Transcript No Slide Title

Collaborative Strategies to
Support SME Inclusion
Action Planning Meeting
East of England Region
Monday 3rd November 2003
Latton Bush Centre, Harlow, Essex
9.30am – 4.00pm
Welcome
Tony Comber
Harlow Centre for Business Support
Morning Programme
10.00 Welcome, Introductions, Setting the objectives for the day
10.15 Public sector e-procurement - a driver for SME e-trading
Paul Keegen, UK online for business
10.40 Assessing the potential impact of LA e-procurement on the local economy
Martin Scarfe, Newham Borough Council & NePP Programme Board
11.00 Coffee
11.10 The suppliers view, “what about the benefits to us?” - the end-to-end view
Kevin Hart, Sage e-Services
11.25 Case study: collaboration in the South West Region
Dick Willis, CNR
11.50 What’s happening here?
 Essex SME e-Enablement Project - Pete Perkins, Essex County Council
 Harlow - Tony Comber, Harlow Centre for Business Support
 Thurrock - Margaret Gozna, Thurrock District Council
Afternoon Programme
12.30 Lunch
13.45 The challenge, where are we now and where we need to get to
Introduction: Peter Duschinsky
14.00 Action Planning - Identifying and plugging the gaps
Break out groups, plenary
15.30 Final summary: have we got an Action Plan?
Peter Duschinsky
16.00 Close
Objectives for today
• Our objectives today are to develop an Action Plan
which:
– Recognises the impact on B2B companies in the East
of England Region of public sector e-Procurement
– Helps EER pubic sector organisations to recognise
the issue and take account of their local business
communities in their e-procurement plans
– Helps EEDA, Business Links etc to support local
businesses through the changes
– Creates the links to enable this to happen in a
coherent fashion
Morning Programme
10.00
Welcome, Introductions, Setting the objectives for the day
10.15 Public sector e-procurement - a driver for SME e-trading
Paul Keegen, UK online for business
10.40
Assessing the potential impact of LA e-procurement on the local economy
Martin Scarfe, Newham Borough Council & NePP Programme Board
11.00
Coffee
11.10
The suppliers view, “what about the benefits to us?” - the end-to-end view
Kevin Hart, Sage e-Services
11.25
Case study: collaboration in the South West Region
Dick Willis, CNR
11.50
What’s happening here?
 Essex SME e-Enablement Project - Pete Perkins, Essex County Council
 Harlow - Tony Comber, Harlow Centre for Business Support
 Thurrock - Margaret Gozna, Thurrock District Council
Morning Programme
10.00
Welcome, Introductions, Setting the objectives for the day
10.15
Public sector e-procurement - a driver for SME e-trading
Paul Keegen, UK online for business
10.40 Assessing the potential impact of LA e-procurement on the
local economy - Martin Scarfe, Newham Borough Council &
NePP Programme Board
11.00
Coffee
11.10
The suppliers view, “what about the benefits to us?” - the end-to-end view
Kevin Hart, Sage e-Services
11.25
Case study: collaboration in the South West Region
Dick Willis, CNR
11.50
What’s happening here?
 Essex SME e-Enablement Project - Pete Perkins, Essex County Council
 Harlow - Tony Comber, Harlow Centre for Business Support
 Thurrock - Margaret Gozna, Thurrock District Council
Assessing the potential impact
of Local Authority e-procurement
on the local economy in the
London Borough of Newham
Martin Scarfe
Newham Borough Council
& NePP Programme Board
Introduction
• Newham plans to implement e-procurement ahead
of the national target, by 2004
• This will bring savings through increased
transaction efficiencies but will also mean some
consolidation of suppliers
• A large majority of businesses in London are micro
firms (less than 5 employees) and are in low value
sectors
• This is true of Newham’s suppliers
Economic Development
& Community Strategy
• Newham's economy is weak by London’s standards
• There are fewer local employment opportunities,
particularly in high value, knowledge driven
sectors such as finance and business services
• Proposed action to redress these realities include:
−
−
−
−
Improving the skills of the local labourforce
Making the local environment more attractive
Improving transportation
Reducing crime
Policy Context Summary
• SME support policy and economic and community
development policy in Newham are already tightly
integrated.
