After a few months of intense research, my ESRC Productivity Insight Network project has come to an end.
The key findings in the form of a report, co-written with Dr Anindita Banerjee, are accessible at the PIN website, publications section.
The project aimed at addressing the link between inclusivity, social cohesion and policies supporting regional entrepreneurship activities through innovation hubs in the North West (NW) of the UK. These issues were considered through 24 interviews with entrepreneurs, senior managers of hubs and policymakers mostly across Liverpool City Region, Lancashire, Cumbria, and Greater Manchester.
The project found that regional variations in economic growth are linked to the different levels of engagement with entrepreneurial activities across areas; engagement is also affected by the access to resources that different groups of entrepreneurs have (e.g. women and ethnic minorities).
With regards to inclusion, the project’s findings suggest that women and BME entrepreneurs across the NW generally find the entrepreneurial landscape to be challenging. There is a perceived lack of inclusivity of voices on what is relevant for entrepreneurial groups or individuals. The entrepreneurs interviewed feel that the disadvantaged and the disabled are often left behind because of scarce financial resources or lack of connection to influential groups. Ethnic diversity in some of the NW sub-regions is deemed scarce in the context of business. This might also refer to the general population composition of the area. Thus, in terms of diversity in ethnic backgrounds and mental/physical abilities, the data reveals a perceived lack of a promising inclusion.
An interesting insight of the project is that women-focused organisations constitute an excellent place for women entrepreneurs to find help to start their enterprise. Programmes offered by these organisations provide significant help in mentoring and networking at the start-up phase. Women entrepreneurs specifically found mentoring and supporting courses and events immensely helpful to build confidence, which is typically lacking in women entrepreneurs. However, our research revealed that issues of confidence, stress, and mental and physical health for women, BME and under-represented parts of the population categorized through post-codes limit productivity to a considerable extent. More attention to these issues would be beneficial towards more successful business set-ups, increased economic activity, closing the productivity gap and creating a more equal society.
Common across all hubs interviewed is the constant worry for the serious dearth of public funding that can support investment for promising innovative businesses and help them grow. There is a general perception that for funding and networking purposes hubs should look outwards to build connections with businesses and funders in London. Otherwise, even with a good talent pool, businesses lose out on people and opportunities.
On the policy level, the project reveals that policy managers voice concerns for access and support to poor communities and their entrepreneurial needs. Unfortunately, the bias towards the very definition of innovation and the importance of technical over social innovation from broader policy perspectives moves funding away from social innovation projects. What seems problematic is a definition of innovation at the political and funders’ level as something strongly technical, and that loses out on fostering and funding social innovation that can create avenues for inspiring the youth, help develop local talent and retain them in local jobs.
Tips for policy makers to tackle productivity in the North west:
- Foster innovation hubs that have traditionally been instrumental in helping women and BME entrepreneurs set-up their businesses. These hubs (especially targeting women and BME population) help building confidence, skills, networks and clients and often provide a place to begin their business operations
- Lack of funding towards women’s and BME’s small businesses often means that the companies cannot grow. Hubs in the NW could be consulted to influence policies
- Subtle gender discrimination still exists in the NW and are faced by women hub managers in discussions around policy -the inclusion of women and minority in wider innovation policies discussions is fundamental at all stages.