Entrepreneurs' Survey 2011 - Nabarro
Entrepreneurs' Survey 2011 - Nabarro
Entrepreneurs' Survey 2011 - Nabarro
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Entrepreneurs’ <strong>Survey</strong> <strong>2011</strong><br />
A regional perspective of the Yorkshire and Humber region
Contents<br />
01 Foreword<br />
02 Introduction<br />
04 Key findings<br />
06 Case study: R3 Products<br />
08 Challenges and opportunities<br />
10 Case study: Fan Frames<br />
12 Funding<br />
14 Case study: Little Helper<br />
15 Case study: Tailormade Conference Management<br />
16 Priorities for businesses in the region<br />
18 Case study: VeryPC<br />
20 Enterprise culture<br />
22 Case study: Go Outdoors<br />
24 Methodology<br />
25 About us
Entrepreneurs’ <strong>Survey</strong> <strong>2011</strong><br />
Foreword<br />
This report is both timely and illuminating. While the<br />
Government is calling for an enterprise-led economy, the<br />
entrepreneurs surveyed are displaying the characteristics<br />
which single them out from the crowd. They’re independent<br />
(most firms are self- or family-funded): many have realistic<br />
plans for growth: the majority are cautious of carrying debt<br />
(only a quarter has any bank borrowing): and they know<br />
that cash is king (the priority for 90% of them is cash flow).<br />
In other words, they’re born survivors.<br />
While self-reliance is commendable, it can also have its<br />
drawbacks. Fifteen percent of firms have raised external<br />
equity finance, less than half of them from publiclysupported<br />
venture funds and a similar number from EISqualifying<br />
private investors. Also, many are experiencing skills<br />
gaps, with finance and marketing singled out for mention.<br />
Three years ago when the economy turned tail, reducing<br />
costs was a good survival strategy. But going forward, firms<br />
are unlikely to grow without more capital. And, external<br />
informal investors – venture funds and business angels<br />
– have much to offer businesses besides injecting new<br />
money. We bring advisors and non-executives with fresh<br />
thinking and additional skills. We generally have a wider<br />
perspective than a single business owner and offer a sharedrisk<br />
approach. It’s clear from this survey that, with wider<br />
exposure, venture funds and angels can play a major role. I<br />
commend the sponsors of this survey, <strong>Nabarro</strong> and Barber<br />
Harrison & Platt for supporting this work.<br />
Entrepreneurs need an environment that rewards<br />
successful risk taking. Equally as important, an<br />
unsuccessful business venture should not be treated as a<br />
failure but as an aspect of learning about business on the<br />
route to future success.<br />
Entrepreneurs have a ‘can-do’ belief which is in the DNA<br />
of this region. This needs to be further fuelled by<br />
Government, business advisors, teachers and parents. We<br />
also need to build more links between industry and<br />
academia and build practical knowledge of industry and<br />
technology trends. We hope that this excellent survey will<br />
serve as a catalyst for some of these issues and that this<br />
year’s MADE: The Entrepreneur Festival in Sheffield will<br />
provide the platform for further debate and action.<br />
Brendan Moffett<br />
Director, Marketing Sheffield<br />
Andrew Burton<br />
Chairman, Yorkshire Association of Business Angels
Introduction<br />
“If you’ve been turning over<br />
a good idea for years - now is<br />
the time to make something<br />
of it. If you’re working for a big<br />
firm but know you could do a<br />
better job on your own - now<br />
is the time to make that leap.<br />
If you’ve been dreaming about<br />
starting up the next great<br />
British brand – now is the time<br />
to make it happen.<br />
“There are thousands of<br />
people out there who are<br />
entrepreneurs but they just<br />
don’t know it yet. There are<br />
millions of success stories that<br />
haven’t been written yet. So<br />
seize this moment. Take these<br />
opportunities. Make it happen<br />
- and together we can drive<br />
our economy forward.”<br />
Prime Minister David Cameron<br />
on StartUp Britain<br />
Government policy<br />
With the Government’s call for an enterprise-led economy and with the vast<br />
majority of the country’s enterprises comprised of SMEs, much weight is being<br />
placed on entrepreneurs to deliver the increase in private sector jobs to meet<br />
economic growth forecasts.<br />
The Coalition Government has set the challenge of making this decade the<br />
most entrepreneurial in the UK’s history. It has committed to creating the right<br />
long-term environment to help people to start and grow their enterprises;<br />
focusing on improving small business performance and growth. It has set its<br />
budget and programme with the intention of galvanising growth, encouraging<br />
enterprise and supporting small business particularly through the initiatives<br />
highlighted in the box opposite.<br />
Focus of report<br />
This report seeks to identify the key trends and factors affecting enterprise and<br />
entrepreneurship in the Yorkshire and Humber region (the “Region”). It also<br />
seeks to focus on areas where the Government’s strategies are intended to<br />
make an impact and looks at some of the key opportunities and challenges for<br />
SMEs and factors affecting entrepreneurial culture. From these findings the<br />
report seeks to identify the key priorities for the Region.<br />
The report also includes a number of case studies from companies within the<br />
Region at various stages of development, from a start-up to an entrepreneurial<br />
company which is achieving great success.
