Views of Users and Providers of Business Support Services
Overlaps in and Duplication of services
Interviews identified very few instances of overlap or duplication of service between organisations and in areas where some overlap exists, differing criteria and products made the services complementary rather than competitive. The following specific comments were made:
- An overlap between HIE-Marks marketing and HOST marketing was identified but not thought to be a problem
- There is some overlap between the Business Information Source and Euro Information Centre on the provision of information
- CAGS and the Croft Entrant Scheme
- There is a small element of overlap between Finance for Business in SALE and Highland Opportunity
- Provision of Commercial Property. There is some duplication of activity in this field between SALE and the Highland Council. As property is available from a number of private and public bodies it would be unlikely for any one agency ever to have a monopoly on property and so it was not seen as an issue.
None of the areas of overlap was seen as being a problem, in fact most respondents felt that they were complementary.
"There are overlaps but it's healthy."
Perceived Gaps and Failings
Some respondents identified gaps in provision but were generally happy with the service. There was however poor knowledge or understanding of the different products available from the various organisations involved.
- Many respondents felt that service providers should be more proactive in making their products known and identifying people or businesses that had potential for development.
- Specialist interviewees said that farms and crofts are not sufficiently recognised as small businesses.
- There was a shortage of commercial property in some areas and it was suggested that a quarterly directory of available property might be published as happens with HC & INE in the Inverness area.
- A number of interviewees thought that there was a need to offer some support to existing businesses especially when they were suffering cash flow problems.
- In line with the above several respondents thought that there was too much concentration on new starts and more thought could be given to supporting existing businesses.
- Provision of sites / premises for companies re-locating. There was a shortage of office accommodation although some interviewees noted that there seemed to be plenty empty property that owners don't want to let. (Kyle) There were too many restrictions on use (Balmacara) when properties could be used for other activities. One respondent thought that the provision of a Rural Centre for non-profit organisations was important.
- Funding for expert training, e.g. diving to help employment.
- One respondent thought that there was a need for a business based Highland Credit Union. Companies with money could support those without. Most banks have local lending limit.
- Affordable housing is an integral part of economic development.
- Should have a body of people (Mentor?) to meet with new starts to explain pros & cons, ease access to banks etc.
- Transport needs improvement. There is no co-ordination and no information. Real need is infrastructure, fuel costs, rail, ferry and road links and this needs a radical input of money.
- Bridge tolls came in for some criticism and it was observed that toll income was mostly sucked out of the local economy and indeed the country.
- While funding for retail businesses is available - in some instances - from Highland Council its importance to the local economy was not sufficiently recognised by the Enterprise Network.
Overall perception of the provision of Economic Development activities
Whilst everyone interviewed had a reasonable view of who did what there was a perception of clutter and having too many doors to visit to get support. It was noted that before the instigation of the Local Economic Forum. HC and SALE had created an informal forum to network, share practice and discuss issues of common interest. Application forms and processes for funding are seen to be over complex and lengthy.
Overall the perception was confused.
"Too many doors."
"Too many hurdles and too much paperwork."
"Small grants might stimulate the local economy."
"Highland Council is playing at Economic Development."
"Crofting is discounted too lightly as a part-time activity."
"LEC should be more pro-active and give more information on products.
"Unclear on provision."
"Applications for grants cost too much money, Accountants etc. and often these are refused."
"Different criteria HC can achieve things that the LEC can't."
"There's too much spent on admin."
"Same people seem to get the money all the time."
"Don't know much about products but I tend to go to the LEC for everything." "Not clear on aims or objectives of the various organisations."
"Each agency has its own agenda and constraints."
"Still waiting on meeting on Fishing industry after two years."
Most of those interviewed would like to see a one-door approach. Some of these raised the matter and some agreed when prompted. This might involve the agencies sharing accommodation rather than merging their activities.
Most respondents see SALE as the main provider of business support services however reference was also made to the value of the Council's Area Development Manager in the promotion of economic development.
Reference should be made to the Customer Satisfaction Survey commissioned by HIE and undertaken in September 2000. This survey interviewed 130 businesses in Skye & Lochalsh, of which 49% stated they had had contact with the LEC in the previous 12 months. This is against a figure of 53% for the whole HIE Network. Of that 49%, 65% said they were Very or Quite Satisfied with the experience. Although, statistically, this is not a large sample, it is indicative of the reaction to the service provided by the LEC.
Views on the Local Economic Forum (LEF)
There were mixed feelings about the Forum. Some of the interviewees were very much against the idea and many others were lukewarm about it. Most accepted that it was a useful method of networking and ensuring co-operation between the various agencies involved. Networking agencies were better able to 'signpost' the most relevant products from their colleagues. Five of those interviewed made strong indications that it shouldn't just be another 'talking shop.'
Whilst attempts had been made to create local business associations - e.g. Chamber of Commerce - nothing had happened and business apathy was blamed for the inaction. There are no other formal business association in the area although the Federation of Small Businesses (FSB) had active officers. The FSB however was not universally accepted as being representative of the business community.
Two of the respondents identified a greater need for strategic thinking.
"Some sort of forum is needed."
"Should have a multi agency remit."
"Useful for economic and social well being of the area... create an integrated strategy ..... effective use of scarce resources ..... a consensual view of development."
"Must represent the Skye and Lochalsh area and not local aspirations of small or vociferous communities."
"Not achieved much so far, heard negative reports."
"Seen too many LEFs in stalemate. (CASE, WIE)"
"Croft Entrant Scheme is a good example of agencies working together."
"LEF not overly democratic."
"What can they achieve? Have to be convinced there is a real will to do something."
In considering what the forum should achieve, people made the following positive comments:
"Should develop own agenda, decide local strategy."
"Become a clearing house for ideas, innovation."
"Must be involved in strategic planning and must work to clear objectives."
"Help deliver national and highland wide priorities within Skye & Lochalsh."
"Develop local strategy pro-actively."
However there was some opposition to the idea of a Local Economic Forum altogether. There was a view that the LEF approach was wrong for the Highlands, that it had been designed for the central belt and was not applicable here.
"Too small scale for independent strategies to work."
Overall only two of those interviewed were diametrically opposed to the concept of the Local Economic Forum.
Additional agency membership
Two interviewees saw value in the local Housing Association having a representative on the forum however the Housing Association itself was not certain that it was a suitable priority for them.
Another two interviewees thought that it needed more business representation but there was a concomitant danger that if the forum became too big that it would become ineffective. The view was expressed that it would be best to have a narrow core but consult widely.
Given that the FSB had been invited to send a representative and that this was likely to happen, two other organisations were suggested for membership being Scottish Natural Heritage and MAFF or SERAD.
Further comments
Although not part of the survey of provision or relevant to the forum some of the interviewees made comments worthy of note.
"Training provision has improved over the last 2 years."
"Importance of tourism is unrecognised. Retail is important to tourism."
"Agencies don't think innovatively enough."
"Lack of investment in the fishing industry is sticking out like a sore thumb." "We need to develop Yacht' tourism like Ireland. We're missing the boat."
"Good training available from LEC."
"Croft availability is a problem."
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