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News release


20 July 2009

City of London Corporation maps out business recovery for small businesses

The City of London Corporation has this week launched two new projects which will help small businesses to survive and prepare for growth post-recession.

The City of London Corporation, which looks after the Square Mile business district but also works with Inner London neighbours, is contributing £105,000 to the two 12 month projects which will provide SMEs with expertise to improve financial viability and prepare for recovery.

The free business recovery services will offer business health checks and assist nearly 400 small to medium-sized enterprises (SMEs) in local boroughs to maximise opportunities to maintain and grow their trading capacity.

The first of the projects, the ‘Capital Enterprise Business Recovery Service’, gets £75,000 funding from the City of London Corporation, and is co-funded and endorsed by Camden, Hackney, Islington, Lambeth and Southwark local authorities. Local enterprise agencies and high street banks including Barclays and HSBC will promote the service to clients who could benefit in these boroughs, as well as the City itself.

The second project, ‘Enhancing Business Support during a Recession’, is managed by East London Small Business Centre in Tower Hamlets and will receive £30,000 funding from the City of London Corporation.

The City of London Corporation says SMEs need support from business recovery services following on from business health checks in order to ensure their survival.

The services will provide a bespoke programme of business support to SMEs across six London boroughs. It will review current business viability, offer practical strategies to continue to be trading within 12 months and prepare for their growth potential going forward.

Using one-one-one business support, held at businesses’ premises to minimise disruption to their day-to-day operations, the City of London Corporation-funded business consultancy will:

  • Review current business viability and growth potential
  • Change and adapt cash management practices and investment plans
  • Preserve and adapt the business’ skills base
  • Secure the present customer base by identifying customer needs and buying behaviour
  • Identify solutions to maintain existing sales and generate new sales
  • Review and ‘stress test’ the medium to long term business models and plans of SMEs
  • identify suitable sources of funding
  • Help the businesses get ready for increased revenue streams and plan for the upturn

Stuart Fraser, Chairman of Policy and Resources at the City of London Corporation, says, ‘SMEs often only turn to external services like these as a last resort, so we are working with public sector local authorities and enterprise agencies, and, crucially, private sector high street banks including Barclays and HSBC to ensure we reach as many SMEs as possible who could benefit from our business recovery endeavours. Our realistic outlook is to ensure the continued trading of nearly 300 businesses who might otherwise falter during the recession, and safeguard around 1,000 jobs in the City fringes.’

John Wright, Chairman of the Federation of Small Businesses, says, ‘It is vital that small businesses can access authoritative and helpful advice during these tough times. Business owners don’t always know where to go for business advice or have the time to look so the projects funded by the City of London Corporation will provide a welcome source of assistance. We encourage the City of London Corporation to advertise this as fully as possible to make small businesses aware of these services.’

These projects will sit alongside an existing substantial business support programme by the City of London Corporation to facilitate the development and growth of small businesses in the City fringe through the provision of premises, finance and guidance. The City of London Corporation currently funds eight projects contributing to SME survival:

  • SME Management Assistance Project
  • Supporting City Fringe SMEs
  • Social Enterprise Supplies
  • Ready 2 Supply
  • Selling to the City
  • Meet the Buyers
  • Annual support of GLE oneLondon
  • SME workspace programme

The City fringes are the London boroughs of Camden, Hackney, Islington, Lambeth, Newham, Southwark and Tower Hamlets.

The City of London Corporation is leading the drive to spend locally with SMEs - it has channeled 25% of its own spending to suppliers in the target boroughs, while a further 10% is spent in other inner London areas and 15% in Outer London.

For SMEs looking for more information and access to the City of London Corporation-funded business recovery services, visit www.cityoflondon.gov.uk/businessrecovery.

Ends

Further information
Please contact Rain UK – Neil Cassley and Lizzie Boylan Ward on 00 44 (0)20 7222 4345 or email: neil.cassley@raincommunications.co.uk

Notes:
The City of London Corporation
The City of London Corporation is the “business authority for the business district” and supports the international financial services industry based in the UK, with its heart in the Square Mile. It provides local authority services for the Square Mile but also works across wider London and UK. 

Partners
The Business Recovery Service will be delivered by East London Small Business Centre in Tower Hamlets, and Centa Business Services in Camden and Islington, HBV Enterprise in Hackney, and GLE One London in Lambeth and Southwark under the umbrella provider Capital Enterprise.

Capital Enterprise
Capital Enterprise has three core remits focused on the enterprise agenda in London, linked to wider regeneration and economic development:

  • Internally, it is a membership body with a service offer to its members
  • Externally, it is a representative body championing small business and the key enabling role played by its member agencies
  • It has a programme management arm for national contracts targeting London

East London Small Business Centre
ELSBC actively helps new businesses start up, and supports existing small businesses in East London to survive and grow. Since its formation in 1978, the Centre has helped over 10,000 people realise their dreams of running their own business in East London.

As a not-for-profit private organisation, our work is supported by major UK and international Companies, Local Authorities, National & European funded programmes and many other organisations committed to helping create jobs and increase prosperity in East London.


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