Sector Focus
BIRMINGHAM BUSINESS SCHOOL
Spaces that create sustainable entrepreneurs
By Kirsty Smith Marketing Officer, Birmingham Business School
A University of Birmingham project looking at what kind of spaces are needed for creating sustainable entrepreneurs has been funded by a grant obtained from the Institute for Small Business and Entrepreneurship, supported by the leadership team at the Impact Hub in Birmingham. The project will explore the
case of the Birmingham Impact Hub to understand how impact hubs create opportunities for sustainable entrepreneurship. Professor Kiran Trehan, Professor of Leadership and Enterprise Development and Dr Vivek Soundararajan, Research Fellow in Management, both from Birmingham Business School are leading this pioneering project, to understand how important these hubs are for communities, individuals and partners they work with. Impact-orientated
knowledge hubs have recently been emerging in major global cities and can act as incubators and community centres whilst offering unique resources, inspiration and opportunities for collaboration. However, little academic research has thus far been completed to understand their impact and influence on sustainable entrepreneurship within society. The knowledge gained will
be both actionable as well as academically rigorous and will offer evidence-based guidelines for better design and effective implementation of impact- oriented knowledge hubs. The evidence and conclusions gathered will give businesses, policy-makers and academia a clearer picture of how impact hubs have a positive and sustainable influence.
If you are interested in finding out more about social sciences research of if your business is looking to partner with a University, please contact Andy Newnham, Business Engagement Partner, University of Birmingham,
a.newnham@
bham.ac.uk
54 CHAMBERLINK March 2017
Finance
Sponsored by: University of Birmingham Sector Focus The latest news from the sectors that matter to business
Fears EU exit may lead to corporate insolvencies
An overwhelming majority of insolvency and restructuring experts believe the UK’s decision to leave the EU will lead to a rise in corporate insolvencies in the next year, and that the referendum result has already hurt businesses’ finances, according to a membership survey by insolvency and restructuring trade body R3. Almost three-quarters (72 per
cent) of those surveyed believe the referendum result will cause corporate insolvency numbers to rise by the end of 2017, while over half (55 per cent) say business finances have been hurt since June. Insolvency and restructuring
experts are most concerned about a ‘hard Brexit’: over three-quarters (76 per cent) think it would lead to more corporate insolvencies and well over half (60 per cent) think such a scenario would cause personal insolvencies to rise. A ‘soft Brexit’ option is seen as less risky for businesses and individuals. Only one per cent believe ‘soft
Brexit’ will lead to a ‘significant increase’ in corporate insolvencies, whereas over one-third (35 per cent) say the same for ‘hard Brexit’.
R3 Midlands chairman Chris
Radford, a partner at Gateley plc in Birmingham, said: “The uncertainty around what final form ‘Brexit’ will take makes it difficult for businesses to plan ahead and assess what risks and opportunities they have. “A continued rise in insolvency
Chris Radford: Firms should not ignore financial problems
‘Uncertainty around what final form Brexit will take makes it difficult for businesses to plan ahead’
Four-in-ten (39 per cent) think a
‘soft Brexit’ will have no impact on corporate insolvency numbers, but fewer than one-in-ten (8 per cent) think a ‘hard Brexit’ will have no impact.
numbers, however, is not inevitable. Recent years have seen the insolvency and restructuring profession focus increasingly on rescuing business outside of formal insolvency procedures. “This approach may help keep
post-‘Brexit’ insolvency numbers down. A lot will depend on how the economy performs after the split with Europe, too. “It is crucial to remember that if
businesses do run into trouble, they should seek advice as early as possible. Ignoring problems will not make them go away.” Survey respondents say they
expect manufacturing, financial services and retail to be the three sectors most adversely affected by ‘Brexit’; mining, defence and IT are the industries least likely to be affected.
Call to invest in funding scheme
Birmingham City Council leader John Clancy is appealing to Brummies to support a fund-raising scheme that could generate £3m to help small businesses get off the ground. The council is joining forces with the
Aston Reinvestment Trust (ART) and the ThinCats Community Chest peer lending platform to assist start-up firms and social enterprises from the poorest parts of Birmingham that find it difficult to obtain loans from high street banks. ART and the city council will jointly
underwrite loans of between £10,000 and £150,000. The partnership has set a fund-raising target
of £1m a year over three years and is appealing to companies and individuals to invest in the scheme. Cllr Clancy (pictured) said: “This is a pioneering
local investment opportunity and a chance for people to not only get a financial incentive in the form of a tax relief, but also a social return. “Small and medium enterprises are the life blood of the local economy and their ability to grow, create
inclusive economic growth and preserve jobs impacts on everyone who lives and works in Birmingham.” Investors will be able to claim tax relief because ART is a Community Investment Tax Relief scheme. An investment of £10,000 will attract an income tax rebate of £2,500 for a higher rate taxpayer spread over five years – equivalent to £500 a year. ART was founded in 1997 by its first chairman Sir Adrian Cadbury with the objective of providing finance to businesses that were unable to access loans from banks. Based at Innovation Campus, Birmingham, ART has lent over
£20m since its launch. Loans are available for any
purpose including supporting cash-flow. Dr Steve Walker, chief executive of ART said: “There
are many reasons why a viable business may not fit the banks’ lending criteria, including because the bank has already lent all it can. We’re here to ensure that businesses can access the loan finance they need to support cashflow, invest in new premises and equipment, survive and thrive.”
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