Growing Your Small Business The Role Of Business Schools And Professional Bodies

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During in this detailed data explores growing your small business. the role of business schools and professional bodies.

August 2015
GROWING YOUR
SMALL BUSINESS.
The role of business schools and professional bodies.
September 2015
2
Chartered Association of Business Schools
The Chartered Association of Business Schools is the
voice of the UK’s business and management education
sector. We support our members to maintain world-class
standards of teaching and research, and help shape policy
and create opportunities through dialogue with business and
government.
The UK’s business and management education sector
represents 1 in 5 university students and contributes £3.25b
to the UK economy. Its management students go on to
lead global businesses and its entrepreneurs contribute to
our dynamic economy. Its research has an impact across
society and helps to turn our capacity for invention into
viable businesses. Our 150 members include 122 business
schools and higher education providers, as well as af?liate
stakeholders, corporate members
and international partners.
Further information is available at charteredabs.org
Chartered Management Institute (CMI)
CMI is the only chartered professional body in the UK
dedicated to promoting the highest standards in management
and leadership excellence.
With a member community of over 100,000, CMI has been
providing forward-thinking advice and support for more than
60 years. We continue to give managers and leaders, and the
organisations they work in, the tools they need to improve
their performance and make an impact.
We are a UK awarding body for management and leadership
quali?cations, and the only body that awards Chartered
Manager, the hallmark of any professional manager.
Through in-depth research and policy surveys CMI maintains
its position as the premier authority of key management and
leadership issues.
Further information is available at www.managers.org.uk
Small Business Charter
The Small Business Charter (SBC) is an award for business
schools recognised for their excellence in supporting SMEs.
It provides business schools with a framework to deliver
nationally recognised business support programmes.
Delivered in partnership with the Chartered Association
of Business Schools, and with the support of Lord Young
and the Department for Business, Innovation and Skills,
the SBC brings business schools and entrepreneurs closer
together to deliver support for small businesses and drive
local economic growth.
Further information is available at
www.smallbusinesscharter.org
The Supper Club
The Supper Club is a membership club exclusively for fast
growth entrepreneurs. Our members join to learn from their
peers in the pursuit of business growth. We think it all adds
up to a relaxed and con?dential environment for founders
and CEOs which is all about growing your business in a
constructive, collaborative way. The Supper Club is part
of Prelude, whose mission is to make Britain the most
enterprising nation in the world.
Further information is available at www.thesupperclub.com
Quality Assurance Agency for Higher Education
The Quality Assurance Agency for Higher Education (QAA)
is an independent body, safeguarding the public interest
in quality and standard of UK higher education. We check
how UK universities and colleges maintain their academic
standards and quality. We review and report on how they
meet their responsibilities, identify good practice and make
recommendations for improvement.
We publish guidelines to help UK universities and colleges
develop effective systems to ensure students have the best
learning experience.
Further information is available at www.qaa.ac.uk
3
CONTENTS
Forewords 4-5
Executive summary 6-7
1. Setting the context 8
1.1 The business context 8
1.2 Learning to grow 9
2. Mapping the small business environment 10
2.1 Number of SMEs 11
2.2 Business birth rates 11
2.3 Start-up survival rates 12
2.4 Fast-growth businesses 12
2.5 Levels of training for managers 13
3. Routes to growth: leadership challenges 14
3.1 Learning to start a business 14
3.2 Learning to lead: building processes and delegating 16
3.3 Learning to grow: business school growth programmes 16
3.4 Learning from each other: the value of sharing experiences 17
4. Recruiting and retaining talent 18
4.1 Finding the talent 19
4.2 Developing links with universities and business schools 19
4.3 Internships: a low-risk approach to hiring 19
4.4 Placements: a step to hiring graduates 20
4.5 Training: commitment translates into growth 20
4.6 Nurturing the talent: the Chartered Management Institute Degree Apprenticeship 23
4.7 Collaboration and exchange: how large companies can help smaller ones 24
4.8 The twin barriers: time and money 25
5. Better consultancy and mentors 26
5.1 Trust and challenge: the value of mentoring 26
5.2 Business school consultancy: know-how for a speci?c topic 27
5.3 Pro bono work: help in return for work experience 27
5.4 Knowledge Transfer Partnerships: grant funding for growth 28
5.5 Peer networks: The Supper Club model 28
5.6 External consultants: choosing and using the right one 28
6. Professionalising the business 29
6.1 Have a growth plan 29
6.2 Gain quali?cations, build con?dence 30
6.3 Return to school 30
6.4 Facilitated networks: business school knowledge meets entrepreneurial experience 31
6.5 Strategic space: ?nd time to re?ect 31
6.6 Chartered Manager: the standard of management excellence 34
7. Finding and accessing the right support 35
7.1 Signpost organisations: pointing the way to appropriate support 36
7.2 Business schools as anchor institutions 38
7.3 Peer networks: the role of professional bodies 38
Conclusions and recommendations 40-41
Acknowledgements
4
FOREWORDS
“ SME growth is being held
back by poor management
and leadership.”
Ann Francke
Small businesses are a vital part of our economy, employing over 15 million
people, with a combined turnover of £1.6 trillion. Yet, as this report shows, their
growth is being held back by poor management and leadership. It’s the leading
reason for business failures.
As the professional home for managers, CMI has an important part to play in
changing that and improving the productivity of small business. By working with
business schools we provide guidance and resources, networks for small business
managers to learn from their peers and can signpost to the expertise offered by
business schools. With over 600 publicly-funded support programmes out there,
it’s a complex and confusing landscape for busy small business managers.
So I’m delighted that we’re launching a new online heatmap alongside this report,
which will give managers a simple tool to ?nd the support that’s available to them.
The heatmap will also show the business schools involved in one of our most
exciting new developments, the Chartered Manager Degree Apprenticeship.
Launching in autumn 2015, this will be a superb route for developing new
managers and leaders, giving small businesses the chance to train graduates on
a scale that hasn’t been possible before. Small employers have been involved in
the programme design and will bene?t from speci?c support measures, including
?nancial subsidy, making it easier for them to develop the managers and leaders
they need.
There’s real momentum among business schools to help small businesses, not
least among those recognised under the Small Business Charter award. It’s clear
that their expertise can make a huge difference.
For CMI, this report marks the start of a campaign to improve management in
small businesses. With innovations like the new Apprenticeship and continued
collaboration from professional bodies, business schools and other partners,
we can help many more small businesses thrive and grow.
Ann Francke CCMI FIC CMgr
Chief Executive, Chartered Management Institute
5
“ The evidence shows that small
business productivity and survival
are greatly improved through
the application of business and
management education.”
The UK’s business schools are full of world class business expertise and knowledge,
and with a business school conveniently located in every region they are perfectly
placed to support the growth of small businesses. Some small businesses already
bene?t greatly from a relationship with their local business school but as this
project has shown many more businesses aren’t aware of the quality of support
they have on their doorstep. Many others, in some regions, are faced by a maze
of business support, often poorly signposted, which means some won’t ?nd
support or the quality they need. Some are so entrenched in their business
that they don’t even have the time to look but, as many entrepreneurs and small
business owners told us, the ?rst critical step is to ?nd the time out of the business
to look for help and then take it.
As this report has evidenced, those small businesses that have received support
from a business school have received high quality advice and professional
development to start, grow or reshape their businesses. While the Government
and regional agencies must continue to make the business support landscape
more navigable, business schools can also do more to make SMEs aware that
there is an open door to a range of services from short programmes to MBAs,
from start-up incubators to growth programmes, and from work placements to
the new Chartered Manager Degree Apprenticeships.
That is why in 2014, working with Lord Young and the Department for Business,
Innovation and Skills, the Chartered Association of Business Schools launched
the Small Business Charter. The Small Business Charter award gives business
schools recognition for the far-reaching and innovative support they provide to
SMEs, and for the impact they have on their local economies. All of the evidence
in this report points to small business productivity and survival being greatly
improved through the application of business and management education.
We therefore look forward to working with the CMI, Government and other key
stakeholders to help small businesses connect with business schools through
initiatives such as the Small Business Charter and the Chartered Manager
Degree Apprenticeships.
Anne Kiem
Chief Executive, Chartered Association of Business Schools

Anne Kiem
6
EXECUTIVE SUMMARY
BACKGROUND
In 2014, CMI, the Chartered
Association of Business Schools
(Chartered ABS) and the Quality
Assurance Agency (QAA) joined forces
to review how the business school
curriculum could be enhanced to
better equip management graduates
with the skills needed to boost their
employability. The subsequent White
Paper, 21st Century Leaders, was
launched at a full capacity event at the
House of Commons in June 2014.
Building on this successful
collaboration, CMI has again been
working in partnership with the
Chartered ABS and the QAA,
alongside the Small Business Charter
(SBC) and The Supper Club.
The Supper Club is a membership
club exclusively for fast growth
entrepreneurs, many of whom are
featured in the case studies within
this report.
We embarked on Growing Your Small
Business to explore how business
schools and professional bodies can
successfully engage with and support
the growth of SMEs – small and
medium enterprises, de?ned as having
up to 250 employees.
In May and June 2015 we hosted 14
regional workshops across the UK for
business owners to explore and learn
how they can collaborate with business
schools and professional institutions
in order to improve their capabilities
and achieve successful growth.
Approximately 1,200 business owners,
academics, professional institutions
and representatives from the wider
business support ecosystem attended
these events.
Following the discussions and
new analysis of SME datasets by
researchers at Aston University,
we have developed this report which
seeks to share the best practices
identi?ed. Alongside the report, we
are also publishing a new online
heatmap highlighting regional data on
SME growth rates and management
capability (www.managers.org.uk/
growingSMEs), alongside information
on UK business schools, the Small
Business Charter (SBC) and routes to
Chartered Manager status.
Our discussions uncovered many
examples of excellent practice around
the UK. They also identi?ed areas
that need to be addressed in order to
unleash the potential of many SMEs.
7
MANAGEMENT AND
LEADERSHIP WEAKNESSES
ARE HOLDING BACK
GROWTH AND
PRODUCTIVITY
• Improving management and
leadership would strengthen SME
growth and reduce business
failures.
o Poor management has been
identi?ed as the leading cause
of small business failure, blamed
for 56% of insolvencies.
o Improving management has
been identi?ed as the number
one most important driver
for growing medium sized
businesses.
• However, SMEs are less than half
as likely as large businesses to
provide management training: 41%
compared to 89%.
• Small business managers perceive
time and cost as the two key
barriers to undertaking more
management training. As a result,
course design across universities
and professional body is evolving to
provide more accessible formats.
• The rest of the UK lags behind
London when it comes to numbers
of small businesses and rates of
business creation.
PROFESSIONALISING
MANAGEMENT IN SMES
• Professional bodies such as
CMI have a key role to play in
connecting business schools with
the management community.
Collaboration helps enrich the
student experience, can provide
validation of students’ skills,
provides an ongoing pathway for
professional development, and can
give SME managers connections in
to their local business school.
• Business schools can be a valuable
source of advice, expertise and
consultancy for small businesses.
Collaboration with universities,
sometimes available on a pro bono
basis, can provide the business
with access to expert insight – often
on a very cost effective basis.
• More short and low-cost courses
are making it easier for small
businesses to develop their
managers’ skills. Bite-sized
professional quali?cations and
blended learning offers are often
more ?exible for small businesses.
• Peer networks allow SME
managers to learn from others with
similar experiences. There are many
examples of successful networks,
hosted by universities, professional
and trade bodies and by dedicated
groups such as the Supper Club.
DEVELOPING NEW TALENT
• Business schools are increasingly
supporting the creation and growth
of small businesses from among
their student populations, with a full
range of support offered through
incubators and entrepreneurship
programmes.
• However, small business owners
rarely consider business schools
when recruiting, which may mean
they are missing out on talented
potential employees.
• One way of accessing such
potential employees is by providing
work placements or internships.
This provides short term bene?ts,
in terms of inexpensive access
to resource and skills – while
also helping to identify potential
employees.
• The new Chartered Manager
Degree Apprenticeship will bene?t
small employers as well as large
ones. Delivered by business
schools and supported by CMI, it
will provide the chance to bene?t
from two-thirds government funding
for taking on Apprentices who will
gain a degree, an Apprenticeship
and Chartered Manager status
• Collaboration with large companies
also offers a powerful way for small
businesses to gain experience and
expertise. This may be through
dedicated growth programmes,
such as the Goldman Sachs and
Santander programmes described
in this report, or in the form of
collaboration with the supply chain.
FINDING AND ACCESSING
MANAGEMENT AND
LEADERSHIP SUPPORT
• There are over 600 different
business growth support
programmes available around the
UK. However, SME managers
can ?nd the landscape complex,
confusing and time-consuming to
navigate.
• Small business managers are often
unaware of the support available
to them from business schools
and professional bodies, or of how
they can access it. While there are
examples of good practice, there’s
a need to simplify the offer to small
businesses and make access as
straightforward as possible.
• Business schools should build and
more actively promote their role
as ‘anchor institutions’, acting as
‘go to’ providers of SME business
support and helping businesses
to take advantage of their physical
presence, facilities and world-class
expertise.
• Our new online heatmap offers
small businesses a straightforward,
interactive method of ?nding what
support is available near them.
It highlights business schools
that have been awarded the
Small Business Charter award
and those that are providers of
the new Chartered Manager
Degree Apprenticeship. Find the
tool at www.managers.org.uk/
growingSMEs.
8
1. SETTING THE CONTEXT
1.1 THE BUSINESS CONTEXT
The UK is home to 4.9 million
small businesses, employing over
15 million people and generating
combined turnover of £1.6 trillion.
They are a vitally important part
of the economy. But could weak
management be holding them
back?
The recent HM Treasury paper Fixing
the Foundations: Creating a More
Prosperous Nation, the Government
notes that: “Raising the productivity
of the whole economy depends on
facilitating the growth of new and
existing businesses with the greatest
potential.”
Indeed, the UK now has a higher
number of start-ups than ever before.
Yet it is estimated that only 6% of these
start-ups will generate at least £1m in
revenues after three years. A similar
percentage of ?rms with turnover of
£1-2m will manage to grow to £3m
over a three-year period. The UK has
a worse record than any other OECD
country for one-to-nine-employee
businesses growing to more than ten
employees within a three year period.
Building management skills among
our SMEs is a vital factor in enabling
the UK to achieve its full economic
potential and retaining its leading role
in the global economy. There are over
600 different business growth support
programmes available around the
UK. However, SME managers ?nd the
landscape complex, confusing and
time-consuming to navigate.