Entrepreneurs’ <strong>Survey</strong> <strong>2011</strong><br />
Government initiatives include:<br />
• creation of a national network of Technology and Innovation Centres<br />
(announced in October 2010);<br />
• establishing 22 new Enterprise Zones;<br />
• introducing a package of tax reforms to reduce rates of corporation tax,<br />
increase the threshold for national insurance contributions and providing<br />
a national insurance holiday for Regional new businesses;<br />
• extending the lifetime limit for <strong>Entrepreneurs'</strong> Relief from capital gains tax<br />
from the first £2m to the first £10m of gains;<br />
• increasing and extending Enterprise Investment Scheme tax relief;<br />
• committing to a cut in regulation – introducing a ‘one in, one out’ rule to<br />
reduce regulatory burden;<br />
• introducing measures aimed at ensuring 25 per cent of Government<br />
contracts will go to SMEs;<br />
• extending the Enterprise Finance Guarantee Scheme for the next four<br />
years;<br />
• introducing a number of tailored business solutions including: on-line<br />
advice (e.g. the new StartUp Hub); a mentor scheme through the<br />
Mentoring Gateway; and the targeting of established SMEs with high<br />
growth potential through the Business Coaching for Growth initiative (to<br />
be launched January 2012);<br />
• specialist support for manufacturers (with the Manufacturing Advisory<br />
Service being relaunched in January 2012); and<br />
• discussion at regional level between the Government’s UK Trade &<br />
Investment Department and Local Enterprise Partnerships on trading<br />
internationally.<br />
“After all, it’s not Government<br />
that creates wealth – it’s<br />
private enterprise”<br />
Mark Prisk, City of London<br />
Conference,<br />
The Guildhall, London
Key findings<br />
Challenges and opportunities<br />
• A diverse range of businesses cited “cash flow and funding” as their biggest<br />
challenge (44 per cent reporting this). Other common challenges included<br />
markets and customers (23 per cent), time pressures (13 per cent) and the<br />
need to generate greater sales and address skills needs, primarily in finance,<br />
sales and marketing.<br />
Funding and priorities<br />
• 81 per cent have used self-financing or family resources to fund their<br />
businesses.<br />
• 75 per cent have not borrowed from a bank.<br />
• 86 per cent expect future working capital to come from cash generated<br />
internally, with only 13 per cent expecting it to come from banks.<br />
• 39 per cent intend to reduce debt in the next year.<br />
• Only 7 per cent have received investment from Finance Yorkshire, South<br />
Yorkshire Investment Fund and Partnership Investment Finance (the Region’s<br />
Government-backed funds for SMEs).<br />
• External equity (15 per cent) comes from private equity and venture capital,<br />
including family and friends, with only 1 per cent from angel investors.<br />
• Only 8 per cent have made use of Enterprise Investment Scheme relief (EIS).<br />
• No one had used the Enterprise Finance Guarantee Scheme.<br />
• Of those that have looked for funding in the Region, over half believe there<br />
are constraints with access to funding. One third do not know how to go<br />
about accessing funding more widely.<br />
Growth and opportunities<br />
• 75 per cent with an established business achieved or exceeded projected<br />
revenue growth.<br />
• 73 per cent are projecting more than 10 per cent growth in the next 12<br />
months and of these 22 per cent in excess of 50 per cent growth.<br />
• Key growth strategies include development of new products, technology and<br />
innovation (6 per cent), and expansion into export markets (8 per cent). 34<br />
per cent expressed an interest in moving into new markets and export.<br />
However, 83 per cent are currently trading in the UK and still see the UK as<br />
the best opportunity for growth over the next three years.<br />
• 61 per cent of respondents believe that they have opportunities to expand<br />
and grow.
Entrepreneurs’ <strong>Survey</strong> <strong>2011</strong><br />
Priorities<br />
• Priorities include cost reduction (more than 50 per cent), increased<br />
productivity (71 per cent), new products and services (75 per cent) and new<br />
markets (70 per cent).<br />
• 6 per cent cited failure of competitors as their main opportunity.<br />
• Low priority was ascribed to renegotiating finance and growth by acquisition.<br />
Enterprise culture<br />
• Those surveyed were the decision makers, and of these, 65 per cent were<br />
aged 35–54 with only 1 per cent aged under 25.<br />
• Almost all surveyed were men.<br />
• 74 per cent employ fewer than five people; 86 per cent fewer than 10 people.<br />
• One third use staff incentives to remunerate staff.<br />
• Advice is readily sought from accountants (74 per cent) and less frequently<br />
from lawyers (38 per cent).<br />
• 30 per cent intend to use mentors in the next 12 months.
Pictured (l-r) Doug Anderson and Kevin Parkin of R3 Products.
Entrepreneurs’ <strong>Survey</strong> <strong>2011</strong><br />
Case study<br />
R3 Products<br />
Start-up, shortly to commence trading<br />
Kevin Parkin has an impressive track record in turning around lossmaking<br />
manufacturing companies. His most recent success being the<br />
turnaround at DavyMarkham.<br />
Kevin’s latest business venture is a<br />
start-up called R3 Products which he<br />
co-founded earlier this year. The<br />
company manufactures products for<br />
the civil engineering and construction<br />
markets from mixed waste plastic,<br />
catering for companies which need to<br />
meet environmental targets and<br />
green legislation requirements. The<br />
start-up expects to achieve turnover<br />
of £3m and employ 20 people in its<br />
first year and has ambitions to trade<br />
internationally. Full production will<br />
soon begin at a 45,000 square-foot<br />
factory in Sheffield, close to the M1.<br />
The launch was funded by a £3m<br />
investment, including a mix of asset<br />
based and invoice finance. Kevin, the<br />
non-executive chairman, is joined in<br />
the launch by a finance director (Paul<br />
Sapsford) and a sales and marketing<br />
director (Doug Anderson).<br />
Kevin attributes the success of the<br />
start-up to the management’s<br />
perseverance in pursuing potential<br />
funders and the strength of their<br />
contacts in the different<br />
marketplaces. R3 is a great example<br />
of how bank funding is available for<br />
start-ups with a strong business plan<br />
and a management team that is<br />
willing to invest a great deal of time,<br />
effort and expense in order to get the<br />
business out of the starting blocks. 33<br />
per cent of the funding came from<br />
private equity and 67 per cent from<br />
the banks. However, Kevin stressed<br />
that obtaining bank funding was<br />
extremely difficult. “It took two years<br />
and only one bank supported us from<br />
the five that we approached.<br />
“It’s probably the most difficult deal I<br />
have worked on in terms of the levels<br />
of deal fatigue, red tape and overall<br />
frustration. Funding decisions have<br />
taken much longer than I expected.<br />
Some of the banks say they do not do<br />
start-ups and I respect their honesty.<br />
Others said the company needed<br />
more equity. We needed equipment<br />
financing and invoice discounting<br />
facilities – some could not offer<br />
both”.<br />
Kevin is critical of the attitude of<br />
some banks, which he said failed to<br />
be transparent in their decision<br />
making. “The banks need to tell their<br />
customers exactly what the process is<br />
rather than just saying that it is being<br />
reviewed. There should be a defined<br />
timescale agreed with milestones and<br />
feedback.”<br />
R3 will need more funding over the<br />
next eighteen months to further<br />
expand the business. Kevin estimates<br />
that the business will create up to 50<br />
new jobs over the next three years.<br />
But, future growth will not be<br />
without its challenges; he cites red<br />
tape and funding as they key barriers<br />
going forward.<br />
Kevin believes that the success of the<br />
start-up was independent of any<br />
regional support. “The region, given<br />
the exception of the professional<br />
advisors we engaged, played no role<br />
at all in starting up our business and<br />
we didn’t get any support, there were<br />
no grants and no assistance in<br />
recruitment.” Kevin is keen for<br />
changes to be made at a Government<br />
level both locally and centrally to<br />
help entrepreneurs like him.<br />
Despite the lack of support, Kevin<br />
remains keen to operate from the<br />
region, but he believes there is much<br />
more the region can do to help<br />
entrepreneurs and business start-ups,<br />
“I would like to see a regional fund for<br />
debt and equity to support start-ups<br />
like R3”.
