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A PLEASANT CHAT WITH HMRC, TECHNOLOGY PERMITTING


So we have hit the year sliding, some of us even managed to get to the office. There is no denying the fact that the UK is not up to it when it comes to dealing with snow, something which the FSB is calling for a major national conference to have a look at. I take full responsibility for having a rear wheel drive car and if it was not for the fact that my broadband connection was a thousand times faster snow and ice or not, I would not have been able to carry on working relatively effectively. Business has taken another battering, but have we learned any lessons?

Broadband connectivity is critical, at the right speed and the right price. We have only have to look at Finland to see the investment that country is putting into its communications infrastructure – why should Kent be any less endowed? One of the vital points here is the expense and the contention ratios. It is all very well to say you can have the speed, but if you are buying through a national provider – or getting it for free, then the price of the overall package may just be acceptable, but is the service. In a situation like this we have to look at the contention ratios – how many people are sharing the same connection at the same time as you are? My question has been, and remains, what can KCC do to help here? Several years ago, on the Kent Broadband Committee), we haggled with BT over opening up access; now years later we have not kept up the pressure and looked forward sufficiently at the new superfast capabilities or the spare capacities that can be found in our schools and other public institutions that could possibly be sold on. We have been talking, but frankly it has been offline for some time. One excuse has been that it may contravene State Aid regulations, but please, someone must have the wit somewhere to find a solution.

The broadband link brings me nicely into the comment about the HMRC. Small businesses are being firmly pushed along the online route. Financial encouragement, extra time to complete returns you name it. But it still hinges around the quality and consistency of the service we get. In endeavouring to complete the company’s first online VAT return I ended up not knowing whether I had successes or not. It was only when I got “The Letter” through the post I knew something had gone wrong. Putting that on hold for the moment, a few days ago I also had to talk to HMRC to clarify the payroll returns, and on both of these occasions I was taken aback at the helpfulness and indeed friendliness of the person at the other end of the line. I can only hope that this has been at the result of some focussed training and that someone somewhere has at last come to the realisation that businesses should not automatically be treated as crooks and that human error, when under the considerable pressure of running one’s own business, can happen.  

SURVIVAL BEYOND THE TALKING


The beginning of a new year brings with it the hope of fresh starts and the opportunity to wipe slates clean and begin with a renewed vigour, putting into place all those actions we promised ourselves and really start making a difference – doesn’t it?

Normally I look forward to the start of the year because for one thing I have had a break from the pressures, but this last Christmas will have seen a short lull which doubtless will have made some difference but not long enough, a few days quickly brings home the harsh reality of the fragility of the economy to us. I have almost invariably been a positive and optimistic person, and running a business either for someone else or myself for some thirty years should have taught me a lesson or two. It has. At our “small” and in particular the “micro” business level we have the opportunity to be flexible and unencumbered by overt internal regulation and bureaucracy.

The Micro businesses are all around us, they are the very grassroots of the economy, in 2008, SEEDA figures indicate businesses with 1-4 employees represented around 7% of the southeast turnover, the FSB thinks it is much greater with thousands almost unseen below the VAT threshold. If the economy as a whole is to survive, then we have to ensure that we have sustainability at this level, the diminutive descriptor should not disguise their true value. We do hear about the innovative entrepreneur with an exciting new approach to business, but how much of that is focused around the celebrity values of Dragons Den and The Apprentice. They make great news, but in no way are they the norm. Where is the X factor in everyday business? Where is the hero worship of these stalwarts that hang on in there day after day running their businesses come hell or high water?

The FSB has just completed a major piece of research which demonstrated that more than half of businesses have resisted the worst of the recession by innovating, creating new products and services, a fact that I have found myself amongst the members I meet. The 2009 survey reveals that over half of businesses introduced new or improved products and services and that again over half will continue this momentum and are keen to grow despite tough times. Just under one third (27%) respondents said their profitability has increased over the last year and 30% said sales volume had gone up.

We fundamentally no longer have the luxury of just talking, it is action that is the key to 2010. That goes for all of us, either in business or government at all levels. We should not let up on the talking but we have to do more, it needs lead directly to delivery, and the delivery needs to be now – not tomorrow. We need to work together in collaborative networks as indeed the whole is greater than the sum of its parts.

This year will see a massive round of talking and promise making, yes it’s an election year. The one message we need to get over and over again to those we elect to look after our interests is to keep it simple, keep it proportional and do not stifle the innovation and vitality of our small and micro businesses. I wish you all a happy and prosperous new year.

PUTTING THE POWER INTO PARTNERSHIPS

PUBLIC PROCUREMENT – FINDING THE POWER IN PARTNERSHIPS

Since the Budget Report from the Chancellor and in that were the promises of certain measures in support of small business. If we needed any indication as to the growing publicly expressed value Government is putting on small businesses, we need look no further. A £1 billion support fund is being put on the table. The ideas and drive for this came significantly from the FSB whose policy team is working with the Treasury to ensure that delivery will be effective.