1
According to research conducted by
the UK Commission for Employment
and Skills, just one in three (36%)
of businesses with 5-24 employees
have provided management training
in the past 12 months. Research
has identi?ed a lack of management
skills as responsible for 56% of small
business failures.
2
The Confederation
of British Industry has found that
improved senior management skills
would be the single most important
driver of growth for medium-sized
businesses to grow.
3
According to the Enterprise Research
Centre (ERC) Growth Dashboard,
53% of Business Growth Service
clients in the period between April
2012 and March 2015 reported that
a lack of strategy and management
were their main barriers to growth.
This is signi?cantly ahead of the next
two barriers, skills and staff (39%) and
sales and marketing (38%).
Strengthening the management
capabilities of small businesses is
central to addressing the productivity
gap. In order to help businesses
to grow, they must be able to plan
systematically for that growth. They
must be prepared for the special
challenges that come with growing
a business. That requires stronger
management skills.
9
1.2 LEARNING TO GROW
“Small businesses either fail, bump
along the bottom, or break out into
growth,” says Patrick Kniveton,
Head of Engineering Skills and
Knowledge Management at Rolls
Royce and a CMI Companion. “To
achieve this break-out, they need to
have the right, technically quali?ed
people; development programmes
for all employees; to be able to
recognise and engage in identifying
opportunities; to be aware of and
make use of industry and technological
developments; and have a vision.”
For most, this breadth of skills and
abilities is learned – or can at least
be enhanced – by well-targeted
management and leadership
development. Business owners
need access to development that is
affordable both ?nancially and by time,
suited to their needs, and delivers a
return on investment.
But ?rst, they simply need to be aware
of the support that is available for
them. There are numerous institutions
and people that can help them learn
and grow. As the Commission on the
Future of Management and Leadership
pointed out in its Management 2020
report
4
, British businesses have a
1
Government Support for Business – Eight Report of Session 2014-15, BIS Committee, 2015
2
The Association of Business Recovery Professionalshttps://www.r3.org.uk/index.cfm?page=1114&element=12964
3
Future Champions: Unlocking growth in the UK’s medium-sized businesses, CBI, 2011
4
Management 2020 – Leadership to unlock long-term growth, CMI, July 2014
wealth of educational expertise on their
doorstep and should take advantage of
it. Much of the world comes to the UK
to learn about managing and leading –
and so must more of our own SMEs.
Yet, as we heard time and again at
the Growing Your Small Business
events, the support landscape can
look complex and confusing to an
SME manager. There is a wealth
of initiatives available. Business
schools are increasingly oriented
towards supporting small businesses.
Professional bodies offer a wealth of
information, continuous professional
development and networks, while other
networks such as The Supper Club or
long-established networks such as the
Federation of Small Businesses (FSB)
serve large numbers of businesses.
But many SME managers don’t feel
they have the time to explore the
options and can be daunted by the
sheer range.
Growing Your Small Business aims
to showcase some of the excellent
support that is available to SMEs and
help those managers ?nd the support
that could make the difference to their
business.
Small businesses either fail,
bump along the bottom, or
break out into growth.
Patrick Kniveton
Head of Engineering Skills and
Knowledge Management at Rolls Royce
and a CMI Companion.
10
2. MAPPING THE SMALL
BUSINESS ENVIRONMENT
How does the performance of
SMEs vary across the UK?
We looked at of?cial data on the
creation, survival and failure, levels
of growth and – crucially – levels of
management training among small
businesses. The data is summarised in
the following section, and is presented
on a regional basis,

mapped across
all four nations across the UK and the
English regions.
The data has also been incorporated
in a new online interactive heatmap,
launched alongside this report, which
allows a more detailed ‘zoom’ on
each region. Critically, it has also
been designed to help small business
managers quickly identify appropriate
support from local business schools.
There are ?ags showing the location of
business schools around the country,
with details of the support they offer.
It highlights those that are part of the
Small Business Charter and those that
are providers of the new Chartered
Manager Degree Apprenticeship.
Find the tool at www.managers.org.uk/
growingSMEs
About the data
The datasets used here are from the Business Structure Database (BSD) and
the UKCES Employer Skills Survey 2013. The BSD is produced by the Of?ce of
National Statistics (ONS) and is an annual snapshot of the Inter-Departmental
Business Register (IDBR), which is a live register of data collected by HM
Revenue and Customs via VAT and Pay as You Earn (PAYE) records.
Some of the UK statistical data used in this report is from the ONS and is
Crown copyright and reproduced with the permission of the controller of
HMSO and the Queen’s Printer for Scotland. The use of the ONS statistical
data in this work does not imply the endorsement of the ONS in relation to the
interpretation or analysis of the statistical data.

The small business metrics were developed for the UK regions used in
the heatmap by Professor Mark Hart, Professor of Small Business and
Entrepreneurship at Aston Business School and Deputy Director of Enterprise
Research Centre School and Karen Bonner, Senior Research Fellow in the ERC.
11
2.1 NUMBER OF SMES
First, we looked at the number of
SMEs among the population. There
are, on average, 334 SMEs per 10,000
people in the UK. As shown in Figure
1, London has – by some distance –
the highest density, with 506 SMEs per
10,000 of population. Three regions –
London, the South East (384), and the
East of England (355) – are above the
average.
On the other hand, the North East of
England (221) has the lowest density,
followed by Northern Ireland (233),
Wales (244) and Scotland (272).
2.2 BUSINESS BIRTH RATES
The number of new businesses being
‘born’ is also an important indicator of
the environment for SMEs. Again, to
provide comparability across different
parts of the UK, we have looked at this
on a per capita basis.
The average number of start-ups in
2014 per 10,000 people was 44, but
there are big differences. London
once again stands out, with 83
new businesses born per 10,000 of
population – some 75% greater than
the next most enterprising region, the
South East of England, which had 47
new businesses per 10,000 people.
Again, the North East of England (31)
and the other nations lag behind. There
appears to be a start-up gap in the
UK, which – based on these rates of
business births – will only widen.
0 – 200
200 – 250
250 – 300
300 – 350
350 – 400
400 – 450
450 – 505
505+
UK average 334
WALES
ENGLAND
SCOTLAND
NORTHERN
IRELAND
REPUBLIC
OF IRELAND
21–25
26–30
31–35
36–40
41–45
46–50
50+
WALES
ENGLAND
SCOTLAND
NORTHERN
IRELAND
REPUBLIC
OF IRELAND
UK average 44
Figure 1: Number of SMEs (1-250 employees) in
the private sector per 10,000 population in 2014
Figure 2: Number of business start-ups
per 10,000 population in 2014
12
2.4 FAST-GROWTH
BUSINESSES
Another important indicator of
business growth is the number of ?rms
categorised as fast-growing – that
is, with employment growth of more
than 20% per annum. Across the UK,
during the period 2011-2014, 16%
of businesses were classed as fast-
growing.
On this measure, the picture is much
more uniform across the UK with
relatively little regional variance. Only
Northern Ireland (12%) and London
(19%) vary substantially from the
average.
12
13
14
15
16
17
18
19
WALES
ENGLAND
SCOTLAND
NORTHERN
IRELAND
REPUBLIC
OF IRELAND
UK average 16
Figure 4: Percentage of businesses
that were fast-growing, 2011-2014
2.3 START-UP SURVIVAL
RATES
How many start-up businesses
survive their ?rst three years?
For businesses born in 2011 across
the UK, the survival rate is only 56%.
By this measure, London is less
exceptional: while creating the greatest
number of start-ups (and perhaps
because of that) it has the third lowest
survival rate in the UK, at 54%.
The South West of England, while
ranking sixth for start-up creation
levels, has the joint highest survival
rate (SE England also at 59%), at
59%. It’s worth noting that this region
also has the highest percentage of
organisations that train managers
(see section 2.5). The South East of
0 – 53
53 – 54
54 – 55
55 – 56
56 – 57
57 – 58
58 – 59
59+
WALES
ENGLAND
SCOTLAND
NORTHERN
IRELAND
REPUBLIC
OF IRELAND
UK average 56
Figure 3: Start-up survival rates for
businesses born in 2011 to 2014
England matches its above-average
levels of start-up creation with high
survival rates too, also at 59%.
On the other hand, the situation is
tougher in Northern Ireland: it has
the lowest rates of both creation
and survival of start-ups at 49%.
Scotland, despite its
relatively modest start-up
creation levels, has
the fourth highest
survival rate at 58%.
13
On average, across the UK, fewer than
half of the nation’s SMEs conduct any
management training.
In total, 42% of SMEs provided
management training in the previous
12 months, according to the latest
Employer Skills Survey from the UK
Commission on Employment and Skills
– meaning they are less than half as
likely to train their managers as large
organisations (250+ employees), 89%
of whom train managers.
Among organisations with 5-24
employees, only around one in three
(36%) have trained their managers in
the previous 12 months.
Looking at the number of organisations
who train by region, the South West of
England is the highest ranking region
in the UK: 46% of its organisations
It’s clear that small businesses
undertake less training and
development than bigger ?rms, yet
this data points to a clear connection
between managers’ skills and the
ability of SMEs to survive and thrive.
Given the weight of evidence that poor
management is holding back growth
and indeed is the leading cause of
small business failure, there is a real
imperative for improving management
and leadership skills in SMEs. The
remainder of this report looks at some
of the initiatives that are doing just that.
39
40
41
42
43
44
45
46+
WALES
ENGLAND
SCOTLAND
NORTHERN
IRELAND
REPUBLIC
OF IRELAND
UK average 42
Figure 5: Percentage of organisations
training managers in 2013
trained their managers in 2013. It is
worth noting that the South West
of England also has the highest
survival rates of start-ups in the UK.
Similarly, fewer organisations train
their managers in Northern Ireland
(39%) than anywhere else in the UK
– and this region also has
the lowest survival rates
among its start-ups.
2.5 LEVELS OF TRAINING FOR MANAGERS
Poor management is holding
back growth and indeed is
the leading cause of small
business failures.
14
3.1 LEARNING TO START
A BUSINESS
For nascent businesses, many of
which are being hatched in universities,
there is a burgeoning infrastructure of
innovative programmes designed to
provide solid foundations for growth.
There are boot camps, incubators,
accelerators and student enterprise
schemes across the UK.
Bristol Business School at the
University of the West of England
(UWE) runs an entrepreneurship
programme in which students are put
into team companies and continue
to trade as such for the duration of
their degree. These are real, legally
constituted companies in which the
university has no stake.
3. ROUTES TO GROWTH:
LEADERSHIP CHALLENGES
Each phase of growth presents
new and different management and
leadership challenges to a small
business. This section shows how
business schools and professional
bodies can provide relevant
support at each of those stages.
CASE STUDY
Bright Red Triangle sits alongside the accredited curriculum of Edinburgh
Napier University at the centre of an entrepreneurial ecosystem which
creates employment, generates economic growth, supports sustainable
communities and provides opportunities for enterprising students to work
in partnership.
It includes Bright Red Ventures, which provides incubator spaces offering
business advice, support and facilities to students, graduates and alumni
of Edinburgh Napier University who want to set up and run their own
businesses. Since the ?rst incubator space opened in 2004, more than
1,400 students and 355 business start-ups have been supported; 162 of
these businesses are still trading today. Bright Red Triangle also provides
a student consultancy service that has completed more than
90 commercial projects.
In 2012, the university developed a partnership with Entrepreneurial
Spark. E Spark is a business accelerator (or ‘Hatchery’) where 50
start-up and early stage businesses go through an intensive ?ve-month
programme. E Spark is hosted on an Edinburgh Napier campus and is
open to applications from idea or early stage businesses to those who
have been trading up to ?ve years and/or have £1m turnover. There is
no restriction on where these applications may come from. Businesses
emerging from the accelerator programme with growth potential are
offered “grow-out” space within the Nest. E Spark is developing a
network of Hatcheries across the UK and a network to support further
growth.
THE CENTRE OF AN
ENTREPRENEURIAL ECOSYSTEM
15
Peter Pilotto, a womenswear label
launched by Peter Pilotto and
Christopher de Vos, is regarded as
one of London’s most successful
young fashion businesses. The Centre
for Fashion Enterprise has been critical
to its growth.
The pair met at Antwerp’s Royal
Academy of Fine Arts, founded the
label in London and launched their
?rst collection together for the spring/
summer season of 2008.
Peter and Christopher were supported
by the London College of Fashion’s
CFE Pioneer programme for six
months, followed by the CFE venture
programme between 2007 and
2009. They received support from
the CFE team in business planning,
?nance and cash ?ow management,
contracts, early stage retail strategies,
brand development and trade mark
registration. They also attended the
New York sales showroom every
season. In all, the subsidy support
totalled almost £37,000.
The impact has been measurable
and signi?cant. During the time Peter
Pilotto was supported on the two
CFE programmes, their sales rose by
3,173% with more than 95 stockists
when they exited both programmes.
In 2009, stockists for Peter Pilotto’s
spring/summer 2010 collection
surged from 28 stores in 14 countries
Peter Pilotto and Christopher de Vos,
Designers, London College of Fashion
SUPPORTING THE HIGH-GROWTH START-UP
to 88 in 30 countries. There are
currently more than 200 points of
sale for Peter Pilotto in 50 countries.
The brand is championed by some
of the fashion world’s most in?uential
opinion formers and has won
numerous awards, including the
£300,000 British Fashion Council/
Vogue Designer Fashion Fund in 2014.
The support of the CFE and the
British Fashion Council enabled the
pair to self-?nance the business up
to 2015 when they raised a minority-
stake investment from London-based
investment ?rm MH Luxe and Megha
Mittal, Chairman and Managing
Director of German luxury brand
Escada. Industry sources estimate
the current annual turnover of the
business to be between $15-20m.
“The CFE has helped us not to be
just the ?avour of the month,” says
Peter Pilotto, “they really support you
in the long term.”
GROWTH
STORY
The Centre for Fashion Enterprise
(CFE) at London College of Fashion
is focused on helping young
designers build up their business
capabilities and is proving to be
highly successful. It has been
instrumental in helping Peter Pilotto
and Christopher de Vos to create a
global womenswear label over the
past eight years.
16
3.2 LEARNING TO LEAD:
BUILDING PROCESSES AND
DELEGATING
Crossing the gap between a seat-of-
the-pants, entrepreneurial business
into becoming an organised, well-
managed enterprise is the biggest
single challenge for many owners.
