Agenda item

               i.         Report of the Corporate Director of Regeneration, Economy and Growth

              ii.         Presentation by the Managing Director of Business Durham

The Committee received a report of the Corporate Director of Regeneration, Economy and Growth which provided members with an overview of the current business start-up ‘ecosystem’ in County Durham, including the enterprise and start-up programmes which would conclude in June 2023 as ERDF funding came to an end. The report also provided an update on the work being undertaken to develop the future provision of business start-up support, enabled by the UK Shared Prosperity Fund and the Enterprising Durham Framework (for copy see file of Minutes).

S Slaven, Managing Director of Business Durham provided a detailed presentation. She advised that the start-up rates in County Durham had improved in recent years with the annual number of business ‘births’ increasing from 1,565 in 2018 to 1,810 in 2021 and that the survival rates of new businesses in County Durham were above regional and national figures. The Managing Director explained that it was timely to review the current start-up ecosystem and look at new ways to encourage and support more businesses to start-up in the County.

The Managing Director went on to advise that enterprise agencies were the main providers of start-up services and that three enterprise agencies existed in County Durham which covered specific geographical areas across the county. She explained that the two main programmes led by Business Durham were the Durham City Incubator (DCI) and Durham Ambitious Business Start-ups (DABS), both of which were part-funded by ERDF, with DCI running from 2019-2023 and DABS from 2020-2023. The DABS programme had supported 150 pre-start individuals, 130 new start-ups and created 16.68 FTE jobs. The DCI had supported 72 high growth businesses over 9 cohorts and collectively raised over £8m investment.

Finally, the Managing Director explained that the time felt right to review, reflect, and reshape start-up provision in collaboration with the organisations involved in the informal County Durham Start-up Provider Network, in order to build upon the good practice, lessons learned and recommendations set out in the ERDF Summative Assessment reports.  It was highlighted that various delivery partners had come together through facilitated engagement and consultation, to develop the Enterprising Durham Framework.  The Framework provides the foundation to build a start-up ecosystem that would deliver on the IES priority to provide excellent support at all stages for businesses to start-up, sustain, thrive and grow in County Durham.

Councillor Ormerod asked for further information regarding the programme’s approach to students, and questioned if they relied on students coming forward with an idea or if outreach work was specifically done with them. He commented that students in Durham were talented and capable of starting up businesses but pointed out that this option may not have occurred to them. The Managing Director confirmed that Durham University had done a great deal of work with undergraduates. L Howe, Durham City Incubation Managerfurther advised that the start-up scheme had bloomed in Durham University over the past 3-4 years and commented that staff had done excellent work. He gave examples of the Blue Print Competition and the Game Changer where graduates tackle one of the UN sustainable development goals, these competitions had attracted students from all subjects. He explained that this had led to some great business ideas which subsequently led to the DCI. He also advised that he had worked closely with New College Durham to promote self-employment enterprise as an option. He confirmed that engagement had taken place with other colleges in the area and stated that this engagement would continue.

Co-opted member, R Morris referred to the recommended next steps in the report relating to the Enterprising Durham Framework and noted that only three of the recommendations had deadlines assigned and asked whether those without deadlines were therefore ongoing. She further asked if Members would be updated on the progress of the recommended next steps and asked how this would be communicated to the Committee. A Kerr, Head of Economic Development explained that an overview of the delivery of the UKSPF will be provided to the committee at a future date and that Enterprising Durham Framework features within delivery of the UKSPF.  R Morris commented that it would be beneficial to develop the work done by Durham University as students presented real talent for the future.

Councillor Charlton asked if Business Durham were working with all further education colleges in County Durham or New College Durham only. The Managing Director confirmed that they were in discussions will all three further education colleges in the county and explained that colleagues had contacted any who had not taken part in the workshops and provided them with the opportunity to be involved. Councillor Charlton further asked if sixth form colleges had been included in the programme. The Managing Director advised that sixth form colleges had not been included yet as Business Durham needed to focus on organisations that provided start-up activities, however she advised that consideration was being given on how to reach out to sixth form colleges and explained that enterprise within schools was being encouraged.

With regards to the DABS programme, Councillor Sterling noted that 16.68 full time jobs had been created by the start-ups supported and a further 10 jobs were estimated to be created by the end of the programme delivery. She asked whether the figures stated were separate to the 130 new start-ups created via DABS. The Managing Director confirmed that this was separate.

Councillor Robson asked whether the team had linked with careers advice in schools. The Managing Director confirmed that this was a priority that had come through the IES and although links had not been established with careers at present, she gave assurance that consideration was being given on how to make these connections going forward.

The Chair expressed concern regarding the allocation of funding from the UKSPF and stated that he would like to see more support given to local businesses. The Managing Director clarified that UKSPF funding totalled £30m and advised that £13m had been allocated to support local business and £2m of this was ear marked for start-up delivery on the ground. She explained that this was how the county had chosen to allocate the funding. The Managing Director noted that it was important to work with partners to determine the best use of this money and she offered to provide further information with regards to this at a future meeting of the Committee.

Resolved

That the content of the report be noted.