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STATES OF JERSEY
2014-15 ENTERPRISE ACTION PLAN
Presented to the States on 29th May 2014 by the Minister for Economic Development
STATES GREFFE
2014 Price code: D R.73
2014-15
Enterprise
Action Plan
Foreword
In an increasingly competitive global economic environment Jersey must act now to improve productivity & competitiveness if we are to return the economy to enterprise-led growth.
Enterprise in our economy, driven by entrepreneurs, local businesses and inward investors is one the key factors that deliver competitiveness, growth and diversification of the economy in Jersey. Enterprise creates new job opportunities, increases economic output & productivity, and importantly drives diversification to broaden our employment and fiscal base. This is vital to our "new economy" which will be characterised by higher value activity and new, better quality jobs.
The 2014-15 Enterprise Action Plan sets out Government's strong commitment to the development and growth of enterprise and entrepreneurial activity across all sectors of the Jersey economy.
It contains 23 discrete but dependent actions that address eight key Themes:
Actions
Productivity 1, 2, 6, 7, 10, 11
Competitiveness 2, 5, 7, 8, 9, 10, 17,18, 20
Innovation 5, 7, 8, 13, 14, 17
Barriers to doing business 1, 2, 5, 7, 8, 10, 14, 17, 22, 23
Skills, Leadership & Management 3, 10, 11, 12, 15, 16, 17
Inward Investment 13, 19, 20, 21,
Access to Finance 5, 6, 9, 13
Business Support 1, 2, 4, 6, 7, 9, 18
Government cannot deliver on these themes and actions alone.
Delivery is dependent on new partnerships Government has forged with the private sector and organisations such as the Chamber of Commerce, Institute of Directors, Locate Jersey, Digital Jersey, Jersey Business and Skills Jersey.
The Action Plan further recognises the contribution that both established businesses and new entrants can make to economic growth and to diversifying the economy. The Action Plan, whilst led by the Economic Development Department (EDD), is a cross-Government initiative driven by the Council of Ministers, that requires other departments to fully deliver their respective roles and commit to working together to deliver collective outputs.
Finally, the Plan fully recognises the challenges of working within wider Government policies. There is a balance to be achieved between government inadvertently increasing the burden of regulation, managing population or controlling migration, which if we get wrong, could potentially compromise economic prosperity. It is that very prosperity that fuels the engine that funds public services and it is those public services that, in no small part, define the quality of life we enjoy in Jersey. To achieve sustainable enterprise-led growth we must reduce the burden of un-necessary regulation, encourage inward investment and welcome those who bring their intellectual property, capital and commercial operations to the Island.
This is an Action Plan that seeks to create a business friendly environment to encourage new and exciting employment opportunities for local jobseekers, economic growth, and the development of stronger, more competitive local businesses.
Senator Alan Maclean
Minister for Economic Development
Introduction
The 2014-15 Enterprise Action Plan aims to improve upon what has been achieved to date, be more targeted in its delivery and place a greater emphasis on raising productivity, increasing competitiveness plus the development and growth of businesses, with particular emphasis on encouraging investment in high value added activity across all non-finance sectors of the Jersey economy.
The Plan supports enterprise across all sectors of the economy except finance and presents a range of new policies closely aligned with the Priorities established in the 2012 Economic Growth and Diversification Action Plan, which in turn is aligned with the States Strategic Plan.
The Enterprise Action Plan recognises that wealth is created by the actions of businesses of all sizes and in all sectors, and that government should not duplicate or substitute private sector activity. There is however an important role for more targeted government interventions to address market failures and ensure the best outcome for the economy as a whole.
Overall success for the Action Plan would be that 200 local businesses become more productive and that 600 new jobs are created in high value-activity businesses, of which 75 per cent are filled by locally qualified individuals.
Greater emphasis is placed on delivery partners - Jersey Business, Digital Jersey, Skills Jersey and Locate Jersey - who will have lead responsibility and accountability for delivering the majority of the Actions within the plan, alongside Government.
Given the constraints on population in Jersey, enterprise and the achievement of economic growth will require a specific focus on firms having the potential to make a significant impact on the Island's prosperity, primarily utilising the skills and experience of local employees. This is reflected in the Skills for Success' skills strategy recently published by the Skills Executive, coordinating the activities of Economic Development, Social Security and Education Sport and Culture to develop the workforce of the future.
However, in order to maximise the contribution of enterprise, productivity improvements must be supported throughout the economy – in both low value and high value sectors, in growth firms and in established businesses.
Whilst the challenges facing these firms may differ, there are common themes such as access to finance, innovation and skills which cut across all sectors of the Jersey economy.
Strategic context
States of Jersey Strategic Plan 2012
The States of Jersey Strategic Plan aims to improve Jersey's economic performance by increasing the competitiveness of Island businesses, raising productivity across the economy and creating high value businesses that provide new jobs for Islanders at every level.
2012 Economic Growth and Diversification Strategy
On 17 July 2012, the States approved a new Economic Growth and Diversification Strategy (P55/2012). The key objectives of the Strategy are to deliver growth, improve competitiveness, diversify the local economy and create employment. This will be achieved by the States working in partnership with the private sector and third sector organisations to deliver four strategic aims:
- Encourage innovation and improve Jersey's international competitiveness;
- Grow and diversify the financial services sector, capacity and profitability;
- Create new businesses and employment in high value sectors;
- Raise the productivity of the whole economy and reduce the reliance on inward migration
2014-15 Enterprise Action Plan
This Action Plan sets out how Government in partnership with key partners and business will deliver against the key Priorities within the 2012 Economic Growth & Diversification Strategy.
The relationship between the Plan and the Economic Growth and Diversification Strategy is illustrated in Appendix 1
The Action Plan is therefore one of the key building blocks towards delivery of the overarching Economic Growth and Diversification Strategy.
The Action Plan has been developed following a wide consultation exercise which included stakeholders' workshops and presentations to key industry bodies.
Whilst the Action Plan is being published in early 2014, many of the Actions contained within it have been developed and implemented since publication of the 2012 Economic Growth and Diversification Strategy, with full 2013 outputs against key Actions highlighted in Appendix 2*.
Highlights of 2013 delivery against Enterprise Plan Actions include; |
Action 2: Over 1280 Client Meetings and 800 General Enquiries completed by Jersey Business/Digital |
Jersey |
Action 3: 29 Skills Accelerator Grants made, totalling over £51,000 invested |
Action 13: 14 Jersey Innovation Fund Applications received, 4 considered in detail by the Board |
Action 18: 22 Companies assisted through attendance on 4 overseas trips |
Action 20: 14 High Net-Worth Residency* approvals, 12 actual Arrivals' in Jersey |
Action 21: 158 Inward Investment enquiries, resulting in 28 Licence approvals*, creating 245 Job |
opportunities* - 96% of which intended for Locally Qualified individuals |
* Uses output measures not aligned to those used in this Enterprise Plan
Strategic Aim
The Enterprise Action Plan recognises that all entrepreneurial and enterprise activity contributes to the local economy.
It also recognises that economic growth will in the main be driven by the creation and growth of businesses within high value sectors.
This Plan therefore aims to support companies in all sectors of the economy (excluding the core financial services sector) with a more focused approach on supporting companies with high growth potential and on attracting inward investment by companies involved in high value economic activity.
However, this does not mean that companies operating locally in other areas of activity will not be supported. The Business Plans of both Jersey Business and Digital Jersey (attached at Appendix 3) clearly indicate that they are resourced to provide such support, as part of their wider remits.
Government also undertakes a number of interventions within individual sectors of the Jersey economy - this Plan does not seek to replicate or replace this support but offers a suite of support measures available to firms regardless of sector.
Wider employment support is also made available through the Back to Work' Team – based at Social Security – which can work with both Employers and individuals, to put bespoke support in place
The strategic aim of this Plan is therefore:
To improve the productivity of existing firms and to facilitate the growth of new and existing businesses in high value activity.
Measuring and reporting on success
The Enterprise Action Plan introduces a change as to how success will in future be measured and monitored. Where applicable, targets are based primarily on actual numbers of jobs created and/or the number of productivity improvements actually implemented.
This will require Jersey Business, Locate Jersey and Digital Jersey to more fully engage with businesses, in order to ensure that firms provide regular reporting on their progress against their business plans. This level of increased engagement will become a condition of any States support provided.
There will be on-going monitoring of those companies which receive support – to measure the extent to which they have achieved the forecast level of growth, productivity improvements or high-value added employment.
Measurement of job creation will be on the basis of new jobs created by high value firms as a result of support under the Enterprise Action Plan.
It is accepted that in parallel there will be other job creation and job losses which may occur in other firms, throughout the economy. Therefore while the new job creation will have an impact on the overall employment figures collected by the Statistics Unit, creation of 600 new high value jobs under this Action Plan is not the same as increasing overall employment (or reducing overall unemployment) by 600 and this is not how the Action Plan will be evaluated.
Measurement of productivity gains will be based on any change in value-added' per full-time employee that can be attributed to the intervention/advice provided under the Action Plan. Value added will be calculated as the sum of employment costs and profits.
Progress against performance targets will be reviewed on a quarterly basis starting at the end of June 2014. Progress reports will be shared on a quarterly basis with all key stakeholders, delivery partners and Ministers with the Getting People into Work' Ministerial Group having the overall responsibility for monitoring delivery.
This ongoing monitoring will allow progress to be evaluated by the Ministerial Group on a regular basis against set objectives and ensure that the Plan can be adjusted in response to actual developments to maximize its contribution to wider economic objectives.
In addition to this on-going monitoring, a full evaluation of the Enterprise Action Plan will be carried out no later than March 2016, with a focus on whether the objectives have been achieved and reviewing any developments over the life of the Action Plan, impacting upon delivery of its outcomes.
Strategic Constraints
Global Economic Climate
In a small, open economy, Jersey businesses are reliant on external demand in order to deliver economic growth. There is likely to be a slow and uneven recovery in the global economy and many risks remain. Whilst the advanced economies have begun to accelerate, this has been from a low base and the economies of both the UK and the euro area remain below their pre-crisis levels. This means that significant growth may be difficult for firms which continue to serve existing markets with existing products and services.
Migration
The Strategic Plan envisages those being allowed to enter the island being better aligned to their ability to create or grow high value businesses and create employment for locally qualified people.
This Action Plan follows through this commitment, with successful delivery ultimately being dependent upon the extent to which highly skilled migrants are able to relocate to the Island, in order to support the growth of high productivity firms.
If such firms face constraints on the availability of highly-skilled labour on-island, there will be a need for some inward migration to ensure the activity can proceed, with in some cases a need for specific individuals to move to the island. If the overall level of net migration is low, there is a strong argument for prioritisation of Licences focussed primarily on supporting highly productive firms, to help deliver Enterprise targets.