Entrepreneurship is not simply about
‘having a go’ or ‘taking a risk’;
it is about having the know-how to
run and build a business. It is about
building a team.
“It’s easy to scale revenue and
grow customers, but scaling up
an organisation from single-?gure
employee numbers up into the tens,
and then the hundreds and thousands,
is massively dif?cult,” says Mark Hart
at Aston University Business School.
“There is a huge transition from being
a small company to being a mid-sized
company,” says Sean Ramsden,
CEO of Grimsby-based Ramsden
International. “An entrepreneur running
a small company knows all the staff,
customers and suppliers; you have
your ?nger on the pulse of pretty
much everything that goes on in
the business. A mid-sized business
requires structure and process.”
“Delegating is one the keys to unlocking
growth but there’s an emotional barrier
to cross,” says Jon Lamonte, CMI
Companion and Chief Executive of
Transport for Greater Manchester.
For a small business to grow, its
leaders must be open to learning and
recognise that management skills can
and must be learned – they cannot
just be ‘picked up as you go along.’
A founder is often a technical expert
or a great salesman but will lack the
management competencies to build
the people and systems that will
enable the business to grow.
Many SMEs hit a crisis of growth
because they reach a point where they
have to change and develop.
3.3 LEARNING TO GROW:
BUSINESS SCHOOL
GROWTH PROGRAMMES
To support this growth, business
schools are also working with
established SMEs, helping to unlock
the next phase of growth by providing
support to rethink and reignite their
business. The number of business
school growth programmes, designed
around the time constraints and the
needs of SME owners, is increasing.
The Goldman Sachs 10,000 Small
Businesses programme, which is run in
the UK through the partner universities at
Aston, Leeds, Manchester Metropolitan
and UCL, is proving very effective at
building a cohort of companies that
are growing at a faster rate than they
would have achieved otherwise. “It
has been absolutely magni?cent for
those who have participated,” says
Heather Forrester, Managing Director
of Birmingham-based market research
agency Research by Design and who
participated on the programme at Aston
University Business School.
Other business owners are opting to
study for a professional quali?cation,
such as the CMI Level 7/MSc
in Strategic Management. “The
development of my own skills is the
best investment I can make in my
company’s future,” says Camilla
Long, co-founder and joint owner
of media skills agency Bespoke
Communications, who decided to
return to studies 20 years after her
graduation.
Learning is for life, not just for new
start-ups. Established, family-
owned businesses are also making
John Lamonte
CMI Companion and
Chief Executive of
Transport for Greater
Manchester
commitments to executive education.
David Law, Executive Chairman of the
112-year-old housebuilding company
WJ Law, decided to study for an MBA
at Ulster Business School in 2012.
He is categorical that this decision
has been central to the successful
repositioning of the business in the
wake of the last recession. Find his
case study below Section 6.3.
The MBA is another route – or
potentially a bite-sized taster that
is more accessible for time-poor
managers who cannot commit to
full degrees. “We are catering for a
growing appetite among SMEs with
a mini MBA that is a taster of what an
MBA covers,” reports Kirsty McManus,
Director of the SME Centre at Ulster
University Business School. Similarly,
professional quali?cations (such as
CMI’s) offer a unit-based approach that
give ?exibility in the topics covered.
Similarly, Hertfordshire Business
School offers an Enterprise and
Leadership Programme (HELP) – an
eight-month programme within a
supportive peer learning environment
with personal mentors. Businesses are
led through a mix of theory, practice,
analysis and action learning to build up
a toolkit to improve productivity and
build sustainable growth.
Some, such as Strathclyde Business
School’s Growth Advantage
Programme are run with support
from Santander. “We’re working with
companies who have already gone
through the ?rst cycle of growth and
we’re helping them prepare for further
growth,” says Professor Eleanor
Shaw, Head of the Hunter Centre
for Entrepreneurship and Vice Dean
with responsibility for enterprise and
engagement at Strathclyde Business
School. “There will always be an
in?ection point and this programme
helps companies prepare for those
in?ection points. We can’t take the
bumps out but we can provide
practical skills and toolkits – things that
entrepreneurs can take back to their
business, work with their team and
apply to the business.”
17
It’s easy to scale revenue
and grow customers, but
scaling up an organisation
from single-?gure employee
numbers up into the tens,
and then the hundreds and
thousands, is massively
dif?cult”
Mark Hart, Professor of Small Business
and Entrepreneurship at Aston Business
School
3.4 LEARNING FROM EACH
OTHER: THE VALUE OF
SHARING EXPERIENCES
The challenges of growth can be
daunting – and small business owner-
managers can feel isolated in dealing
with them.
However, there are few unique
problems involved in growing a
business. Every one has been
identi?ed, experienced and solved
by other business owners. The
good news is that there has been a
proliferation in networks with the aim
of connecting business owners to
discuss such issues.
CASE STUDY
One of the many initiatives that the School of Business
and Law at Southampton Solent University is currently
offering SMEs is the Solent Growth Programme. Ten half-
day workshops for start-ups are supported by one to one
mentoring.
The workshop programme covers topics such as growth
opportunity, cash ?ow and ?nance, marketing, HR strategies,
process mapping, ?nance for growth, planning next steps,
legal issues for start-ups and SMEs, social media and sales.
A special feature of this ?exible new programme for start-
ups is that it starts with a diagnostic workshop that includes
developing a bespoke “business model canvas”. It also
enables participants to develop a peer network to support
their future growth, and can be tailored to suit individual
business needs.
The programme builds on the successful Small Business
Charter Growth Voucher Programme (GVP) for SMEs
piloted this year. Solent is one of six Small Business Charter-
awarded business schools that took part in the GVP.
In order to comply with Government regulations, the original
GVP was relatively in?exible. Strict eligibility criteria had to
be met. Participant companies were required to personally
commit to the whole programme of ten workshops, and
were not able to send substitutes or skip sessions. The
paperwork required for the scheme was also off-putting.
The Solent GVP has been designed to be more ?exible,
with broader eligibility criteria and affordable pricing, as
the materials have already been developed. Sessions
can be offered at different times. Businesses can send
team members to sessions that best ?t their role in the
organisation, send groups of staff, and take as many or
as few sessions as they wish. Bespoke workshops can
be delivered on employer premises or on the city centre
campus. Paperwork is minimal.
Qualitative feedback from companies that have completed
the Solent GVP has been extremely positive. “It’s done
exactly what I intended it to do,” said one participant, “which
is to reignite my interest in growing my company.”
THE SOLENT GROWTH PROGRAMME AT
SOUTHAMPTON SOLENT UNIVERSITY: A FOCUS
ON FLEXIBILITY
From the discussion dinners run by
The Supper Club to local events run
by the CMI to the facilitated groups
co-ordinated by business schools,
there are many styles and formats.
It is in these peer group sessions
that problems and experiences can
be openly shared, and advice and
recommendations about business
support can be sought.
Further details of these networks follow
in Chapters 5 and 7.
18
4. RECRUITING AND
RETAINING TALENT
The recruitment and development
of the right staff is a major
growth obstacle for many small
businesses. Business schools
that focus on their speci?c
employment and training needs
– as recognised by the Small
Business Charter initiative – are
providing practical help. This
chapter highlights emerging best
practice.
SMEs represent a large employment
market for graduates, especially
business and management graduates.
But, as small organisations, they can
employ fewer specialists. They usually
want to recruit candidates who are
well-rounded and ?exible, with a core
set of skills that can be enhanced
through experience.
However, CMI’s 21st Century Leaders
report showed that 68% of employers
surveyed believed that business
courses are too focused on the
agenda of big business rather than
preparing students for working in
SMEs. Only one third (34%) of SMEs
used business schools for training
their staff, compared with 51% of large
organisations.
There are many steps that a small
business owner can take in order to
recruit and retain high-quality people.
But, as Professor Eleanor Shaw at
Strathclyde Business School points
out, that is just the ?rst issue to
address:
“I’ve heard so many questions from
entrepreneurs who want to know how
to hire great talent and how they can
get help with that,” she says. “But a
much more dif?cult skill for them is
after they have hired that great talent;
how do they let go and allow that talent
to do the work that it was brought in to
do?”
Professor
Eleanor Shaw,
Strathclyde
Business
School
68%
of employers surveyed
believed that business
courses are too focused on
the agenda of big business
rather than preparing
students for working in SMEs.
19
Reginald Larry-Cole,
Founder and
Managing Director
of Buy2Letcars and
Wheels4Sure
I look for people who will ?t
into the start-up environment,
and whose ambitions match
that of the business.
4.1 FINDING THE TALENT
“Learn from the top sports teams,”
advises Martin Spiller, an entrepreneur
who sits as a non-executive on the
board of several SMEs, “and build a
good youth team policy by developing
links with local schools, colleges and
universities. That way, you can build a
team straight from the source.”
Spiller is “a particular fan” of
apprenticeships, as they are giving
SMEs “access to a pool of talent that
hasn’t achieved its potential via the
traditional school system.”
“I look for people who will ?t into the
start-up environment, and whose
ambitions match that of the business,”
says Reginald Larry-Cole, Founder
and Managing Director of Buy2Letcars
and Wheels4Sure. “We need a
willingness to learn and adaptability,
as that gives us the agility we need.
We’re not interested in people who
are just there to pay their bills. The
company’s training programme is
core to this. I set group reading tasks
that are aimed at developing ambition
and drive, and educating employees
on what it takes to be part of a small
team in a fast-growing entrepreneurial
business. Placing trust in my people
and involving them in the strategic
direction of the business is core to my
talent management.”
4.2 DEVELOPING LINKS
WITH UNIVERSITIES AND
BUSINESS SCHOOLS
The development of close links with
local universities – and particularly
through offering work placements
to students – is a powerful means of
spotting and nurturing potential at ?rst
hand.
The recruitment process needs to be
easy for the small business. Some
universities do have a dedicated
Careers, Employment and Enterprise
team to guide businesses through the
process from planning new roles to
identifying, interviewing and appointing
candidates from its pool of students
and alumni.
“We are trying to encourage people
coming out of Edinburgh Napier to
have enterprising mindsets, the ability
to cope with complex and uncertain
environments, and to be able to act
entrepreneurially within their own
and other organisations,” says Nick
Fannin, who manages the Bright
Red Triangle at Edinburgh Napier
University, providing business advice
and mentoring services to students
and graduates who wish to set up their
own businesses.
4.3 INTERNSHIPS: A LOW-
RISK APPROACH TO HIRING
As CMI’s 21st Century Leaders report
shows, SMEs may not currently use
business schools as a source of
recruitment to the same degree as
larger organisations, but their ability
to offer internships and placements
is on a similar level to that of larger
companies. For SMEs, opening their
doors to internships and placements
provides a low-risk, ‘try before you
buy’ approach to hiring.
There are now many examples of
successful internship programmes
for graduates to work in SMEs. The
advantages ?ow both ways: the
business gains an extra pair of hands
for a period of time, and the chance to
cultivate a relationship with a potential
future employee.
The Santander Universities SME
Internship Programme provides
subsidised graduate internships that
enable eligible small businesses,
social enterprises and charities to
employ ?nal year students and recent
graduates. The intern receives a salary
of £1,000 per month, half of which
is contributed by Santander with the
other half funded by the university and/
or the business. The scheme gives
small businesses access to student
talent, funding, and a recruitment
process that is supported by a
university.
20
4.4 PLACEMENTS: A STEP
TO HIRING GRADUATES
The 21st Century Leaders report notes
that business schools need to be
more ?exible and less bureaucratic in
the management of work placement
schemes. While they are valued by
both students and employers, the
considerations of small businesses
need to be taken into account. Not
many small businesses can offer
a desirable one-year sandwich
placement.
The report also notes that business
schools could improve the level of
information and help that they give to
employers around work placements:
“32% of employers surveyed said that
they saw the lack of information as a
key barrier, and the same percentage
said they found the lack of an easy
point of contact a problem.”
Business schools are adapting
their programmes to the needs of
small business. “We recognise that
smaller organisations may not have
the capacity to take on a student on
a placement for a full year, because
clearly that is a big commitment,”
states Professor Georgina Andrews of
Southampton Solent University School
of Business and Law, “so we also
offer shorter placement opportunities.
A business management student in
the second year of their degree can
work with a business for three or six
months.”
Many business schools run graduate
placements within local small
businesses. Lynn Oxborrow at
Nottingham Business School reports
that the University’s Future Factory
has subsidised 199 paid graduate
placements in SMEs – and that 40 of
these graduates are now in permanent
employment. Its Working With You
project, which started in 2013 and is
now supported by 200 SMEs, has led
to more graduates being placed in
local businesses.
Professor Georgina Andrews,
Southampton Solent
University School of
Business and Law
Bristol Business School at the
University of the West of England
provides an accelerated graduate
development course for graduates
starting their careers with their ?rst
employer. Combining seminars and
workshops and e-learning packages
in a total of six days over one year,
the course focuses on soft skills to
help new entrants into the workplace
become excellent team players and
successful employees. There is no
limit to size, shape or type of employer
able to put their graduates through this
programme.
With true commitment it is clear that
placements can be highly effective for
a growing business. “Our placement
programme has been a resounding
success,” says Syd Nadim, Executive
Chairman and founder of digital
agency Clock. “It’s not just the right
thing to do; it’s also been responsible
for 40% of our team.”
32% of employers surveyed
said that they saw the lack
of information as a key
barrier (to offering work
placements), and the same
percentage said they found
the lack of an easy point of
contact a problem.
21st Century Leaders report
4.5 TRAINING:
COMMITMENT TRANSLATES
INTO GROWTH
The willingness to train up people
that exists within some SMEs must
be developed in many more small
businesses. There are many examples of
growing businesses whose commitment
to training from the outset has translated
into sustainable growth.
“We were training even when there were
just a handful of us,” says Ramsden
International’s CEO Sean Ramsden. “We
were sending people to do MBAs when
there were only 15 people on the payroll.”
Small businesses need appropriately
quali?ed people in order to achieve
growth. That means having development
and training programmes in place
for their employees, and speci?cally
management training. Yet many still do
21
When I was 23, I was made redundant
for the second time. I turned to the
bank for a loan to ful?l my dream
of starting my own business.
Unfortunately, our family home had
been repossessed when I was younger
and, without a job, I had no way of
securing the loan. The Prince’s Trust
came to the rescue with a £3,000
loan and a £500 grant; that gave me
enough to start Clock.