• Procurement policy however remains somewhat
isolated
• e-Procurement’s intended outcomes – cost savings
– do not have obvious ties to other policy areas
• It is the unintended consequences that are most
relevant and must be addressed through a
‘joining-up’ of policies
Newham Has Fewer Businesses
than its Neighbours
Number of VAT Registered Businesses
0
Barking and
Dagenham
Bexley
City of London
Greenwich
Hackney
Havering
Lewisham
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Agriculture and fishing
Energy and water
Manufacturing
Construction
Distribution, hotels
and restaurants
Transport and
communications
Newham
Banking, finance and
insurance, etc
Redbridge
Public administration,
education & health
Tower Hamlets
Other services
Large Majority of Businesses
have Less than 5 Employees
Number of VAT Registered Businesses
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Barking and
Dagenham
Bexley
City of London
Greenwich
Hackney
Havering
1-4 employees
5-10 employees
11-49 employees
50-199 employees
200+ employees
Lewisham
Newham
Redbridge
Tower Hamlets
London East Showing Signs
of Employment Decline
150
125
100
75
50
1995
1996
1997
1998
1999
2000
2001
Manufacturing
Construction
Distribution, hotels and restaurants
Transport and communications
Finance and Business Services
Public administration,education & health
Very Low Levels of
Employment in Newham
100%
90%
% of population aged 16-74
80%
41.3%
32.4%
33.6%
4.4%
3.4%
56.7%
60.2%
60.4%
London East
Greater London
Great Britain
35.3%
70%
5.0%
60%
50%
6.7%
40%
30%
47.7%
20%
10%
0%
Newham
Employed
Unemployed
Inactive
Newham Residents Have
Fewer Qualifications
60.0%
% of population aged 16-74
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
NVQ4+
NVQ3
Newham
NVQ2
London East
Greater London
NVQ1 + no quals
High Levels of Deprivation
in Newham and East London
66%
100%
78%
Summary analysis of
the match process
Modest match rate
% of
when all suppliers
Value
Matchedare included
Recor d Type (1)
Total
Supplier s
Recor ds
Matched
% Match
Rate
‘Corporate’ match rate
significantly better
% Matched
Tr ansactio % Matched
ns
Value
75%
Subtotal ('Cor por ate Supplier s')
8,110
5,291
65%
77%
75%
70%
Total (All Supplier s)
17,724
17,724
6,780
38%
70%
70%
8%
79%
76%
79%
76%
57%
71%
67%
78%
94%
36%
69%
37%
76%
83%
74%
Entity fir st & last name
Pr ivate Limited Company
Unclassified
Public Limited Company/ Cor por ate
Business Ser vices
Cor por ate Utility
Gover nment
Not-for -Pr ofit
Pr ofessional Ser vices
7,999
2,783
2,464
1,018
684
407
333
245
176
6%
83%
49%
60%
65%
65%
70%
55%
57%
9%
82%
67%
89%
76%
44%
56%
84%
95%
8%
79%
76%
79%
76%
57%
71%
67%
78%
453
2301
1198
613
447
264
233
135
100
Still very significant proportion of supplier
file by value & transaction volume
The Geography of
Newham’s Suppliers
33% of all
suppliers are
physically
located in
Newham
Local Transactional
Supplier Analysis
100%
90%
Size of
Supplier
(employees)
80%
96% of
matched
LOCAL
suppliers
by value
employ
less than
50
people
% of total
70%
60%
50%
40%
30%
500 +
201-500
101-200
51-100
21-50
11-20
6-10
3-5
1-2
unknown
20%
10%
0%
Total Suppliers
Total Transactions
Total Value
Local Supplier Dependency
100%
90%
80%
% of Suppliers
30% of
small local
suppliers
are
dependant
on Newham
for over
20% of their
annual
turnover
70%
75%+
50-75
20-50
10-20
5-9
1-5
< 1%
60%
50%
40%
30%
20%
10%
0%
unknown
1-2
3-5
6-10
11-20
21-50
51-100
101-200
Employment Size
Base: All Newham suppliers matched to the SMB Universe AND located in Newham
201-500
500 +
Identifying Suppliers Most at Risk
We looked for suppliers
with high Council
spend per employee –
these would be most
affected by loss of
Council business
Suppliers
assumed to be
most ‘at risk’
(£ per head)
Distribution of Suppliers by Value of Tr ansactions per
Head
Value per Employee (1)
Unknown
< 250 per Head
250-499
500-999
1000-4999
5000-9999
10000-24999
25000+
Total
% of which
Total Suppliers in
Suppliers
Newham
4,979
7,282
1,541
1,269
1,920
496
294
193
27%
34%
45%
36%
38%
32%
22%
24%
17,974
33%
(1) if unmatched and supplier name is classified as an
Individual, employment defaulted to 1
Generating ‘at risk’ Lists for Action
More than
£10,000
Newham