Challenges and opportunities<br />
61 per cent of respondents<br />
believe that they have<br />
opportunities to expand and<br />
grow.<br />
Challenge of cash flow and financing<br />
The entrepreneurs who participated in the survey appear to have two major<br />
and fundamental challenges facing their businesses. The key challenge (44 per<br />
cent of respondents) is cash flow and financing. This is against a background of<br />
85 per cent of the businesses being less than five years old and approximately<br />
75 per cent of the respondents not borrowing from their bank.<br />
Some very interesting questions come out of this:<br />
• Were the businesses undercapitalised at the outset i.e. when they first<br />
commenced trading<br />
• Why do such a high proportion of the respondents not borrow from banks<br />
• Are the businesses less profitable than expected/is it taking longer than<br />
expected to achieve profitability<br />
In turn, this raises questions about understanding the fundamental importance<br />
of business planning, performance monitoring and financial disciplines.<br />
What are the key challenges/hurdles you are facing for your business<br />
3% 3%1% 44%<br />
7%<br />
13%<br />
6%<br />
23%<br />
Cash flow and finance (44%)<br />
Markets and customers (23%)<br />
Establishing the business and expansion (13%)<br />
Staffing and employment (7%)<br />
Location factors (3%)<br />
Wider economic factors (3%)<br />
Other (1%)<br />
No factors cited (6%)<br />
Other key challenges<br />
The second key challenge that emerges is markets and customers (23 per<br />
cent). This should come as no surprise as smaller businesses typically have a<br />
narrow customer base and equally a limited product or service offering. As a
Entrepreneurs’ <strong>Survey</strong> <strong>2011</strong><br />
consequence there will be times when the business-owners feel very exposed<br />
to competition and/or changes in the market. This challenge will not disappear<br />
as the business grows – it is a fact of business life.<br />
The other key challenges facing entrepreneurs generally arise as a result of the<br />
pressures of establishing the business and expansion. As a generalisation,<br />
young businesses have limited resources at a time when there is much to do.<br />
Time pressures are an important issue for 13 per cent of respondents with<br />
staffing and employment being a top priority for 7 per cent.<br />
Key Opportunities<br />
Turning to key opportunities, there is one statistic that stands out above all the<br />
rest – 61 per cent of respondents believe that they have opportunities to<br />
expand and grow. Interestingly, a significant number of respondents were not<br />
specific as to how this development is to be achieved. Nonetheless this is a<br />
clear, positive and optimistic message.<br />
Export and new products<br />
In addition, 8 per cent of smaller businesses see exporting as an opportunity<br />
with 6 per cent of respondents seeing key opportunities in new products,<br />
technology and innovation. These findings should be considered in the context<br />
of the 23 per cent who have indicated markets and customers as a key<br />
challenge. Conversely 6 per cent of respondents felt that their main<br />
opportunities would arise from the failure of their competitors with 2 per cent<br />
seeing opportunities in improving the level of service that they offer.<br />
What are your key opportunities<br />
2% 3%<br />
3%<br />
4%<br />
6%<br />
6%<br />
8%<br />
7%<br />
61%<br />
Growth/expansion/new markets (61%)<br />
Export (8%)<br />
Failure of competition (6%)<br />
New products/technology/innovation (6%)<br />
Internet (4%)<br />
Renewable energy (3%)<br />
Improving service (2%)<br />
Other (3%)<br />
None (7%)<br />
Ability to exploit opportunities<br />
The belief that opportunities are there to be taken raises some fundamental<br />
issues in the context of the high level of concern over cash flow and finance.<br />
Growing businesses require certain basic ingredients and one of these is<br />
finance. It is generally acknowledged that it will not be easy for businesses to<br />
obtain new funding for the next 12 months at least. Accordingly, management<br />
in businesses requiring finance for expansion will need to find both the time<br />
and the resource to put together a very well-considered, professional and<br />
compelling business case to attract the serious attention of funders. They will<br />
also need to demonstrate to potential funders that they have good systems,<br />
financial controls and reporting within their business.
Pictured (l-r) Keith Gibson, Chris Birkett and Paul Gibson of Fan Frames.
Entrepreneurs’ <strong>Survey</strong> <strong>2011</strong><br />
Case study<br />
Fan Frames<br />
Commenced trading April <strong>2011</strong><br />
Fan Frames’ business has developed from their innovative concept of<br />
sports branded eyewear. It commenced trading in Hull in April <strong>2011</strong> and<br />
is projecting first year turnover of £240,000. The company is hoping to<br />
create jobs in its second year of trading.<br />
The Fan Frames team all live in the<br />
Hull area and have been supported<br />
by the University of Hull’s Enterprise<br />
Centre, which was funded through<br />
Yorkshire Forward. One of the<br />
founders, Keith Gibson, believes that<br />
the support and network that the<br />
Enterprise Centre has provided has<br />
been vital to the speed and roll-out of<br />
the business; “Clearly keeping costs<br />
down is key at the start of any<br />
business and we have been able to do<br />
this through the Enterprise Centre.<br />
This includes rent, telephone etc.”<br />
Keith comments on how helpful the<br />
region has been in setting up their<br />
business, despite the lack of grant<br />
funding. “Fan Frames received<br />
support from the FEO (For<br />
Entrepreneurs Only) group based in<br />
Hull. They provided an experienced<br />
business mentor who meets with us<br />
regularly to discuss any aspects of the<br />
business where we feel we need<br />
assistance.”<br />
The funding to set up Fan Frames came<br />
from a variety of sources, including<br />
loans from the Acorn Fund (Hull<br />
Business Development Fund), Sirius<br />
(Business Advice Centre), Santander<br />
and some personal funds. “Santander<br />
were very supportive and we obtained a<br />
£25,000 loan from them but we did<br />
struggle with other banks.”<br />
Fan Frames has secured £75,000<br />
investment for 15 per cent of its<br />
equity from family and friends. “In<br />
the early stages Fan Frames believed<br />
we would not need this assistance<br />
and we looked at a number of<br />
options but eventually decided to go<br />
with equity finance. We were very<br />
lucky to have this support and believe<br />
without our investors it would have<br />
been extremely difficult to proceed.”<br />
The Region could be doing more.<br />
“Most of the banks are unwilling to<br />
lend even with the Enterprise Finance<br />
Guarantee Scheme which we found<br />
astonishing. Grant funding should be<br />
available. Even small amounts of cash<br />
can help many start-up businesses.<br />
We were very lucky to receive<br />
financial support but this has not<br />
been achieved without challenge. I<br />
believe there are many businesses<br />
that don’t start up simply because<br />
they can’t obtain cash and feel taking<br />
on a loan is too much risk. We have<br />
found that any unsecured loan to the<br />
company has to be secured<br />
personally.”<br />
As with any business, Fan Frames sees<br />
both opportunities and challenges<br />
ahead. “We have huge opportunities,<br />
not only in selling these products into<br />
football clubs directly but also<br />
targeting large optical retailers for the<br />
optical frames for adults and children.”<br />
The biggest challenge Fan Frames will<br />
face going forward will be the UK’s<br />
economic situation. Ultimately, what<br />
goes on locally, nationally and globally<br />
will impact on people’s disposable<br />
income. Keith believes there will be<br />
many economic challenges ahead: “It<br />
is important that we have a stable<br />
base financially to be able to deal with<br />
any of these challenges. Setting up a<br />
business is a new experience for all<br />
the Fan Frames team and the journey<br />
has thrown up many issues but we<br />
have been able to deal with these with<br />
a common-sense approach to<br />
business which is what we feel is vital<br />
to this company. The whole<br />
experience has been challenging and<br />
will continue to be so.”<br />
As for the future of Fan Frames, the<br />
directors are looking to expand and<br />
would like to import into and<br />
distribute from their own warehouse<br />
and office which will be based in the<br />
Yorkshire and Humber Region. “We<br />
would like to expand internationally<br />
over the coming years but intend that<br />
the Region will always be our home.”
