Business Growth: key delivery challenges

1. Business Growth: key delivery challenges 30 September, 2015

2. Where we are coming from Meltdown Monday Global crisis: House shocks investors…S&P 500’s worst day since 1987…Banks saved Stocks dive on bail-out rejection UK Treasury announces nationalisation of Bradford & Bingley US Federal Reserve announces huge new liquidity operations The crisis spreads in Europe

3. What we “inherited” “Legacy” of regional interventions, including: • Access to Finance • North West Fund • UKTI export advice • Manufacturing Advisory Service • Resource efficiency service • Investors in People Local GM provision, including: • Alternative debt providers • Inward investment services National programmes, including: • Technology Strategy Board (now Innovate UK) • Growth Accelerator

4. 2014/15 Business Support Performance: Greater Manchester 491 12,338 4,809 4,869 Event attendees Foreign Direct Investments Business assists New business Start-ups Businesses engaged £20m £222m 15,269 £52m 8,060 Value of export sales generated Finance raised for/lent to businesses Tonnes of carbon savings Jobs created & safeguarded Gross Value Added (GVA) generated

5. Business support & inclusion Of businesses supported in Greater Manchester (2014/15) • 24% had a majority female management/ownership; • 12% had a majority BEM management/ownership; • 47% were located in disadvantaged wards (wards with claimant counts higher than the GM average of 15.5%); Of lending in Greater Manchester (2014/15) • 57% of recipients were previously unemployed; • 36% of loan recipients were female; • 24% of loan recipients were BEM.

6. Business growth environment • Recovering domestic economy, underpinned by interest rates at record-low • Patchy global recovery, with not insignificant currency fluctuations in certain key markets • Continued skills shortages • Uncertainty over UK position in Single European Market • Increasing environmental and societal (especially costs of health and social care) challenges • Tighter programme arrangements post-Comprehensive Spending Review; flexibilities from devolution

7. Business growth approach Prioritised to respond to tighter programme budgets; organised to respond to devolution opportunities • New exporters and export markets, including capitalising upon the presence of foreign owned companies and using access to finance to increase trade • Increasing innovation and science commercialisation to improve productivity • Access to mainstream, and increased supply of new forms of, growth finance • Facilitated through strengthened Leadership & Management and maximising local workforce skills

8. Business support and finance model Client Engagement Targeting start-ups & growth companies Promoting growth through events & workshop programme Enquiries Initial Information & Growth Assessment Inward Investment Bringing new companies to Greater Manchester Growth Services Growth Start Growth Team - Account Management Business Start-up Programmes Resource efficiency Improved use of energyand resources. Finance Investment readiness and alternative debt, angel and equity finance Leadership and workforce Leadership, management and high performing workplaces Leadership and workforce Leadership, management and high performing workplaces Trade Increasing international sales Innovation Developing new products & services, adopting new sciences and technologies Manufacturing & Engineering (inc Textiles) Digital, Creative and Tech Low Carbon and Environmental Goods and Services Life Sciences and Healthcare Business & Professional Service Public and Private Partners including Growth Alumni Referrals across services & partners

9. Underlying principles • Continue to evaluate for economic impact and customer satisfaction • Intervene whilst minimising displacement and duplication • Maximise the integration of client acquisition and service delivery • Dual targeting of support on increasing productivityand maximising local employment and skills