2 Invest NI – Role and Remit Invest NI works directly with those manufacturing and tradable services businessesin Northern Ireland which have the potential and ambition:to export;to improve productivity;to become more internationally competitive;Attract high quality inward investment;Invest NI Corporate PlanTo stimulate…wealth creationfor Northern Irelandfrom international marketsthrough competitive businessesFocus on Productivity (wages/salaries + profits)Focus on ExportsFocus on Innovation
3 Issues Many business owners face a range of challenges: Banks are attempting to tidy up their credit portfolios.Continuing economic decline resulting in reduced demand for products and services.Upward trend in insolvencies and bankruptcies.Many businesses with investment plans lack the confidence to implement them.This has impacted on Invest NI’s Work in Progress and budget drawdown.Banks continue to tidy up their credit portfolios.Many are experiencing a significant decline in the demand for their products and services and the general sluggishness in economic activity is having an adverse impact on supply chains across a number of sectors.There is an upward trend in insolvencies and bankruptcies with the majority coming so late in the cycle that any sort of restructuring or rescue is very difficult.As a result, many businesses with investment plans lack the confidence to implement them.
4 Invest NI ResponseComprehensive review of our existing products and services.Consideration given to new products or services.Actions have been quickly implemented under a number of themes:Boosting Business Through JobsBoosting Business Through ExportingBoosting Business Through Research and DevelopmentBoosting Business Through New TechnologyBoosting Business Through SkillsWe have reviewed existing products and services to see if, and how, we can make them either available to a wider business base, or make them easier for businesses to benefit from.We have considered what new products or services we may be able to introduce to help business.Actions which can be quickly implemented have been pulled together under a number of themes:Boosting Business Through JobsBoosting Business Through ExportingBoosting Business Through Research and DevelopmentBoosting Business Through New TechnologyBoosting Business Through Skills
5 Campaign OverviewThe campaign will be branded Boosting Business with individual treatments for each elementThe campaign will be branded Boosting Business with individual treatments for each elementThe overall aims of the campaign are to:launch an initiative which communicates how Invest NI is providing a proactive response to the current economic challenges and businessesincrease awareness of the range of support available from Invest NI,generate higher levels of referrals and Work in Progress,and enable Invest NI budget to be utilised to the maximum extent in support of business in
6 The Jobs Fund Measures 2011-2015 Promoted JobsCreated Jobs1. Grant for Business Starts in Neighbourhood Renewal Areas (NR)1,5002. Increased Support for Social Enterprise3403. Grant for Business Start to Young People Not in employment, education or training (NEETS)2804. Business Growth Programme (Export Starts, Global Starts & Existing Businesses)150Jobs Fund SFA employment grant support across a range of sectors including Contact Centres, Food Processing and Knowledge Process Outsourcing3,1001,7306. Employer Subsidy (DEL)Total Budget £18.83m5,3704,000Avoid people becoming permanently detachedStimulate job creation in the short term - Job - Better Job - Career
7 The Jobs Fund Measures The Jobs Fund – SFA Employment Grant Manufacturing and Tradable Services businessesNormal Invest NI Client Eligibility Criteria AppliesProjects where Median Salary (mid point) is below the Private Sector Median of £18,283Employment Grant paid out in one instalment after 1 monthJobs must be sustained for 5 yearsAnnual Basic Wage (£)Maximum Employment Grant (£)Small Medium Large< £13,999Up to £3k, £3k £3k per new job£14,000 – £15,999Up to £5k, £4k £4k per new job> £16,000Up to £7k, £6k £5k per new jobAcceleration of The Jobs Fund : Amendment of the £2,000, £3,000 and £4,000 banding to £3, 5 & 7l for small businesses;Manufacturing and Tradable Services businessesNormal Invest NI Client Eligibility Criteria AppliesProjects where Median Salary (mid point) is below the Private Sector Median of £18,283Employment Grant paid out in one instalment after 1 monthJobs must be sustained for 5 yearsThe Jobs Fund : full grant payable from one month of the project startThe Jobs Fund : slimmed down application and casework submission for offers up to £50kThe Jobs Fund MeasuresGrant for Business Start in Neighbourhood Renewal Areas (NRA)£1K grantGrant for Business Start to Young People Not in Employment, Education or Training (NEET)- £1.5K grantIncreased support for Social Enterprise- Area Based Approach/Franchising/LTUIncrease flexibility of GAP/De Minimis for larger companies where appropriateCPJ derogation on offers up to £100k for SME’sIntroduction of new “Focus On Finance” (ASF2) initiative for wider business base offering one day training and follow-on mentoring support.