Funding<br />
Growth – outlook<br />
Much of the growth that is hoped for in the Region and across the UK<br />
economy is expected to come from successful entrepreneurs, hence the<br />
Government’s focus on improving small business performance and growth.<br />
The respondents to the survey have a very positive outlook with 73 per cent<br />
projecting growth of more than 10 per cent in the next 12 months and, of<br />
these, 22 per cent anticipate growth of 50 per cent or more.<br />
Access to funding<br />
A critical platform for the future growth of any business is to have a suitable<br />
funding structure in place. 44 per cent of the respondents indicated that a key<br />
challenge to growth in the next 12 months is access to funding to finance<br />
expansion. The next biggest challenge to growth was the impact of markets and<br />
customers which was highlighted by 23 per cent of the respondents. This puts<br />
into perspective the importance of access to funding to businesses in the Region.<br />
Further evidence that access to funding remains difficult is the source of<br />
finance that businesses have utilised in their business. 75 per cent of<br />
businesses had not borrowed from a bank; in contrast 81 per cent of<br />
respondents had used their own funds. 86 per cent expect future working<br />
capital to come from cash generated internally.<br />
So what does all this mean On the one hand it reflects the difficult funding<br />
environment, on the other hand business owners appear to be reluctant to take<br />
on the risk of external funding in the current challenging economic conditions.
Entrepreneurs’ <strong>Survey</strong> <strong>2011</strong><br />
Government initiatives<br />
If the commercial banks are having difficulty providing the level of funding<br />
required by entrepreneurs, what of Government initiatives in this area None<br />
of the respondents had obtained funding from the Enterprise Finance<br />
Guarantee Scheme which has now been running for over two years. Perhaps<br />
more importantly, none of the businesses believe that working capital will be<br />
funded by the scheme in the next 12 months.<br />
Other sources of funding<br />
The Yorkshire and Humber Region is fortunate to have organisations such as<br />
Finance Yorkshire and networks of business angels such as the Yorkshire<br />
Association of Business Angels (YABA) on the doorstep to provide a route to<br />
alternative sources of finance. Finance Yorkshire is continuing to collaborate with<br />
banks to enable funding packages to be put together to provide development<br />
and working capital funding for companies in the Region. Of the businesses<br />
surveyed, however, there appears to be very little third party funding. Only 16 per<br />
cent of businesses had received any form of external equity funding. More<br />
interestingly, a mere 7 per cent had received debt or equity financing from the<br />
local public sector-backed funds (Finance Yorkshire, South Yorkshire Investment<br />
Fund and Partnership Investment Finance). This is disappointing.<br />
‘Go for growth’<br />
In summary, entrepreneurs need to focus on what makes them special – ‘go for<br />
growth’. Businesses need to have the confidence to take the step to embark on<br />
growth projects but will need to approach funding with a little more<br />
imagination. Collaboration with a number of funders will often be a key<br />
feature of any solution. It is even more important than ever before for projects<br />
to be strategically sound, properly planned and researched, adequately funded<br />
and presented professionally.<br />
44 per cent of the<br />
respondents indicated that a<br />
key challenge to growth in the<br />
next 12 months is access to<br />
funding to finance expansion.
Case study<br />
Little Helper<br />
Commenced trading in 2005<br />
More than six years ago, parents Kim and Sean Johnson conceived the<br />
FunPod to keep their daughter safe in the kitchen. The Little Helper<br />
brand was initially launched to enable Kim and Sean to sell the FunPod<br />
and the FunPod High Chair to UK consumers.<br />
Now operating across four continents<br />
and offering over 1,000 SKU’s, the<br />
company has grown from the original<br />
concept, but still aspires to the same<br />
values.<br />
The company designs and<br />
manufactures fun, funky and safe<br />
children’s products, but now also<br />
distributes high quality, inspirational<br />
children’s furniture and nursery goods.<br />
Based in Sheffield, Little Helper now<br />
employs five people, and Kim puts<br />
the success of the business down to<br />
hard work and perseverance, along<br />
with building a team of people with<br />
complementary skills. As she explains,<br />
“because South Yorkshire was an<br />
Objective 1 area, we benefitted from<br />
enormous help in terms of advice and<br />
support from Business Link Yorkshire<br />
and Yorkshire Association of Business<br />
Angels (YABA) and were lucky to<br />
obtain grants and investment which<br />
were pivotal to the company’s<br />
growth. Without the grants and<br />
investment, we would not have been<br />
able to get the business up and<br />
running as fast as we have done nor<br />
expand our product range as quickly.<br />
We have been able to invest in R&D<br />
and protect our designs and products<br />
for future security. Business Link were<br />
also able to put us in touch with a<br />
great bank manager who supported<br />
us in the early days.”<br />
The initial funding to set up and grow<br />
the business came from a mix of<br />
sources – the bank, angel investment,<br />
personal funds and grants. “YABA<br />
were instrumental in helping the<br />
company obtain investment and we<br />
found this a fluid process. Alongside<br />
our initial investment, we have a<br />
syndicate of professionals via YABA.”<br />
Little Helper found that in the early<br />
days bank finance was a lot easier,<br />
they operated with funding provided<br />
by HSBC under the Small Firms Loan<br />
Guarantee Scheme and a small<br />
overdraft. Recently, they have found<br />
it much more difficult getting funding<br />
despite good financial performance<br />
and they have had to rely on cash<br />
flow and investment.<br />
A major challenge that is being faced<br />
by Little Helper as they grow is<br />
funding the supply chain from<br />
overseas suppliers, and also dealing<br />
with large UK national customers<br />
who operate on long payment terms.<br />
“We want to grow our product range<br />
constantly and as such, we may need<br />
funding in the next 12-18 months to<br />
help to achieve this objective and<br />
create more jobs in our region”.<br />
The team at Little Helper were<br />
disappointed at the demise of the<br />
local Business Link adviser team.<br />
“With Business Link you knew that<br />
you were dealing with people who<br />
had access to a vault of knowledge<br />
and contacts. Grants aren’t always<br />
the answer but good quality and<br />
affordable mentoring can be<br />
invaluable”<br />
Looking forward, Little Helper<br />
definitely plans to continue trading<br />
from its Sheffield base. The children’s<br />
sector is growing substantially within<br />
the national retail sector and the<br />
company has a huge opportunity to<br />
get a foothold with these retailers<br />
– having recently set up accounts<br />
with Boots and Tesco whilst<br />
substantially growing the business<br />
with Kiddicare, Mothercare and<br />
Amazon. Many retailers want an<br />
abundance of products, and new<br />
products from one brand so this is a<br />
great opportunity for them.<br />
“The challenges for us will be the<br />
funding and systems placement to<br />
facilitate these opportunities.”