Achieving the aims of the Enterprise Action Plan will require additional highly-skilled migrants to support the growth of highly productive firms and ultimately create employment opportunities for locally qualified job-seekers.
Government Resources
The resources available to support Enterprise are finite. The annual budget to support the implementation of the Action Plan is approximately £2.5m, much of which is Growth Funding allocated to EDD in the States 2013- 15 Medium Term Financial Plan.
In order to maximise what can be achieved, finite resources will be prioritised to actions which can have the maximum impact on delivering economic growth and creating high value employment. Additional resources for some activities - notably skills development – will need to be secured from other States Departments which have lead-responsibility for delivering key Actions.
Action Plan Priorities
In light of the aims and constraints outlined above, four priorities have been identified:
- Improve the productivity of businesses in Jersey
- Support for high-growth firms undertaking high value activity
- Attract inward investment in high-value added activities
- Ensure regulation does not unduly impede businesses
None of these priorities in isolation will produce the level of enterprise or economic growth that the Jersey economy will need, for Government to go on providing high quality public services.
Collectively however they should contribute towards a strong, sustainable and diversified local economy, capable of providing the population of Jersey high quality opportunities.
Priority 1 Improve the productivity of businesses in Jersey
Opportunities exist to contribute to economic growth through supporting existing companies to make productivity improvements. The majority of firms are unlikely to become high-growth firms but they can however make a considerable contribution towards growth through improvements in productivity.
Given the finite level of resources available in Jersey, it will be important that productivity improvements can be made without increasing significantly the resources used by low value-added activities. Corresponding productivity improvements in these businesses should however focus on wider interventions designed to reduce their overall reliance on inward migration.
Overall success for this priority over the Action Plan period would be over 250 firms reporting productivity improvements.
Policy 1 - Support for on-island business should be targeted towards boosting business |
productivity and reducing reliance on inward migration. |
Action 1: Resource Efficiency
Provide businesses with advice and direct them to further steps they can take to minimise waste and maximise efficiency Delivery Lead: Jersey Business
Aim: To assist businesses to increase productivity through improvements in resource or energy efficiency. Example: "Environmental & Sustainability Support" product from within Jersey Business suite of
Products & Services' (Appendix A, page 16 Jersey Business, Business Plan)
Success Measures: 70 face-to-face meetings
At least 10 companies reporting productivity improvements as a result of a reduction in waste or improvement in resource efficiency, by December 2015
Action 2: Business Management
Deliver business management advice to include, but not limited to:
leadership and management
planning
financial management
people management
performance management
Delivery Lead: Jersey Business and Digital Jersey
Aim: To encourage firms to improve productivity through adoption of best practice in business
management.
Example: "Business Health Check", programmes and products from Jersey Business
(Appendix A, page 16 Jersey Business, Business Plan) Success Measures: 1,500 face to face meetings
250 companies reporting productivity improvements as a result of advice relating to business management, by December 2015
Rationale: Quality of management is particularly important for small and medium-sized Jersey enterprises which must be able to adapt quickly to evolving markets and changing circumstances, but often have only limited resources. In addition to financial constraints, information gaps make smaller firms less aware of the benefits they would obtain from business management training and few see training as a strategic tool.
Action 3: Skills Development
Skills Strategy agreed by the Council of Ministers Delivery Lead: Skills Executive
and
Digital Jersey successfully delivers skills elements of its Business Plan
Aim: Support firms to maximise productivity by ensuring appropriate skills are available
Example: Task 13: Digital Learning Hub operational and working with students and school leavers
(T13, page 5, Digital Jersey Business Plan) Success Measures: Skills Strategy and skills element of Digital Jersey Action Plan agreed and implemented.
A Digital Educational programme delivered by Digital Jersey in 2014
A Digital Learning Hub successfully launched and delivered by Digital Jersey in 2014 to help school/college leavers and others to acquire the skills needed by the sector
100 face to face meetings involving Jersey Business with business regarding skills development
50 local companies supported with a Skills Accelerator grant from Economic Development Department, by December 2015
30 business reporting productivity improvements by December 2015
Rationale: The advisory body for skills development policies is Skills Jersey.
The 2014 Skills Strategy includes a number of objectives intended to help individuals reach their maximum potential and ensure appropriate skills are available to firms to help improve productivity.
Digital Jersey leads on the development of the digital economy and will have a key role in developing the appropriate skills to develop this sector. They will work with training providers, schools and colleges to encourage the appropriate skills development programmes are in place to support the growth of this sector.
The development of skills in the island will also involve close collaboration between many other public and private sector organisations.
Action 4: Information Communication Technology
Provide advice to businesses on the use and benefits of ICT
Delivery Lead: Jersey Business/Digital Jersey
Aim: Ensure businesses are aware of the possibilities to increase productivity through adoption of ICT. Example: Task 11: Monthly tech seminars to extend the reach of the sector
(T11, page 5, Digital Jersey Business Plan)
"Application of Technology" product from within Jersey Business suite of Products & Services' (Appendix A, page 16 Jersey Business, Business Plan)
Success Measures: 170 face-to-face meetings with local businesses
15 business reporting productivity improvements as a result of support to improve their use of ICT, by December 2015
A Digital Learning Hub opened by Digital Jersey in 2014 to benefit local business by improving their use of ICT.
Rationale: Information failures often lead to smaller firms in Jersey being unaware of potential productivity improvements available through investment in ICT.
Action 5: Access to Finance (I)
Undertake research to identify the issues faced by established companies and potential start- ups seeking finance Delivery Lead: Getting People into Work' Team
Aim: Help firms access finance to invest in high quality projects aimed at improving productivity
Success Measures: A more comprehensive understanding of any barriers which restrict access to finance for
Jersey companies and recommendations for any necessary policy response, by October 2014.
Rationale: In focus groups carried out amongst established entrepreneurs in Jersey, 25 per cent identified securing business finance as the main barrier they face to future growth. However, it is not clear why firms are having difficulties securing finance – More research is required to examine the barriers faced.
Action 6: Access to Finance (II)
Provide advice and guidance for firms seeking finance Delivery Lead: Jersey Business & Digital Jersey
Aim: Help firms access finance to invest in high quality projects aimed at improving productivity
Example: "Fit for Funding" and "Financial Plan Development" products from within Jersey Business
suite of Products & Services' (Appendix A, page 16 Jersey Business, Business Plan)
Success Measures: 170 face to face client meetings.
50 companies achieving productivity improvements as a result of support to access finance, by December 2015.
There are clear linkages between Actions 5 & 6.
The research project will include consultation with Jersey Business and Digital Jersey to ascertain what issues have been encountered by firms they have advised.
Similarly the advice provided by Jersey Business and Digital Jersey will be expected to take account of any findings and/or recommendations arising from the research carried out by the Economic Development Department.
Action 7: Innovation (I)
Engage with firms to identify any barriers to innovation and assist in overcoming these barriers (including directing companies to the Innovation Fund if appropriate)
Delivery Lead: Jersey Business, Jersey Innovation Fund (JIF) and Digital Jersey
Aim: Encourage established firms and potential start-up firms to implement innovative projects with the potential to raise productivity.
Example: "Fit for Funding" and "Financial Plan Development" products from within Jersey Business suite
of Products & Services' (Appendix A, page 16 Jersey Business, Business Plan) Task 5 "Growth incentive package and FDI proposition" and Task 6: "Formation of Jersey Tech
Growth Fund" (T5 and T6, page 5, Digital Jersey Business Plan)
Success Measures: 75 face-to- face meetings between Jersey Business, Digital Jersey and the JIF Board with
companies seeking support
20 companies reporting productivity improvements as a result of assistance to access finance allowing them to invest into innovation, by December 2015
Non-financial barriers to innovation identified and addressed within individual firms
Rationale: Innovation is important at all stages of a company's development and firms in all sectors will need to innovate in order to prosper or survive in a competitive market. Firms which are most able to successfully innovate will be able to improve their efficiency and become more productive.
Access to finance for innovation can prove difficult. The Jersey Innovation Fund (JIF) approved by the States in May 2013 aims to help secure improvements in productivity, employment opportunities or spill over benefits for the Jersey economy, through providing finance (usually in the form of loans) to support businesses to undertake innovative projects.
Priority 2 Support for high-growth firms undertaking high value activity
There are a number of definitions of high-growth firms, usually relating to average growth in employment (or turnover) of 20 per cent per annum over a three to five year period. If sustained over four years, this growth rate would represent an approximate doubling in size.
For 2014-15 Enterprise Action Plan purposes a high growth firm is defined as a business with the potential to double revenues or employment within four years and to employ at least ten full time equivalent staff by the end of the four year period.
Overall success for this priority would be to create 250 new jobs of which 75 per cent are filled by individuals who are entitled or entitled to work in high growth firms in high value activity.
Impact of high-growth firms
Evidence indicates that, in developed countries, high-growth firms account for a disproportionate share of job creation, in addition international evidence suggests that high growth firms also display high levels of productivity. The combination of higher employment growth and higher productivity means that high-growth firms drive a substantial proportion of economic growth.
In addition, high growth firms are associated with a number of other spill-over benefits in that they:
can help improve the performance of the wider economy
have the potential to be important conduits of knowledge transfer as they can diffuse innovations into the wider economy.
are associated with opening up new markets for existing firms
have the capacity to act as a catalyst for further business creation
are more likely to operate in emerging sectors and this can act as a catalyst to structural change and diversification into new sectors.
can exert competitive pressures that may also force other firms to improve productivity in response.
Barriers to high-growth firms
There are a number of well documented barriers to high growth firms seizing growth opportunities and realising the growth in employment and turnover of which they are capable.
The former UK Department for Business, Enterprise and Regulatory Reform identified a number of obstacles to growth faced particularly by high-growth firms:
Skills
Innovation
Access to Finance
Culture
Networks and Relationships
It is generally assumed that these barriers are likely to be felt more acutely amongst smaller higher growth firms whilst larger enterprises are more capable of overcoming the above barriers without external assistance.
Any support to high-growth firms under this Action Plan will therefore primarily be directed at:
Small and medium enterprises with the potential to employ at least ten staff within four years.
Businesses offering the potential to create high value added employment.
Firms which have the potential to improve the overall level of productivity of the economy – i.e. those firms with, or are likely to have, value added per employee significantly in excess of £60k.
