Business Link next for Government’s axe

FOLLOWING the demise of Regional Development Agencies business advisory service Business Link looks as though it could be the next quango on the coalition Government’s hitlist.

Reports yesterday suggested that Business and Enterprise Minister Mark Prisk was about to wield the axe on the organisation.

Speaking to Real Business magazine Mr Prisk was quoted as saying: “The regional Business Links have spent too much time signposting and not enough time actually advising.

“We’re going to wind down the Regional Development Agencies, and as part of those, we’ll be winding down the regional Business Link contracts.”

Business Link West Midlands, managed through RDA Advantage West Midlands, has enjoyed something of a chequered history attracting criticism and praise in equal measure.

Many start-up businesses have welcomed the support the organisation has been able to give. However, many established businesses have criticised the poor quality of business advisers and claimed the organisation has failed to deal adequately with their needs.

To replace the current set-up Mr Prisk said the Government was proposing a two-pronged approach, led by a state-funded online service and the private sector.

He said more services would be delivered online and there would also be a call centre-style facility, while better use would be made of private sector providers such as the chamber of commerce network.

“The vast majority of private businesses don’t use public services [for advice]. We need a 21st century approach to business support,” the Minister was quoted as saying.

The use of private sector advisers was a better fit with the Government’s new system of Local Enterprise Partnerships, added Mr Prisk.

The joint public-private sector LEPs are set to replace the RDA network and further details on their set-up will be released in a White Paper later in the summer.

Mr Prisk said the idea that the Government should replicate the provision of a business advisory network was “nonsense” as well as wasteful and time-consuming.

Figures suggest that around 80% of businesses prefer private advisors because they usually have a track record of success rather than in the public sector where advisors are not paid on results.

The Minister said checks would be built into the new system to ensure small businesses were not priced out of the business advice market.

“Remember that the vast majority or private businesses just don’t use public services. They use the free things that are available to them anyway.

“For example, if you talk to members of Ecademy they already use their business social network to secure advice and ideas for future contracts anyway.

“We have to think intelligently about enabling effective business support rather than about effectively running it,” said Mr Prisk.