Entrepreneurs’ <strong>Survey</strong> <strong>2011</strong><br />
Case study<br />
Tailormade Conference Management<br />
Established business, commenced trading in 2002<br />
Established in 2002 by Chris Wilson, Tailormade Conference Management<br />
(TCM) offers a variety of conference management services to all those<br />
involved in planning and organising events across the UK and<br />
internationally. The company currently employs 7 people.<br />
Chris came up with the idea for the<br />
business whilst running the York<br />
Marriott Hotel. He identified the<br />
opportunity for a conference<br />
management company in the Region<br />
owing to a large, untapped market,<br />
good infrastructure and limited<br />
competition.<br />
TCM is the driving force behind the<br />
successful Venturefest Yorkshire<br />
entrepreneur event that takes place<br />
at York Racecourse each year. The<br />
event attracts more than 1500<br />
delegates, 100+ exhibitors and<br />
showcases the activities of Yorkshire’s<br />
entrepreneurs.<br />
Chris puts the success of the business<br />
down to delivering consistent levels<br />
of good customer service to their<br />
clients.<br />
Whilst Business Link provided some<br />
advice at the outset, it was Chris’<br />
hotel management background that<br />
gave him the skills needed to make<br />
the business the success it is today.<br />
As no large costs were involved in<br />
setting the business up, it was<br />
possible to refinance the venture<br />
entirely from personal savings.<br />
Over the next 12-18 months, Chris<br />
will require bank funding for a move<br />
to larger premises which will enable<br />
the company to target new<br />
customers and hopefully create up to<br />
15 new jobs.<br />
Chris envisages operating in the<br />
Region long term. “It’s ripe for<br />
opportunity from a conference and<br />
events perspective. York, Harrogate<br />
and Leeds are big markets for us.<br />
They have the infrastructure in place<br />
to bring visitors into the region and<br />
have a reliable and trusted network of<br />
suppliers.”<br />
However, Chris believes that much<br />
more can be done to help<br />
entrepreneurs in the region, especially<br />
when it comes to bureaucracy. “Rules<br />
and regulations relating to small<br />
businesses are too stringent, you<br />
creep beyond what is permissible and<br />
there is little flexibility. The myopia is<br />
beyond belief when it comes to<br />
business documentation.”<br />
His main challenge going forward will<br />
be how to remain competitive whilst<br />
creating good margins. “Competition<br />
has increased over the last year,<br />
coupled with a decline in work from<br />
the public sector. There are a lot more<br />
companies bidding for the same<br />
work”.<br />
Chris is also setting up another<br />
venture - a consumer product for the<br />
retail market and will need significant<br />
investment to push the button on the<br />
production process. Chris will be<br />
looking for investor partnerships and<br />
has started discussions with YABA<br />
and Finance Yorkshire.<br />
Chris is keen to promote<br />
entrepreneurialism and to assist<br />
young entrepreneurs in setting up in<br />
business but firmly believes that the<br />
support should start at school and<br />
college. Chris has been into colleges<br />
to present on working in the<br />
conferencing and events sector but in<br />
some cases came away feeling<br />
deflated by the apathy and the low<br />
level of desire and business acumen<br />
in students. “This needs to be<br />
addressed within the education<br />
system. Young people need to be<br />
inspired. I offered the students<br />
opportunities for experience on some<br />
large projects we were running but<br />
very few came forward, it was very<br />
disappointing.”<br />
Chris concludes that despite this<br />
there are some great beacons of light<br />
in the Region “NYBEP in York and the<br />
Peter Jones Academy in Sheffield are<br />
positive steps to foster the right sort<br />
of environments for the future”.
Priorities for businesses<br />
in the region<br />
Whilst the findings above report on respondents’ key challenges, the chart<br />
below considers the relative priorities for the year ahead of those surveyed.<br />
Business owners were asked to rank various factors as high or low priority<br />
during the next 12 months.<br />
High priorities cited by entrepreneurs were the management of cash flow (87<br />
per cent giving it some priority in the next 12 months) with more than half<br />
indicating a need to tackle cost reduction and 71 per cent suggesting increased<br />
productivity as one of their priorities. 75 per cent are prioritising development<br />
of new products and services, with 70 per cent giving some priority to new<br />
markets with export seen as a growth area. In contrast, low priority was<br />
ascribed to renegotiating, finance and growth by acquisition. Does this reflect<br />
Provide an indication of whether the following are of high or low priority over<br />
the next 12 months in terms of business strategy<br />
Cash flow<br />
New products services<br />
Increasing productivity<br />
New markets<br />
Reducing costs<br />
New capital<br />
Reducing debt<br />
Re-negotiating finance<br />
Growing by acquisition<br />
Buy backs<br />
Asset disposal<br />
4<br />
9<br />
13<br />
75<br />
25<br />
71<br />
29<br />
70<br />
30<br />
54<br />
46<br />
44<br />
56<br />
39<br />
61<br />
36<br />
64<br />
23<br />
77<br />
87<br />
96<br />
20 40 60 80 100<br />
91<br />
High<br />
Low
Entrepreneurs’ <strong>Survey</strong> <strong>2011</strong><br />
the caution of entrepreneurs in the Region In summary, it appears that there<br />
remains an element of ‘battening down the hatches’.<br />
Cash flow, funding and productivity<br />
Addressing cash flow appears to translate into reducing costs, increasing<br />
productivity, introducing new products and accessing new capital. The<br />
Government’s initiatives have focused on schemes to facilitate provision of<br />
debt and offering tax incentives to encourage external investment. These do<br />
not seem to be having any significant impact on the Region with only 8 per<br />
cent of those surveyed having made use of the Enterprise Investment Scheme<br />
and no use of the Enterprise Finance Guarantee Scheme.<br />
One third of those who have sought finance do not know how to access wider<br />
funding. Only 23 per cent have indicated that banks have provided funding<br />
with 39 per cent citing a priority to reduce debt. This suggests that bank<br />
products are either seen by the Region’s businesses as unaffordable, not in line<br />
with cost expectations or just not available. This is against 44 per cent who<br />
indicated accessing new capital as one of their priorities with 86 per cent<br />
expecting future working capital to have to come from their own cash<br />
resources.<br />
The Government’s recent initiatives to expand the Enterprise Investment<br />
Scheme to encourage wider business angel investment and also to deregulate<br />
to allow SMEs to raise up to €5m (£4.4m) in equity finance without a<br />
prospectus and to a larger pool (up to 150 from 100) may help with funding<br />
opportunities and open up a wider investment in SMEs to alleviate the reliance<br />
on internal cash resources and fund growth.<br />
Clearly, a priority must be to raise the importance of cash management and<br />
improve the understanding of the wider funding resources available. A more<br />
sophisticated and open-minded attitude may need to be nurtured and fears<br />
alleviated and expectations reset that alternative forms of funding will not<br />
result in too much external, unwanted interference.<br />
Expansion into new markets and products<br />
Whilst 34 per cent expressed an interest in moving into new markets and to<br />
export, 83 per cent still expect the UK to be their best opportunity for growth<br />
over the next three years.<br />
New products are the lifeblood of a strong business. Again, this is one of the<br />
priorities for a significant majority of the Region’s businesses.<br />
If established, regional SMEs are to grow at a rate which will deliver the<br />
rebalance needed in the economy and, in particular, to increase employment<br />
to have a meaningful impact, support for expansion into new and export<br />
markets should be a priority. The barriers to accessing new markets need to be<br />
better understood and then addressed.<br />
Mentoring and management<br />
The <strong>Survey</strong> indicated that 30 per cent intend to access mentoring services.<br />
Regional businesses recognise the importance of mentoring and the need to<br />
access skills. Whilst they recognise this, will they take up the challenge and will<br />
they be willing to develop and, perhaps, more importantly, change in order to<br />
grow Will the Government’s initiatives in this area provide the help so clearly<br />
sought<br />
Clearly, a priority must be to<br />
raise the importance of cash<br />
management and improve the<br />
understanding of the wider<br />
funding resources available.
