enterprise framework version 4

A Framework for Increasing the Number of Entrepreneurs in the North East: 

A Framework for Increasing the Number of Entrepreneurs in the North East

Goal: 

Goal To increase business stock we need to do the following in a coordinated, integrated way Develop the market for enterprise Develop the capacity of individuals to become entrepreneurs Develop and support businesses from prestart onwards

Slide3: 

Market Development Individual Development Business Development Whole Population Thinkers Serious Thinkers Doers animation transformation Number of people targeted

Develop the Market : 

Develop the Market Objectives Create awareness of enterprise and self employment as an option Encourage enterprising behaviour Outcome Interested people who can be engaged further through animation activity

Develop the Individual : 

Develop the Individual Objective Create a large and diverse supply of individuals capable of building successful enterprises Outcome An increase in the number and diversity of people seeking mainstream start up support

Develop the Business : 

Develop the Business Objective Provide an accessible, appropriate, coherent and consistent business support service Outcome Strong, sustainable, successful businesses

Current Focus: 

Current Focus We are having reasonable success at creating ‘thinkers’ and developing an infrastructure that supports the ‘doers What we have been less successful at is converting ‘thinkers’ into ‘doers’

Mind the Gap…: 

Mind the Gap… A (transformational) change in capacity is necessary to develop people into entrepreneurs Technical or financial assistance alone will not achieve this sustainably

Future Focus: 

Future Focus If our objective is to develop a diverse supply of entrepreneurs capable of building successful companies the primary focus of enterprise development should be providing services that develop people into entrepreneurs Technical and financial assistance is useful to improve performance, but will not create a change in capacity, and therefore should be a secondary focus

Context: 

Context Some people will NEVER want to start a business The two most important factors in determining if/when someone will start a business are outside our control Economic climate Personal circumstances However, we CAN ensure that people are More willing to seize opportunities Are equipped to maximise them

Task: 

Task Develop a framework that describes the transformational development from ‘thinker’ to ‘doer’ by Building a better understanding of the target market segments by exploring psychographic as well as demographic characteristics Outlining the supporting services at each stage of the ‘journey’ that will facilitate transformation

Step 1: 

Step 1 Segmenting the market

Segmentation Process: 

Segmentation Process Identified key characteristics of an ‘opportunity ready’ individual Combined with research into attitudes and perceptions (GEM, SBS etc.) Overlaid with demographic information Suggested several key market segments

Characteristics of Opportunity Readiness: 

Characteristics of Opportunity Readiness Five aspects of an ‘opportunity ready’ individual Confidence – ‘I could do it’ Motivation – ‘I want/need to do it’ Skills – ‘I am able to do it’ Resources – ‘I have the means to do it’ Market – ‘There is an opportunity for me’ Unique to each individual Changes according to personal and environmental circumstances May provide a tool to map a ‘journey’ from a baseline, measure progress and some indication as to which interventions make a difference

Segment 1 High Flyers: 

Segment 1 High Flyers Demographic Profile Male/Female 35-54 Married with children NVQ level 4+ Employed at senior level Attitude to Enterprise Most concerned about the ‘opportunity cost’ of leaving security and prospects of present employment Possible Interventions Risk reducing strategies – e.g. Corporate Entrepreneurship programmes, succession planning, franchising, business ‘dating’ agency, idea generation

Segment 2 Flexible Families : 

Segment 2 Flexible Families Demographic Profile Mainly female 25-39 Children aged 0-8 If employed may be part time, under employed or on maternity leave Attitude to Enterprise Very positive about potential to balance family commitments with flexible career, but is concerned about the impact on family resources Possible Interventions Confidence building, peer networking, tackling perceived barriers, 5-9 economy, role models

Segment 3 Snow Boarders: 

Segment 3 Snow Boarders Demographic Profile Male/Female 16-24 In higher education or recent graduate (<5 years) White and 2nd/3rd generation BAME Attitude to Enterprise Quick to become enthusiastic but gets bored easily. High propensity to take risk Possible Interventions Experience based learning (e.g. Second Life business), internships and placements, business counselling to manage risk

Segment 4 World Citizens: 

Segment 4 World Citizens Demographic Profile Male/Female Under 45 Living in UK 10 years or less Often have high levels of qualifications from home Attitude to Enterprise See enterprise as a good way to survive and ‘get on’, but often find red tape, mainstream support services and language requirements a barrier. Possible Interventions Confidence building, bridging services to ensure equitable access to existing provision

Segment 5 Local Heroes: 

Segment 5 Local Heroes Demographic Profile Male/Female Age 16-59 Low levels of formal qualifications Live in 20% most deprived areas Attitude to Enterprise Fear of change and especially losing safety net of benefits. Mistrust of people outside the community. Might already be trading informally. Possible Interventions Confidence and skills development delivered by trusted sources, informal to formal support

Segment 6 Absent Friends: 

Segment 6 Absent Friends Demographic Profile Male/Female, 25+, affluent and well educated Live outside NE but grew up and/or studied here Likely to still have family and/or friends in the region Attitude to Enterprise Highly innovative people. Value the novel and like change. Might already be running a business. Most likely of any segment to start a high growth business Possible Interventions Primarily campaigning activity via mass media, friends and families, alumni organisations etc.

