Small business pressure group in blast at LEPs

A SMALL business pressure group claims there is a major lack of engagment with its members and the local enterprise partnerships in Greater Manchester and north Cheshire.

The Federation of Small Businesses polled its members in the two key locations and responses from 180 small firms show an alarming level of ignorance about LEPs are and do.

LEPs were created by the coalition government after it scrapped regional development agencies. They are voluntary partnerships between local authorities and businesses to help determine local economic priorities and lead economic growth and job creation within the local area.

Yet when asked the question in an FSB member survey: ‘Do you think your local LEP focuses enough on the needs of small businesses like yours?’, just 1.2% of businesses responded ‘yes’. A further 16.4% answered ‘no’, and 17.1% responded ‘unsure’. The overwhelming majority (65.4%) however, said they didn’t know what a LEP was.
 
The FSB has revealed the results of its research on the day a new joint report with the Centre for Local Economic Strategies (CLES),  suggested many LEPs across the country are failing to work with small firms.
 
The Greater Manchester LEP itself has no sub-group or committee dedicated to the interests of small businesses, nor does it have a board responsible for engaging and consulting with small businesses.
 
The FSB’s regional chair for Manchester and North Cheshire, Richard Gregg, said: “The underlying message in our own regional research, and indeed the FSB national report, is that many LEPs need to reach out and communicate better with small businesses. The fact so few small firms in Greater Manchester even know what a LEP is truly shocking.
 
“LEPs can do this by improving consultation with business representative organisations, by ensuring a board member takes a lead on SME stakeholder engagement, and by issuing communications aimed at small firms in a regular and timely manner.”
 
He added: “The facts are that SMEs have been responsible for four in five jobs created in the private sector between 2010 and 2013, and represent almost half (48%) of private sector turnover.  Small firms will ultimately be the ones creating most of the jobs and prosperity in the private sector, so it is absolutely essential that they are at the heart of LEPs plans.
 
“Why is it that so few small businesses even know what a LEP is? This is something that really needs to be addressed here in Greater Manchester and Cheshire as a matter of some urgency.”

The leaders of both local enterprise partnerships criticised by the FSB said there were structures in place to engage with SMEs.

In a robust response Mike Blackburn, chair of the Greater Manchester LEP said: “In all of the work delivered by Greater Manchester’s Local Enterprise Partnership, we ensure that wherever possible, small businesses are fully considered and represented.

“Via the Manchester Growth Company there is a dedicated business support advisory board which is backed by the GM LEP.

“The Manchester Growth Company through its association with the GM LEP, is tasked with helping to generate new businesses and support the growth of existing businesses. To this end, it has already engaged with more than 12,000 businesses this year through the dedicated work of its component organisations which included the Business Growth Hub, Skills Solutions and MIDAS. For small businesses looking for support in Greater Manchester, in the first instance we would encourage their representatives to contact these organisations.

“In addition, Greater Manchester’s Local Enterprise Partnership holds bi-monthly board meetings of which the majority of each discussion is open to the public and therefore representatives from small businesses if they are interested are very much welcomed and encouraged to attend.”

Christine Gaskell, chair of the Cheshire and Warrington enterprise partnership added: “We are always interested to receive feedback.  We are very conscious that we have 42,000 businesses in Cheshire & Warrington and are always looking for ways to improve how we can engage with them. 

“We have set up a specific forum for our  business representative organisations which meets regularly, and to which FSB is invited.  In addition we have also established a Business Growth Strategy Board whose membership is predominantly from small business.”