Pictured (l-r) Simon Bown and Peter Hopton of VeryPC.<br />
Image supplied by MAS. MAS is delivered by GLE Enterprise Partners.
Entrepreneurs’ <strong>Survey</strong> <strong>2011</strong><br />
Case study<br />
VeryPC<br />
Commenced trading in 2004<br />
Peter Hopton is MD and founder of VeryPC, manufacturers of high<br />
performance, sustainable desktop computers and servers. Their products<br />
are being used in businesses, universities, schools and organisations across<br />
the world and they lead the way in the development of energy efficient<br />
computing solutions, delivering long term value to the customer.<br />
Peter started the business in Sheffield<br />
in 2004 and in 2008 appeared on the<br />
hit BBC show, Dragons Den. He did<br />
not receive the backing of the<br />
Dragons, but that didn’t stop him. The<br />
Company now turns over £2m with<br />
16 employees, plus revenue from two<br />
spin-out companies (one based in the<br />
US), each turning over approximately<br />
£500k and employing 13 people.<br />
Peter believes that his business is<br />
successful due to hard work and<br />
dedication. “Hard work from the<br />
VeryPC team and the opportunity<br />
presented in the market as a result of<br />
‘peak oil’ conditions, such as rising<br />
energy costs and carbon taxation are<br />
the main reasons I believe that the<br />
company has been so successful.”<br />
But what role did the region play in<br />
the success of VeryPC Peter came to<br />
university in Yorkshire and decided<br />
that it would be a good place to start<br />
a business. “The region offers low<br />
cost of living and skilled labour which<br />
has helped the business to grow, but<br />
the lack of local capital investment<br />
has made things more difficult. We<br />
didn’t receive any support from the<br />
Region when we set the business up.<br />
“We obtained start-up training where<br />
the advisors wanted to discuss our<br />
Intellectual Property (IP) but refused<br />
to sign a Non Disclosure Agreement<br />
(NDA). Fortunately we were wiser<br />
than to continue with this service as<br />
disclosure of our IP without a NDA<br />
could have destroyed our ability to<br />
patent.”<br />
Peter believes that changes could be<br />
made to help small businesses by both<br />
local and central Government, by<br />
changing culture to make risk in<br />
procurement acceptable and having a<br />
service that supports smaller firms to<br />
win larger contracts. “I think the<br />
Government needs to force public<br />
sector entities to work with smaller<br />
businesses, currently there is a ‘no risk’<br />
culture that discriminates against small<br />
businesses bidding for contracts.”<br />
Peter has successfully financed the<br />
company’s growth through a variety of<br />
means. Small amounts of savings from<br />
the directors set the company up and<br />
investment by family and friends has<br />
assisted the Company to get to this<br />
point. VeryPC’s spin-out, Iceotope is<br />
venture capital backed to the tune of<br />
around £1.5m and it is a case study for<br />
Finance Yorkshire; “Obtaining finance<br />
was a long process but we eventually<br />
got lucky at Enterprise Ventures/South<br />
Yorkshire Investment Fund by<br />
obtaining funding through their ‘Rising<br />
Stars’ and ‘Seedcorn’ funds. We also<br />
received a £70,000 loan from Viking<br />
Fund Managers”.<br />
The banks have also played their part.<br />
VeryPC got a bank loan for £10,000 in<br />
the early days, which wasn’t difficult<br />
to obtain. The company’s expansion is<br />
now financed with a modern, low cost<br />
factoring facility. VeryPC, like most<br />
SMEs experiencing their level of<br />
growth without significant<br />
investment, is undercapitalised.<br />
Peter explains how VeryPC is now<br />
pursuing equity funding in order to<br />
break from organic growth to seize<br />
the opportunity it has in the market,<br />
which could result in a significant<br />
number of jobs in the region. Peter<br />
hopes that Enterprise Investment<br />
Scheme relief will help to entice<br />
investors.<br />
Going forward, the big challenge for<br />
the company is to secure funding to<br />
take advantage of their lead in the<br />
market, to continue investment in<br />
innovation and to add barriers to<br />
entry for their competitors. Peter<br />
cites carbon taxation, funding for<br />
energy efficiency measures and<br />
legislation in this area as potential<br />
inhibitors to growth.<br />
As for the future, Peter is determined<br />
to remain headquartered in the<br />
Region. But, he warns; “there must be<br />
better investment options for<br />
businesses, better support from local<br />
Government and the local public<br />
sector in terms of ‘pioneering’ higher<br />
risk products/companies through<br />
good risk management.”