Policy 2: Specific support should be aimed at creating and developing firms with high |
growth potential engaging in high value added activity. |
Given the potential impact of high-growth firms, there is a need for government intervention to overcome barriers which might inhibit their creation and/or growth in Jersey. The consideration of the approaches taken elsewhere and of best practice recommends the following Actions to support the development of high growth firms:
Action 8: Access to Finance (III)
Undertake further research to identify the issues faced by potential high growth companies seeking growth finance including how tax policies might be used to encourage investment into enterprise Delivery Lead: Treasury & Economic Development Department
Aim: Ensure that potential high-growth businesses have access to the finance needed to take advantage of growth opportunities.
Success Measure: Policy recommendations by December 2014 arising from a more comprehensive
understanding of the issues faced by high growth entrepreneurs in finding finance.
Rationale: By their very nature, potential high-growth firms are likely to find it more difficult to access sufficient finance from traditional sources. These businesses will often have a limited track record and limited collateral against which to secure any loan. Opportunities will often be higher risk and there may be information asymmetries by which potential funders will not recognise the potential value of the investment.
Stakeholder workshops suggest that there may be some issues accessing finance in Jersey, with approximately 40 per cent of potential entrepreneurs suggesting that funding would deter them from starting a business, whilst 25 per cent of existing business identified business finance as a barrier to growth. It is therefore important that Government makes greater efforts to understand the funding issues faced by local business and evaluate appropriate policy responses.
Action 9: Access to Finance (IV)
To provide advice and guidance on growth finance for companies with high growth potential
Delivery Lead: Jersey Business & Digital Jersey
Aim: Ensure that potential high-growth businesses have access to the finance needed to take advantage of growth opportunities.
Example: "Fit for Funding" and "Financial Plan Development" products from within Jersey Business suite of Products & Services' (Appendix A, page 16 Jersey Business, Business Plan)
Task 6: "Formation of Jersey Tech Growth Fund" (T5 and T6, page 5, Digital Jersey Business Plan) Success Measure: 55 face to face meetings by December 2015
20 high growth firms gaining access to finance, resulting in 100 jobs in high value activity businesses by December 2015.
There are clear linkages between Actions 8 & 9.
The research project will include consultation with Jersey Business and Digital Jersey to ascertain what issues have been encountered by high growth firms they have advised. Similarly the advice provided by Jersey Business and Digital Jersey will be expected to take account of any findings and/or recommendations arising from the research carried out by the Economic Development Department.
Leadership and Management Skills
Research comparing high-growth firms in the UK and US demonstrated that education, experience and management skills impact on the success of entrepreneurs. Further, when the leaders within an SME are dedicated to continue to learn and acquire new perspectives, they are more likely to encourage employees to develop the needed competencies.
Evidence also suggests that entrepreneurs will typically prefer support and advice from those with experience in starting and running a business, although it may often be difficult for entrepreneurs to identify sources of such mentoring/advice.
This suggests a role for government in promoting the benefits of management training and in providing advice on suitable learning opportunities which might suit the needs of individual firms/entrepreneurs. In the medium term, there may also be a need to coordinate some additional provision which might better suit the needs of potential high-growth firms in Jersey.
Action 10: Leadership and Management Skills (I)
Undertake research to assess leadership and management skill gaps in high growth firms
Delivery Lead: Jersey Skills Board/Jersey Business Aim: Ensure that entrepreneurs possess the skills required to manage high-growth firms.
Example: "Leadership & Management" component of Objective 2, Skills Strategy
(pages 26-27, 2014 Skills Strategy)
Success Measure: Research produced and options scoped by October 2014
Action 11: Leadership and Management Skills (II)
Emphasise to entrepreneurs the importance of leadership and management skills in growing a business and signpost to appropriate support service
Delivery Lead: Jersey Business (lead) and Digital Jersey Aim: Ensure that entrepreneurs invest in the skills required to manage high-growth firms.
Example: "Leadership Development" and "Getting the most out of People" Workshops from within Jersey Business suite of Products & Services' (Appendix A, page 16 Jersey Business, Business Plan)
Success Measure: 5 high-growth, high value added companies invest in leadership and management training as a result of support, by December 2015.
Action 12: Leadership and Management Skills (III)
Engage with stakeholders and training providers to ensure provision addresses the identified skills gaps in leadership and management
Delivery Lead: Jersey Skills Board/Jersey Business Aim: Ensure that entrepreneurs communicate the types of skills required to manage high-growth firms. Example: "Leadership & Management" component of Objective 2, Skills Strategy
(pages 26-27, 2014 Skills Strategy)
Success Measure: Engagement with stakeholders and training providers to address any gaps identified by the Skills Jersey research
Action 13: Innovation (II)
Use the Innovation Fund to support a range of activity to improve the level of innovation in Jersey in high growth companies Delivery Lead: Treasury & Economic Development
Aim: Encourage and support the use of innovation within potential high-growth businesses.
Success Measure: 6 Innovative projects supported by the Innovation Fund, resulting in 50 jobs in potential high
value, high growth firms, by December 2015.
Rationale: Growing firms are considerably more likely to innovate than firms which are not intending to grow. Innovation is often fundamental to the formation of high growth firms and to their opportunity to grow. Often the determinant which allows firms to grow faster than their competitors will be the company's ability to take commercial advantage of some innovation.
In addition to maximising the performance of high growth firms, there are a wide range of spill-over benefits which can result from investment in innovation, such as skills development and increased entrepreneurship, which can result in benefits outside the firm. Innovation activity can also result in an increase in foreign investment.
Action 14: Innovation (III)
Engage with potential high growth firms to identify the barriers to undertaking innovation and assist them in overcoming these barriers Delivery: Jersey Business (lead) and Digital Jersey
Aim: Explore with high-growth businesses the barriers to use of innovation
Example: "Fit for Funding" and "Financial Plan Development" products from within Jersey Business suite
of Products & Services' (Appendix A, page 18 Jersey Business, Business Plan)
Task 5 "Growth incentive package and FDI proposition" and Task 6: "Formation of Jersey Tech Growth Fund" (T5 and T6, page 5, Digital Jersey Business Plan)
Success Measure: High growth firms assisted to overcome non-financial barriers to innovation resulting in the
creation of 100 new jobs in high value activity, by December 2015
Action 15: Skills Availability (I)
Communicate the benefits of skills development and give advice and guidance on ways to train and develop staff Delivery Lead: Jersey Business and Digital Jersey
Aim: Ensure that high-growth firms have access to suitably skilled staff.
Example: "Skills Development" and "Getting the most out of People" products from within Jersey
Business suite of Products & Services' (Appendix A, page 16 Jersey Business, Business Plan)
Task 13 "Digital Learning Hub operational and working with students and school leavers"
(T13, page 5, Digital Jersey Business Plan)
Success Measures: 25 face to face meetings with high growth companies by December 2015
15 high-growth companies undertaking staff training and development by December 2015
Rationale: High growth firms face particular obstacles as they will often require higher-skilled staff than other firms, or staff with very specific or niche skills. While all small firms tend to face problems recruiting skilled staff, high growth firms may require a greater number of skilled staff in a short period of time and many not have the opportunity to train these staff internally. This has particular relevance for Jersey given the likely effects of limits on inward migration in the near future
Action 16: Skills Availability (II)
Identify skills gaps which impede high growth firms in Jersey
Delivery Lead: Jersey Skills Board Aim: Ensure that high-growth firms have access to suitably skilled staff.
Example: Delivery of Actions within Objective 3 of the 2014 Skills Strategy
(pages 28-34, 2014 Skills Strategy)
Success Measure: Research into the skills needs of high growth firms and where these are lacking in the labour
force, by December 2014.
Action 17: Entrepreneurial Culture
Undertake research to assess the entrepreneurial attitudes, activity and aspirations of individuals in Jersey Delivery Lead: Economic Development Department
Aim: Ensure that potential high-growth businesses in Jersey are not discouraged by any potential lack of
knowledge or entrepreneurial culture.
Success Measure: Research, to include results comparable to the Global Entrepreneurship Monitor (undertaken
by the UK and approximately 100 others jurisdictions) to be undertaken by March 2015.
Rationale: Stakeholder workshops in Jersey suggested that 25 per cent of prospective entrepreneurs identified fear of failure as a deterrent to starting their own business. However, it is not clear whether a fear of failure or lack of entrepreneurial culture significantly reduces the number of high-growth businesses created in Jersey each year.
Action 18: Internationalisation
Manage and support a series of trade delegation events to support the development and growth of businesses in high value sectors Delivery Lead: Locate Jersey & Digital Jersey
Aim: Convert international/off-island markets into growth opportunities for business with high growth
potential resulting in new job opportunities.
Example: Task 4 "Outbound missions" component of Digital Jersey Business Plan
(T4, page 5, Digital Jersey Business Plan)
Success Measure: 10 companies with high growth potential converting export opportunities into revenue
growth resulting in 10 news jobs in high value activity by December 2016
Rationale: The size and profile of the on-island market opportunity will restrict the growth in sectors and business with high growth potential. This is not a new challenge and the Jersey financial services sector is a good example of where internationalisation can and has delivered economic gains to the Island.
Developing both new and existing international trade opportunities also supports the diversification of the local economy. Evidence suggests that more innovative firms and potential high growth firms are more likely to report barriers to exporting. This is because their innovative products tend to be more complex and it can be difficult to communicate their value to overseas customers. These firms are also more likely to envisage that they will have regulatory or legal barriers which prevent them from exporting e.g. concerns about intellectual property.
Priority 3 Attract inward investment in high-value added activities
Inward Investment is an integral part of an open and effective international economic system, contributes significantly to economic growth and enhances the capabilities and competiveness of the host economy.
The benefits of inward investment however do not accrue automatically and require a transparent, broad and effective enabling policy environment.
The overall benefits of inward investment for host countries are well documented and include;
triggering technology spill overs,
assisting human capital formation,
contributing to international trade integration,
helping create a more competitive business environment
enhancing enterprise development.
All of the above contribute to higher economic growth, which is the most potent tool for creating new job opportunities.
Overall success of this priority would be to create at least 250 jobs over two years through high value inward investment projects, offering the potential of average value added per employee significantly in excess of £60k.
At least 75 per cent of these jobs must be filled by individuals that are entitled or entitled to work in Jersey as defined by the new Control of Housing and Work Law,
In Jersey inward investment is not limited to attracting new businesses to the Island. It includes attracting foreign investment, strategic partners and high net worth individuals.
Policy No 3: Inward investment activity is targeted towards high net worth individuals that are |
economically active and/or businesses undertaking high value activity with plans |
to grow and create additional jobs for locally qualified job seekers. |
Inward investment related activity is currently facilitated through various individuals and teams in both the public and private sector including intermediaries, professional services companies, Jersey Finance, Locate Jersey, Digital Jersey and the Population Office.