spend per
head
(ordered by
size of spend)
Entity Name
Names excluded for
Data Protection purposes
Cumulative
Postcode Transaction Value
E15 4BQ
E12
E12 6TJ
E16 4HQ
E6 1HB
E15 4QZ
E12 5JP
E15 4RU
E12 5DH
E15 1BN
E13 9NR
E16 4HQ
E6 6ET
E15 1BX
E7 8PF
E6 1AE
E7 9PB
E15 4EA
E7 9AB
E13 8QB
Base: All Newham suppliers/creditors matched to the
SMB Universe AND located in Newham
£3,705,398
£1,478,562
£1,443,381
£1,200,649
£574,424
£556,995
£532,264
£509,896
£505,710
£490,327
£480,979
£479,619
£392,048
£380,395
£301,069
£299,096
£278,899
£252,884
£249,521
£211,540
Neighbourhoods at Risk
by Vulnerable Employment
Total number of
jobs in
‘vulnerable’
companies in
deprived
neighbourhoods
Neighbourhoods at Risk
(totals for companies at risk in deprived wards)
Ward
Stratford
Bromley
Cathedral
Ordnance
Clerkenwell
Bunhill
Manor Park
Monega
Cann Hall
St. Katherine's
Holborn
Park
Quadrant
Chalvey
Loxford
Total Number
Local Authority of Transactions
Newham
9,494
Tower Hamlets
991
Southwark
2,362
Newham
885
Islington
39
Islington
57
Newham
935
Newham
136
Waltham Forest
27
Tower Hamlets
52
Camden
2,622
Newham
3,666
Islington
1,597
Slough
630
Redbridge
1,305
Total Value of
Transactions
7,018,925
3,136,600
3,033,579
2,342,528
2,246,940
2,239,909
1,779,363
1,617,998
1,594,927
1,396,029
1,216,971
1,210,096
1,098,648
1,048,423
1,001,818
Total Number
of Employees
166
220
210
148
22
66
30
16
70
130
109
79
27
60
87
Transactions
90,000
90,000,000
80,000
80,000,000
70,000
70,000,000
60,000
60,000,000
50,000
50,000,000
40,000
40,000,000
30,000
30,000,000
20,000
20,000,000
10,000
10,000,000
-
10% most
deprived
2nd decile
3rd decile
4th decile
5th decile
6th decile
7th decile
8th decile
Company Location by Level of Ward Deprivation
Number of Transactions
Value of Transactions
9th decile
10% least
deprived
Value of Transactions
Number of Transactions
by Level of Ward Deprivation
Local Economic Impact Assessment
Summary
• Local economic risk is highly concentrated in a few wards, with
Stratford - Newham’s commercial centre - the most vulnerable
• Businesses at risk in Stratford account for over £7 million in
transactions and directly employ 166 persons
• The loss of even part of this capital and these jobs would have
a strong negative impact on an already vulnerable area
• Approximately half of the jobs at risk in Newham are in skilled
occupations (professionals, managers, administrators)
• Losing these jobs would have a disproportionate effect on the
local economy
SMEs at Risk – Conclusions
• We are using the Impact Assessment analysis to target
the most vulnerable companies
• We are working with spending departments to confirm
their suppliers
• We will link up with business support agencies to assist
local businesses with the transition to e-commerce
• The @London pilot scheme will offer an easy route for
SMEs to move to e-trading with the Council and other
corporate and public sector customers
Morning Programme
10.00
Welcome, Introductions, Setting the objectives for the day
10.15
Public sector e-procurement - a driver for SME e-trading
Paul Keegen, UK online for business
10.40
Assessing the potential impact of LA e-procurement on the local economy
Martin Scarfe, Newham Borough Council & NePP Programme Board
11.00
Coffee
11.10 The suppliers view, “what about the benefits to us?” - the
end-to-end view - Kevin Hart, Sage e-Services
11.25
Case study: collaboration in the South West Region
Dick Willis, CNR
11.50
What’s happening here?
 Essex SME e-Enablement Project - Pete Perkins, Essex County Council
 Harlow - Tony Comber, Harlow Centre for Business Support
 Thurrock - Margaret Gozna, Thurrock District Council
Morning Programme
10.00
Welcome, Introductions, Setting the objectives for the day
10.15
Public sector e-procurement - a driver for SME e-trading
Paul Keegen, UK online for business
10.40
Assessing the potential impact of LA e-procurement on the local economy
Martin Scarfe, Newham Borough Council & NePP Programme Board
11.00
Coffee
11.10
The suppliers view, “what about the benefits to us?” - the end-to-end view
Kevin Hart, Sage e-Services
11.25 Case study: collaboration in the South West Region
Dick Willis, CNR
11.50
What’s happening here?