Enterprise culture<br />
The Region needs a greater<br />
number of business<br />
leaders who are driven to<br />
accomplishment and to<br />
thinking that ‘small’ is failure.<br />
Addressing the jobs deficit<br />
The hope is that the entrepreneur will jump start job creation and innovation<br />
to support re-focus from a public sector to a private sector led economy. But<br />
is entrepreneurship in the Region able to deliver on this<br />
The report puts into question the ability of SMEs to address the jobs deficit<br />
speedily. Of those surveyed, 74 per cent employ fewer than 5 people and 86<br />
per cent fewer than 10. This suggests that, without considerable growth, the<br />
Region will have to develop many more of these types of businesses in order to<br />
deliver jobs creation of the magnitude needed, particularly in the light of<br />
pressure to reduce costs.<br />
Who are these entrepreneurs and their businesses<br />
Of those interviewed (senior decision makers), 38 per cent were between 35 and<br />
44 with only 1 per cent under 25 and 10 per cent between the ages of 55 and<br />
64. This contrasts with the often peddled image of the young entrepreneur. Is<br />
this an indication of the nature of business throughout the Region<br />
A number of respondents were from manufacturing, building and construction<br />
backgrounds; often associated with more established and traditional sectors.<br />
IT and design were, however, the largest sectors represented, with significant<br />
numbers in marketing, services and retail. This supports a shift in sector<br />
emphasis for the Region.<br />
Given the findings, those in ‘minority’ groups, (for example, women) do not<br />
appear to be engaged significantly in enterprise. Barriers to entry need to be<br />
explored and addressed.<br />
There was a surprisingly low number of respondents in the younger age groups<br />
– this has to be addressed. Is this the product of a society which has focused<br />
too heavily on university education making the young averse to taking the risk<br />
of enterprise and not equipping them in the other skills needed to start and<br />
grow a business Or is it perhaps a result of bankers and investors too often<br />
looking for experienced management teams to de-risk their investment<br />
decisions (‘back the jockey, not the horse’) with younger entrepreneurs getting<br />
stuck in the ‘experience gap’
Entrepreneurs’ <strong>Survey</strong> <strong>2011</strong><br />
Entrepreneurial culture<br />
Only a third of businesses interviewed use any form of incentives package to<br />
reward their personnel. This suggests that entrepreneurial culture is not<br />
embedded within the businesses surveyed.<br />
A significant number indicated a need for improved finance, sales and<br />
marketing skills. A combination of mentoring of senior management coupled<br />
with a re-look at incentive programmes for staff may help to address this,<br />
particularly given cash flow constraints. Inevitably, addressing skills deficits<br />
may have additional cost and, therefore, investment needs and related funding<br />
issues addressed in the rest of this report may also be relevant.<br />
Do you incentivise your employees with share options or other incentives<br />
100<br />
90<br />
80<br />
Percentage<br />
70<br />
60<br />
50<br />
40<br />
30<br />
20<br />
10<br />
35<br />
Yes<br />
65<br />
No<br />
GAZELLE vs SELF-EMPLOYED BUSINESS OWNER<br />
Should a distinction be drawn between the true entrepreneur and the<br />
self-employed small business owner and is this a particular issue for the<br />
Region The fact that so few of the businesses looked (and intend to look) for<br />
risk capital for their growth, may be an indication that the majority of these<br />
businesses comprise successful (most being in profit or break even) selfemployed<br />
small business owners rather than true entrepreneurs.<br />
It suggests the Region needs more highly aspirational Gazelles. The increase in<br />
growth and jobs that the Government is looking for requires true<br />
entrepreneurs to deliver. The Region needs a greater number of business<br />
leaders who are driven to accomplishment and to thinking that ‘small’ is<br />
failure.<br />
Impact of strategy<br />
It will be interesting to see how the Government’s Business Coaching for<br />
Growth initiative (targeting high-growth companies) will impact on the Region<br />
once launched. Coupled with Technology and Innovation Centres and the work<br />
of the Local Enterprise Partnerships, the strategy is aimed at creating a<br />
dynamic combination of cutting edge, innovative businesses with clear vision,<br />
a unique selling point and the skills to succeed in international markets.<br />
However, there are many who would argue that lower taxes and deregulation<br />
coupled with access to capital may have more impact and these do not<br />
necessarily involve people intervention.<br />
Business people need to be inspired to raise their sights and ambitions and<br />
consider their businesses from a global perspective in an environment that is<br />
not interventionist but supportive.
John Graham of Go Outdoors.
Entrepreneurs’ <strong>Survey</strong> <strong>2011</strong><br />
Case study<br />
Go Outdoors<br />
Well established rapid growth business<br />
Go Outdoors sprang from CEO John Graham’s innovative concept of a<br />
superstore based on his passion for climbing and love of the outdoors. In<br />
the mid-1990s he put this vision into action, catering for the huge demand<br />
for stores that met all the wider needs of outdoor enthusiasts; stores that<br />
had a range of clothing and equipment for anybody who wanted to take<br />
part in activities such as walking, climbing, camping and cycling. John<br />
believed that the market was potentially enormous – to cater for people,<br />
like himself, who live and breathe the outdoor life.<br />
John’s belief in the demand for<br />
outdoor clothing and equipment, his<br />
confidence in his own abilities to find<br />
the right products, combined with his<br />
ambition to run a business that<br />
would keep him in climbing shoes for<br />
the rest of his life, urged him to buy<br />
the Sheffield business Camping &<br />
Caravanning Centre (CCC). He<br />
completed this acquisition in 1998<br />
when the turnover of the business<br />
was £2m. In the following six years,<br />
John opened a small shop in<br />
Hathersage and acquired another<br />
superstore. Shortly afterwards the<br />
business adopted the name Go<br />
Outdoors.<br />
Since then, Go Outdoors has become<br />
a national brand which has grown to<br />
a turnover of £115m and 30<br />
superstores. It currently has 1,500<br />
employees and expects to create<br />
more than 500 jobs nationally over<br />
the next 12–18 months, with a<br />
number of these in the Yorkshire and<br />
Humber Region.<br />
John believes that Go Outdoors’<br />
success has come from a<br />
combination of being innovative and<br />
listening to customers. “We were the<br />
first large format retailer of outdoor<br />
clothing and equipment in the UK,<br />
selling everything for the outdoor<br />
enthusiast – we like to say that we<br />
can kit customers for any outdoor<br />
activity from walking the dog to<br />
conquering K2! Go Outdoors<br />
communicates regularly and directly<br />
with all of its customers and seeks to<br />
care for their needs – we sell a full<br />
range of products across a wide price<br />
range.”<br />
John puts the company’s success<br />
down, in part to those who have<br />
supported the growth by providing<br />
finance. With funding from the Bank<br />
of Scotland (now Lloyds Bank) and<br />
private equity from British Smaller<br />
Companies Venture Capital Trust and<br />
3i, John has become accustomed to<br />
working with investors. “Private<br />
equity investors are demanding, but if<br />
you really want to grow your business<br />
and you need their funds to achieve<br />
this growth, their requirements are<br />
understandable”.<br />
Even though he is leading a business<br />
that he loves, it has not always been<br />
plain sailing for John. He thinks that<br />
the relaxation of planning laws and a<br />
reduction in VAT and employment<br />
taxes could really boost the economy<br />
and help businesses like his to<br />
continue to grow. He also sees<br />
challenges ahead from “cost price<br />
increases, the squeeze on consumer<br />
spending and fuel prices.” However,<br />
John is positive about the<br />
opportunities for Go Outdoors –<br />
especially in the Yorkshire and<br />
Humber Region where they have four<br />
superstores (Leeds, Sheffield,<br />
Wakefield and York) and where the<br />
company’s headquarters are based.<br />
“Go Outdoors started in Sheffield,<br />
gateway to the Peak District and a<br />
hub for outdoor activity. It has now<br />
grown way beyond that. People from<br />
all over the UK buy our products to<br />
have fun and adventure both when<br />
they are at home and on holiday.”<br />
John stresses that being a good<br />
entrepreneur is not just about having<br />
good business acumen;<br />
“entrepreneurial spirit comes from<br />
the heart”.
