Coventry & Warwickshire LEP Consultation Event, 10 December 2013 European Structural and Investment Strategy: SME Competitiveness Strand Howard Andersen – Coventry & Warwickshire Chamber

Subjects to be Covered Context Investment priorities Proposed funding Issues for consideration

Context (1) UK Government’s ‘Plan for Growth’ recognises the crucial importance of a dynamic SME base in making the UK competitive in the global economy At the same time the Plan acknowledges the continuing importance of a competitive manufacturing sector to the UK economy In Coventry & Warwickshire, the SME business base exhibits a mix a strengths and weaknesses

Context (2) Strengths Manufacturing is a significant employer with a workforce of more than 45,000 (14% of the total compare to 10% nationally) A significant number of major global manufacturing companies, supported by research and innovation assets, are located in Coventry & Warwickshire – and local SMEs feature prominently in their supply chains Recent emergence of a digital technologies cluster, largely characterised by SMEs. Again, clear link with research and innovation facilities Also, presence of a strong business and financial sector

Context (3) Weaknesses Lower than average productivity (including some manufacturing sub-sectors) Vulnerability of SMEs with relatively few employees (less than 5 especially) and low turnover (less that £250,000) Until recently, falling levels of new business formation and a high rate of churn between business start up and business failure Investment Priorities build on aforementioned strengths whilst addressing these weaknesses

Investment Priorities (1) Supporting New Business Formation Providing tailored external business information, advice & guidance for new business start ups Supporting start ups through investment readiness and access to finance support Addressing capacity and skills issues that can act as impediments to starting a business Providing specialist support for enterprise start up and growth (for example social enterprise)

Investment Priorities (2) Supporting Established SMEs Increasing SME productivity through external business advice (including opt in from Manufacturing Advisory Service for enhanced local service) Supporting SME growth through investment readiness and access to finance support Supporting innovation in SMEs through collaborative mechanisms

Investment Priorities (3) Supporting Established SMEs (continued) Assisting SMEs to access new markets by enhancing the support available to exporters (including opt in from UKTI for enhanced local service) Addressing SME capacity and skills issues that act as impediments to growth

Proposed Funding Business Start Up ERDF: £5,992,000 Match: Public/local: £4,494,600 Don’t Yet Know: £1,498,200 Supporting Business Growth & Investment ERDF: £13,057,700 Match: Public/local: £7,457,700 Opt in UKTI: £400,000 (two years) Opt in MAS: £400,000 (two years) Private: £1,911,250

Issues for Consideration Do the investment priorities cover all intended activities? Is the balance of funding across the investment priorities correct? Are the sources of match funding the right ones? Can others be identified?