As a member of the South East Economic Delivery Council sitting with the Regional Minister and Senior members of the Development Agency and Government Office, I know at first hand the concern that is driving very serious moves to support small businesses.

That of course is only part of it, the rest is up to us, we have to innovate and build positions of strength to ride the storm. In my day job, as a marketing consultant for over twenty years for a major player in door and window hardware manufacture, I understand the way the industry works and the ways in which we have to formulate new approaches to business development. Part of the Government solution is to ensure that the construction industry does not suffer, it can stimulate the sector by maintaining the best levels of housing and public works possible. In public sector procurement, there are many hoops that have to be jumped through to win contracts. The FSB is lobbying hard for simplification of the Pre Qualification Questionnaires for one thing, but you will have to ensure that you have all the facts and figures required at your fingertips with your policies in place, that includes essentials such as Quality Management, Health and Safety, Equal Opportunities, Environmental Management and nice to haves such as Diversity Policy, Sustainable Procurement and an Ethical Policy.

Looking at these policies, one that is rapidly emerging is that relating to environmental issues. Being green is a growing demand from the public contracts and indeed from private purchasers as well, although here nothing can beat best value. This is where we all need to have policies in place collectively, for example in the window fabrication industry where fabricators especially need to look to strong reliable partnerships that can help them assemble the required evidence right through the supply chain. Manufacturers are achieving accreditation in the various standards, but in a bid for public work, it has to be demonstrated from top to bottom. So for a window fabricator you will have to look to your profile, hardware, glazing manufacturers, even the spacer bar, to play their part. However when it comes to meeting standards such as for Energy Efficiency, only the window fabricator can achieve this, as it is the assembly of all the components within the fabrication process that counts. All these are the drivers leading to quality partnerships and collaboration which surely must be the way forward.

Roger House, Managing Director of Big Solutions Ltd and SE Policy Chairman FSB.

www.big-solutions.co.uk  www.fsb.org.uk

THE DIPLOMAS, MORE ON EDUCATION AND BUSINESS

Diplomas go to work 

One of the most exciting elements of the Diploma curriculum is the access it will provide for young people to high-quality work experience.  However, this new approach poses a number of significant challenges for all those involved in Diplomas.

 

To help provide guidance and inspiration for all those now delivering Diplomas – and those who are planning to start offering them in 2009 – Education Watch has spoken to Education for Enterprise in Kent, which is working closely with Consortia in Kent and other areas in the South East to co-ordinate structured work placements for Diploma students in the area.  Focusing initially on the Creative & Media Diploma, Education for Enterprise will soon also be supporting Consortia offering several other Diploma lines.

 

Relieving the pressure

A valuable resource for Consortia grappling with the challenges of delivering Diplomas for the first time, organisations like Education for Enterprise can provide comprehensive support and useful links between Consortia and business.  Thanks to its direct access to local businesses, it can free up teachers’ time to focus on delivering the breadth of the new curriculum in the classroom, while Education for Enterprise looks after the potentially time-consuming task of finding relevant businesses to work with. 

 

Roger House, Managing Director of Education for Enterprise CIC, has more than 30 years’ business experience.  Roger says, “The prospect of approaching employers about work experience can be intimidating for some teachers, and co-ordinating the approach can be very time-consuming – just as they are familiarising themselves with the broad content of the new Diploma curriculum.  Many teachers are looking for help to recognise which businesses have the right qualities to work with Consortia.  They also want advice about how to use the business’ time effectively to make sure the partnerships are sustainable.”

 

But help is on hand.  As Regional Chairman of the Federation of Small Businesses (FSB) in Kent and Policy Chairman for South East England, Roger has a deep understanding of employers’ needs and what’s needed to encourage them to engage with Consortia in their area.

 

Adding value for all

With around 90% of UK businesses comprising Micro or Small Enterprises (MSEs), this army of entrepreneurs can offer young people a vital insight into commerce.  

 

“The vast majority of UK enterprise is made up of small businesses rather than large multinational organisations, and it’s important that we engage effectively with the small business community. This requires improved communication from schools and an understanding of the costs involved for the businesses that engage with Diplomas,” says Roger. 

 

“We hope that the Diploma curriculum will give young people with a clearer understanding of a typical workplace in action,” he continues.  “Well-structured work placements will help young people start building a strong work ethic that prepares them for their future careers – and that is good news for business.”

 

Roger believes the key challenges of the work placement elements of the Diploma curriculum lie in making the interaction between business and young people a valuable and worthwhile experience for all parties.  He comments:

 

“Those young people with a positive attitude to their work placements, who are keen to make a difference in the workplaces they visit, will clearly benefit the most from this element of the Diploma.  But many young people who haven’t visited businesses previously will feel unsure about how they can add value during their work placements.”

