types of barriers people face. You can tick more than one box: I have a long term health condition I have a long term medical condition I am a disabled person I am a deaf person I am hard of hearing I have a physical impairment I have a visual impairment I have mental health needs I have learning difficulties

I have a specific learning difficulty (e.g. dyslexia) Other ‐ I describe myself as ……………………………………………………….. Please give us your contact details Surname ………………………………………………………………………….….. First Name ……………………………………………………………………….…… Company name ……………………………………………………………………… Job title …………………………………………………………………………..… ….

Company address (including postcode) ………………………………………...… …………………………………………………………… Postcode …………..…… E‐mail address ……………………………………………………………………….. Telephone number …………………………………………………………………... Please tell us about the business you are now running. Did you set up the business you now work in? YES E NO How did the business come to be set up and or why did you take it over?

What type of business is it (e.g. retail, manufacturing, service, consultancy)? …………………………………………………………………………… ……………

How long have you been running the business? ………………. Years Have you sought help from a support agency, for example Chamber of Commerce, Business Links, Job Centre Plus? Yes during start up Yes since start up If you ticked either or both the boxes above, what was your experience?

Income Roughly what is the annual turn over of the business? £ ………………….…..

Roughly what is your % margin? …….. % Employees Approximately how many people have you employed directly since you set up business in North West England? ………………….. How many people do you currently employ? Part time …… Full time …..… Outgoings / expenditure Roughly, what proportion of your turnover do you spend on suppliers? £ …… What proportion of your supplier expenditure goes to NW business £ ……….. When choosing your suppliers do you have a preference in terms of a) location (e.g. NW England) YES E NO

b) ownership, for example businesses which are run by people with long term health / medical conditions or disabled people? YES E NO Key clients What type of businesses or organisations make up your key client group?

Economic contribution Has your experience of tackling barriers imposed on top of a long term health / medical condition, being deaf or a disabled person, or similar contributed to skills which have benefited your business? Having been through the start up period what skill or knowledge do you wish you had at the start?

Do you give time or money to support community activities, or any other third sector organisations? If so what proportion of your surplus / profit do you give. Apart from those already mentioned what contributions has your business made to the economy of North West England?

Further contact We intend to publish a booklet showing the contribution that people with long term health / medical conditions, deaf people and or disabled people make to the economy. Would you be happy for us to contact you again about featuring your story in this publication? YES E NO There is a research group also looking specifically at start up support, would you be happy for them to contact you? YES E NO E Appendix 3 – Participating Partners in the Wealth Bringers 2 Study

 Blue Orchid Management Consultants Ltd, Suite 103, Cotton Exchange Building, Old Hall Street, Liverpool, L3 9LQ  Breakthrough UK Ltd. B.E.V.C. Aked Close, Ardwick, Manchester, M12 4AN

 Enterprise4all, Blakewater House, Capricorn Park, Blakewater Road, Blackburn, BB1 5QR  InBiz 1st floor, 1a Grey Friars, Chester, CH1 2NW 01244 343790  JKP Enterprises, Tel: 01744 634394 Mobile: 07525 028714 E‐mail: info@jkpenterprises.org.uk or perryjohn1962@yahoo.co.uk Web: www.jkpenterprises.org.uk  mruk research, 40 Princess Street, Manchester M1 6DE  UnLtd, 15 Hallfield Road, Bradford, BD1 3RP  URS Corporation Ltd 4th Floor St James's Building, 61‐95 Oxford Street, Manchester

Additional advice from Merseyside Disability Federation Greenbank College, Greenbank Lane, Liverpool L17 1AG http://www.merseydisability.org.uk/contact.php