focus on oxfordshire – roundtable 39


Clarke confirmed the recent growth in non- bank funding, but noted that Oxfordshire had a long-established ‘angel’ community through such investors as The Oxford Trust (founded by Sir Martin and Lady Audrey Wood), OION, Isis Angels Network and venture capital trusts offering seed capital. “Entrepreneurs who are successful and make money are often quite keen to invest again and offer their skills to the businesses they invest in. We are quite lucky to have that spirit here.”


But, the county had other sources of funding. The Government’s Regional Growth Fund had assisted initiatives at Harwell such as the Space Applications Catapult, and a lot of technology businesses had been helped through the Technology Strategy Board. “The mix of angel and government funding has in reality been a cornerstone of Oxfordshire’s technology business success,” admitted Clarke.


“Keeping that and encouraging it will be fundamental to our continued success,” echoed Willmott.


Tipple pointed out that such funding was seen as an investment not a free grant. “It’s a subtle difference, which gives a real business imperative to make that investment work.”


The LEP was looking at ways of introducing mixed investment funding options – with possibly banks, angels, and the Government jointly involved – to change the overall risk profile of investment in order to fund future technology and innovation. Proof of concept investment, tailored skills and training schemes, and sector-networking support might come under such funding.


“It’s about strengthening a business to give it the credibility to be able to pitch for a more traditional funding source.”


Campbell noted that “Oxfordshire life science companies are absolutely at the top of the graph when it comes to securing funding. We’ve seen some big announcements recently. It will be really interesting to see how that funding translates into business growth and more employment.”


As a legal adviser to businesses, from start- ups to major brand names, Sunderland admitted she would not know who to tell clients to go to for funding advice.


“Give us a few more weeks,” said Tipple. The LEP will be setting up an Oxfordshire web-based portal – www. OxfordshireBusinessSupport.co.uk – with a full range of support facts and contacts, including funding advice.


Helping start-ups overcome teething problems


Murray queried if the recession had harmed the progress of Oxfordshire start-ups. Tipple didn’t think so. Larger companies


THE BUSINESS MAGAZINE – THAMES VALLEY – APRIL 2014 Philip Campbell


had been hit, but many like BMW MINI had simply made their operations more efficient or invested in new equipment.


Clarke: “It had a fairly significant effect in 2008/9 depending on what industry you were in. Construction for example suffered far more than IT, but actually, if you were a start-up tech business and you had just raised two years of money what difference did it make?”


The region had “bubbled along during the recession”, said Barlow, growing slowly and was one of the few UK locations that was a positive net Gross Value Added (GVA) generator to ‘UK plc.’


Campbell revealed that during the recession only one company at Milton Park had gone into administration out of 230 businesses on the site.


Clarke: “We talk about global SMEs these days because the moment a tech business starts up it is by nature an international business. Successful SMEs and spinouts are all over this county and certainly well represented here in Milton Park. They just need the right level of advice and support to build their business.”


Tipple: “We produce a huge amount of talent and spin-out opportunities, but how do we facilitate them turning into world-leading companies like Oxford Instruments?”


With the Roundtable being held in the Milton Park’s Innovation Centre, Murray invited Barlow to explain what MEPC was doing to help start-ups.


“We provide an easy-in easy-out, single- bill serviced office offer, with a communal space to network and make contacts with other entrepreneurs. It’s all about creating the right dynamic but flexible environment where companies can thrive. People can come and be set up in a day; leave within a month or grow over time.


“This is all part of our overall provision of all types of space for the right markets. Our Science Centre, for example, will have the same flexible offer but with fitted laboratories.”


Campbell added: “MEPC took the decision to base itself in its own Innovation Centre because we want to help start-ups to grow


David Murray


With a smile, Campbell provided some advice for start-ups: “Reach for the stars. You may not get what you want, but you won’t end up with a handful of mud.”


Building aspiration


Newdick asked the Roundtable to ponder why ‘UK plc’ remained a nation of shopkeepers by repute and with such a huge number of SMEs by nature. “The mystery to me is why so many businesses stay as sub- five employee organisations? Is it poverty of aspiration? My company is aiming for a £6m turnover at the moment, but I wonder why we’re not aiming for £60m. At what point is it decided that your business is big enough? Why does UK ambition plateau?” queried Newdick.


Lack of planning, low confidence or fear of failure came the Roundtable answers.


Willmott wasn’t sure poverty of ambition was evidenced in Oxfordshire, but he felt lack of ambition was more likely in bigger business than among SMEs. “Today, the real ambition for growth, innovation and exciting developments is in small businesses and from the British economy perspective there is real potential and excitement. What I see on the ground around here is phenomenal.”


Tipple suggested that lifestyle choice had a key bearing on ambition thresholds. Once people have enough money for their chosen lifestyle, they are no longer so hungry. But, dynamism in an area, such as in Oxfordshire, could heighten aspirations.


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and be successful. We have good real estate and business connections across the country. So, we are directly on hand should anyone have a question to ask. We are an extended intermediary if you like.”


Innovation centre resident Sunderland commented: “It is a real positive having MEPC here.”


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