Establishing clear policies would help guide decisions and set directions for future inward investment activity. To achieve this we must deliver a coordinated and targeted inward investment management and aftercare service
Policy No 4: All high value Inward investment activity and aftercare is coordinated and |
managed by Locate Jersey. |
Inward investment projects that create significant new job opportunities in lower value sectors such as retail will remain important to the local economy. Projects of this nature will be subject to early engagement and be co-ordinated by the Employer Engagement Section of the Back to Work Team, in Social Security to make sure the opportunity to get local job seekers back into work is maximised.
There is and will continue to be a focus on the need to reduce reliance on inward migration. This will place additional pressure on all inward investment activity. It is therefore essential that all inward investment opportunities are assessed against a common framework.
Policy No 5: All high value Inward investment opportunities are assessed against the following
Inward investment framework
Potential tax payments
Evidence of current value added per employee
Future growth plans
Potential competition or displacement factors that may arise
The initial and future commitment to create new job opportunities in high value activity
Creation/development of new export markets
Wider benefits 15
Human capital (skills) requirements
In order to deliver against the above new policies and maximise the returns from inward investment we must focus on the following:
Action 19: Review and develop the Jersey Proposition'
Review and update the Jersey Proposition to reflect the policies and priorities within the 2014-15 Enterprise Action Plan Delivery Lead: Locate Jersey
Aim: To present the business case for high-value activity investment to be made in Jersey
Example: Research work carried out in Q4 2013 with existing inward investors/HNWR leading to
development of revised marketing collateral and event planning
Success Measure: Jersey Proposition developed and agreed with stakeholders by July 2014.
Rationale: The current proposition has delivered some early success but the environment has increasingly become more competitive with jurisdictions attempting to attract foreign direct investment. Propositions have become more structured and tailored towards in the main the same target markets targeted by Jersey. The development of the new proposition must:
Provide reassurance of stability to all potential foreign investors (insofar as that is possible, given external factors);
Provide clarity on the availability of suitable premises;
Provide reassurance/guidance about the extent to which investors can bring the appropriate talent and skills to the island;
Develop a range of inward investment incentives to attract investment to Jersey.
Action 20: Establish a target audience and generate new leads from potential inward investors
Target high value businesses and high net worth individuals with the Jersey Proposition
Delivery Lead: Locate Jersey
Aim: To maximise the number of inward investment and High Net-Worth Leads through structured, pro-
active approaches
Example: Pro-active marketing in overseas markets and work with international intermediaries
Success Measure: 50 face to face meetings with high value businesses and individuals considering Jersey as a
destination by December 2015.
Rationale: On the basis of Policy 3 above, identify a number of high value sectors which are likely to find Jersey an attractive proposition for investment.
Lead generation from the target markets is the first critical step towards attracting new investment to Jersey, followed by the initial client management. This requires both a consistent and targeted message and a coordinated approach to client management. To achieve this we must:
Demonstrate that Jersey has a pro-business environment;
Present Jersey as a prime location for investment;
Generate enquires from targeted sectors;
Convert enquires into solid leads with good business cases for future consideration;
Work in partnership with local and international intermediaries;
Develop international networks and partnerships;
Develop a Jersey presence in targeted markets
Action 21: Deliver a coordinated investment and aftercare service
Provide support for inward investors to relocate, plus on-going aftercare
Delivery: Locate Jersey
Aim: To provide a high-quality inward investment service that delivers significant inward investment and
tangible investor-benefits
Example: Delivery of bespoke services to overseas clients/companies plus aftercare' provision once
investment has occurred
Success Measures: Inward investment projects supported resulting in 250 jobs being created in high value
projects with at least 75% entitled staff by December 2015.
All inward investment projects receive support before arrival and regular contact for up to 5 years post relocation.
Rationale: Managing initial leads and successfully converting them into valuable inward investments requires a consistent approach. Crossover, duplication and different assessment frameworks must be avoided. To achieve this:
All enquiries must be assessed against the Inward Investment Framework;
Locate Jersey must coordinate all inward investment activity;
Locate Jersey provides all on-going client aftercare to achieve wider economic and social benefit;
Monitor and evaluate Action Plan, proposition, products and services on an annual basis.
Priority 4 Ensure regulation does not unduly impede businesses
A degree of regulation is required to ensure that markets function efficiently and to protect workers and consumers. As society develops, there may be increasing demands to develop additional regulations for further protection, which could lead to growing pressure over time for greater and additional regulation in order to provide this protection.
The World Bank's Doing Business 2013 lists a number of findings which have been based on the data collected by it over the last ten years:
Smarter business regulation promotes economic growth;
Simpler business registration promotes greater entrepreneurship and firm productivity;
Lower costs for business registration improve formal employment opportunities;
An effective regulatory environment improves trade performance;
Sound financial market infrastructure including courts, creditor and insolvency laws, and credit and collateral registries improves access to credit.
Overall success for this priority would be to have a better understanding of the impact that local regulations have on local organisations
Action 22: Existing Regulation
Undertake research to ascertain the areas of regulation, and specific regulations, which businesses see as a barrier to enterprise
Delivery Lead: Social Security/Employment Forum/EDD
Aim: Make an assessment of the current regulatory requirements and how these may impact on business growth.
Success Measures: Government will produce a report by December 2014, including:
A detailed understanding of which regulations are seen as a barrier to enterprise.
An assessment of the costs and benefits of those regulations which are perceived as a barrier to enterprise.
Rationale: There is no clear evidence to date of which area of regulation is particularly seen as a barrier to enterprise for businesses in Jersey. Further, there is a requirement to assess how much of a cost these regulations impose on companies (in terms of both monetary and time) and weigh these against the benefits of each regulation.
Action 23: Future Regulation
Ensure that the costs and benefits of any proposed regulations are weighed up and that businesses have had an opportunity to consider any new regulations before they are introduced Delivery Lead: Social Security/Employment Forum/EDD
Aim: Ensure that due consideration is given to the potential impact of any future regulation.
Success Measures:
A detailed understanding of how any proposed regulations may impact on the business community, before any changes are implemented
Businesses provided with the opportunity review and consider any new business regulations before they are introduced.
Rationale: Where new regulation is considered necessary, the costs and benefits to all sections of society should be carefully understood to ensure that regulations do not have undesirable net impacts.
Appendix 1 Strategic Alignment
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Appendix 2: Enterprise Action Plan Progress Update (Feb 2014). |
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PRIORITIES | STRATEGY ACTIONS | Lead | DELIVERY TARGET Year 1 | Period Ending Dec 2013 -Progress against target. | Jan 2014 Progress against targets |
| 1. Assist businesses to increase productivity through improvements in resource or energy efficiency | JB | 25 face to face meetings; 5 companies assisted | Nil Return | Nil Return |
| 2. Encourage firms to improve productivity through adoption of best practice in business management | JB/DJ | 700 face to face meetings; 100 companies assisted and reporting productivity improvements | 1286 Client meetings and 814 General Enquiries in 2013 | N/A |
| 3. Support firms to maximise productivity by ensuring appropriate skills are available | SJ/JB/DJ | 60 face to face meetings to discuss 'Skills Accelerator', 25 investments made | 43 Meetings, 31 Grants Approved | 54 Applications, 32 grants awarded (21/2/14) |
| 4. Provide advice to businesses in the use and productivity benefits of ICT | JB/DJ | 50 face to face meetings; 5 companies assisted; 3 high value jobs created | Included in total highlighted above | N/A |
5. Undertake research to identify the issues faced by established companies and potential start-ups seeking finance. | EDD | Stakeholder meetings complete, report published Qtr. 1 | Research commenced | Research ongoing - outcome now likely Q2 2014 | |
6. Provide advice and guidance to firms seeking finance to improve productivity | JB/DJ | 70 face to face meetings; 25 companies assisted to access finance | Included in total highlighted above | N/A | |
7. Engage with firms to identify any productivity barriers assist them in overcoming them. | JB/DJ/JIF | 30 face to face meetings, 8 firms reporting productivity gains | Included in total highlighted above | N/A | |
| 8. Further research to identify issues faced by high growth firms seeking growth finance | EDD | Report on research completed and published Qtr. 2 2014 |
| Project not yet started - part of Competitiveness/Incentives Project |
| 9. Provide finance advice/guidance to high growth firms in high value activity | JB/DJ | 25 face to face meetings; 12 companies assisted to access finance; 30 high value jobs created. | Included in total highlighted above | N/A |
10. Leadership/management skills included in the Skills Strategy | SJB | Skills Strategy published | Consultants selected and Questionaire designed well advanced | Survey work about to commence - Pilot underway Feb. with roll-out of main Survey work March 2014 | |
11. Emphasise the importance of management skills in growing a business and signpost to appropriate sources of support | JB/DJ | 15 face to face meeting, 3 firms supported | Included in total highlighted above | N/A | |
12 Engage with stakeholders and training providers to ensure training provision addresses leadership skills gaps | EDD/SJB | 10 face to face meetings, 3 training providers developing leadership training |
| N/A | |
13. Use the innovation Fund to support a range of activity to improve the level of innovation in Jersey | EDD | 5 JIF companies assisted; 30 jobs created | 14 applications received, 4 progressing to next phase of assessment. No jobs created yet | 1 application received in 2014 |
Appendix 2: Enterprise Action Plan Progress Update (Feb 2014). |
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PRIORITIES | STRATEGY ACTIONS |
| DELIVERY TARGET Year 1 |
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| 14. Identify further any barriers to innovation and assist businesses to overcome them | JB/DJ | 20 face to face meetings, 3 firms supported, 50 jobs created | Included in total highlighted above | N/A |
15. Communicate the benefits of skills development and give advice on way to train staff | JB/DJ | 15 face to face meetings; 10 companies assisted | Included in total highlighted above | N/A | |
| 16. Identify skills gaps which impede high growth firms in Jersey | SJB | Report published in qtr. 2 |
| Project not yet started - part of Competitiveness/Incentives Project |
17. Undertake research to assess the entrepreneurial attitude, activity and aspirations of individuals in Jersey | EDD | Report published in qtr. 2 | Scheduled for qtr. 2 2014 | Report Scheduled for qtr. 2 2014 | |
18. Manage and support trade delegation events to support the development and growth of businesses in high value sectors | LJ/DJ | 10 companies supported, 20 new jobs created | 22 Companies Assisted at 4 Events | 6 Companies Assisted at 1 Event | |
| 19. Review and update the Jersey Proposition to reflect the new policies/priorities | LJ | New proposition being developed Qtr. 1 | N/A | Research underway, new delivery target Q2 2014 |
| 20. Target high value businesses and high net worth individuals with the Jersey Proposition | LJ | 100 face to face meetings | 14 Approvals,12 Arrivals, 111 pipeline cases with 10 'Probables' for 2014 | 3 Approvals to date (Feb 2014) |
21. Provide support for inward investors to relocate, plus on-going programme of aftercare | LJ | 40 projects supported, 150 High Value jobs created on 75/25 ratio (LQ:NLQ) | 158 Enquiries, 28 Licences approved creating 245 Job Opportunities, 96% (236) for LQ's | 40 Enquiries, 7 Licences approved creating 16 Job Opportunities, 99% (15) for LQ's (NB: 55 jobs also created by Sports Direct not included) | |
| 22. Undertake research to ascertain the area of regulation and specific regulations which businesses see as a barrier to enterprise | EDD | Research published in QTR 2 | Project not yet started | Project not yet started - part of Competitiveness/Incentives Project |
23. Ensure regulation is introduced only after the costs and benefits of any proposed regulations are weighed up and the business sector has an opportunity to input in the design of regulations | EDD | EDD consults with key stakeholders on proposed new regulations | Project not yet started | Project not yet started |
Appendix 3: Digital Jersey and Jersey Business Limited Business Plans 2014
Business Plan 2014
Submission to States of Jersey, Economic Development Department for grant funding in 2014.