Today, we employ a talented team
of nearly 50 people, designing and
building websites and mobile apps
for clients such as The Times, Wall
Street Journal, Sony, the British Film
Institute and the Royal Institute of
British Architects. Attracting and
retaining good people is what building
a business is all about. My job is to
provide an environment for people to
be brilliant.
Most people start businesses because
they’re really good at something and
think they can do it for themselves. I
couldn’t (and still can’t) build websites.
And I was a mediocre designer at
best. So my main challenge was to get
people who could do these better to
buy into my dream. I ?nally managed to
get a web design project that enabled
me to take on our ?rst employee.
I had little experience working for
other companies and no experience
of starting and running a business. I
had no points of reference for setting
up policies or building a culture. I read
books and asked people for advice.
I knew that I had to build a business that
I would want to work for. I introduced
?exible working policies and an early
?nish on Fridays. We have continued to
add new bene?ts and we detail them on
www.LittleBookOfBene?ts.com
Syd Nadim,
Executive Chairman and
Founder of digital agency Clock
PLACEMENTS: CENTRAL TO OUR CULTURE OF SUCCESS
This has made us very attractive as
an employer and we have been able
to build an exceptionally talented and
hard-working team. If you surround
yourself with brilliant people, everything
else will look after itself.
But to be successful, brilliant people
still need to be part of a team – so
having a clear and shared vision is
essential. In the early days, I used to
talk about being the ‘Best On The
Planet’. We still hold our BOTP awards
every year to recognise contributions
from the team as well as having a bit
of fun. It’s a great time to reinforce the
vision.
Industry awards aren’t a fool-proof
measure of success but they are great
to win – and we have won several.
However, I’m particularly proud of
being recognised as running the best
placement programme in the UK at
the National Council for Workforce
Education (NCWE) awards. Our
placement programme has been
a resounding success. It’s not just
the right thing to do; it’s also been
responsible for 40% of our team.

There are other indications that we are
doing something right: the average
number of sick days per employee is
1.7 days against a national average
of seven. We have a number of staff
who have been with the company for
more than ten years. While it’s good to
have natural attrition and new talent,
it’s also great to show continuity and
consistency for clients and to maintain
the culture.
GROWTH
STORY
not: the 21st Century Leaders research
shows that only one-third of SMEs use
business schools for training their staff,
compared to more than half of large
organisations.
It is recognised that this is not simply
about small businesses ‘doing more
training’. The quality and relevance of
the training provision also has to be
addressed.
Many people point out that subsidised
funding, or other forms of ?nancial
support, increases the take-up of
training programmes by SMEs. “If you
remove the ?nancial burden, then the
commitment to training simply becomes
a decision based on time,” is how one
delegate put it.
The long-standing perception among
many small business owners – that
training is actually a risk – remains.
This fear is expressed simply: “If
we train them, they will leave”. It is
an attitude that must be constantly
challenged. Small business owners
need help to understand the returns on
proper investment and training in their
enterprises.
Of course, not everybody will have the
capability or the desire to grow with the
business. But this depends in part on
how the business invests in them and
how they invest in themselves.
Developing senior people within a
business has a huge impact, observes
Grainne McCurry at Invest Northern
Ireland. “Our programmes are directed at
the managing directors and senior teams
within SMEs. Once they have been on
our leadership programmes, they look
at their businesses and themselves
differently. We see those companies with
a clear plan for strategic growth and with
better structures in place to support that
growth. The more prepared they are for
change, the more they adapt and grow.”
22
Ramsden International is one of the
world’s largest exporters of British
groceries, distributing more than
23,000 British grocery products
around the world. It started as a two-
person business; today it has more
than 80 employees, with a turnover of
£50m. From the outset, it has been
heavily committed to training.
“We were training even when there were
just a handful of us,” says Ramsden
International’s CEO Sean Ramsden.
“We were sending people to do MBAs
at the University of Hudders?eld
Business School when there were only
15 people on the payroll.”
The company, which has a multilingual
sales team speaking more than 14
languages including Mandarin and Arabic,
has put in place a training and career plan
to meet the personal development needs
of all its colleagues and deliver on its long-
term business goals.
The core values that had been
introduced to the business in 2014 –
which include accountability, respect,
professionalism, entrepreneurialism,
collaboration and integrity – were
key to the programme. All staff were
trained on these core values and the
behaviours expected of Ramsden
employees. New staff go through this
session as part of their induction.
The core values have been introduced
into the annual performance review
process where employees are
assessed against their behaviours.
Ramsden has put training programmes
in place with organisations such as
the Institute of Export (IOE) and the
Sean Ramsden,
Ramsden International
COMMITTED TO BUSINESS
EDUCATION
Institute of Customer Service (ICS) to
enhance skills and add value to the
business. The company also supports
people embarking on professional
quali?cations, believing that investment
in its people’s personal development
will bring new skills and insight into
Ramsden.
The company has also introduced
a management development
programme, working in conjunction
with Ken Minor of Leadership
Resources. From the ?rst group
of ten managers who went on the
programme, one has since been
appointed director and another Head
of Department. A second phase of the
programme has just been completed.
With the growth and change in the
business, Ramsden identi?ed the
need to look at the development
of its leadership team and create
plans to support them through their
own individual journeys. Ramsden
engaged with YSC, a business and
organisational psychology company,
for support. The leadership team
went through an intense process
of interviews, psychometric testing
and feedback sessions. Ramsden is
?nalising these individual development
plans.
Staff training and development is now
at the core of Ramsden International’s
business strategy. With continuing
innovation and investment in human
resources, the company believes it
can develop a team who can take
the business to its next stage of
development.
GROWTH
STORY
23
4.6 NURTURING THE
TALENT: THE CHARTERED
MANAGER DEGREE
APPRENTICESHIP
Following on from the ?ndings
of 21st Century Leaders and the
recommendations of Management
2020
5
, the CMI, Chartered ABS
and SBC have been working with
an employer group led by Serco.
It includes SMEs and its aim is to
develop a new degree apprenticeship
for professional managers.
This new Chartered Manager Degree
Apprenticeship will be offered from
the autumn of 2015, and offers a new
route for SMEs to both upskill existing
managers and provide graduate trainee
routes so that they can grow their own
talent. It provides a new career path
option for aspiring managers who want
to earn while learning as well as develop
their management and leadership skills
within the workplace.
“This could be a really important game
changer in higher education,” says Ian
McNaught, Executive Director of the
Small Business Charter.
The apprenticeship, which will take
an apprentice around four years
to complete, will be provided by
their employer in partnership with a
university or business school. It will
mostly be delivered in the workplace
through work-based projects but will
also include university study time.
The scheme is particularly aimed at
school leavers as an alternative to a
traditional university degree with the
apprentice earning a full time salary
throughout the course of their training
and studies. Once quali?ed, workers
will be ready for managerial roles with
operational responsibilities.
It offers a game-changing new route
for building the next generation of
professional managers and brings
together the best of higher education,
professional development and work-
based learning. It also provides a new
way for employers to upskill those
‘accidental managers’ already in the
workforce – those promoted into
management with no formal training –
and can put far more young people on
the track to professional management
careers.
For further information, please
see www.managers.org.uk/
degreeapprenticeships
5
Management 2020 – Leadership to unlock long-term growth, CMI, July 2014
Steve Lowy, Managing
Director at Academic Service
Anglo Educational Services
This is a great initiative to help upskill the
workforces of the UK’s SMEs. At Anglo
Educational Services we have a great team,
some of whom are really keen to push
themselves on in their career, and this sort of
scheme allows them to do that with a meaningful
and high level quali?cation at the end of it.
24
4.7 COLLABORATION AND
EXCHANGE: HOW LARGE
COMPANIES CAN HELP
SMALLER ONES
In some sectors and supply chains
there can be greater collaboration
between small and large companies.
Aspects of the high-quality training
programmes developed by major
corporations for their own apprentices
and graduates can be shared.
This was pointed out by the
Commission on the Future of
Management and Leadership in its
Management 2020 report: “Established
businesses can help younger, growing
companies by offering management
support by promoting secondments,
and encouraging greater exchanges of
ideas and people between SMEs and
multinationals.”
The pool of talent among senior or
fast-track managers in local large
corporations is another source to
match up expertise and experience.
Many large corporates want their
managers to learn and gain experience
CASE STUDY
Elevate Cymru at the University of South Wales
Business School was a partnership between some of
the biggest universities and FE colleges across Wales.
The funded, university-accredited courses combined
both industry experience and academic knowledge and
were designed to develop the skills in order to maximise
performance and potential in Welsh businesses and
social enterprises.
Initially, employers raised two main questions and
concerns: the perceived relevance of the content of
the course, as it related to their particular context and
needs; and the indirect costs of sending employees
away from their work for the number of hours dictated
by the traditional mode of delivery.
The course was developed in close consultation with
industry. Stand-alone modules were written around
three clusters: sales and marketing, leadership and HR
management and ?nance. The delivery and assessment
of these modules were built to be ?exible, while
adhering to rigid quality structures. In the words of one
employer, it was “the most relevant offering seen for a
long time.”
The Elevate programme exceeded its targets and, more
importantly, created long-term relationships with large
and small employers. It has created a gateway for non-
traditional students to come onto the campus and enrol
in courses, having had a taste of academia.
ELEVATE CYMRU AT THE UNIVERSITY OF SOUTH WALES
BUSINESS SCHOOL: MAKING THE PROGRAMME RELEVANT
in smaller companies. These can
either be fast-track managers learning
and gaining experience, or senior
managers who could become potential
investors or non-executive directors.
“One way of connecting with the
corporates is to just ask them,” says
Patrick Dunne, CMI Companion and
Chairman of fast-growth company
D3O. “There are some things that are
particularly hard for a small company
when they want to scale up. Many
large companies are quite happy to
share techniques and processes that
can help. They can also bene?t from
the innovation they see in the smaller
companies.”
25
4.8 THE TWIN BARRIERS:
TIME AND MONEY
For many small businesses, the failure
to grow lies in the failure to develop
leaders and managers. Asked why they
don’t undertake more development,
there are two key reasons: time
and money. The people running the
business are just too busy. But for many
this becomes a vicious circle: they get
busier and busier but are unable to
support their own growth.
The time spent away from a small
business by a senior member of the
team is always going to be a cost,
which remains a high barrier. Many
small businesses do not buy into
management training. “The fact is,
they don’t realise the value, or why
they should send their people on
courses,” is how one business school
professor puts it. “It’s still very hard to
get the message across,” says Hugh
Lightbody, Chief Of?cer of the Business
Gateway National Unit in Scotland.
This is not speci?c to the small
business community. CMI’s
Management 2020 report notes the
signi?cant number of UK managers
who are underquali?ed and left without
the training and development to do
their jobs. But it is clear to David
Broadhead, founder of management
and leadership development
organisation Partners in Management,
that a small business “needs
management teams and development
long before they recognise it and can
afford it, either time-wise or cost-wise”.
Another reason cited for not training
and developing staff is simply a matter
of time and resources. Faced with
constant day-to-day problems and
priorities, training can appear too long-
term. “It’s about having the time and
the brain-space to really think about
what is it that I need my people to
do, how to enable them and how to
?nd out the best way of making that
happen,” says one owner.
There are concerns that it is dif?cult
to choose training providers of the
appropriate quality and relevance.
Here lies the value of peer group
networks: business owners can
use these fora to learn about the
experiences of other SME owners.
Many small businesses do not buy into
management training. The fact is they
don’t realise the value.
Hugh Lightbody,
Chief Of?cer of the Business
Gateway National Unit in
Scotland
David Broadhead,
founder of management
and leadership development
organisation Partners in
Management
26
5. BETTER CONSULTANCY
AND MENTORS
Obtaining the right guidance and
advice can unlock growth in many
small businesses. This chapter
focuses on how business schools
and professional bodies are
delivering that support.
Business owners can feel isolated as
they address the challenges of growing
their business. They may look for
guidance and support but they can be
dif?cult to identify. There may be much
that they don’t know: “When I took
over as CEO, I was naive about cash
?ow,” admits Mark Cornwell, CEO of
high-growth marketing agency HPS.
However, there are many resources
and options available to those who run
a growing business.
“When growing an agency, surround
it with a network of the right people,”
says Richard Simpson, Marketing
Director and a co-owner of the
Scottish design agency Tayburn.
“Whether that involves recruiting
creative leaders and consultants or
building an extended network, having
the right people to connect your team
with skills, insights and referrals makes
a huge difference.”
5.1 TRUST AND CHALLENGE:
THE VALUE OF MENTORING
The value of a high-quality mentor can’t
be overestimated. It’s important to have
someone to trust and turn to when the
going gets tough. A strong relationship
with a mentor means that a business
owner can draw upon relevant skills,
connections and experience to help
them in their decision-making.
Finding the right mentor can take time,
but this investment is key to a business
owner’s personal and business
development. “The challenge for many
small business owners is that their
assumptions are driven by passion and
can go unchecked for a long time, and
so their strategies have never been
validated,” says one business owner.
“You need someone to challenge your
status quo.”
Tomasz Dyl, Managing Director of ?eld
and experiential marketing agency
Gottabe! and also an associate lecturer
at Southampton Solent University
School of Business and Law, says
that pushing people to discover and
participate is an important part of being
a mentor.
“A lot of SMEs are not aware of what’s
available to them,” he says, “and it is
impossible to be aware of everything.
But they can be so busy running their
businesses that they don’t pay attention
to what is happening out there until
someone stops and shakes them.”
It is worth noting the ?nding in the
Goldman Sachs 10,000 Small
Businesses report
6
that “business
owners working with a mentor had 14%
faster growth than those without.”
Professional bodies such as the CMI
play an important role. CMI Achieve is a
mentoring programme with more than
500 registered, experienced managers
and leaders available to mentor small
businesses.
6
Empowering Entrepreneurs, Accelerating Growth, Goldman Sachs 10,000 Small Businesses, November 2014
27
5.2 BUSINESS SCHOOL
CONSULTANCY: KNOW-HOW
FOR A SPECIFIC TOPIC
There are huge numbers of students
available to help with new business
ideas and consulting projects – an
untapped resource pool for many
SMEs.
Many business schools can help small
businesses by organising consultancy
projects between their students
and local ?rms. These can help to
fuel growth without burdening the
company with long-term commitments.
A one-to-one collaborative project
with a local business usually entails an
academic – or a group of academics
– working with some students on
a speci?c project, from design to
marketing to ?nance.