Segment 7 Chain Links: 

Segment 7 Chain Links Demographic Profile More likely to be male Age 45+ Considering early active retirement or may be at risk of redundancy Attitude to Enterprise Positive attitude to enterprise. May already be trading in a small way. Main motivation is to maintain a reasonable standard of living. Possible Interventions Commercialising ideas, interests, hobbies. Identifying market opportunities. Investment advice.

Segment 8? : 

Segment 8? Demographic Profile 16-24 Attitude to Enterprise Possible Interventions

Step 2: 

Step 2 Services to develop entrepreneurs

The Enterprise Journey: 

The Enterprise Journey Stimulation Navigation Enabling Opportunity Generation BLNE COMMUNITY Diagnostic Revisited First Diagnostic First Diagnostic First Diagnostic First Diagnostic First Diagnostic Diagnostic Revisited First Diagnostic First Diagnostic First Diagnostic First Diagnostic Diagnostic Revisited First Diagnostic Diagnostic Revisited First Diagnostic

Stimulation: 

Stimulation Activity that results in someone taking the first step on a journey A ‘light bulb’ moment “This might be for me” One to one - scouts, ‘conversation starters’ One to many – community events, shows Location – wherever people gather, communities of interest (workplace, university, job centre, Sure Start, café)

Navigation: 

Navigation Navigators are scattered throughout the region The service can be permanent or temporary, fixed or mobile People delivering the service are good listeners, skilled at spotting actual (rather than perceived) barriers At this stage a baseline assessment of the individuals entrepreneurial ‘fitness’ is made Navigators are ‘honest brokers’ who will then signpost people to appropriate service providers, information sources etc.

Opportunity Generators: 

Opportunity Generators Opportunity Generators help make the shift from focusing on the individual to focusing on the business They help identify market opportunities, and provide support with marketing activity Opportunity Generators form a link between pre start and start up support

Enabling: 

Enabling Enablers take a personal interest in the development of their clients’ business They help clients define their goals and take action to progress towards them Enablers have discretionary resources at their disposal to ensure clients move on Successful project outcomes are demonstrated by measurable progress and development of clients against a baseline This will encourage a ‘portfolio’ approach as quick wins generate cash quickly but working with those furthest from start up is most financially rewarding

The Enterprise Journey: 

The Enterprise Journey Navigator Opportunity Generation BLNE Prestart COMMUNITY Journey 1 Journey 2 Journey 3 Employment Training Volunteering Stimulation Navigation Enabling

Enterprise, Employment, Skills: 

Enterprise, Employment, Skills Clear links and overlaps between each But also potential to confuse the marketplace CSR suggests that a holistic approach might replace LEGI/NRF in top 55 SOAs Need to recognise clients journey may start and end in different arenas

Enterprise, Employment, Skills: 

Enterprise, Employment, Skills Enterprise Skills Employment

The Framework: 

The Framework One organisation may offer a single service to a range of segment (service specialist) Or a range of services to a single segment (market specialist) Or a single services to a single segment (niche specialist) Services aimed at improving performance (e.g. technical, financial) are secondary in focus, and take place outside this framework, supported by the personal trainer if needed

Underlying Principles: 

Underlying Principles All services available to everyone Services should be needs based and demand (not supply) driven However Some people will be specifically targeted People who are not targeted will not be excluded because of postcode, gender etc., but the service may not be on their doorstep

So now what …?: 

So now what …?

Progress and Next Steps: 

Progress and Next Steps Segmentation Test validity and adjust as required Suggest ‘calls to action’ and activities Service Framework Concept testing Input from regional organisations and practitioners Pilot? Mapping Local and regional projects (including LEGIs) Best practice from other places

Progress and Next Steps: 

Progress and Next Steps What, who, how Detailed project implementation plan being assembled Project team formed, roles and responsibilities to be assigned Impact on existing projects Likely overspill on Start Up CF into next year anyway Use FE panel to tender for specific pieces of work from April Absorb any work that fits (=most if not all) into Enterprise Framework when it goes live

Outcomes: 

Outcomes Regional contribution and buy in to a framework of pre start support Use the framework to Enable delivery organisations to understand their role and contribution Identify gaps Encourage creative activity and partnering