(This document draws upon the content of Delivering a Digital Jersey', published in October 2014)
5 November 2014
- Purpose
The purpose of Digital Jersey is to act as an accelerator for the digital economy and as an accelerator for a digitally enabled and connected society.
The digital economy' includes both the digital sector itself and the application of technology across all sectors. Digital Jersey coordinates strategies and activities that enable:
- Jersey to develop and attract digital businesses
- The digital sector to create sustainable employment
- Digital businesses to make substantial contributions to the island's Economic Growth and Diversification Strategy
- A connected digital society
Digitally
- Objectives enabled society
Digital Jersey has three primary objectives:
- To support sustainable economic growth in Jersey's
digital industry, as measured by sector contribution to Digital Jersey
GVA, job creation and the number and health' of digital as an
businesses. accelerator
Jersey's
digital The digital
- To enable a connected, digital society and enhanced sector economy quality of life in Jersey, as measured by an increased
provision of online services by government, changes in
the education curriculum, improved skills and awareness
in the general population, and the development of essential digital' infrastructure.
- To establish Jersey as an internationally well-regarded digital centre', as measured by ranking in key indices, recognition in target media and online statistics, the results of industry surveys, and sector-specific inward investment.
Digital Jersey's primary objectives translate into the following SMART targets:
- By 2020, the digital economy will have grown by a factor of five from its 2013 level
- By 2020, employment in the digital sector will be increased by 2,200 – four times higher than its 2011 level of 560
- By 2016, there will be 400 new jobs in the digital sector in the island
- By 2018, there will be five times more Jersey students finding work in Jersey's digital sector than in 2013
- Jersey will have a reputation as a preferred jurisdiction for investment target sectors, including e-health, e-government, data ownership, and other strategic areas
- By 2017, Jersey residents will use innovative services that will enhance their well-being, delivered over an e- government platform that gives equal access to all
Alignment with States of Jersey Priorities
These objectives flow into the four priorities established by the States of Jersey's Enterprise Strategy:
- Improving the productivity of business in Jersey and reducing the dependence on inward migration.
- Support for high-growth firms in high-value activity.
- Attracting inward investment in high-value-added activities.
- Ensuring that regulation does not impede business.
- Challenges
To succeed in this endeavour, Jersey faces serious challenges including the island's late commitment to a digital strategy, major competition from other jurisdictions and the significant incentives provided elsewhere, the lack of critical skills available in Jersey, and long-term challenges in IT education, not least the lack of a university. Low levels of local innovation and a small, though excellent, IT sector focused on services rather than IP creation are also factors. Fewer than 600 people work in the independent IT sector, with the majority of these delivering services to the financial and public sectors. Furthermore, there is little track record for tech start-ups, diversification or collaboration. Finally, the high cost of data connectivity is perceived to be a major obstacle to growth.
- Critical Dependencies
Delivering Jersey's bold but achievable targets requires the following critical dependencies to be in place:
- No barriers to inward migration of essential skills and talent. Development of on-island skills is a key priority but will take time to gain momentum. In the early years of the plan, these skills will need to be imported
- An education programme that accelerates employment of students and re-skilling of employees towards the digital sector
- The communications environment must be exceptional in terms of service reach, domestic and business capability and competitive data pricing
- A compelling inward investment proposition for digital companies is financed by the States of Jersey
- A funding regime that encourages investment in the digital sector
- The effective development of an e-government platform that delivers improved services to citizens and facilitates the development of new services and business opportunities
We are working through our Technical Action Groups and with specific measures to address these dependencies. The critical dependencies will determine how quickly employment and then economic returns will flow from activities and processes to stimulate growth.
- The growth of economic activity will be led by employment
As Jersey must engage in diversified business and encourage new enterprise to grow, the sector needs to embark on new endeavour. To do this, there are four sources of skills:
- The independent developer community: numbering around 50, these have a higher than average overseas business and generally have greater agility than companies
- Students of ICT-related subjects: approximately 25 per annum come into employment or job seeking from Highlands College, whilst around 15 per annum return to Jersey within 10 years of graduating in the UK
- Imported, licenced professionals: the fastest way to establish new competencies in the island and essential for the target of five times growth in seven years. The import of new talent is a proven accelerator to growth in the digital sector across all successful instances.
- Diversification by existing businesses and re-skilling of workers for digital endeavour: in general, existing ICT businesses have focused on the domestic market with marginally differentiated products and have not demonstrated an appetite for diversification
To meet the employment demands implicit by the factor five' economic growth target, we note that:
- Early activity increase in the sector will come primarily from imported talent
- Students effectively make continuing education choices at an early stage and so any strategy, policy or incentive applied now will still see a delay before significant changes can be effected amongst school leavers - although the Digital Learning Hub (DLH) could accelerate digital sector employment amongst those choosing not to go to university
Hence, in the initial stages of growth, the prime source will come from imported skills and the secondary source the migration of locally employed people to the digital sector, then school leavers and graduates. Enacting an achievable growth in these employment sources would give 2,200 new jobs by 2020.
- Key programmes and near-term deliverables
The primary objectives will be met against these challenging and prevailing conditions through programmes and projects that set out to build capacity and enhance capability, with Digital Jersey acting as an accelerator for the digital economy, Jersey's digital sector and our digitally enabled society.
Outcomes will include:
- A Jersey Tech Growth Fund, providing small/mid-cap and up to growth equity investments from the island, managed by the private sector
- An education programme that complements the schools and Highlands College's provision of services and includes a Digital Learning Hub, a five-year Space Programme and a Making programme (including 3D printing). The Digital Learning Hub will help students, school-leavers and others to acquire the skills and knowledge needed by Jersey's growing digital sector, directly contributing to the drive to reduce dependency on inward licences. Local businesses will support the Hub with course material, projects and mentors.
- Competitive propositions that support Jersey's strengths in areas of high opportunity and provide a focus for investment, pre-competitive collaboration, events, seminars and training
- Targeting the creative sector to create and deliver more digital content from the island, through seminars, training and outbound missions
It should be noted that Digital Jersey will seek to identify stronger social objectives, along with appropriate KPIs, in the fourth quarter of 2013. These will lead to amendments of the plan but are not expected to require additional budget.
The following tables connect the economic objectives to Digital Jersey's activities and the funding requested to deliver to target.
TABLE 1 outlines the near term economic objectives and activities proposed to deliver them.
TABLE 2 is the requested budget for 2014, totalling £916,000, with links against the budget lines back to activities
TABLE 3 is a budget capped to £750,000, with indications of where the reduced budget may impact upon delivery of the plan in terms of heightened risk or delayed activities.
Reporting
Starting in the fourth quarter of 2013, Digital Jersey will submit financial reports to EDD quarterly in the form of YTD accumulated spend, forecast expenditure and budget variance against targets, in a format compliant with States of Jersey financial reporting which will be jointly agreed in November 2013.
Digital Jersey will establish an impact evaluation framework, along UK Treasury Green Book guidelines, in order to measure the impact resulting from the activities deployed to reach these targets, their outputs and outcomes.
Table 1: 2014-2016 economic objectives and supporting activities
| Near-term economic objectives (indexed) T1: New employment in the digital sector | Targets/KPIs | Enabling activities/dependencies & 2014 timescales | ||
2014 | 2015 | 2016 | |||
Businessemples & oymen | 65 | 115 | 220 |
| |
T2: New companies created in Jersey | 6 | 8 | 12 | ||
T3: Inward investments – new companies | 8 | 10 | 14 | ||
| Selected near-term activities to deliver objectives | All activities dependent on TAGs & TAG support | |||
Business stimul | T4: Outbound missions – companies attending | 15 | 20 | 25 |
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T5: Growth incentive package and FDI proposition | Agreed Q1 | operational | operational | Jointly with EDD/Locate Jersey | |
T6: Formation of Jersey Tech Growth Fund | Q4 | operational | operational | Initiated by DJ but to be independently managed | |
T7: Funding applications – Innovation Fund and other | 8 | 12 | 20 | Commencing 2014 Q1, linear through year | |
T8: Initiate target sector development | E-health, social gaming | R&K TAG to advise | R&K TAG to advise |
| |
T9: Formation of Channel Island Information Security Forum |
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| Initiated 2013Q4, operational 2014Q1 | |
T10: Major technology conference hosted in Jersey a |
| Two | Three | 2014Q2 | |
T11: Monthly tech seminars to extend the reach of the sector |
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| Monthly | |
T12: Cisco National Virtual Incubator hub in Jersey |
| Yes/pending |
| Discussion in early stage, target is 2015 | |
Education and s | T13: Digital Learning Hub operational and working with students and school leavers | 40 students | 70 students | 120 students | Operation Plan complete 2013Q4, commences 2014Q1, first employments 2014Q4 |
T14: Co-working space for start-up companies | Co-located with DLH |
|
| Operation plan complete 2013Q4, commences 2014Q1 | |
T15: Jersey Space Programme | Launch | In curriculum |
| Individual school projects from 2014Q2 | |
k T16: "Making" & 3D printing programme in schools |
|
|
| Grainville in Q1, extending to others Q4 | |
T17: Apple iTunes store in Jersey |
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| Dependent on Apple. Imminent. | |
| T18: Establish baseline data for economic activity of the sector | Publish | Use | Use | Q1/Dependent on SoJ stats/EDD |
T19: Create impact evaluation framework (GVA & social impact) | Outlining performanceagai nst T1-T3 | Outlining performanceagain st T1-T3 | T1-T3, GVA, social | Enables measurement of GVA impact from 2015 |
- Table 2: Budget request
The following table outlines a budget to fully support activities proposed to deliver the near term objectives of Digital Jersey Ltd. References to Table 1 targets and activities are noted against budget lines.
