Boosting Business Noel Hegarty Invest Northern Ireland

Invest NI – Role and Remit Invest NI works directly with those manufacturing and tradable services businesses in Northern Ireland which have the potential and ambition: to export; to improve productivity; to become more internationally competitive; Attract high quality inward investment; Invest NI Corporate Plan 2008-11 To stimulate… wealth creation for Northern Ireland from international markets through competitive businesses Focus on Productivity (wages/salaries + profits) Focus on Exports Focus on Innovation

Issues Many business owners face a range of challenges: Banks are attempting to tidy up their credit portfolios. Continuing economic decline resulting in reduced demand for products and services. Upward trend in insolvencies and bankruptcies. Many businesses with investment plans lack the confidence to implement them. This has impacted on Invest NI’s Work in Progress and budget drawdown. Banks continue to tidy up their credit portfolios. Many are experiencing a significant decline in the demand for their products and services and the general sluggishness in economic activity is having an adverse impact on supply chains across a number of sectors. There is an upward trend in insolvencies and bankruptcies with the majority coming so late in the cycle that any sort of restructuring or rescue is very difficult. As a result, many businesses with investment plans lack the confidence to implement them.

Invest NI Response Comprehensive review of our existing products and services. Consideration given to new products or services. Actions have been quickly implemented under a number of themes: Boosting Business Through Jobs Boosting Business Through Exporting Boosting Business Through Research and Development Boosting Business Through New Technology Boosting Business Through Skills We have reviewed existing products and services to see if, and how, we can make them either available to a wider business base, or make them easier for businesses to benefit from. We have considered what new products or services we may be able to introduce to help business. Actions which can be quickly implemented have been pulled together under a number of themes: Boosting Business Through Jobs Boosting Business Through Exporting Boosting Business Through Research and Development Boosting Business Through New Technology Boosting Business Through Skills

Campaign Overview The campaign will be branded Boosting Business with individual treatments for each element The campaign will be branded Boosting Business with individual treatments for each element The overall aims of the campaign are to: launch an initiative which communicates how Invest NI is providing a proactive response to the current economic challenges and businesses increase awareness of the range of support available from Invest NI, generate higher levels of referrals and Work in Progress, and enable Invest NI budget to be utilised to the maximum extent in support of business in

The Jobs Fund Measures 2011-2015 Promoted Jobs 2011-15 Created Jobs 2011-14 1. Grant for Business Starts in Neighbourhood Renewal Areas (NR) 1,500 2. Increased Support for Social Enterprise 340 3. Grant for Business Start to Young People Not in employment, education or training (NEETS) 280 4. Business Growth Programme (Export Starts, Global Starts & Existing Businesses) 150 Jobs Fund SFA employment grant support across a range of sectors including Contact Centres, Food Processing and Knowledge Process Outsourcing 3,100 1,730 6. Employer Subsidy (DEL) Total Budget £18.83m 5,370 4,000 Avoid people becoming permanently detached Stimulate job creation in the short term - Job - Better Job - Career

The Jobs Fund Measures The Jobs Fund – SFA Employment Grant Manufacturing and Tradable Services businesses Normal Invest NI Client Eligibility Criteria Applies Projects where Median Salary (mid point) is below the Private Sector Median of £18,283 Employment Grant paid out in one instalment after 1 month Jobs must be sustained for 5 years Annual Basic Wage (£) Maximum Employment Grant (£) Small Medium Large < £13,999 Up to £3k, £3k £3k per new job £14,000 – £15,999 Up to £5k, £4k £4k per new job > £16,000 Up to £7k, £6k £5k per new job Acceleration of The Jobs Fund : Amendment of the £2,000, £3,000 and £4,000 banding to £3, 5 & 7l for small businesses; Manufacturing and Tradable Services businesses Normal Invest NI Client Eligibility Criteria Applies Projects where Median Salary (mid point) is below the Private Sector Median of £18,283 Employment Grant paid out in one instalment after 1 month Jobs must be sustained for 5 years The Jobs Fund : full grant payable from one month of the project start The Jobs Fund : slimmed down application and casework submission for offers up to £50k The Jobs Fund Measures Grant for Business Start in Neighbourhood Renewal Areas (NRA) £1K grant Grant for Business Start to Young People Not in Employment, Education or Training (NEET) - £1.5K grant Increased support for Social Enterprise - Area Based Approach/Franchising/LTU Increase flexibility of GAP/De Minimis for larger companies where appropriate CPJ derogation on offers up to £100k for SME’s Introduction of new “Focus On Finance” (ASF2) initiative for wider business base offering one day training and follow-on mentoring support.