 Essex SME e-Enablement Project - Pete Perkins, Essex County Council
 Harlow - Tony Comber, Harlow Centre for Business Support
 Thurrock - Margaret Gozna, Thurrock District Council
Morning Programme
10.00
Welcome, Introductions, Setting the objectives for the day
10.15
Public sector e-procurement - a driver for SME e-trading
Paul Keegen, UK online for business
10.40
Assessing the potential impact of LA e-procurement on the local economy
Martin Scarfe, Newham Borough Council & NePP Programme Board
11.00
Coffee
11.10
The suppliers view, “what about the benefits to us?” - the end-to-end view
Kevin Hart, Sage e-Services
11.25
Case study: collaboration in the South West Region
Dick Willis, CNR
11.50 What’s happening here?
 Essex SME e-Enablement Project - Pete Perkins, Essex County Council
 Harlow - Tony Comber, Harlow Centre for Business Support
 Thurrock - Margaret Gozna, Thurrock District Council
Afternoon Programme
13.45 The challenge, where are we now and where we need to get to
Introduction: Peter Duschinsky
14.00
Action Planning - Identifying and plugging the gaps
Break out groups, plenary
15.30
Final summary: have we got an Action Plan?
Peter Duschinsky
16.00
Close
The challenge
Where are we now?
• We have les than 18 months to March 2005
• National e-Procurement Project ends March 04
• Some local initiatives in place but little coordination
Where we need to get to?
• Agreed Action Plan which coordinates approach of all
players in support of local SMEs
Afternoon Programme
13.45
The challenge, where are we now and where we need to get to
Introduction: Peter Duschinsky
14.00 Action Planning - Identifying and plugging the gaps
Break out groups, plenary
15.30
Final summary: have we got an Action Plan?
Peter Duschinsky
16.00
Close
Action Plan
• What needs to be done?
• What can each of us do?
–
–
–
–
–
–
Councils
Business Links
Regional bodies
ICT suppliers
Trade Associations, business clusters, alliances
Training Organisations, H.E (and F.E.) Institutions
What can Councils do?
• Initiate and support Action Plan
• Collaborate with neighbouring councils and other
locally based public sector organisations
– ‘Share’ suppliers
– Develop common pre-qualification approach – minimise
effort for suppliers
• Play role in local economic development
– Community Plan
– Best Value – longer-term sustainability of local economy
What can NePP do?
• Initiate regional workshops
• Demonstrate model for Regional Collaborative Action
Plan
• Encourage development of Action Plan
• Raise awareness among local councils and other
locally based public sector organisations
• Offer guidance and standards
WE CAN’T ACTIVATE COLLABORATION
- ONLY YOU CAN DO THAT
What can Business Links do?
• Co-ordinate Action Plan, as main focus for local
business support services
• Work with purchasers to identify and reach local SMEs
that will be vulnerable as a result of public sector eprocurement
• Provide specialist advisers to help transformation (its
not just the technology)
• Operate through brokerage to provide wide range of
services and support
• Provide access to grants and other resources
What can Regional bodies do?
Regional Development Agency
• Provide the necessary leadership and coordination
for Action Plan
• Provide or leverage resources to assist engagement
processes
Learning and Skills Councils
• Help develop and support Action Plan
• Provide resources to support skills upgrading
What can ICT suppliers do?
• Offer support for Action Plan
• Design solutions for joined-up e-procurement to
ensure end-to-end benefits for purchasers and
suppliers
• Provide necessary infrastructure investment for
suppliers eg Broadband
• Provide systems expertise e.g. web-based help
• Participate in initiatives eg e-Business Clubs,
Technology Means Business accreditation
What can Trade Associations,
Business clusters, Alliances etc do?
• Ensure their SME members’ interests are
represented in Action Plan
• Use their influence with their members to disseminate
key messages
• Provide services where relevant to help SME
members through changes
• Offer mechanism, where relevant, for SME suppliers
to collaborate to engage with public sector supply
What can Training Organisations,
H.E (and F.E.) Institutions etc do?
Training Organisations (incl learndirect)
• Enable suppliers to acquire or enhance skills needed to
implement new technologies and processes
• Offer variety of learning approaches – traditional to
online, including at workplace and at learner’s own
pace and schedule
Higher Education and Further Education Institutions
• Assist with skills development
• Assist with process and change management
• Offer students for short term projects [work experience]
Action Plan
Break out groups
1. Identify the gaps (20 mins)
2. Consider what needs to be done to plug the gaps
– by whom
– by when
3. Plenary
(30 mins)
(30 mins)
Afternoon Programme
13.45
The challenge, where are we now and where we need to get to
Introduction: Peter Duschinsky
14.00
Action Planning - Identifying and plugging the gaps
Break out groups, plenary
15.30 Final summary: have we got an Action Plan?
Peter Duschinsky
16.00
Close
Action Plan
Have we got an Action Plan?