For these projects to work, they need
to be intellectually rigorous for the
students and create genuine value for
the company.
The evidence from business schools
is that this type of collaboration helps
small ?rms to develop new or improved
products, or to generate new business.
Many gain con?dence by working with
a university and ?nd that it helps them
to develop new ways of collaborative
working.
At Hertfordshire Business School,
for example, business advice and
consultancy support is available
through its Business Academy, which
can access ten research units. Funding
can also be provided and its voucher
scheme provides an affordable way of
accessing the University’s expertise
and facilities.
5.3 PRO BONO WORK: HELP
IN RETURN FOR WORK
EXPERIENCE
Inheriting the concept from
the University’s School of Law,
Southampton Solent’s Business and
Law Faculty has introduced the notion
of pro bono work, where accounting
and ?nance students have started to
work with local companies for free.
It is a win/win arrangement: the local
company gets advice from students
who are actively learning the theories
and concepts relating to book-keeping,
accounting and ?nancial management;
while the students gain experience of
working with a local company.
Many business schools
can help small businesses
by organising consultancy
projects between their
students and local ?rms.
CASE STUDY
Small and new businesses from commercial and third sectors can bene?t
from a unique student consultancy project with third year business school
students. Business Clinics are designed for small and new businesses
to bene?t from consultancy solutions such as market research and
actionable tools that will help them reach their growth targets. There is no
cost for this programme.
Academics and Enterprise Fellows of the University of Strathclyde
Business School mentor multi-disciplinary teams of third year students to
diagnose individual business issues and design action plans.
In 2014/15, more than 100 students worked with 23 organisations
supported by Jobs and Business Glasgow. Much of the work took
on practical elements such as attending trade fairs on behalf of the
companies or redesigning websites.
After two semesters of intense collaborative work, each team produced
a comprehensive report with a detailed strategy and recommendations.
There was very positive feedback from the companies and the Business
Clinics will continue in the next academic year in a much expanded format.
“It’s been enormously successful,” says Professor Eleanor Shaw, Head of
the Hunter Centre for Entrepreneurship and Vice Dean with responsibility
for enterprise and engagement at Strathclyde Business School. “We
started last year with three companies, this year we had 23 companies
and next year I think we’re going to double or triple that number. It’s just
been a fabulous programme.”
STRATHCLYDE BUSINESS SCHOOL
CLINICS: CONSULTANCY IN KIND FOR
SMALL AND NEW BUSINESSES
28
5.4 KNOWLEDGE TRANSFER
PARTNERSHIPS: GRANT
FUNDING FOR GROWTH
Knowledge Transfer Partnerships
(KTPs) are programmes partly funded
by the government to help companies
access the knowledge, expertise and
resources of universities. A KTP involves
a graduate working on a project
identi?ed as central to a company’s
future commercial development. The
objective is growing sales and market
share, as well as developing intellectual
property and a competitive edge.
A suitably quali?ed graduate works
in the company for between one and
three years to implement the project.
The graduate is appointed in open
competition and may not necessarily
be a former student of the partner
institution. This ensures that the most
relevant person is chosen for the
programme.
Described as a KTP associate, the
graduate is jointly supervised by both
the business and academic staff of
the university. Up to 60% of the costs
of each KTP, including the associate’s
salary and the academic’s time, are
covered by a government grant.
The relationship between the company
and the academic staff of the University
is pivotal, as a strong partnership
supports the business in gaining
knowledge and expertise from the
university, making a real impact on the
growth of the business.
5.5 PEER NETWORKS: THE
SUPPER CLUB MODEL
There are few unique problems involved
in growing a business. Most problems
have been identi?ed, experienced and
solved by other business owners. The
number of networks that aim to connect
business owners with each other to
discuss such issues has proliferated.
There is a renewed emphasis on the
value of peer-to-peer learning.

The value of membership of a peer-
to-peer network such as The Supper
Club is the opportunity to learn and to
be challenged by others who are facing
the same types of problems as yourself,
or who have been through it and come
out the other side, says member Declan
McGoff, Owner and Operations Director
of Manchester-based construction
business McGoff & Byrne. A Supper
Club dinner or forum session provides
the space to consider the challenges
rather than just being at the coalface or
?re?ghting. “The only way to grow is to
stand back and have a proper look at
where you can go and how you can get
there.”

“You can learn from people in other
sectors who may be going through
similar experiences to you, or may
already have gone beyond that stage,
and can tell you to keep going and the
sort of things to do,” is how one delegate
describes these events. Exposure to
people in other sectors also encourages
lateral thinking and discussion. “It’s
really helpful to be in a con?dential
environment where other people are
challenging you,” says one member.

The question of ?nding the right
advisers was frequently raised. “It’s hard
for people to look outside what they’ve
been given and ?nd something better,”
was one comment. Providing insight on
advisers and professional advice is seen
as another valuable aspect of peer-to-
peer networks.
5.6 EXTERNAL
CONSULTANTS: CHOOSING
AND USING THE RIGHT ONE
Seeking the advice of a professional
consultant to help drive growth is an
option but the process of selection and
appointment daunts many business
owners.
Members of the Institute of Consulting,
an organisation within the CMI, can
support small businesses to improve
performance or resolve speci?c
challenges. There are more than
4,000 members of the Institute; many
have expertise scaling up operations,
expanding internationally and building
technology capabilities within SMEs.
Every member is bound by the
Institute’s Code of Conduct and Ethics,
providing clients with reassurance of
their credentials and professionalism.
The CMI online National Consultants
Register is available for anyone to
connect with a consultant and is
searchable by specialism and region.
29
The co-founder and joint owner of
presentation and media skills training
agency Bespoke Communications,
Camilla Long decided to return to
study 20 years after graduating in
order to sharpen her professional
practice. She is currently halfway
through a part-time jointly-accredited
CMI Level 7/MSc in Strategic
Management at Ulster University
Business School.
“As a leading training agency, Bespoke
Communications develops tailored
training programmes for our clients.
I wanted access to the latest research
and applied practice to make sure
that we offer innovative solutions to
meet ever-more complex client needs.
Additionally, as a small business
owner I often ?nd myself dealing with
unfamiliar situations. I have many
years of business development, sales
and marketing experience and am
comfortable building my business with
these skills. When it comes to ?nance
or HR, I have more limited professional
experience to fall back on.
I decided that a joint Masters and
CMI quali?cation would be the best
way to bring the latest thinking into
our business, helping our company
to attract high quality customers.
We incorporate up-to-the-minute
tools and techniques in every training
course we run. I also use the skills
Camilla Long
Bespoke Communications
RETURNING TO STUDIES,
BUILDING A BUSINESS
that my CMI quali?cation gives me,
every day, to help grow my own
business.

My biggest challenge was ?nding the
time to return to study. I work full-time,
have two children and have many
family and voluntary commitments.
Fitting study and assignments into an
already full schedule seemed just a
step too far.

So I decided to study part-time.
Friends and family help me out
all the time, and my husband has
been so generous and supportive.
I have learned to focus on what is
important so studying has helped
my time management. I have gained
a perspective that I could not have
imagined a year ago. I have greater
con?dence in unfamiliar situations,
and have a window on a new world
of information. I’m a typical small
business owner; I have few resources
to draw on to build and grow our
business, so the development of my
own skills is the best investment I can
make in my company’s future.”
6.1 HAVE A GROWTH PLAN
A growth business needs a growth
plan. It will contain the vision and
mission of the business and describe
how its growth will be achieved. The
value that ?ows from this is that it
captures all the elements required for
growth and gives an entrepreneur the
structure to move forward.
The CMI Management 2020
Benchmarking tool is one tool that can
help entrepreneurs and small business
owners – just as much as corporate
boards and public sector bodies –
assess their own organisation against
best practice in three critical areas:
how they de?ne their purpose, how
they lead and develop their people,
and how they invest in their potential.
6. PROFESSIONALISING
THE BUSINESS
Higher levels of education and
professional attainment are linked
to business growth. In this chapter
we focus on how business
education is being designed and
delivered speci?cally to meet the
needs of the small business owner.
The challenge for many business
owners is to grow as a manager as they
grow their business. It is easy to be
stuck in the business, but the owner’s
own growth is sti?ed because they do
not develop themselves. “An
entrepreneur who has only ever worked
for themselves must make their own
personal development a high priority
because otherwise they end up with
tunnel vision,” is how one entrepreneur
puts it.
All too often, business owners end up
working in the business, not on the
business. There are always pressing
short-term concerns – from cash ?ow
and customers to suppliers and staf?ng
– that can distract an owner from their
long-term goals.
GROWTH
STORY
30
David Law is the Executive Chairman of the 112-year-old
family business WJ Law, one of Northern Ireland’s leading
house builders. He decided to study for an MBA in 2012 –
six years after becoming its Chief Executive.
The recession and the property crash sent a seismic wave
through the Northern Ireland economy. House prices halved,
the number of buyers fell from 120 per year to 45, and our
turnover fell from £30m to £8m.
Since then, I have led the organisation through this period of
profound change, and moulded it into one that is now lean,
customer-focused, outward-looking, collaborative and once
again pro?table. Instrumental to this was my decision in 2012
to study for an MBA at Ulster Business School. I had several
reasons for deciding to do this.
Having weathered the storm of the great recession, there
were signs that customers were back in the market and that
there were opportunities for both growth and land
acquisition at a favourable time. Despite being terribly
weakened by the recession, I knew that we had the
capabilities to deliver high value through housebuilding.
But the company lacked the resources to buy new land and
the climate for bank lending to Northern Ireland property was
non-existent. The business needed equity capital. To add
credibility to the WJ Law offer, as personi?ed by myself as its
Executive Chairman, I believed that I should gain an MBA
quali?cation.
I knew I would enjoy the academic rigour as well as bene?t
from the knowledge. I wanted to be able to better frame
business concepts in my mind, to be less intimidated by
some ?nancial aspects and to utilise these skills in business.
I achieved an MBA with distinction in 2014.
Studying at Ulster Business School and repositioning the
business has been highly valuable. In the ?rst instance, the
market has improved. Crucially, the company has found an
equity partner who appreciates our culture. In common with
many family businesses, WJ Law hold a long term view; and
it is these qualities along with our customer and quality focus
that were attractive to our equity partner. There is a good
cultural ?t. The credibility and the knowledge that I derived
from the MBA programme were central to the diligence
process of coming together with our partner.
The outcome is a company that now has both the competencies
and the ?nancial resources for growth. We are creating
shareholder value. There’s no doubt that my MBA has
played a critical role in this process.
HOW MY MBA HAS BEEN CRITICAL
TO OUR FAMILY BUSINESS
6.2 GAIN QUALIFICATIONS,
BUILD CONFIDENCE
The achievement of professional status
– as an independent endorsement of
management and leadership capability
– builds con?dence. “It says that you
are the person to lead the enterprise
to its next stage of development,” says
Scott Harvey CCMI, CMI Thames
Valley Board and Managing Director of
an SME. Professional recognitioncan
take the form of an MBA or CMI
quali?cation.
The achievement of Chartered status
also creates value for the business,
through demonstrating its credibility
and professionalism.
6.3 RETURN TO SCHOOL
Higher education levels and
professional attainment tend to be
associated with business growth. If
more business owners were to go
through more business education, the
UK economy would likely be more
productive. But it is important to
recognise that SME owner-directors are
seeking development; they do not want
quali?cations to be sold to them.
Several business schools observe that
the topics that are most popular with
small business owners are practical
topics such as ?nance for non-?nancial
managers and employment law, as
well as those disciplines that enable
owners and their staff to get to grips
with running the company, such as
people and performance management.
Business schools must recognise that
many business owners want access to
skills as a simple, direct, short-term ?x
for these types of problems. They are
not necessarily interested in
accumulating CPD points or other
credit-bearing courses.
The traditional, generic business
studies programmes need to be
tailored for the needs of small, growing
businesses in terms of the content,
skills and competencies required.
Some business schools do collaborate
with small businesses to design their
programmes. More input from
business owners is required. For small
businesses to grow, business
education can’t just be about schools
pushing – businesses have to pull, too.
Other business owners will be looking
for a long-term development path that
may possibly lead to a formal
quali?cation. Individual owners will be
prepared for pay for quali?cations and
CV enhancements to support their
own career development.
GROWTH
STORY
David Law, WJ Law
31
6.4 FACILITATED
NETWORKS: BUSINESS
SCHOOL KNOWLEDGE
MEETS ENTREPRENEURIAL
EXPERIENCE
Facilitated peer-to-peer learning, which
provides an effective structure within
which experienced entrepreneurs can
learn from one another, is a crucial
aspect of the learning environment for
many business owners. A peer group
that supports and teaches each other
is harnessing hundreds of years of
experience of running a business.
“Stepping away from the business is a
key step and doesn’t cost anything,” is
how one participant puts it. “It forces
you to explain your business model,
where you want to go with your business
and how you intend to get there.”
“The most important feature of the
Goldman Sachs 10,000 Small
Businesses programme is the peer
learning,” observes Professor Mark
Hart of Aston University Business
School. “Putting business owners
through a programme is one thing, but
actually creating a community as they
go through is important.”
“You’re no longer the lonely managing
director with no one to share your
problems; you now have a cohort of 25
peers and 1,000 alumni across the
UK,” is how Professor Nigel Lockett,
Director of Enterprise Learning at
Leeds University Business School and
the programme’s Academic Lead,
describes its value.
For many business owners, being a
member of a network engenders real
con?dence. “I was worried whether we
were biting off too much or whether we
could really stretch ourselves to step
up into the next league,” is how
Research by Design’s Heather
Forrester describes it. “Being on a
programme with other entrepreneurs
told me that, actually, we were not
biting off enough”.
In its discussions with small ?rms the
Federation of Small Businesses (FSB)
has also found that the main source
of support that has contributed to the
growth of their businesses has been
peer networks. Through its networks
of branches around the UK the FSB
supports 200,000 small businesses,
with business owners using their
experience and expertise to help fellow
members out.
6.5 STRATEGIC SPACE:
FIND TIME TO REFLECT
Another key bene?t of going through a
learning programme is that it provides
the time to think.
The concept of “strategic space” is
important, says the Centre for Enterprise
at Manchester Metropolitan University,
because it recognises the need “for
owner-managers to have the resources,
motivation and capability to engage in
critically re?exive processes to review
and revise organisational practices in
order to accomplish learning and
transformation”.