 

To help prepare young people for work experience, organisations like Education for Enterprise host workshops in schools.  “We aim to help young people start thinking about how to make the most of work experience placements before they arrive on their first day,” comments Roger.  “They really appreciate being given practical tips on how they can add value to the organisations they visit, so they can make the most of their experience.”

 

The measure of success

Roger believes that Diplomas have the potential to change the way employers recruit in future, and create parity on the perception of the value of academic and vocational qualifications.  However, he adds:

 

“These are exciting times, but the introduction of Diplomas won’t automatically change perceptions or alter employers’ approach to recruitment.  To make this happen, we need to work together to communicate at every opportunity the value of Diplomas and work experience placements to business.  The sign of success will be employers signing up to participate year after year – this will show their clear recognition of the opportunities that the work placements offer, both for young people, and for UK plc. We hope to see other benefits too, such as employers taking on more Apprentices.”

 

For more information visit www.smallbusinessambassadors.co.uk or email info@smallbusinessambassadors.co.uk

ENGAGING BUSINESS WITH EDUCATION

The pressures coming from government in its strive to modernise and redefine the way our young people are taught may be exciting and vital routes to improving achievement, but has the process really been thought through as regards the demands these new Diplomas put on business? 

Diplomas in my opinion offer a very interesting route to learning. For the first time there is a definite link between the academic and the vocational teaching elements, apart from the Apprenticeship route. Business has been crying out for better literacy, better numeracy and better soft skills – attitude, timekeeping and communications skills. With the Diplomas we have a process that sets out to link business with school and college as an integral part of the process. Where it also leads to is direct work experience for students which have been proven to be a vital element in the learning process, providing a “glue” to knowledge retention and as an inspiration to future career choice. 

In attending the third annual conference on Diplomas in September, I was sadly and inevitably struck by the lack of businesses in attendance. Hardly surprising, business does not yet know what is going to hit it in terms of demands from the teaching establishments. 

The Diplomas set out to provide upwards of 100 guided learning hours per student, some as much or more than 160 hours. Each student will be asked to focus on the business sector that the Diploma is set in, for example Creative and Media, together with the functional skills – English, Maths and ICT. Whereas development has been started with the Sector Skills Councils, in my experience little is known of them or seen of them in the day to day life. 

As small business people, we are working closely with schools building up a business engagement process appropriate to the needs of both educators and employers, but driven by employers. As most of the economy is made up of Micro or small businesses, this army of entrepreneurs could offer young people a dynamic insight into enterprise and commerce. It is important that we engage with them effectively and this requires much improved communication from not just the Education Authority but the schools and education practitioners within them. The key challenge of the work placement elements of the Diploma lie in making the interaction between business and young people rich in content for students and easily managed and absorbed into the working day for business. 

These are interesting times, but the introduction of Diplomas won’t automatically change perceptions or alter employers’ approach to recruitment.  We need to work together to communicate at every opportunity the value of Diplomas, Apprenticeship schemes and work experience placements to business.  The sign of success will be employers signing up to participate year after year. 

We are playing our part through our Community Interest Company, Education for

Enterprise, in forging new and innovative links between education and industry. We benefit from the fact that as a senior part of the Federation of Small Business lobbying team, we move seamlessly from Year 7 in a local school to Directors of Sector Skills Councils and indeed the Education Minister’s office itself. The message we take to Government is however a double edged one, yes we think this is in principal a good idea, but has anyone stopped to really work out the number of hours of business commitment required across all the Diploma subjects to make this an effective proposition? Furthermore, out of the whole process, what is the only part that is not funded? Business engagement. 

With that in mind we have set out to make positive contributions from business. We have been building up a fast growing group of Small Business Ambassadors, are currently working with one of the Creative and Media Diploma Groups as business advisers, and late breaking news, we will soon be opening a commercial office operating from a local school. Binding this into the teaching curriculum we will be able to bring business and student together across a long-term work experience programme which we are confident will add benefit to all. 

 

For more information visit www.smallbusinessambassadors.co.uk or email info@smallbusinessambassadors.co.uk

WORKING IN THE SCHOOLS

We have developed a programme called Small Business Ambassadors, taking business people into the schools. Have a look at www.smallbusinessambassadors.co.uk.

This is currently working in Kent and is shortly set to expand across the southeast.

 The key issue here, is business “engagement” with the public sector. Many of the business/education relationships are managed by local authorities or other public sector based bodies, we are setting out to have our programme fully owned by the business sector in dircet partnership with schools, colleges and universities.

Merry Christmas and a Prosperous New Year

During the next few months we will be developing research into the value of the small to micro business seeking to establish best practice in the development of ideas that can add value to the vibrancy of this part of the business community.

We are looking for your experiences, your views and ideas on how to build and sustain buying groups, supply chains and importantly consortia.

We will also look at the whole process of public sector procurement, the issues, the successes, the stumbling blocks. We will need your comments on all areas, is it too much like hard work? Is it a fair process? Is it too complicated? How would you want it set up?

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