Staff costs | Notes (with corresponding target references) | ||
Salary excluding pension, soc sec | £'000 | Staffing costs include 6% (soc sec) + 10% (pension). Assuming 2% uplift p.a. | |
Chief Executive Officer |
|
| Includes pension allowance, performance bonus. Responsible for all targets. |
Company Secretary/FC (0.8FTE) |
|
| To take on additional roles: comms & research (T4-T16) |
TAG coordinator/researcher | |||
TAG coordinator/project manager | To take on additional roles: comms & project management (T4-T16) | ||
Events coordinators & comms |
|
| To take on additional roles: events & comms (T4-T16) |
Administration assistant/receptionist | Required for reception & Digital Learning Hub (T13, T14) | ||
Staff total | 292 |
| |
Non-Staff costs | 2013 | £'000 | 2013 figures shown for comparison |
Board costs - stipend and extra days | 130 | 150 | Board totals allow for a modest increase for additional engagement with programmes in 2014 |
Board expenses | 25 | 27 | Board expenses are increased to account for increased activity |
Capital exp (IT/comms equipment) | 15 | 20 | Accounts for equipping new office space with telecoms and display equipment (T13, T14) |
External services – PR & comms | 24 | 24 | Maintains the same level of service as 2013 but the total comms capacity is increased with the TAG coordinator(s) (supporting T4-T17) |
External services – project management | 79 | 90 | Consultancy services including part-time project management for digital learning hub and space programme, expert services for regulation & legislation (T13, T15, T16) |
External services – IT support & website | 46 | 28 | Consultancy services for IT support to the Executive and for extension of website services |
TAG research budget | 60 | 40 | To support two major external technology & market studies (T8, also guiding T10, T11) |
Event support | 16 | 86 | Represents supporting two major events, two smaller events and monthly seminars (T4, T10, T11) |
Marketing (incl. materials) | 17 | 28 | Allowing for advertorials and additional display material and activities supporting awareness for DJ/Jersey |
Training for Executive staff | - | 5 | Includes health & safety, social media, software training |
Travel expenses for Executive & TAGS | 20 | 25 | Expenses relating to overseas travel for DJL activities and events (supporting T3, T4, T10, T12 and TAG operation) |
Hospitality/entertainment | - | 5 | Entertainment not related to specific DJL events |
Office accommodation | 16 | 80 | Planned to accommodate Digital Learning Hub and co- working space |
Office costs | 12 | 12 | Service charges, printing, stationery |
Audit costs | 3 | 5 | |
NON-STAFF TOTAL | 463 | 625 | |
GRAND TOTAL | 917 |
|
2014 Jersey Business Limited Business Plan Jersey
Business Limited
Business Plan 2014
November 2013
SECTION 1
- What we do
- Foreword from Chairman 2
- Vision 3
- Overarching aim 3
- Strategic objectives 3
- Core values 4
SECTION 2
- How we do it
- Executive Summary 5
- Alignment of Strategies to Objectives 9
SECTION 3
- Resources
- Meet the Board 10
- The Team 13
- Income & Expenditure Account 2012 - 14 14
- Balance Sheet and Cash Flow 2012 - 14 15
SECTION 4
- Appendix
- Overview of Products & Services 16
- Key Performance Indicators 17
- FOREWORD FROM CHAIRMAN
On behalf of my fellow board members, our staff and our stakeholders I am very pleased to present our Business Plan for 2014.
Our Plan is a subset of the three year Business Plan for 2013-2015 that we put forward last year. We have set out in further detail our aims and objectives, our strategy and how we plan to proceed in the coming year. Our clear goal remains to support the creation and development of enterprise for the benefit of Jersey.
You will see that we continue to closely align our strategic objectives with the objectives of the States of Jersey. There are significant challenges ahead of us to meet our objectives including enhancing our advisory services, increasing our programme of grants and commencing our selective funding for sustainable businesses in cooperation with other financing partners. We will expand our communication and education programmes for businesses. We will continue to recognise and celebrate the achievements of successful local businesses through the renamed Awards for Enterprise which will be held again in June next year. Our Plan summarises our target outputs for the year for our main activities.
Our funding for 2014 will be supported by a continuing grant from the Economic Development Department. The financial accounts in our Plan set out our budget for income and expenditure for the forthcoming year in detail.
Our organisation is ably directed by Andy Cook, our Chief Executive. In addition to Andy we now have a staff of five including four highly experienced business advisors who have been in place since May/June of this year. We completed outfitting our offices and facilities at 31 The Parade earlier this year.
In short we have the resources in place to successfully advance our Business Plan. On behalf of my fellow Board members and staff, I say with confidence that we are looking forward to 2014 and the further development of our young company.
Peter Funk Chairman
- VISION
The vision of Jersey Business Limited is:
A Jersey economy that is vibrant, diverse and sustainable.
- OVERARCHING AIM
The overarching aim of Jersey Business Limited is:
To support the creation and development of enterprise for the social and economic benefit of Jersey.
- STRATEGIC OBJECTIVES
The strategic direction of Jersey Business Limited will be aligned to:
- The States of Jersey Strategic Plan
- The States of Jersey Economic Growth and Diversification Strategy
- The draft Enterprise Action Plan 2013
To deliver JBL's overarching aim, its strategic objectives are to:
- Provide pre-start advice and support to those considering an enterprise.
In part, this advice will inform the decision of entrepreneurs as to whether they are ready to commence an undertaking. For those who are ready, JBL will act as a guide, or if needed, facilitate a mentoring system, in order to give its clients the best possible chance of success.
- Aid the development of existing businesses.
JBL will offer respected expertise, support and advice to assist trading entities in making, and then implementing, the necessary decisions to sustain or grow their businesses.
- Support the removal of barriers to the development of economic activity.
Provide a mechanism for the identification of issues that hinder or restrict the development of economic activity in Jersey and to communicate, with recommendations, such issues to the States of Jersey and/or other relevant bodies.
- Stimulate and support the availability of funding for sustainable business activity.
JBL will do all it can to directly stimulate new funding sources for businesses; that will include determining a suitable vehicle from which to provide funding itself.
- Promote the role of business in the Jersey economy and society overall.
This goes deeper than simply championing business success, either in terms of performance or community work. As well as doing that, JBL will act as an ambassador for the importance of business to our society, such as helping to promote entrepreneurialism in schools.
- CORE VALUES
Jersey Business Limited embraces the following values to guide its decisions and behaviors:
- Integrity
We employ the highest ethical standards, demonstrating honesty and fairness in every action that we take. We are organized and operate as a centre of excellence.
- Accountability
We accept our individual and collective responsibilities and we meet our commitments. We take responsibility for our performance in all of our decisions and actions.
- Teamwork
We promote and support a diverse, yet unified, team both within Jersey Business Limited and with our partners. We work together to meet our common goals.
- Respect
We honor the rights and beliefs of all our colleagues, our clients, our stakeholders and our community. We treat others with the highest degree of dignity, equality and trust.
- Innovation
We are creative in delivering value. We anticipate change and capitalize on opportunities that arise.
2.1 EXECUTIVE SUMMARY
Introduction
At the end of 2012 Jersey Business set out its three year plan to support the development of enterprise in Jersey. This included a clear statement of its Aims and Objectives and the key strategies that we would follow to deliver our Objectives.
In recent months, the Economic Development Department, (EDD), has issued a final draft of the Enterprise Action Plan 2013; which includes specific objectives to be achieved by Jersey Business and other support agencies. Having fully considered the requirements contained in the Enterprise Strategy 2013 our Aims, Objectives and Strategies remain as previously stated and are set out herein together with our budget proposal for 2014. However, we have reviewed and extended our approach to key performance indicators, (KPI's), in order to ensure that we clearly demonstrate the benefits and progress that Jersey Business delivers and our alignment with the draft Enterprise Action Plan 2013.
First year of trading
Since Jersey Business first opened its doors in June 2012 it has delivered advisory and support services to the business community in Jersey. At its commencement primary users of its services were start up and micro businesses. During 2013 we set out the foundations from which to continue to evolve Jersey Business's service provision to achieve increased, focussed support, both to start up and established organisations to encourage the development of enterprise to the benefit of the Jersey economy. During 2013 there has been a notable change in the type and size of organisation that Jersey Business engages with, with increased use from established businesses looking to develop and grow.
During its first 12 months of trading Jersey Business conducted nearly 1,000 client meetings in addition to dealing with more than 940 enquires by telephone and email as set-out below.
1 June 2012 to 31 May 2013 | |
Phone enquiries | 397 |
Email enquiries | 549 |
Drop in clients | 351 |
Pre booked meetings | 633 |
We are in the process of developing our database resource which will considerably improve our activity reporting to include case load by Sector, Product and Services rendered.
Jersey Business launched its services from premises in Gloucester Street taking over a lease from its predecessor, Jersey Business Venture. Whilst this was an extremely useful start, more suitable premises were required to satisfy the ongoing service and from the commencement of 2013, following a refurbishment program, Jersey Business has operated from its premises at 31 The Parade, St Helier. These premises are ideally located and offer excellent facilities for both client and staff alike. We have also been able to accommodate Digital Jersey as a co-tenant in its first year of establishment and, although it is likely that they will outgrow the space available to them, it has been beneficial for both organisations, and our mutual clients, to have shared our infancy.
Jersey Business Advisors
At the commencement of 2013 Jersey Business recruited a permanent team of advisers. Essential in our deliberations was to engage a team with a wide range of commercial experience who could satisfy the diverse demands that the organisation faces on a daily basis; add real value to client enquires that actually makes a difference; and to support the demand for Jersey Business's services by presenting a credible and trustworthy face to the service. I am delighted and very proud of the team at Jersey Business – Nick Steel; Alexia McClure; Daniel Ireland; June Stead and Wini Rice, who thoroughly satisfy my aspirations for a team of professional advisers and have, since their commencement in May 2013, clearly demonstrated the value that they can add to clients. Wini Rice will be leaving Jersey Business at the end of November 2013 and Rosie Lempriere will join the team.
Awards for Enterprise
In addition to business advisory and support services, Jersey Business managed the delivery of the Jersey Enterprise Awards. The Awards celebrate the success, hard work and enthusiasm of the Jersey business community and have evolved into the premier business event in the Jersey calendar. The Awards were launched in January 2013 and for the first time entries were made online attracting a record number of submissions. Entries to each Award were evaluated through a rigorous and transparent process which culminated in a gala presentation evening at Fort Regent in June. The event was a clear success and most importantly, upheld the high standards achieved in previous years. Jersey Business is pleased to continue to host the Awards in 2014 which will be rebranded the "Awards for Enterprise".