It has been central to Manchester
Metropolitan’s participation in the
Goldman Sachs 10,000 Small
Businesses programme: the university
has helped 127 businesses in the
North West through the programme so
far, enabling access to over £3m of
direct funding.
You’re no longer the lonely
managing director with no
one to share your problems;
you now have a cohort of 25
peers and 1,000 alumni
across the UK.
Professor Nigel Lockett,
Director of Enterprise Learning at Leeds
University Business School
CASE STUDY
Hertfordshire Business School’s Business Academy was launched in
2012 to provide an easy point of entry for local businesses to tap into
the Business School’s wealth of expertise and support. It has been in
operation for three years and in that time has delivered seven conferences
and more than 30 networking and 100 training events.
In its ?rst year alone, the Business Academy attracted more than 250
business people through its doors. It continues to expand and broaden
its portfolio; it has introduced a complimentary personal membership
scheme for regular members to access the bene?ts more easily.
The Business Academy provides a broad range of development and support
designed to meet the needs of small businesses and social enterprises
operating in the region. Monthly breakfast brie?ngs, led by an expert
academic or professional practitioner, act as an entry-level development point
for business owners. There are further development levels for small business
owners, managers and their staff, and a range of recognised vocational
quali?cations with leading professional bodies are available.
The Business Academy partners with many local stakeholders and
network groups in the region, holding joint events and signposting
members to IOD, CIM, Herts Chamber of Commerce, FSB, CMI, LEP,
UKTI and Herts Growth Hub activities.
THE HERTFORDSHIRE BUSINESS SCHOOL BUSINESS
ACADEMY: PROVIDING AN EASY POINT OF ENTRY
FOR LOCAL BUSINESSES
32
CASE STUDY
THE GOLDMAN SACHS 10,000 SMALL
BUSINESSES PROGRAMME
The 10,000 Small Businesses programme is designed
for the leaders of established small businesses who
have the ambition and potential to signi?cantly grow their
enterprises. Participants bene?t from a comprehensive
package of support and expertise to help them take their
businesses to the next level.
“It has been absolutely magni?cent for those who have
participated on it in terms of being part of networks and
creating a community,” enthused Heather Forrester,
Managing Director of Research by Design. “It helps you
develop your vision, how you communicate with other
people within the network and actually grow and develop
yourself, your business and the people in your business.”
“It also helps the way in which businesses look at
international markets,” adds Aston University Business
School’s Professor Mark Hart.
Recruitment and selection is managed regionally by the
programme partners and is targeted at the leaders of
established small businesses and social enterprises with
typically between ?ve and 40 employees. The selection
process aims to identify participants whose businesses
have the potential to grow signi?cantly and whom the
programme can help to achieve this growth. There are
no restrictions with respect to other characteristics of the
business or the applicant.
Participants have to be established businesses with
employees; they cannot be sole traders without
employees or start-ups. Applicants must be open to the
idea of taking on this form of business support.
The programme’s second report, Empowering
Entrepreneurs, Accelerating Growth, published in late
2014, concluded that participating businesses grew by
between ten to 25% over the growth that they would
have achieved anyway. 90% of participants grew net
employment three years after starting the programme;
88% grew turnover.
After participating in the programme, businesses are on
average growing employment between 16% to 26% per
year, and growing turnover at between 23% and 42%,
depending on when they graduated.
Relative to the wider UK small business population,
the participants in the Goldman Sachs ‘10,000 Small
Businesses’ are heavily skewed towards the high-growth
end; there being more than two times more faster-
growing businesses among them than in the economy as
a whole.
“The cohort of growing businesses in the 10,000
Small Businesses programme is not a straightforward
representation of the broader UK small business
population,” notes the report. “The crucial question is
not whether the UK participants are representative of the
wider small business population, but whether they are
representative of a subset of that population that is useful
to understand better.”

Being part of networks helps
you develop your vision, how
you communicate with other
people within the network and
actually grow and develop
yourself, your business and the
people in your business.
Heather Forrester
Managing Director of Research by Design.
33
CASE STUDY
Our challenge was to provide effective learning and
development for SMEs with true growth potential. This was
based on the view that access to a combination of business
support and leadership development opportunities can give
the impetus and knowledge for SME owners to grow their
businesses.
The goal of the programme was to provide the tools,
knowledge and resources to help the participants lay
foundations for long-term, sustainable business growth and
job creation.
The main objective of the programme was to unlock the
economic and job creation potential of small businesses
and social enterprises, by breaking down some of the
barriers to growth, one of which is access to high quality
leadership education.
The strategy
We developed an engagement strategy to ensure that we
could reach the maximum number of small business owners.
We did this through the creation of a referral partner network:
we set ourselves the target of 60 good quality applications.
From this pool we recruited between 25 and 30 business
owners to take part in each programme cohort.
The programme of support comprised:
• ten modules, each addressing a particular aspect of growth
• a series of bespoke workshops to cover speci?c topics
that were not covered in the modules
• one to one business coaching.
Each business that completed the programme then created
a business growth plan. The programme runs over a ?ve-
month period, with two cohorts of business owners per
year, and the participants are expected to be the owner
and/or key decision maker in the business.
We paid speci?c attention to the way in which we delivered the
programme in order to ensure that it was practical, relevant
and had adequate opportunity for learning from peers.
The results
273 small business owners have completed the programme
in Yorkshire & Humber since we started in October 2010;
31% were female-owned businesses, which compares to
19% across the UK.
Business owners have changed their behaviour. More
than 90% say that they are more con?dent in their ability
to successfully grow their business; a similar percentage
is more con?dent in their ability to introduce new internal
systems or processes.
As one participant put it: “The programme’s impact has
been life-changing for me. I have more con?dence in
myself and my business, a new set of practical skills and
approaches and an incredibly valuable peer network who
won’t allow me to accept the status quo any longer.”
The lessons
A number of years ago we developed a series of principles
from the research into how SME business owners learn.
Working on the Goldman Sachs ‘10,000 Small Businesses’
programme and applying these principles we have learnt
that these principles have a great deal of currency.
• Understand the context of the SME business owners
Design, build and deliver programmes from this
perspective: SME business owners don’t recognise the
corporate world.
• Stimulate entrepreneurship and determine the stretch
SME managers generally are concerned with current
interests, seeking improvements to current ways of
working. Programmes should recognise this and be
practical.
• Respond to the time-frame as appropriate Most SMEs
have extremely short planning horizons. However, there
is a signi?cant association between an SME’s approach
to strategic planning and its business performance.
Those who create a strategic space for their owners
to work with time-frames up to ?ve years, prove to be
pro?table with a greater capacity to grow, innovate and
develop new products.
• Determine the measurement and what is valued How
SMEs measure their performance is strongly connected
to managers’ response to what they learn. SME owners
are very competitive: the learning environment must play
to this.
• Engage with the identity and interests of the manager
Learning should engage managers; they should feel
that is directed at and by them. Abstract concepts
are unhelpful if they do not help learners to create an
image of themselves as leaders. Learning materials and
methods should be rooted in the real world and in the
context of particular groups.
• Develop communities of practice The social dimension
of learning is crucial to success; collective knowledge
is created in conversations during which learners share
information, seek help and generally give meaning to
their work. Peer-to-peer learning is a very powerful and
effective method of learning for SME business owners.
UNLOCKING GROWTH: THE LEEDS UNIVERSITY
BUSINESS SCHOOL PERSPECTIVE ON THE GOLDMAN
SACHS 10,000 SMALL BUSINESSES PROGRAMME.
34
6.6 CHARTERED MANAGER:
THE STANDARD OF
MANAGEMENT EXCELLENCE
Chartered Manager is the highest
professional accreditation in the ?eld
of management and leadership.
According to recent research
7
,
Chartered Managers make a signi?cant
impact on the performance of their
companies. On average, Chartered
Managers add £391,000 of value to
the organisations they serve.
Of the 535 Chartered Managers
surveyed, 96% use the accreditation of
proof of experience of leading people
and managing change; 95% say that
Chartered status shows their integrity
and commitment to ethical behaviour;
and 83% say that they are better
managers after achieving Chartered
status. Chartered Managers make
signi?cant contributions in many areas
to their businesses: 80% report
success in developing new products or
services; 86% have improved
operations; and 73% have exceeded
their targets.
There are a number of routes to
achieving Chartered Manager status
for SME managers and leaders. Many
business schools are now building
Chartered Manager into their education
and training programmes.
CASE STUDY
Founded over 30 years ago, the Open University Business School has
educated more than 90,000 postgraduate students – 25,000 to MBA level
– from over 100 countries. Since late 2013, the OU has offered Chartered
Manager as part of its postgraduate business and management offer for
students and alumni.
According to Jacqui Thomasen, senior manager (external engagement)
for the OU’s business school, Chartered Manager is a “gold standard”
accreditation for individuals to combine theoretical learning and real-world
application. Says Jacqui:
“The OU business school provides students with a practice-based
business education, along with opportunities for development that deliver
a bene?cial personal, social and economic impact. We partnered with CMI
to offer Chartered Manager to our postgraduate students because we saw
a strong ?t between our respective missions and values.”
Demonstrates theoretical learning applied in practice
“We have a huge community of postgraduate students and alumni. They
come from around the world and work across many different sectors. The
one trait they all share is a commitment to developing their management
skills and knowledge. We promote Chartered Manager as part of our
postgraduate offer because it demonstrates theoretical learning applied in
practice, as well as de?nes standards of ethical and progressive practice.”
Chartered Manager ?ts our MBA programme
“On a practical level, Chartered Manager ?ts seamlessly with our MBA
programme. The ?rst year of the course counts as the educational
component in Chartered Manager. Our students are able to progress
quickly through the process to become Chartered Managers. I think
that’s because of the synergy between OU and CMI. We both engender
re?ective learning, and re?ective practitioners.
In addition to our current students, our alumni are also taking a great interest
in Chartered Manager. Some view an MBA as the end of the line for formal
educational, but understand the need to stay current with best practice and
are now saying ‘I’m really committed to staying up to date with the latest
thinking, latest practice, and Chartered Manager is how I do it.’”
A ‘gold standard accreditation’ for OU business students
“Since we’ve introduced Chartered Manager, the student and alumni
feedback has been overwhelmingly positive. So much so we’re
now looking to roll out Chartered Manager to some undergraduate
programmes too. They want to show what they’re capable of outside
of the classroom. Chartered Manager signi?es real-world achievement,
which our students say complements their quali?cations and enhances
their CVs – it’s the gold standard management accreditation.”
CASE STUDY: THE OPEN
UNIVERSITY BUSINESS SCHOOL
7
Mapping Management Excellence: Evaluating the Impact of Chartered Manager, CMI, 2015
35
7. FINDING AND ACCESSING
THE RIGHT SUPPORT
The breadth of support schemes
for small businesses is large and
confusing. In this chapter, we show
how business schools, professional
bodies and other organisations can
guide business owners accurately
and effectively.
CASE STUDY
The London College of Fashion
hosts London’s pioneering
incubation platform for emerging
fashion designers – the Centre for
Fashion Enterprise. It was created
as the response to the continuing
failure of talented fashion designers
whose shows at London Fashion
Week attracted global press
attention but were unable to deliver
product or sustain a business. Not
only was this detrimental to the
fashion sector, it was also poor for
London’s reputation.
CFE was launched at London
College of Fashion in 2003 with the
?nancial support from the Mayor
of London to assist London-based
designers to monetise their talent.
Today CFE supports more than
120 emerging fashion designer
businesses each year, with a
four-tiered business development
programme structured to take
businesses from market entry
through to investment readiness.
It has incubation studios and
workshops in the East End of
London and has a business
support, global sourcing and
manufacturing, and a fashion-tech
team. CFE also delivers fashion
industry research, development and
consultancy.
Every year CFE puts out a call
for applications for its Venture
Programme and selects up to
?ve designers for the two year
“residency.” The designers
must demonstrate a relevant
creative talent matched with an
entrepreneurial ability, while CFE
must feel that it can add value
to the business. The Venture
Programme gives studio and
workshop space, access to
networks, industry expertise, sales,
business and legal support and
?nancial planning advice.
The success of CFE is only
becoming visible as businesses
supported from 2007 are now
scaling up, showing that it takes
seven or eight years for a designer
label in UK to begin to explore its
full business potential. The timing
and tone of the delivery of advice
and support is the key to success.
THE CENTRE FOR FASHION ENTERPRISE
AT THE LONDON COLLEGE OF FASHION:
A PIONEERING INCUBATION PLATFORM
36
Local Enterprise Partnerships (LEPs)
play an important role in advising
businesses on where to ?nd the right
support. Several LEPs have designated
network navigators who are speci?cally
tasked for guiding businesses through
the bureaucratic processes.
As illustrated by the case study of
MeArm Robotics and Nottingham
Growth Hub (opposite), growth hubs
can provide local mechanisms for
businesses to understand what
schemes are available and whether
they are eligible.
Businesses that access support are
more likely to succeed than those who
do not. “You achieve much stronger
performance if you get business
support,” says Hugh Lightbody, Chief
Of?cer of the Business Gateway
National Unit in Scotland.
Yet many businesses still do not look
for that support or do not know where
to ?nd it. It is not possible for a small
business owner to be aware of the
giant jigsaw of support schemes.
“When you are a small organisation
and you do everything within the
organisation, it’s very dif?cult,” admits
one business owner, “because you are
running on the treadmill trying to keep
up with everything.”
“Despite moves towards simplifying
the support landscape, there remain a
large number of schemes, each with
different objectives, eligibility, funding
and contact points,” notes the House
of Commons Business Innovation &
Skills committee in its February 2015
parliamentary report, Government
Support for Business. “Over 600
different schemes are currently
advertised on the Government’s
website, covering different locations,
different industries, and being
supported by different funding
sources.”
For a small business to understand
what support is available locally, or
from a national scheme, means that
they must connect into the business
support ecosystem – and that this
ecosystem is effective.
7.1 SIGNPOST ORGANISATIONS:
POINTING THE WAY TO
APPROPRIATE SUPPORT
CASE STUDY
The Leeds City Region Enterprise Partnership (Leeds LEP) plans to
encourage 5,000 more SMEs to participate in training – which will
unlock £21.5m of skills investment by employers – and to create 3,000
apprenticeships above and beyond its existing targets.
Earlier this year the Leeds LEP won funding through the government’s
Employer Ownership Pilot to create a £13.9m skills service for local
businesses. Its skills service is delivered by a consortium made up
of Calderdale College, Leeds City College, West and North Yorkshire
Chamber of Commerce and Mid-Yorkshire Chamber of Commerce and
Industry on behalf of the West Yorkshire Consortium of Colleges.