Invest NI Eligibility Criteria Established Businesses manufacturing and internationally Tradable Services capability to grow in export markets Businesses have or within 3 years will achieve: sales of over £100,000 per annum; and external sales (i.e. outside Northern Ireland) greater that 25% of turnover or greater than £250,000 per annum For service-type businesses: knowledge intensive with a minimum gross margin of 20%. (Generally excludes locally focussed businesses, Retail, Primary Agriculture, Wholesale/Distribution)

Boosting Business through Exports Already Implemented Proposed In Market Support – Trade Advisors in Brazil, Canada, China, Dubai, Germany, India, Russia, South Africa, Saudi Arabia, West Coast USA, London (construction) Increased contribution to explore markets additional days in market, while on a Trade Mission, to visit other regions. funding for return market visits between missions. free market research for first time visit to international market. Key Exhibitions support (Solex) Inward missions – assistance for groups of buyers visiting NI Reviewing options to provide legal support for advice on export contracts and translations services. Appoint a specific resource to drive supply chain and FDI opportunities for the renewables sector. Road show on export financing options (UKTI/ECGD/Banks/Invest NI).

Boosting Business through R&D Already Implemented Proposed Enhanced R&D ‘Open Call’ for small businesses (<50 employees) Market driven R&D ‘Open Call’ in small/ medium sized businesses Roll-out YIE (Young Innovative Enterprise Support) which could offer up to £1.25 Million over a three year period to high technology companies under 6 years old with R&D intensity of over 15% of turnover.

Boosting Business through Technology Already Implemented Proposed Broaden and enhance technical support on project support from £3,000 to £5,000. On TDI increasing the maximum project cost eligibility from £10,000 to £15,000. Innovation Voucher pilot call for Food Sector to invite applications. Review eligibility criteria with a view to broadening. Introduce IP starter pack and enhanced IP support (to be launched 6 Dec) Increase commercialisation support for companies post research, product development and innovation activities. Widen scope of MIS Scheme to fund additional elements. Website support for companies that can demonstrate export potential within wider business base alongside internet marketing programme. From 2012-2013, delivery of a new capital grant scheme to support installation of water and material efficient processes and equipment.

Boosting Business through Skills Already Implemented Proposed Consultancy and Mentoring support for SMEs at support rate of 49%. Software Testers Academy Roll out enhanced management and leadership support. Provision of higher support levels for BITP (Cross Training, New Skills Development) Launch of BITP 2 (High Quality, High Value Added Growth Projects). Capital Markets Network – Post-graduate Training Initiative I will handover to my colleague Paul Aldridge will provide additional information on the Boosting Business through Skills programme Software Testers Academy Capital Markets Network 14 week post-graduate conversion programme for ICT (non software), STEM and General graduates (non-STEM) to enhance graduate supply (and skills) within the Capital Markets sector. The 5 companies in the Network - NYSE Technologies, Citi, First Derivatives, Fidessa and Singularity currently run their own induction and training programmes at considerable expense. The plan is to widen the recruitment pool through a collaborative approach, to run a 14 week, common post-graduate conversion programme. Delivered by private sector trainers from Neueda and delivered in QUB and UU facilities; Open application, supported by psychometric testing – building on the experience of the STA; Trainees are paid (£16k). Recruited, supported and mentored by the participating companies; Up to 300 places will be provided over 3-4 years. Each course will be c.30 trainees; Possible launch Late Nov/early Dec Late Jan to early Feb – First training course runs.

Skills Development

Sources Available Training Support Intervention

Business Improvement Training Programme BITP Introduction Invest NI's Business Improvement Training Programme (BITP) can help you improve your business performance by providing advisory and financial support for training and development activities. The programme is aimed at improving company competitiveness through raising the skill levels of your managers and workforce. How will it help me? By improving the skills of managers and employees your business can: Increase productivity; Improve products and services; Reduce waste and overheads; Increase profit and turnover; and Have a more flexible and motivated workforce.

Intervention - Invest NI Lean Advisors – Train and mentor company champion on specific projects Two day Lean Workshop Value Stream Mapping Ongoing support throughout project HR Advisors – provide expert advice and guidance on: Recruitment issues Disciplinary issues Performance Management issues Leadership issues People Solution Workshops

Intervention - External Non-Executive Directors This initiative allows businesses to access and benefit from the vast intellectual capital resources of experienced and independent non-executive directors. Interim Manager This programme allows you to hire an experienced manager on a short-term contract to tackle a specific business issue or problem Questions?