At the present time there is a great deal of speculation about the role of the LEPs in economic development, and it seems likely that greater input from business can only make economic planning more realistic. On the other hand stimulating growth from those sectors which have the most potential, primarily established SMEs and secondarily start-ups, will require pragmatic measures to make sure that they get the support they need.
Now here’s the truth of the matter
There is no doubt that better availability of finance is essential, but as Group member Peter Watson recently said to me there is an equal need for good, sound strategic advice which can often open up new horizons for small companies and bring about the kind of economic growth which is needed. He went on to say that delivering this advice does not need some public sector broker, but the private sector business support community is fragmented these days and many SMEs do not have the time to shop around. Therefore the formation of a team of mentors based within LEPs, or possibly the new growth hubs, could provide the kind of focal point to which SMEs can turn.
He is well aware of course that Government is equally enamoured of mentoring having announced a national scheme last November which will provide an on-line portal from which companies can seek a mentor. As currently envisaged a wide variety of professional bodies and other social enterprise organisations will be listed and the SME will have to choose a body which seems most appropriate.
But the problem is this
It remains to be seen how effective this model will be and whether there will be any national or local funding to support the Government scheme. At this stage it would be prudent to not expect any; therefore SMEs will have to pay for what they get.
On the basis that most small companies turn to people in their local business community for advice he feels a local team of mentors may be more likely to deliver the service which is needed. It is in all our interests to see our economy become stronger, and most people have a positive motivation to see their local communities thrive. Business mentoring is one way of sharing knowledge and experience to mutual benefit. Would you agree with him?