8 Invest NI Eligibility Criteria Established Businessesmanufacturing and internationally Tradable Servicescapability to grow in export marketsBusinesses have or within 3 years will achieve:sales of over £100,000 per annum; andexternal sales (i.e. outside Northern Ireland) greater that 25% of turnover or greater than £250,000 per annumFor service-type businesses:knowledge intensive with a minimum gross margin of 20%.(Generally excludes locally focussed businesses, Retail, Primary Agriculture, Wholesale/Distribution)
9 Boosting Business through Exports Already ImplementedProposedIn Market Support – Trade Advisors in Brazil, Canada, China, Dubai, Germany, India, Russia, South Africa, Saudi Arabia, West Coast USA, London (construction)Increased contribution to explore marketsadditional days in market, while on a Trade Mission, to visit other regions.funding for return market visits between missions.free market research for first time visit to international market.Key Exhibitions support (Solex)Inward missions – assistance for groups of buyers visiting NIReviewing options to provide legal support for advice on export contracts and translations services.Appoint a specific resource to drive supply chain and FDI opportunities for the renewables sector.Road show on export financing options (UKTI/ECGD/Banks/Invest NI).
10 Boosting Business through R&D Already ImplementedProposedEnhanced R&D ‘Open Call’ for small businesses (<50 employees)Market driven R&D ‘Open Call’ in small/ medium sized businessesRoll-out YIE (Young Innovative Enterprise Support) which could offer up to £1.25 Million over a three year period to high technology companies under 6 years old with R&D intensity of over 15% of turnover.
11 Boosting Business through Technology Already ImplementedProposedBroaden and enhance technical support on project support from £3,000 to £5, On TDI increasing the maximum project cost eligibility from £10,000 to £15,000.Innovation Voucher pilot call for Food Sector to invite applications. Review eligibility criteria with a view to broadening.Introduce IP starter pack and enhanced IP support (to be launched 6 Dec)Increase commercialisation support for companies post research, product development and innovation activities.Widen scope of MIS Scheme to fund additional elements.Website support for companies that can demonstrate export potential within wider business base alongside internet marketing programme.From , delivery of a new capital grant scheme to support installation of water and material efficient processes and equipment.
12 Boosting Business through Skills Already ImplementedProposedConsultancy and Mentoring support for SMEs at support rate of 49%.Software Testers AcademyRoll out enhanced management and leadership support.Provision of higher support levels for BITP (Cross Training, New Skills Development)Launch of BITP 2 (High Quality, High Value Added Growth Projects).Capital Markets Network – Post-graduate Training InitiativeI will handover to my colleague Paul Aldridge will provide additional information on the Boosting Business through Skills programmeSoftware Testers AcademyCapital Markets Network14 week post-graduate conversion programme for ICT (non software), STEM and General graduates (non-STEM) to enhance graduate supply (and skills) within the Capital Markets sector.The 5 companies in the Network - NYSE Technologies, Citi, First Derivatives, Fidessa and Singularity currently run their own induction and training programmes at considerable expense.The plan is to widen the recruitment pool through a collaborative approach, to run a 14 week, common post-graduate conversion programme.Delivered by private sector trainers from Neueda and delivered in QUB and UU facilities;Open application, supported by psychometric testing – building on the experience of the STA;Trainees are paid (£16k). Recruited, supported and mentored by the participating companies;Up to 300 places will be provided over 3-4 years. Each course will be c.30 trainees;Possible launch Late Nov/early DecLate Jan to early Feb – First training course runs.
15 Business Improvement Training Programme BITP IntroductionInvest NI's Business Improvement Training Programme (BITP) can help you improve your business performance by providing advisory and financial support for training and development activities. The programme is aimed at improving company competitiveness through raising the skill levels of your managers and workforce. How will it help me?By improving the skills of managers and employees your business can:Increase productivity;Improve products and services;Reduce waste and overheads;Increase profit and turnover; andHave a more flexible and motivated workforce.
16 Intervention - Invest NI Lean Advisors – Train and mentor company champion on specific projectsTwo day Lean WorkshopValue Stream MappingOngoing support throughout projectHR Advisors – provide expert advice and guidance on:Recruitment issuesDisciplinary issuesPerformance Management issuesLeadership issuesPeople Solution Workshops
17 Intervention - External Non-Executive DirectorsThis initiative allows businesses to access and benefit from the vast intellectual capital resources of experienced and independent non-executive directors.Interim ManagerThis programme allows you to hire an experienced manager on a short-term contract to tackle a specific business issue or problemQuestions?