Products and Services
On the 30th July 2013 the Board of Jersey Business approved the framework for the ongoing delivery of Products and Services, as set out in Appendix A, and the process by which we will measure the value added to client activities. Clients are associated with a Program that allows Jersey Business to provide focused support to meet their needs at the various stages of the business life cycle. These are Pre-start, Start up, Improve, Grow and Exit. In addition we recognise that some clients are not seeking to develop an ongoing relationship but require a one-off response to a specific issue.
We also recognise that there are many factors that collectively lead to organisational success – some of which we can influence more than others. Accordingly, our strategy is to support the overall development of an organisation so that it is as well placed as it can be to achieve its goals.
To this end we have established a Business Health Check, based on the framework of a Balanced Scorecard, which considers the four key areas of Strategy, Finance, Operations and Customers. By evaluating each of these areas, relevant to the size and aspirations of the client, we can establish a SWOT analysis (Strength, Weaknesses, Opportunities and Threats) and a detailed Action/Development Plan that is unique to each client.
Typically, when we first meet a client the Business Health Check produces an "S" shaped set of results, indicating that a business is stronger in some areas that others. Furthermore, the initial Business Health Check average score is typically in the first or second percentage quartile. Our target is that within 12 months of working with a client we expect, subject to the client's engagement, that the Business Health Check would produce a score in the top (4th) quartile. By focussing on the specific and unique needs of each client, we can deliver Products and Services where they are most likely to achieve the greatest added value whilst creating an audit trail' of our actions.
From January 2014 we will commence a program of monthly seminars/workshops aimed at addressing typical issues that many businesses face including, "Engaging On-line"; "Raising Finance" and "Customer Service: what is it that makes the difference?" and "Improve your selling skills". These workshops are aimed at delivering support to an extended audience over and above those who already engage with Jersey Business and thus provide an additional source of client recruitment.
Mentoring
We will also launch a "Mentoring Program" bringing together the wealth of business skills and knowledge in Jersey and matching individuals mentors with specific businesses. Jersey Business will provide a training program for mentors, the framework from which to manage the program, and the identification of clients. We will seek to work in collaboration with other organisations such as the Chamber of Commerce and the Institute of Directors who both, as well as other organisations, have access to a wide range of potential mentors.
Investment Fund
Jersey Business will establish a modest investment fund to support its objective to ease access to finance. The fund will consider applications and, where appropriate, seek to invest a small proportion, for example 10% of the overall funding requirement, using this as a base to leverage the balance from alternative sources. The attraction of this, to additional investors, will be the support provided with planning and the development of a robust proposal, and the commitment that goes with the funding by Jersey Business to provide ongoing support to the client company through a program of management
support including intensive support for the first 100 Days; the provision of a matched mentor; business monitoring and reporting; and increased access to Jersey Business's Products and Services.
Branding and Communications
During the second half of 2013 we have engaged a marketing partner and carried out a review of our branding, online support services, and our communications plan for 2014. Modest changes to our branding will be introduced before the year end, together with a substantial revamp of the Jersey Business website. These changes will support our offer of straight talking business support and set it out in a clear and uncluttered way. Greater use of video content will provide a route to deliver short messages in a clear and engaging manner. All online content for the Awards for Enterprise will be accessed from the Jersey Business website.
Key Performance Indicators (KPI's)
Our key strategies are set out on page 9. Whilst our Business Plan for 2013 sets out the numerous actions required to establish the building blocks for the delivery of these strategies, our KPI's going forward will focus on client outcomes and benefit. The principal outcome set out in the draft Enterprise Action Plan 2013 is the creation of High Value Jobs, acting as an indicator of a vibrant economy. The KPI's established for Jersey Business and set out in Appendix B, set out progressive targets for recognised activities that, collectively, will deliver high value job creation.
We will also seek feedback from our clients in respect of how they perceive the services provided and most importantly, whether it added value to them and their commercial activity. We will also take the opportunity to seek client direction as to how to improve our services.
Sector Support
In addition to client specific support services, Jersey Business actively seeks to support industry sectors where it has the potential to add value by the coordination or facilitation of resources, undertaking of specific reviews, or by actively promoting specific outcomes. This support will continue in 2014.
During 2013 Jersey Business supported EDD with the delivery of Global Entrepreneurship Week. In 2014 Jersey Business will take over responsibility for this important opportunity to engage and stimulate the entrepreneurial spirit within Jersey's student population.
Finance & Budget
At the end of 2013 Jersey Business expects to have a financial surplus of £54,000. The final audited surplus will be returned to EDD by way of deduction from 2014 funding.
The financial resources required for 2014 are set out in the Income & Expenditure account and the Balance Sheet and Cash Flow Statements set out on pages 14 & 15. Total cash resources including initial funding of the Investment Fund is £790,000 an increase over 2013 of £160,000. Key changes in expenditure are a £117,000 increase in Staff costs to account for a full year's resources, (in 2013 the full team costs only applied from May 2013); a decrease in Operating Costs of £(26,000) and an increase in funding for direct investment with clients of £54,000 for Support Programs and £100,000 in respect of the Investment Fund.
Andy Cook, MIoD, CMgr FCMI, ACIS, FInstLM Chief Executive Officer
Jersey Business Limited
Objective (A) | Objective (B) | Objective (C) | Objective (D) | Objective (E) | |||||||
Overarching Aim: To support the creation and development of enterprise for the social and economic benefit of Jersey | Provide pre-start advice and support to those considering an enterprise. | Aid the development of existing businesses. | Support the removal of barriers to the development of economic activity. | Stimulate and support the availability of funding for sustainable business activity. | Promote the role of business in the Jersey economy and society overall. | ||||||
Strategies | |||||||||||
1 | Ensure that JBL has the capability and credibility to deliver its overarching aim. | ||||||||||
2 | Create an advisory service, both physical and on-line, that adds value to would be business owners and existing businesses of all size and sector. | ||||||||||
3 | Support the recognition of emerging themes and/or barriers to enterprise and promote solutions. | ||||||||||
4 | Consider and make recommendations on the various forms of supporting the financial needs of business, e.g. grants, loans, and capital. |
| |||||||||
5 | Develop and launch a high-profile programme that appropriately recognises the successes of Jersey businesses and the wider community. | ||||||||||
6 | Support and encourage an entrepreneurial culture and the development of skills to underpin successful enterprise. | ||||||||||
7 | Develop specific support for unemployed persons to explore the potential of self- employment. | ||||||||||
8 | Provide support to failing enterprises to minimise economic disruption. | ||||||||||
Business Plan 2014 Page 9
SECTION 3 – RESOURCES
3.1 MEET THE BOARD
Peter Funk Chairman
Peter Funk is a lifelong entrepreneur with extensive experience in starting and developing new business enterprises in the international telecoms and media markets. He has held geographically diverse executive roles including: Managing Director of International Video Systems Ltd – a provider of film and TV programme services to ships, oil rigs and offshore platforms; Chairman and Joint Managing Director of United Video International NV – a supplier of entertainment programme services for cable and closed circuit television systems; and Chairman of IVS Cable Holdings Ltd and subsidiaries – one of the first entrants in the cable telecommunications market in the United Kingdom.
Peter was also the Founder and Chairman of Jersey & Guernsey Public Telecommunications Operator Newtel Holdings Ltd and its subsidiaries. He is currently a Director of a range of companies with diverse interests including radio and property. In addition to his commercial interests, Peter is active in a number of local non-profit organisations. He is a Trustee of Jersey Heritage, Chairman of the Jersey Convention Bureau and Chairman of the Tourism Development Fund. An American by birth, Peter has been resident in Jersey since 1983.
Julian Box Director
Julian has over 25 years' experience helping organisations streamline operations through the innovative application of computer technology. Founder and Managing Director of Virtualize IT Limited, since the company's inception in 1995 it has won numerous UK and EMEA industry awards in recognition of its ability to deliver specialised consultancy services using complex virtualisation technology.
In 2008, Julian co-founded Virtustream Inc., a venture capital-backed Enterprise Cloud Service Provider, which raised over $59m in funding
from several US-based venture capital institutes, including Intel Capital. Julian currently applies his unique expertise to his fourth
business, Calligo Limited, and has been widely credited for bringing virtualisation and cloud- computing technologies to the Channel Islands.
Andy Cook Chief Executive Officer
Andy started his career in the construction industry where he gained his first directorship before establishing his own company. He retrained with
accountants Ernst & Young before moving into the Trust sector. In 1994 he was appointed Executive Director of Jersey Business's predecessor Jersey Business Venture and developed the entity into Jersey's first
One-Stop-Shop for business support. In 1996 he joined Le Riche Group, later to become C I Traders Ltd, a conglomerate quoted on the London Stock Exchange as a Senior Executive and Managing Director of seven Group companies operating in the Retail, Manufacturing, Publishing, Technology and Finance sectors as well as serving on the Risk Management and Pensions Boards. In 2008 he became Finance Director of Jersey's largest charity Family Nursing & Health Care working in the Care Sector,
delivering a substantial turnaround in the organisations financial position.
Business Plan 2014 Page 10
He has served on a number of Boards/Committees of not-for-profit organisations including the Tourism Development Fund, former State's Audit Panels and Treasurer of St Helier Yacht Club. He is currently a Governor of Highlands College. In 2000 he achieved the highest qualification of the Institute of Directors - the Diploma in Company Direction, and is a Chartered Manager and a Chartered Secretary as well as a Fellow of the Institute of Leadership and Management. He is an Affiliate of the Chartered Institute of Marketing and is currently undertaking a Master's degree in Strategic Marketing.
James Filleul Director
Having become a senior journalist, overall news editor then producer/presenter on BBC TV, James Filleul departed the Beeb in 2002 to set up the Channel Islands' first PR & Media Training agency, Direct Input (DI), which has subsequently earned a reputation for providing insightful advice to clients within a variety of sectors.
James later co-founded and became the Communications Director of a virtual airline' called Manx2.com and is now the President of The Jersey Chamber of Commerce. In 2011, James set up a new publishing company, Bailiwick Publishing, which produces a monthly business magazine called Connect, and from January 2014, a daily
digital newspaper for Jersey called Bailiwick Express.
Eliot Lincoln Director
Eliot is Managing Director of Jersey's premier change management consultancy, Greenlight, which helps senior managers and boards of directors to draw the best from their resources, set strategic direction, and plan and execute change within diverse organisations.
Eliot has built the organisation from scratch into a profitable and successful Professional Services firm. The clear market-leader in change management services in the Channel Islands, his work at Greenlight has repeatedly demonstrated an ability to deliver value and investment returns to shareholders. Eliot has a proven track
record of leading teams within organisational change programmes, understanding stakeholder needs and the required outcomes for worthwhile organisational change.