The Leeds LEP skills service helps businesses identify their skills needs
based on business growth objectives, and then ?nds the right training
solutions to match. The training provision is employer-led – businesses
can design their own solutions and plug gaps in the market. Companies
throughout the Leeds City Region with a budget to put towards training
may also be eligible for funding of between £500 and £50,000.
Already, more than £450,000 of training provision has been supported
and 50 applications approved. The highest number of successful
applications is coming from the manufacturing and engineering
sector; the majority of training requests have been for leadership and
management.
“The skills service is an amazing opportunity for businesses,” says
Jeremy Smith, Director of Wake?eld-based manufacturer Custompac.
“We were able to pull together a complete training plan, get funding for
training, advance our staff skills and stay ahead of the competition.”
LEEDS LEP SKILLS SERVICE:
IDENTIFYING SKILLS NEEDS AND TRAINING
SOLUTIONS FOR GROWING BUSINESSES
37
MeArm makes educational robots. It
started when I made the ?rst version of
our current product and shared the
?les online. People started building
them with their 3D printers and laser
cutters and then I started to get
requests for kits. At the time I was
running another business but this little
project I had started took off.
MeArm Robotics was founded in
October 2014. I set out to share the
designs of our product freely and rely
on virality to market the product and
build our brand. I hoped it would also
speed up our R&D: the open source
model has been very successful in
software and we’re hoping it can be in
the hardware world too.
We have sold around 3,000 of our
prototypes, and more than twice that
many “wild” MeArms have been built
by makers on every continent except
Antarctica. About one in 200 of these
prototype builders have contributed to
the code, design and even lesson
plans. The development team in my
business has gone from me in
Nottingham to 50 people in countries
such as Peru, Canada, South Africa
and Taiwan.
The initial market was con?ned to
people who are interested in
electronics. The next phase was to
extend the market, so that all you
would need to build a MeArm is an
Allen key and enthusiasm.
THE VALUE OF A GROWTH HUB
To fund this stage of development I turned
to crowdfunding on Kickstarter. I was
looking for £5,000 but in three weeks
over Christmas we raised £25,000.
Today, MeArm now consists of three
people. We are focused on developing
this new, easier to build, and super-
simple-to-control product.
The challenge
The largest challenge I faced was
?nding good people to share the
workload, whilst managing the
workload. Finding time to write a job
spec, advertise, interview and get the
right candidate was extremely dif?cult.
Another challenge was meeting people
with access to knowledge and
resources within the local area. It’s
hard starting a new business and
invaluable to meet people in business
that have experience, knowledge and
resources that can help us grow.
The company was experiencing fast
growth but I wasn’t able to cope with it
on my own and I felt too time-poor to
do anything about it.
The strategy
I increased my business network in
Nottingham. I made a conscious effort
to go to at least two networking events
a month. Through these, I was looking
for advice from others on how best to
recruit and ?nd relevant knowledge
and resources.
It wasn’t a direct way to solve my daily
problems but it allowed me some
distance from the business – even for
just an hour – and would allow me to
meet people who had been where I
was.
The results
I was very fortunate at these events to
meet the team from the Nottingham
City Council Growth Hub, who
demysti?ed the help that was available
to my business and who also to
introduce me to people from
organisations such as the DWP, the
Nottingham Jobs Fund and the
Nottingham Manufacturing Network.
They all took time out to meet me,
understand the needs of the business
and take action to help me grow my
business.
The lessons
My biggest takeaway: don’t try to do
everything on your own. There are
excellent organisations that have the
experience and expertise you’re
looking for. The time spent with them
has paid me back probably 100-fold.
Rather than going it alone, I could tap
into their networks and knowledge to
grow my business at a much faster
rate.
GROWTH
STORY
My biggest takeaway: don’t
try to do everything on your
own. There are excellent
organisations that have the
experience and expertise
you’re looking for.
Ben Gray,
MeArm Robotics
38
7.2 BUSINESS SCHOOLS AS
ANCHOR INSTITUTIONS
There are many organisations that
provide professional training and
advisory support to small businesses.
In order for the power of these to be
fully leveraged, there is a role for a
convening institution. The universities
– and their business schools – can play
this part. They provide a neutral, stable
setting that is both a credible learning
environment and one that is deeply
networked into the local and regional
economies.
“We’re encouraging businesses to
come through The SME Centre as a
gateway to accessing support across
the university but also the access the
breadth of support that exists outside,”
says Kirsty McManus of Ulster
Business School. “There’s so much
support out there that the market is
confused, so we are trying to become
a one stop shop for small businesses
and a screening point.”
“Business schools are in a unique
position to support businesses by
helping them grow and to make a
signi?cant contribution to local and
7.3 PEER NETWORKS: THE
ROLE OF PROFESSIONAL
BODIES
Professional bodies such as the CMI
host many events that bring together
local businesses, institutions as well as
other parts of the business support
ecosystem. Annually, more than 4,000
individuals attend the CMI’s networking
opportunities, which connect them
locally as well as creating new links
and relationships. These are supported
by CMI social media and online
platforms.
These networks are particularly helpful
to business owners as they seek to
identify appropriate expertise and
available resources; they provide
navigation and signposting. They also
draw in expertise from a wider pool of
management.
Championing higher education and
training is central to CMI’s mission to
increase the number and standard of
professionally quali?ed managers and
leaders, particularly for those working
in SMEs. According to CMI research,
just one-third of small businesses use
business schools for training their staff
8
.
Addressing the management and skills
shortfall depends on CMI building
relationships with business schools and
small businesses.
CMI now has partnerships with over
85 business schools – two-thirds of the
UK’s 135 total. Partnerships are evenly
distributed through the business school
rankings table, so CMI’s offer appeals to
elite, red brick and post-1992 institutions.
In the past 12 months, nearly 5,000
higher education learners have emerged
from their studies with CMI-accredited
quali?cations and accreditations.
CMI: building relationships
with small businesses and
business schools to improve
management and leadership
national economies,” wrote Baback
Yazdani, Dean of Nottingham Business
School, Nottingham Trent University, in
the Financial Times (December 14,
2014).
“Business schools cannot sit back and
wait for these ventures to come to
them. Resources should be dedicated
to meeting businesses and utilising
business networks. There is certainly
more that business schools can
achieve if they take the time to
communicate directly with local
business and take the trouble to
understand the type of support that
these ventures need.”
CASE STUDY
Greater Manchester’s Business Growth Hub has successfully delivered
a growth programme that has helped to get ?ve local food and drink
businesses onto the shelves of Tesco supermarkets.
The Hub’s ‘Recipe for Success’ consisted of a series of free seminars
and workshops, which covered topics such as issues pricing, what major
retailers expect from suppliers, and product development. Those who
were deemed retail-ready then had the chance to pitch their products
to Tesco. This led to ?ve of the seven participating businesses securing
provisional orders with the supermarket chain.
The success of this Dragons’ Den-style event has provided a platform
for small businesses to get their products onto the shelves of a national
supermarket, gain brand awareness and map their route to new markets.
MANCHESTER GROWTH HUB:
THE ‘RECIPE FOR SUCCESS’ PROGRAMME
39
CASE STUDY
The ultimate aim of Invest NI is to increase the productivity
of the companies with which it engages. It recognises
the impact of leadership and management on company
performance and directly supports the development
of knowledge and skills through its Leadership and
Management Support Framework (LMSF).
This framework includes the Leader Programme,
which is designed for the owner-manager and includes
business mentoring, leadership coaching and peer
networks to share learning and provide access to
best practice. The framework was expanded in 2014
to include the Leadership Team Programme for the
Managing Director plus two members of the senior
management team. It comprises of executive education
and business coaching. The Leadership Space
has been developed to facilitate the alumni for both
programmes.
Both programmes are based on the need to challenge
the business practice and the individual behaviours of
participating directors and to help remove blockages
for growth. Reviews and feedback help to ?ne-tune
the content: in response to customer needs, additional
days have been provided on relevant subjects such as
advanced communication and strategy. For the Leader
Programme, customers were provided with pen pictures
of mentors and given the time to self-select mentors
based on their individual needs – satisfaction levels now
sit at 100%.
Overwhelmingly, participants feel they are more
strategic in their business vision and outlook, planning,
staff management and communications. One company
that attended the Leadership Team Programme in its
?rst year reported that it had exceeded its sales targets
by 28%, extended into two new markets of Denmark
and Australia, and enhanced its productivity to take
on additional work streams as it was servicing more
customers.
Invest NI collaborates with the Department for
Employment & Learning (DEL) to raise awareness of the
importance of leadership and management to Northern
Ireland businesses. Through two online diagnostic tools,
companies can take part in a business and individual
assessment which then guides them to relevant support
from both organisations.
INVEST NI: LEADERSHIP AND MANAGEMENT
SUPPORT FRAMEWORK
CMI’s educational reach continues
to extend, with the professional body
regularly forming new and notable
higher education partnerships.
Recent examples include CMI signing
a Memorandum of Understanding
with Coventry University in March
2015, laying the foundation for CMI
accreditations and member bene?ts
to be embedded in a range of
undergraduate and postgraduate
courses. Over the last two years, CMI
has also linked up with the likes of
Leicester, Brighton and Nottingham
(NTU) embedding CMI quali?cations
into their undergraduate and
postgraduate (including MBA) degree
programmes.
But CMI’s higher education
partnerships run deeper than just
enhancing curricula and bolstering
business students’ professional
accreditations and quali?cations.
Partner institutes also bene?t
from access to CMI’s network of
thought leaders. For example, CMI’s
Chief Executive Ann Francke and
president Mike Clasper delivering
keynote speeches at the University
of Wolverhampton’s annual Crystal
Lecture and at the University of the
West of England Bristol’s annual
Bolland Lecture as part of the Bristol
Distinguished Addressed Series.
There, attendees also have the
opportunity to meet industry leaders.
The programme includes a one-to-one
debrief session to receive constructive
feedback and make plans to further
develop and grow their businesses.
Such networks provide business
owners with easy access to expertise
from a wide pool of experienced
managers and resources normally
outside of their reach. Small
businesses only stand to gain from
becoming part of the networks formed
between CMI and their local business
schools. Stronger collaboration
between business schools, small
businesses and CMI will lay the
groundwork for greater innovation,
management capability and growth.
These networks are particularly helpful
to business owners as they seek to
identify appropriate expertise and
available resources; they provide
navigation and signposting. They also
draw in expertise from a wider pool of
management.
In other words, a small business
does not need to know all the details
of all the support schemes – but they
can make sure that they know people
who do.
8
21st Century Leaders, CMI, 2014.
40
CONCLUSIONS
Growing Your Small Business highlights
the need for professional bodies
including CMI, Chartered ABS and its
Small Business Charter, to work harder
in building three-way relationships with
business schools and SMEs.
Establishing, nurturing and supporting
these relationships is essential to the
collective aim of increasing the number
and standard of professionally quali?ed
managers and leaders. Doing so will
vastly improve SMEs’ prospects for
long-term survival, improved productivity
and growth, which are currently
undermined by a huge skills shortfall
among their managers and leaders.
While the three-way relationship is one of
mutual interest, professional bodies and
business schools must take the leading
roles in initiating and implementing
change. Professional bodies and
business schools must now act together
to address four key areas to achieve
success. These are:
• Make it easier for SMEs to put their
managers and leaders into education
and training programmes.
• Cement business schools’ position at
the heart of regional economies
• Educate SMEs about the business value
of employing graduates and upskilling
existing staff with professional
management quali?cations
• Ensure business students recognise the
value of working for SMEs
RECOMMENDATIONS
1. Increasing the access and sign-
posting to professional pathways
1.1 Better signposting to
management and leadership
support: SMEs across the UK
consistently report that they are not
accessing the support and advice they
need on management and leadership
development. This is because most are
simply unaware of the issue of MLD as
being key to performance, whereas
others are unaware advice and support
is available. For those few SME leaders
and managers who are aware of the
issue, either they do not know who to
turn to, or if they do are overwhelmed by
the choice and spread of disparate
information. Better sign-posting would
therefore direct SMEs to the practical
information they need.
A key outcome from Growing Your Small
Business has been the development of a
new geographical heatmap of SME
activity aligned to a database of business
schools and support offered.
The Growing Your Small Business
signposting tool (visit www.managers.
org.uk/growingSMEs) has been
designed to help employers and
managers identify local and appropriate
support from business schools. Across a
map of the UK, there are ?ags marking
every business school, which include
business-friendly contact points. The
heatmap provides separate ?ags to
showcase those business schools that
are part of the Small Business Charter,
and the map can also be used to identify
the providers of the new Chartered
Manager Degree Apprenticeship.
Collaboration must also improve between
professional bodies and Growth Hubs,
Local Enterprise Partnerships (LEPs) in
England, and other key business referral
agencies including Invest Northern Ireland,
Business Gateway in Scotland and
Business in Focus in Wales (the
successors to Regional Development
Agencies). These bodies play a vital role in
offering business advice to start-ups and
SMEs. But LEPs and similar bodies are
strictly responsive to local businesses’
requests. Given that the majority of SMEs
do not recognise lack of management and
leadership skills as a barrier to growth, it is
unsurprising they do not proactively
provide advice on professional training and
education.
LEPs and others must therefore work
with anchor organisations like CMI to
understand the challenges and convey
them to SMEs in their region. They
should access and share vital
information on upskilling management to
promote growth, such as through the
heatmap and CMI’s learning portal
ManagementDirect. They can also point
SMEs to applying for anyone of a multitude
of government funding schemes to
subsidise the cost of education and
training for their managers.
1.2 Bite-sized and blended learning:
Many business schools now offer
courses in accessible formats, including
executive education delivered in
partnership with the CMI. Business
CONCLUSIONS AND
RECOMMENDATIONS
41
schools should do more to offer many
more bite-sized courses, meeting the
time and cost constraints of SMEs, but
still leading to nationally recognised
professional management quali?cations.
1.3 Degree apprenticeships for all:
The forthcoming trailblazer Chartered
Manager Degree Apprenticeships will be
able available to all from autumn 2015.
Under the scheme, employees can ‘learn
as they earn’ with their employers
picking up a third of their education
costs and the Government funding the
rest. Recognising that the costs can still
be a signi?cant barrier to many SMEs,
there are further funding incentives
available for SMEs taking on
apprenticeships. This new high-level
apprenticeship programme has been
developed working with SMEs and
provides a new route for ensuring SMEs
can invest in professionalising their
management. Visit www.managers.org.
uk/degreeapprenticeships for details.