Methodology<br />
The research was carried out during July and August <strong>2011</strong>. Voice, an<br />
independent agency, was commissioned to conduct telephone interviews with<br />
senior decision makers at owner managed businesses in the Yorkshire and<br />
Humber Region to obtain their views on a variety of issues including: key<br />
opportunities and challenges, technology, growth, international expansion,<br />
funding, priorities and the Region.<br />
In total, 100 companies were interviewed. To ensure a balance of views<br />
companies were chosen from within the Region across a range of industry<br />
sectors and at varying stages of growth. The companies targeted were less<br />
than 5 years old. 94 per cent of respondents were entrepreneurs and 6 per<br />
cent were intermediaries. In addition, in depth interviews were conducted with<br />
six of the Region’s entrepreneurs which have been included as case studies in<br />
the report.<br />
This report was launched in September <strong>2011</strong> at MADE: The Entrepreneur<br />
Festival in Sheffield.<br />
We are grateful to all those who participated, for giving their time and sharing<br />
their views.
Entrepreneurs’ <strong>Survey</strong> <strong>2011</strong><br />
About us<br />
Barber Harrison & Platt (BHP) has a<br />
specialist Entrepreneurial Advisory<br />
team made up of some of the<br />
region’s leading specialist advisors.<br />
The team has developed its skills and<br />
experience over decades of<br />
supporting many of Yorkshire and the<br />
Humber’s leading entrepreneurs<br />
through all stages of growth and<br />
development. In addition, BHP has<br />
developed in-depth sector knowledge<br />
of a number of the region’s key<br />
business activities.<br />
The firm has particular expertise in<br />
supporting entrepreneurs in<br />
developing their businesses through:<br />
• Funding growth<br />
--<br />
raising finance<br />
• Supporting growth including<br />
--<br />
tax planning<br />
--<br />
outsourcing (accounts and<br />
payroll)<br />
--<br />
management information<br />
--<br />
strategic business planning<br />
• Planning for growth<br />
--<br />
business planning and<br />
forecasting<br />
BHP’s team of specialist advisors<br />
works with entrepreneurs to fulfil<br />
their ambitions by providing both<br />
practical hands-on financial and<br />
commercial support as well as<br />
advising on business strategy and<br />
planning.<br />
<strong>Nabarro</strong> is a major commercial law<br />
firm renowned for its positive and<br />
practical approach to our client’s<br />
business needs. It operates in a<br />
number of industry sectors and legal<br />
disciplines with a single aim: to<br />
deliver the highest quality legal<br />
advice as clearly and concisely as<br />
possible, no matter how complex the<br />
situation.<br />
<strong>Nabarro</strong> has a designated<br />
entrepreneurs group which is focused<br />
on the needs of the entrepreneur<br />
community, having been closely<br />
involved with young growing<br />
companies and their investors for<br />
many years.<br />
We understand the needs of<br />
entrepreneurs, so no matter how<br />
complex the situation we offer plain,<br />
unequivocal advice, not pages of<br />
jargon. We have developed various<br />
products that aim to make the<br />
process as straightforward as<br />
possible, whether it’s raising equity<br />
capital or bank finance or seeking<br />
advice on such issues as the<br />
Enterprise Investment Scheme, share<br />
incentive plans, employment law,<br />
protecting intellectual property<br />
rights, terms of business, real estate<br />
contracts and dispute resolution.<br />
Yorkshire Association of Business<br />
Angels (YABA) is a unique regional<br />
forum which brings together the<br />
finance and expertise of business<br />
angels with entrepreneurs and their<br />
business ideas. Since its inception in<br />
1995 and with support from Yorkshire<br />
Forward, the Regional Development<br />
Agency, since 2000, the YABA<br />
membership has grown steadily to<br />
over 170 Angel and Associate<br />
members.<br />
The Association which is not-forprofit<br />
regularly holds investment<br />
forums at various venues throughout<br />
Yorkshire & Humberside to see<br />
entrepreneurs introduce their ideas to<br />
an audience of business angel<br />
members, associate members and<br />
some of the most influential business<br />
leaders in the region. Approximately<br />
3 in 20 businesses receive investment<br />
following these forums, and this in<br />
turn often releases further funding<br />
from other institutions.<br />
YABA’s introduction service enables<br />
entrepreneurs to not only personally<br />
present their business proposals at<br />
the forums, but also publish an<br />
executive summary on the YABA<br />
extranet where the angel investors<br />
can login to view summaries and<br />
contact the entrepreneurs direct.
Barber Harrison & Platt<br />
Lisa Leighton<br />
T +44 (0)114 266 7171<br />
Barber Harrison & Platt<br />
Leeds<br />
18-22 St Michaels Road Leeds LS6 3AW<br />
T +44 (0)113 2743496<br />
Sheffield<br />
2 Rutland Park Sheffield S10 2PD<br />
T +44 (0)114 266 7171<br />
Also offices in Chesterfield and Harrogate.<br />
For further information visit:<br />
www.bhp.co.uk<br />
<strong>Nabarro</strong><br />
Andrea Cropley<br />
T +44 (0)114 279 4157<br />
<strong>Nabarro</strong><br />
London<br />
Lacon House 84 Theobald’s Road<br />
London WC1X 8RW<br />
T +44 (0)20 7524 6000<br />
Sheffield<br />
1 South Quay Victoria Quays<br />
Sheffield S2 5SY<br />
T +44 (0)114 279 4000<br />
Also offices in Brussels and Singapore and<br />
links to alliance firms in France, Germany<br />
and Italy.<br />
For further information visit:<br />
www.nabarro.com<br />
Yorkshire Association of Business<br />
Angels<br />
Barbara Greaves<br />
T +44 (0)1423 810149<br />
Yorkshire Association of<br />
Business Angels<br />
Harrogate<br />
1 Hornbeam House Hornbeam Park<br />
Hookstone Road Harrogate HG2 8QT<br />
T +44 (0)1423 810149<br />
For further information visit:<br />
www.yaba.org.uk<br />
Detailed specialist advice should be obtained before taking or refraining from any action as a result of the findings<br />
and comments found in this report. The information is correct at the date of publication.<br />
© Barber Harrison & Platt, <strong>Nabarro</strong> LLP <strong>2011</strong><br />
10146