Eliot was the winner of the Institute of Director's 2012 Jersey Director of the Year for a Medium Sized Business and the 2012 UK National Young Director of the Year award.
Matthew Robins Director
Matthew Robins is Chief Executive of Webreality, a digital marketing and software development agency with over 150 clients located in Jersey, Guernsey and the UK. He is also a non-executive director on the board of Liquid, a PR agency based in the UK with offices in the Channel Islands.
A governor of Victoria College, Matthew also serves as non-executive director on the general partner boards of two funds promoted by Northzone, the Stockholm-based technology investors.
Bill Sarre Director
Bill Sarre, Chartered Surveyor, is a Director of the Jersey office of CBRE Jersey, International Property Consultants, having previously practiced in London and Sydney. In addition, Bill has a direct link with the finance industry through his role as Non Exec Director of several locally domiciled Property funds and is a member of Jersey Association of Directors and Officers (JADO).
For 12 years, Bill was involved with the Jersey Business Venture, the forerunner of Jersey Business, as a board member, Vice Chair and Chairman, with particular focus on small/start-up businesses. He remains active in the Channel Island commercial property market,
covering all property types and with clients ranging from local business to International entities.
Andrew Sugden Director
Andrew Sugden has over 20 years' experience operating at Director- level with economic development, inward investment and destination marketing organisations, operating in national and international markets.
Prior to joining the States of Jersey in 2007 he provided high level expertise working within blue-chip economic development consultancies advising UK Government, Regional and Local Authorities on a wide range of strategic trade, investment or economic issues.
In May 2007, Andrew joined the States of Jersey as Director of Enterprise and Business Development, to drive the implementation of the new Enterprise strategy, establishing and developing Jersey Enterprise as the focal point for on and off-island business support. In November 2007, he was appointed Deputy Chief Executive of Economic Development, helping drive new models of service and product delivery in partnership between Government, the private and third sector organisations.
The Team
The staff at Jersey Business work as a team. All roles report directly to the CEO. Whilst focus on key areas of knowledge is encouraged, a keenness to share their expertise and a willingness to learn is the norm. All staff have a direct working relationship with clients. However, their additional responsibilities are set out below.
Role | Responsibilities |
Andy Cook Chief Executive Officer | Responsible for the overall delivery of Jersey Business objectives including the development of strategy and the execution of action plans. The CEO takes a hands-on approach to clients with more complex business needs and is responsible for the delivery of high standards across all services. |
Nick Steel Business Manager | Senior commercial advisor with an overview of client case load and internal allocation of advisors. Nick also takes a lead role in the support of various commercial sectors including retail. |
Alexia McClure Business Manager | Provides particular focus on strategy and company direction and takes a lead role in our relationships with other organisations, in particular Locate Jersey and inward investment clients. Alexia also takes the lead in our event delivery including the Awards for Enterprise. |
Daniel Ireland Senior Business Advisor | Supports a case load across a wide range of client types and size. Daniel provides particular focus on financial plans and the raising of finance. Daniel will regularly work with other advisors to support the financial aspects of the client's proposal. |
June Stead Senior Business Advisor | Particular focus on small and micro businesses and those at pre-start stage. June also supports our overall business development support for business owners and those considering self-employment from unemployment. She also takes the lead role in the delivery of Global Entrepreneurship Week. |
Rosie Lempriere Reception & Administration | Rosie is the newest member of the team and more often than not, is the point of initial contact with Jersey Business. She provides support to those clients seeking specific information in respect of procedural issues such as company and business formation and makes the initial assessment of client needs and appropriate advisor support. Rosie provides administrative support for the delivery of events and will provide assistance with our social media interactions. |
Financial Controller | A new part-time post of Financial Controller will be introduced in 2014 to support satisfactory internal control processes and the delivery of appropriate governance. The post will also work with advisors to review client financial workings that have been prepared in conjunction with Jersey Business. |
Actual 2012 |
| Forecast 2013 |
| Budget 2014 | |||||||||||||||||||||
Income |
|
|
|
|
| ||||||||||||||||||||
SLA | 304,000 |
| 615,000 |
| 790,000 | ||||||||||||||||||||
Rental Income | - |
| 15,401 |
| - | ||||||||||||||||||||
Other income | 48,388 |
|
|
| - | ||||||||||||||||||||
Manpower Costs | 352,388 |
| 630,401 |
| 790,000 | ||||||||||||||||||||
|
|
|
|
| |||||||||||||||||||||
|
|
|
|
| |||||||||||||||||||||
Board costs | 48,163 |
| 37,446 |
| 43,248 | ||||||||||||||||||||
Staff costs | 75,619 |
| 326,293 |
| 437,544 | ||||||||||||||||||||
Fixed Operating Expenditure | 123,782 |
| 363,739 |
| 480,792 | ||||||||||||||||||||
|
|
|
|
| |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Professional fees | 56,556 |
| 8,001 |
| 8,850 | ||||||||||||||||||||
Training | 275 |
| 5,120 |
| 6,000 | ||||||||||||||||||||
ICT Costs | 7,189 |
| 28,479 |
| 9,000 | ||||||||||||||||||||
Insurance | 3,002 |
| 4,125 |
| 4,300 | ||||||||||||||||||||
Rent & Rates | 12,865 |
| 35,304 |
| 32,544 | ||||||||||||||||||||
Other Property Costs | 3,133 |
| 15,004 |
| 9,300 | ||||||||||||||||||||
Heat, Light & Water | 719 |
| 3,290 |
| 4,200 | ||||||||||||||||||||
Marketing & Communications | 29,730 |
| 29,364 |
| 35,120 | ||||||||||||||||||||
Equipment hire | 2,057 |
| 3,134 |
| 3,024 | ||||||||||||||||||||
Depreciation | 10,625 |
| 11,000 |
| 11,000 | ||||||||||||||||||||
Other | 3,797 |
| 14,107 |
| 8,000 | ||||||||||||||||||||
Programmes and Promotions | 129,948 |
| 156,928 |
| 131,338 | ||||||||||||||||||||
|
|
|
|
| |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Business support programmes | - |
| 25,871 |
| 80,000 | ||||||||||||||||||||
Investment Fund | - |
| - |
| 100,000 | ||||||||||||||||||||
Awards for Enterprise | - |
| 25,871 |
| 180,000 | ||||||||||||||||||||
|
|
|
|
| |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Income | - |
| 149,680 |
| 187,000 | ||||||||||||||||||||
Expenditure | 550 |
| 179,597 |
| 187,000 | ||||||||||||||||||||
| 550 |
| (29,917) |
| - | ||||||||||||||||||||
|
|
|
|
| |||||||||||||||||||||
Net Operating Surplus/(Deficit) | 98,108 |
| 53,944 |
| ( 2,130) | ||||||||||||||||||||
Balance Sheet and Cash Flow Forecast | Actual 2012 |
| Forecast 2013 |
| Budget 2014 | |
BALANCE SHEET |
|
|
|
|
| |
Fixed Assets Other Current Assets Cash at Bank Creditors < 1 yr | 57,146 15,285 104,752 (79,070) |
| 50,125 3,000 118,932 (20,000) |
| 39,125 2,500 130,854 (20,000) | |
98,113 |
| 152,057 |
| 152,479 | ||
FUNDS EMPLOYED Opening Reserves Net Movement in Capital Reserves Net Movement for the Period Closing Reserves | 0 3 98,110 |
| 98,113 0 53,944 |
| 152,057 0 (2,130) | |
98,113 |
| 152,057 |
| 149,927 | ||
|
|
|
|
|
| |
NET CASH FLOW FROM OPERATING ACTIVITIES |
|
|
|
|
| |
Net (outgoing)/incoming resources Net (Inc)/Dec in other debtors Net Inc/(Dec) in other creditors | 98,113 (15,285) 79,070 |
| 53,944 12,285 (59,070) |
| (2,130) 500 0 | |
161,898 |
| 7,159 |
| (1,630) | ||
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT INC/(DEC) IN CASH AND EQUIVALENTS | (57,146) |
| 7,021 |
| 11,000 | |
104,752 |
| 14,180 |
| 9,370 | ||
|
|
|
|
|
| |
CASH AT BANK AND IN HAND |
|
|
|
|
| |
Balance at commencement of period Inc/(Dec) in cash and equivalents Balance at close of period | 0 104,752 |
| 104,752 14,180 |
| 118,932 9,370 | |
104,752 |
| 118,932 |
| 128,302 | ||
Jersey Business Limited Appendix A
PRODUCTS WORKSHOPS 1 to 1 1 to many
PROGRAMS
(Client Type) Planning Finance
Non-Relationship Start-up Advice Financial Plan Clients & Planning Development
Managing your Using
Finances Social Media
Setting Fit for Long-term Goals Funding
Pre-start
Delivering
Business Plan Investment Customer NegSoktiilalsting Development Support Service
Contact Sheet/ Business
Activity Record Health Check Start-up
Operational Customer Focus
Getting the most International Skills Market out of People Selling
Development Research
Improve
Mentor & Customer Coaching Service Leadership Unemployed to
Development Self-employed
Grow Environmental &
Sustainability Product/Service Support Development
Getting the most Women in from your Website Business
Exit Application of Support for
Technology International Sales
Business Plan 2014 Page 16
Jersey Business Limited Appendix B
Target Outputs - 2014 | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Total |
General Enquiries | 269 | 306 | 347 | 278 | 1,200 |
Face-2- Face Meetings | 330 | 288 | 320 | 262 | 1,200 |
|
|
|
|
|
|
Portfolio Clients | 45 | 45 | 50 | 41 | 180 |
|
|
|
|
|
|
Specific Product Support |
|
|
|
|
|
Strategy | 30 | 30 | 33 | 27 | 120 |
Finance | 30 | 30 | 33 | 27 | 120 |
Operations | 22 | 22 | 25 | 20 | 90 |
Customers | 15 | 15 | 17 | 14 | 60 |
|
|
|
|
|
|
Satisfaction Survey | 85% | 85% | 85% | 85% |
|
|
|
|
|
|
|
Added Value Survey | 85% | 85% | 85% | 85% |
|
|
|
|
|
|
|
Grant support |
|
|
|
|
|
Quantity | 9 | 9 | 12 | 10 | 40 |
Value | 18,000 | 18,000 | 24,000 | 20,000 | £80,000 |
|
|
|
|
|
|
Supported Investment by Companies |
|
|
|
|
|
Quantity |
|
| 2 | 2 | 4 |
Value | 250,000 | 250,000 | £500,000 | ||
|
|
|
| ||
High Value Jobs Created | 10 | 12 | 13 | 10 | 45 |
Other Jobs Created | 23 | 22 | 25 | 20 | 90 |