Professional bodies and business schools
should work with Government to promote
both professional quali?cations and these
new apprenticeships far more widely to
the SME community.
2. Cementing business schools’
position
2.1 Put the Small Business Charter
and business schools at the heart of
SME support: Business schools and
universities are stable, long-term
institutions with the facilities and expertise
to support small businesses. They are
already part of their local economic
ecosystems across the UK and we want
to ensure they are recognised as primary
destinations for business support. The
Government worked with Chartered ABS
to put in place the Small Business Charter
(visit smallbusinesscharter.org).
Government and local economic
agencies should continue to support the
Small Business Charter, and business
schools who work with SMEs, by
ensuring that Growth Hubs, LEPs and
other key business referral agencies
signpost small businesses towards the
Small Business Charter business support
programmes and business schools
across the UK.
2.2 Business schools should be
encouraged to attain Small Business
Charter: Business schools need to be
more open and accessible to SMEs, with
clear sign-posting for SMEs through the
institution. They have to communicate
CONCLUSIONS AND
RECOMMENDATIONS
that they are more than providers of
executive education for large
corporations, or incubators for student
start-ups. Both these functions are
important but they need to communicate
that they are set up to support
businesses at any stage and of any size.
In tandem, business school programmes
need to be ?exible and evolving with the
changes in the business environment.
Business schools who engage in
supporting small businesses should be
encouraged to achieve a Small Business
Charter award to support them to gain
the recognition and raise the pro?le of
the support they can provide their local
business community.
3. Aligning education to the needs
of small businesses
3.1 A curriculum that really prepares
students: SMEs commonly perceive
business schools to be too focused on
preparing students for working in large
businesses. While there is a great
overlap in the core management skills
required for organisations of all sizes,
SMEs typically have speci?c skills
requirements that are not addressed in
all programmes. Professional bodies and
business schools must consult with
SMEs to identify these knowledge and
skills de?cits and develop curricula that
either build SME skills needs into
courses, or make it an optional course
for students.
3.2 Connecting SMEs with quali?ed
graduates: SMEs started and built by
leaders and managers with little or no
relevant quali?cations are most resistant
to the notion of needing staff with
professional management quali?cations.
Overcoming this resistance and
changing these mind-sets will be a long
process. Change will only come from the
bottom-up, with successful management
graduates initiating a culture change
within the business. Local Enterprise
Partnerships in England, and other
regional organisations such as Invest
Northern Ireland, Business Gateway in
Scotland and Business in Focus in
Wales, professional bodies and business
schools must focus on developing
job-matching programmes for graduates
and SMEs in their region.
3.3 Seeking support from mentors
and consultants: SMEs with a small
staff typically struggle from having a
reduced pool of knowledge and
experience compared to larger
organisations. Whether it is pride,
determination to succeed on their own
terms and strengths or a lack of
awareness of the external support
available, too many SMEs falter from
their drive to ‘go it alone’. CMI provides
a membership mentoring scheme called
CMI Achieve (www.managers.org.uk/
mentors). The CMI’s Institute of
Consulting also offers a database of the
UK’s most eminent business consultants
through its Find a Consultancy service.
Advisory and support bodies, such as
LEPs, across the UK need to be aware
of such services offered by professional
bodies, and build on these rather than
create a plethora of new regional
initiatives.
4. Student recognition
4.1 Make working in a small
business an aspiration for students:
Undergraduate, and even postgraduate
students typically view big companies as
offering greater career opportunities,
higher salaries and higher status roles
compared to SMEs. Professional bodies
and business schools must therefore
partner to help to change mindsets
among existing and prospective students.
The curriculum in the classroom and
careers guidance should all help to
showcase the bene?ts of working for a
smaller company, placing working for
SMEs on an equal footing with larger
companies. CMI and other professional
bodies need to share far more case
studies and success stories to help
foster ambitions.
4.2 Work experience: Students’ career
ambitions are naturally set by seeing and
experiencing businesses in action. It is
hardly surprising that students aim to
work for big blue chips when these are
the businesses lionised in the media.
Meanwhile, SMEs are all too often
unsung heroes in spite of employing
nearly half of the UK’s private sector
workforce.
Professional bodies and business
schools must unite to promote work
experience and long-term placement
programmes with SMEs in their region to
give students the fullest opportunity to
be exposed to the range of career
options available.
42
ACKNOWLEDGEMENTS
We would like to thank the many people
whose time, expertise and hard work have
made this project possible.
Special thanks go to Philip Wood at CMI,
who managed this project and Professor
Mark Hart of Aston Business School, who
contributed the data underpinning this
work. Also Graeme Fisher, Head of Policy
and External Affairs and Dan Hooper,
Policy Advisor at Federation of Small
Businesses for sharing their knowledge
and research about the needs of small
businesses, Barney Roe at the Chartered
Association of Business School, and Ian
McNaught of the Small Business Charter
for their contribution as speakers and to
the project overall.
We would warmly like to thank all those
who participated in the 14 events across
the UK and contributed their thoughts.
Project Board and Team
• Petra Wilton
Director of Strategy and External Affairs,
Chartered Management Institute
• Piers Cain
Head of Stakeholder Relations,
Chartered Management Institute
• Philip Wood
Policy Manager,
Chartered Management Institute
• Xenia Chan
Stakeholder Relations Of?cer,
Chartered Management Institute
• Undine Rubeze
External Affairs Of?cer,
Chartered Management Institute
• Anne Kiem
Chief Executive, Chartered Association
of Business Schools
• Barney Roe
Director of Communications and
External Relations, Chartered
Association of Business Schools
• Ian McNaught
Executive Director,
Small Business Charter
• Meenal Datar
Operations Manager,
Small Business Charter
• Charlotte York
Marketing Project Manager,
The Supper Club
• Karl Hobley
Senior Stakeholder Engagement
Coordinator, Quality Assurance Agency
Event Hosts
• Dr Tim Barnes
Enterprise Operations and Director,
University College London Advances
• Chris Blackburn
Pro-Vice-Chancellor Dean of the Faculty
of Business, Oxford Brookes University
• Dr Noel Burchell
Pro-Vice Chancellor and Executive
Dean, Business and Law,
University of the West of England
• Melanie Currie
Associate Dean,
Nottingham Business School
• Stewart Falconer
Interim Dean, Edinburgh Napier
University Business School
• Jerry Forrester CCMI
formerly Dean of the Business School at
The University of Hertfordshire
• Andrew Hughes
Dean of the Undergraduate School of
Management and Science,
London College of Fashion
• Professor Marie McHugh
Dean, Ulster University Business School
• Professor Peter Moizer
Dean, Leeds University Business School
• Professor Jill Poole
Deputy Dean, Aston Business School
• Professor Andrew Rogers
Dean, Faculty of Business and Society,
University of South Wales
• Professor Eleanor Shaw
Head of Hunter Centre for
Entrepreneurship, and Vice Dean with
responsibility for enterprise and
engagement, Strathclyde Business School
• Professor Mike Wilkinson
Deputy Vice-Chancellor
(External Engagement),
Southampton Solent University
• Dr Diane Wright
Head of the Department of
Management, and Associate Dean
(International), Faculty of Business and
Law, Manchester Metropolitan University
Speakers
Panel Chairs
• Nigel Culkin
President, Institute for Small Business
and Entrepreneurship
• Patrick Dunne CCMI
Chairman, D3O
• Ann Francke CCMI
Chief Executive,
Chartered Management Institute
• David Frost CBE DL CCMI
Chair, Stoke-on-Trent and Staffordshire
Enterprise Partnership
• Brain Hanna CBE CCMI
Member, Public Service Commission
• Scott Harvey MBA CMgr CCMI
FInstLM FRSA GCGI
Managing Director, Linguistic-Global
• Patrick Kniveton CCMI
Head of Engineering Skills and
Knowledge Management, Rolls-Royce
• Nick Kuenssberg OBE CCMI
Chair, Social Investment Scotland
• Dr Jon Lamonte CCMI
Chief Executive,
Transport for Greater Manchester
• Deborah Leary OBE DUniv FRSA
CCMI
CEO, Forensic Pathways
• Iain McMillan CBE CCMI
Chairman, Scottish North American
Business Council
• Karen Penney CCMI
Vice President and General Manager,
American Express UK
• Peter Watmore CCMI
CEO, Thermotex
43
CMI Representatives
• Philip Bain
Chair, Northern Ireland Board
• Philip Bell CMgr FCMI
Chair, Thames Valley Board
• David Broadhead
CMI Ambassador
• Geoff Brunt MBA DMS CMgr MCMI
Network Champion,
West Midlands Board
• Shaun Bowman
Chair, Eastern Board
• Simon Bowen
Director of Member Engagement
• Philip Jones
Communication Champion,
Wales Board
• Beverly King
Acting Chair, East Midlands Board
• David Potter MCMI
Chair, South West Board
• Ian McNaught CMgr FMCI
Chair, Scotland Board
• John Morgan
Chair, North West Board
• Paul Taylor
Chair, London and South East Board
• Abha Thakor CMgr MCMI
Communication Champion,
Southern Board
• Novelette Williams FCMI
Education Provider/Deputy Acting Chair,
East Midlands Board
Small Business Case Study
• Mark Cornwell
CEO, HPS Group,
Member of The Supper Club
• Tomasz Dyl
Managing Director, GottaBe
• Heather Forrester
Managing Director, Research by Design
• Reginald Larry-Cole
Founder and Managing Director,
Buy2Letcars and Wheel4Sure,
Member of The Supper Club
• David Law
Chairman, WJ Law
• Hugh Lightbody
Chief Of?cer, Business Gateway
National Unit
• Henry Pynegar
Marketing Consultant, Puma Electronics
• Declan McGoff
Owner and Operation Director,
McGoff and Byrne,
Member of The Supper Club
• Syd Nadim
Executive Chairman and Founder,
Clock, Member of The Supper Club
• Sean Ramsden
Chief Executive, Ramsden International,
Member of The Supper Club
• Richard Simpson
Marketing Director, Tayburn,
Member of The Supper Club
• Martin Spiller
Partner, Jenson Solutions,
Member of The Supper Club
Business Schools Representatives
• Professor Georgina Andrews
Director, School of Business and Law,
Southampton Solent University
• Stephen Batty
Director of Professional and Executive
Development, Business and Law,
University of the West of England
• Nick Fannin
Bright Red Triangle, Edinburgh Napier
University Business School
• Professor Mark Hart
Professor of Small Business and
Entrepreneurship, Aston Business School
• Jonathon Lawson
Head of Business Programmes,
Centre for Enterprise, Manchester
Metropolitan University
• Professor Nigel Lockett
Director of Enterprise Learning,
Head of Division for Management
Division, Professor of Enterprise,
Leeds University Business School
• Wendy Maylem
Dean of the Graduate School,
London College of Fashion
• Kirsty McManus
Director of Centre for SME
Development, Ulster Business School
• Alastair Moore
Interim Deputy Director
University College London Advances
• Lynn Oxborrow
Academic and Project Leader,
Nottingham Business School
• Dr Martin Rhisiart
Director, Centre for Research in Futures
and Innovation
• Julie Rosborough
Principal Lecturer,
College of Business Law and Social
Sciences, Nottingham Business School
• Lynne Stevens
Corporate and Professional
Development, Hertfordshire Business
School
• Clive Wildish
Professional Development Programmes
Lead, Oxford Brookes University
SME Support Organisations
• Stephanie Burras
Board Member, Leeds City Region
Local Enterprise Partnership
• Hilary Centelleghe
Senior Growth Manager, Greater
Manchester Business Growth Hub
• Katy Chamberlain
Chief Executive, Business in Focus
• Graeme Fisher
Head of Policy and External Affairs,
Federation of Small Businesses
• Jack Glonek
Assistant Director, Birmingham City
Council’s Economy Directorate
• Simon Hall
Growth Hub Manager
Nottingham City Council
• Dan Hooper
Policy Advisor,
Federation of Small Businesses
• Grainne McCurry
Head of Leadership and Enterprise
Solutions, Invest Northern Ireland
• Elaine Morrison
Portfolio Service Manager,
Scottish Enterprise
• Victoria Odey
Solent Growth Hub Navigator,
Hampshire Chamber of Commerce
• Edward Tellwright
Business Advisor, Business West
• Bruce Walker
Founder and Chief Executive,
We are the Future
Heatmap Development
• Mark Hart
Professor of Small Business and
Entrepreneurship, Aston Business School
• Karen Bonner
Senior Research Fellow, Enterprise
Research Centre (ERC), Economics and
Strategy Group, Aston Business School
• Daniel Symonds
Head of Digital Delivery,
Chartered Management Institute
Event Support
• Joanna Frohmaier
Operations and Events Manager
• Natasha Clegg
Events Executive
• Stacey Bark
Events Coordinator
• Alexandra Palmer
Information and Content developer
Report Production
• Stuart Rock
Author and Director, Devoniaroad
• Patrick Woodman
Head of External Affairs,
Chartered Management Institute
• Lysbeth Plas
Senior Researcher,
Chartered Management Institute
• Nick Parker
Content and System Manager,
Chartered Management Institute
• Tristan Garrick
Head of Strategy and Campaigns,
Chartered Management Institute
• Matthew Rock
Editor, Professional Manager Magazine
Chartered Management Institute
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London, WC2B 6SR
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Incorporated by Royal Charter
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Copyright Chartered Management Institute ©
First published September 2015
All rights reserved. Except for the quotation of short passages
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mechanical, photocopying, recording or otherwise, without
prior permission of the publisher.
British Library Cataloguing in Publication Data
A CIP catalogue record for this report is available from
the British Library
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Chartered Management Institute (CMI)
CMI is the only chartered professional body in the UK
dedicated to promoting the highest standards in management
and leadership excellence.
With a member community of over 100,000, CMI has been
providing forward-thinking advice and support for more than
60 years. We continue to give managers and leaders, and the
organisations they work in, the tools they need to improve
their performance and make an impact.
We are a UK awarding body for management and leadership
quali?cations, and the only body that awards Chartered
Manager, the hallmark of any professional manager.
Through in-depth research and policy surveys CMI maintains
its position as the premier authority of key management and
leadership issues.
Further information is available at www.managers.org.uk
Website: www.managers.org.uk/growingSMEs
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