To hear from representatives of small local businesses on how well they have been supported by the Council.
Minutes:
The panel received a presentation from Embrace UK, an organisation funded by the Council and set up in 1994 as a grass root organisation to provide information, advice and guidance for disadvantaged groups including migrants and refugees. Their services included business advice, training and development. An outline of their organisational structure was noted. Embrace advised that there were around 8,500 businesses in Haringey, of which 90% employed 10 or less people. SME’s accounted for 29% of the total employment in the borough and in particular BME’s were considered to be disadvantaged.
Embrace were sceptical of the Council’s statements that enterprise grants were available thoughout the borough and that over 750 voluntary and community organisations were addressing community needs through enterprise activity.
Embrace considered that the main needs of businesses starting up and existing small businesses from BME communities were training (planning management, bookkeeping and marketing) finance (gants and low interest finance) and community based business advice, particularly where there could be cultural and language difficulties. They stated that businesses were naturally suspicious of local authorities.
Details of Embrace’s achievements since October 2008 were outlined which included providing one to one support to businesses and residents, supporting newly established business, referring to Haringey Guarantee, organising workshops and events and helping to establish networks for the hard to reach business communities. There was a need of BME small businesses for more community based business support in all categories of skills, financial support i.e soft loans, and more training and networking activities.
In terms of support given to small businesses from the Council they stated that the Business and Enterprise team were always very helpful and supportive, particularly in respect of advice, networking and organising and attending events. As part of their contractual arrangements Embrace attended workshops and events organised by the Council and pan London training. The Council also supported them with staff recruitment. With regard to support in finding premises the Council’s website was helpful and its application was simple. However there was some concern around the limited number of properties available, particularly retail and the market rent was too high for many start up businesses.
In respect of signposting to information the business link website was helpful and for employment the Haringey guarantee was a good scheme. Research and dealing with applications was an area where small businesses required further help. Businesses felt that there was too much formality and more assistance was needed around training, planning, management, bookkeeping and marketing. The Authority’s officers’ should be bridging the gap and more resources were needed to help BME’s with language and cultural differences. Embrace also felt that more help was needed in accessing funding as they considered that much of the existing finance was out of range for many small businesses. Council officers advised that through Embrace the Council had gained far greater access to many small BME’s.
Embrace would like to see more networking amongst small businesses, and more community advice funding. Also they wished to gain the Council’s support in its bid to form a micro finance organisation which would be mainly targeted at the disadvantaged community. They also supported “pop up” shops and would be interested in being involved in any test and pilot scheme if the Council were to pursue this option.
Embrace advised that they were not an umbrella organisation, they were based at Selby Centre, employed 23 members of staff and were funded by the Council, Government, charitable trusts and 2 PCT’s. Their youth service project to run healthy living projects had received lottery funding which Embrace agreed to supply further information on the problems faced by BME’s in securing funding and ideas for improving this, size of their operation, how many businesses they helped, their business plans, how they helped businesses, i.e. successes and their aspirations for the future.
The representative from Tottenham traders expressed concern over the possible duplication of services provided. He agreed to meet with Embrace to discuss further. Also Gary Ince from North London Business advised that they had extensive links with the business community. The LDA paid North London Business to keep a register of all business premises across North London.
Bob Austin from LYST advised that he had 60 studios in Tottenham Green which could be run as “pop up” shops.
It was accepted that there was a need for better co-ordination and joint thinking across business organisations. The Council should ensure that all appropriate information was posted on their website. Whilst Embrace did not consider that they were duplication work undertaken elsewhere they accepted that there was a need for better networking. The view was shared that there was insufficient resources given to the management of projects.
There was a suggestion that the Council needed a support strategy for SME’s. Details of the 10 point leaflet supporting SME’s was requested by Members. Additionally Members requested a briefing on Haringey for Business and why this had folded.
Resolved: