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Some business people are settling for what they have rather than continuing to work towards dreams ambitions, aspirations plans or whatever they started with.

For many the best – or worst – example is the overdraft. However much we owe the bank becomes zero so that a £9,900 debt is OK because the limit is £10,000. Or the high hopes we had for an income at the start has now become gratitude that we are taking enough to get by.
We may blame it on being unrealistic, or being over ambitious, or the state of the economy or the area we are in, but whatever reason we tell ourselves is the cause of our falling short, if we accept it we are just settling. In truth the only problem is us, sometimes the very attitude that got us started starts to become a weakness, but the only person who can change things is you. Nigel Botterill has a mantra – ‘If it is to be it is down to me!’ Now I suspect that he borrowed it from somebody else so it is fine for you to use it!
No one should blame anybody for feeling battle weary, tired or too busy to think. It is just a truth, no matter how unfair, that nobody else can change things but you!
All the best
Chris Olchawski

 

In February, I referred to a report on the European Commission’s Framework 7 funding programme and the under-performance of Wales in accessing the funds available i.e. that as of 2010, Wales had secured €39 million euros in research funding.

Contrast that with the news for Ireland yesterday that, during the same period, our Celtic cousins had attracted €269m and were on course to secure €600m in research funding to Irish researchers and enterprises by 2007 to 2013.

Given some of the lackluster commitments by Welsh politicians to improving the research competitiveness of our economy, it is worth reading what the Irish Minister for Research and Innovation Sean Sherlock had to say:

“Thanks to national investment in research, Ireland is participating in the Framework Programme from a far stronger position than ever before. A critical mass of research activity has developed in both the public and private sectors and the design of the current programme suits the needs of Irish researchers in many ways”.

WAG civil servants take note – there is not only a proactive strategy for obtaining European funding in Ireland but the government is helping to develop the capacity of the private sector through European funding.

After 12 years of devolution, we really should be doing better.

 

We often hear the phrase bandied about to ‘set the agenda’ for certain issues. These are usually issues that you what you want to be debated, a debate which, as an authority figure, you can lead!

If you can be seen as an authority figure on certain issues, then the ability to set an agenda can be a powerful business tool.

The term ‘agenda-setting’ was first used in a study by Maxwell E. McCombs and Donald L. Shaw published in 1972. In the study, the researchers interviewed 100 undecided voters in Chapel Hill, North Carolina and asked them what issues they were most concerned about in the coming (1968) election.

After determining the five issues the voters deemed most important, the researchers evaluated the media serving Chapel Hill (both print and broadcast) for the content of their stories. McCombs and Shaw found an almost perfect correlation between the types of stories that were covered most often and the voters’ concern for the same issues.

McCombs and Shaw’s research into agenda-setting was not the first foray into the subject (although it was the first to coin the term ‘agenda setting’), and it would not be the last. Several studies are done each year within the various disciplines of agenda-setting research.

Generally, the studies seem mostly to confirm that agenda-setting does in fact take place, and that media attention toward stories is the most important factor involved in shaping the public’s view of the stories’ relative importance.

In fact, studies have shown that the mere number of times a story is repeated in the news will affect peoples’ perception of the story’s importance, regardless of what is said about the topic.

There are three types of agenda: the media agenda (print and broadcast), the public agenda (what the ‘word on the street’ is), and the policy agenda (usually to do with government policies). Each one tends to affect the other, but the media agenda undoubtedly wields the most power when trying to drum up a debate.

But if you think agenda-setting is achieved simply by getting stories in the media, then, I’m afraid, you’ll have to think again, and this is due in no small part to the US Presidential Election of 1940. This is when the academics Lazarsfeld, Berelson and Gaudet conducted the first full-scale investigation of the effects of political mass communication.

Their research was originally based on the simplistic ‘hypodermic needle’ model of media influence, where it was assumed that a message would be transmitted from the mass media to a ‘mass audience’, who would absorb the message, like an arm would absorb whatever was pumped into it by a hypodermic needle.

However, their investigations suggested that media effects were minimal, that the idea of a ‘mass audience’ was inadequate and misguided because social influences had a major effect on the process of opinion formation and sharply limited the media’s effect.

The study concluded that only 5% of people changed their voting behaviour as a result of media messages! Their exposure to election broadcasts turned out to be a relatively poor predictor of their voting behaviour, particularly when compared with other factors such as their communication with friends, union members, business colleagues and the political tradition they had grown up in.

No ‘opinion leader’ is an opinion leader in all aspects of life. For example, the car mechanic in your local pub may not use the media much at all because he’s always working late. Nevertheless, he knows a lot about cars and so what the rest of those in the pub ‘know’ from the media about different makes of car will be influenced by his views.

This was recognized by the Nazi party in its gradual rise to power during the 1920s and 1930s. Nazi agitation and propaganda became increasingly successful at forcing themselves onto the front pages of newspapers, thus becoming an everyday topic of conversation. They were particularly keen to capitalise on that attention, directing it in the right direction through influencing the leading members of the various small associations which were spread throughout German communities.

Where local leaders, enjoying respectability and influence, were won over, further converts often rapidly followed. In the relatively homogeneous villages in Schleswig-Holstein, where feelings about the ‘Weimar system’ were running high on account of the agrarian crisis, the push from one or two farmers’ leaders could result in a local landslide to the Nazi Party.

You should never underestimate the importance of gaining credible, heavyweight endorsement from opinion leaders, and getting them to add their weight to media agenda-setting.

 

“Business opportunities are like buses, there’s always another one coming,” said Sir Richard Branson. But entrepreneurship in Wales has received little attention over recent years: the emphasis has been on using resources to attract inward investors – large companies with the capability of employing a vast amount of people at one time.

Yet small businesses create the majority of new jobs – 64 per cent of the 2.5 million new jobs created in the U.S. in the boom of the late 1990s were in small firms. And throughout the 1980s, America’s top 500 companies shed more than five million jobs while the US as a whole added 34 million new jobs. Most of these came, of course, from small businesses.

These statistics are very impressive, but when compared with such statistics for Wales we can see that small businesses are even more important for jobs. For instance, 97 per cent of all businesses in Wales employ less than 20 people, and 94 per cent employ less than 10.

And small businesses account for nearly 50 per cent of employment outside the public sector. Also, it has been estimated that as much as one-third of the differences in national economic growth are due to differences in entrepreneurial activity. It follows logically from this that small businesses and their ability to create such wealth and employment should be given more importance.

But in Wales, business risk-taking has been ranked alongside gambling. If it succeeds, fine: but failures are not the subject of polite conversation. This puts many of us off starting our own ventures, due to the stigma we have to live with if we get things wrong.

In America, the situation is so very different. As many as nine out of every 100 US adults are right now trying to start businesses of their own. This is because of a culture that strongly encourages and supports self-enterprise.

Americans generally favour self-starters and the independent spirit that underpins their success. Business failures are not considered a personal failure and many consider ‘not to have tried’ as a personal weakness. Successful entrepreneurs are not only accepted, but are considered ‘champions of industry’ and presented as role models for others.

Americans accept and respect entrepreneurs: some business failures are expected and they are considered a normal part of the process. It is also interesting to note that US women are responsible for more than a third of all start-up efforts.

But more fundamentally, the American population generally do not expect the government to provide for their well-being. Also, they are likely to accept differences in standards of living. Within that fundamental cultural tradition, Americans are more likely than people in other countries to recognise opportunities for start-ups and to be motivated to pursue those opportunities through the creation of a new venture.

The Americans realise that while not every high school graduate has the capacity or desire for higher education, almost everybody has the potential to start a new business. The average high school graduate may not start a fast-growth, high-technology company, but he or she can start a landscaping business, a retail business or some other venture that will employ other people and contribute to economic adaptation.

As such, they realise that it is critical to provide at least the basic instruction to ensure that these future entrepreneurs have the understanding of and a certain level of proficiency in the skills necessary to implement and manage a business.

In Wales we need begin respecting wealth creators in the same way as the US. True entrepreneurs have one thing in common: they are willing to bet money, time and commitment in the belief that they can create new wealth out of risk. It is high time we started looking at this as a creative activity in its own right, and not some sort of anti-social behaviour.

 

The debate on obesity amongst the population and the importance of a balanced diet continues to rumble on as healthy eating remains high on the government’s agenda. As it does so, the humble vending machine is being singled out and attacked.

In 2009 the Minister of Health for Wales, Edwina Hart, imposed restrictions on the products that could be sold through vending machines in Welsh Hospitals. These restrictions meant that hospital vending machines significantly reduced the range of products on sale to staff, visitors and patients. (Interestingly the busiest times that the machines are used are at 8pm and 2am by hospital staff, who understand the importance of diet and who surely do not need any guidance from the Minister on what to eat?)

The Minister for Health has undertaken a review of vending in Welsh hospitals and this has a number of far-reaching implications.  As an example, sugar will not be allowed in vended tea and coffee; sweeteners must be used, all of which impacts on people’s right to choose.

When guidance was introduced over a year ago to discourage hospitals from vending so-called unhealthy foods, it was based on a nutritional profiling model developed by the Food Standards Agency for the purposes of providing guidelines to OFCOM on the advertising of food on television. Even the FSA told the Welsh Minister that it was inappropriate for the purpose.

Ironically, based on the nutritional profiling model used in the guidelines, many healthier varieties of sandwich would be banned while some with less healthy fillings would be acceptable.

Despite a promised review of the guidance at the end of the year, when promises were made that the industry would be consulted, the Automatic Vending Association (AVA) says that it has still not been invited to get involved, despite repeatedly asking to meet the Minister. The FSB has also received no invitation to get involved.

In response to the restrictions, the AVA formed the Vending Choice Coalition (VCC), which is a group comprising of key food and beverage associations, major brand manufacturers and operator companies. Their goal is to ensure that vending has its say and consumers have freedom of choice to purchase a wide range of food and beverages through the vending channel in order to achieve a balanced diet.

At the same time it is clear that there is no foundation for singling out vending: the nonsense about this ban is that the shops and cafes in the concourse areas of hospitals face no such restrictions. And astonishingly there are no clear guidelines on what constitutes a healthy item.

Statistics show that the UK snack and confectionary market is worth £39bn, £7.8bn of which is chocolate and snacks. However, just 5% of this snack intake is sold through the vending channel. Only 1% of calories consumed by the nation come from snacks, and vending machines make up 1% of the snack sector. So we’re talking about 5% of 1%.

Vending is one sales channel and as only 5% of the snack intake goes through the vending channel, to try to ban the vending machine will do little to affect the health of the nation.

Vending machines do not make people fat. Vending machines are only as bad as the food people put inside of them. We have a number of members who have totally healthy vending machines in terms of products, which are low in fat, sugar and salt.

The fact is that the nation has been eating snacks and confectionery for many years without issue and rather than being the cause, the vending machine offers a solution. Vending machines provide choice and the items on sale reflect consumer tastes and demand, including fresh fruit, low fat and low sugar products as well as a range of drinks to rival the high street coffee shops.

The WAG policy, which will cost the vending machine industry around £15m, is the wrong approach to a larger problem and vending is an easy target that will not achieve the stated aims of the Health Minister. All it will do is remove consumer choice and make going to hospital more stressful. You do not make lifestyle choices in a hospital A&E – you need comfort and support from missed meals and your distress.

The vending machine came under more fire recently by the British Heart Foundation who has targeted the vending machine in its campaign to encourage healthy eating. But there is no evidence to support the view that vending causes obesity or an unhealthy lifestyle.

The BHF argued that obesity rates were soaring, however recent studies by the National Heart Forum found evidence that the rate of childhood obesity may be starting to slow and the reported projections had been greatly exaggerated. Its figures suggest that by 2020 the proportion of boys aged 2–11 who will be overweight or obese will be 30% – not the 42% that was predicted. For girls the same age the revised prediction is now 27%, down from 48%.

Scotland’s largest teaching union has recently thrown its weight behind a campaign to amend the law to allow Aberdeen pupils to sell chocolate in their school after new healthy eating guidelines forced Dyce Academy to close their Fairtrade confectionary stall.

They added that any legislation which denies pupils the opportunity to make balanced decisions “negates” what educationalists are trying to achieve. Indeed, pupils told MSPs that healthy lifestyles cannot be “forced” on youngsters, and a balance must be struck because they would only go to nearby shops to buy chocolate and sweets that are not available in school.

Chocolate will be part of their lives forever and they need to be educated to be able to properly make choices, a view supported by the FSA.

It remains clear that that a lifestyle that combines regular physical activity with consumption of a wide range of food choices is the key to a healthy lifestyle. It is vital that consumers, whether they be in hospitals or the workplace, are able to make that choice for themselves.

 

Business4Wales wholly endorses this excellent manifesto pledge by Plaid Cymru. At last, someone is listening and understands the needs of small business!  A miracle indeed.
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Helping our small businesses succeed

We will continue to value our small businesses and their vital contribution to our economy in all parts of Wales.
There is clear evidence that our small businesses face a struggle in accessing growth capital with the vast majority of businesses in Wales unable to tap into the UK Business Growth Fund because the turnover threshold is too high. We will therefore establish, in partnership with the private sector, a Welsh Growth Fund so that small and medium enterprises can have greater access to finance.
Businesses also need smaller, more easily-accessible loans. Plaid will investigate the use of community finance models in providing a more flexible, local solution to this problem.

We will examine the possibility of using the credit union structure as a mechanism for paying public sector workers, providing money for the
credit unions in order to lend to small and medium enterprises.

Ambition is Critical

We will maintain the existing level of business-rate relief for businesses in Wales. We will review the current system to develop a business rates model which exempts crime-prevention measures and environmentally beneficial changes taken by small businesses from rateable value calculation, and we will introduce seasonality for  businesses which rely on tourism.
We will create a Welsh Valuation Office Agency. Rateable value assessments must be undertaken fairly to provide a level playing field for small businesses, rather than favouring the larger out-of -town developments as they do at present.
We will undertake a detailed Retail Strategy for Wales. The retail sector is crucial to vibrant local economies  and town centres, and contributes to the health of other businesses as well as providing services to local communities. We will design a national plan to improve town centres for local people and visitors, using empty shops as commercial offices, promoting local produce and creating more living space in town centres. We will ring-fence the Post Office Diversification Fund and we will continue to ensure the protection of  local Post Offices and shops. We will oppose the privatisation of the Royal Mail.

We will ensure that Wales becomes a pioneer of ‘green’ technologies. We want to encourage and support the innovation and development of the products and services that a low-carbon economy demands. We will support Welsh business so it can exploit the opportunities offered by our natural resources and take a leading role in developing low-carbon and sustainable energy technologies.

Plaid will seek to radically reform public sector procurement in Wales so that it addresses the challenges facing small businesses and provides greater opportunities for Welsh businesses. Currently, around 50% of goods and services purchased by the Welsh public sector are procured from Welsh-based suppliers. We want to increase that figure to 75% over the next Assembly term. We will introduce procurement models that are accessible to smaller businesses, and provide social and environmental clauses to promote the sustainable development of our economy.
We will apply social clauses where appropriate to ensure smaller businesses are paid promptly, which helps to support local employment and training opportunities. Through mapping the supply chain we will address the impact on small businesses of ‘clumping’ procurement contracts. We will measure the impact on small businesses of  procurement within the Welsh public sector.
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Da iawn

 


As I mentioned last week, late last year, a letter was sent to me at the Western Mail which, unfortunately, was not given to me until the end of last month. 

It purports to come from a group of senior managers within the Department of Economy and Transport (DET) who are “driven by a sense of frustration and concern that a failing department is steaming towards further failure”.

It is anonymous and the authors are very open in stating that “cowardly and possibly disloyal as it is, we have chosen not to put our names to the paper. At a time of job threat, there could be only one result”.
Nevertheless, having read the details, there can be very little doubt that whoever has written the critique certainly has insider knowledge of the machinations of the civil service. Whether there are any exaggerations in some of the claims made could only be verified by DET itself (which is highly unlikely).
If only partly true, it is a fascinating insight into the hidden world of the civil service in Wales and some of the allegations suggest there are some serious questions that need to be answered by those in power.
I have edited the responses slightly, given that some of the comments were specifically addressed at one individual who has now been removed from post.
It must also be noted that the critique is not one sided. 

For example, the authors note that

“There is a need for change in the way that DET in Wales is managed and delivers its economic strategy is not in question and within the ERP the result of the new strategies and ways of interacting with businesses are not all bad. For example, the focus on infrastructure is rational and the move to a sector focus and an increased emphasis on partnership by bringing in external panels of business people to work as advisors to the Deputy First Minister and with civil servants is a good idea. The move from grants to loan in the current climate also has merit even if some businesses will be concerned of the impact that ‘loan’ has on the view of the balance sheet”.
Nevertheless, they suggest that there are five reasons why the current changes that are afoot in DET won’t work and why they will have little effect on the ability of businesses in Wales to grow and create high quality, high value jobs. Tune in tomorrow for the insider’s view.

 

Given that we are suppose to have a system of relatively open government here in Wales, WAG seems keen not to divulge certain pieces of information to the general public.
For example, there has been much mystery surrounding the membership of the new Council for Economic Renewal which, according to WAG, was supposed to be a “fresh start” and which shouldn’t be “a simple re-hash the former Business Partnership Council”.

So where are the details of the council? Who sits on this new dynamic body?

Well, unfortunately, there is no information anywhere on the WAG website although we are promised that the minutes will be available by the end of March.

However, the little information I have been able to glean from our democratic body suggests that, despite a bright new dawn being promised, the membership is exactly the same i.e. the minimum legal requirement of 14 external members (5 each from Business Wales and Wales TUC and 2 from Social Enterprise in addition to the Chairs of the DET Ministerial Advisory Group and the Wales Employment and Skills Board).

Also, as with the BPC, membership can be broader than that represented by the minimum legal requirement and the new Council can draw from the widest and best range of knowledge and experience. So no change there either.

Anyway, judge for yourselves as there is a list of the individuals and organisations who have attended the meetings of the Council for Economic Renewal held in December 2010 and March 2011.

  • John Bennet Wales Social Enterprise Coalition
  • Nick Blundel UCATT
  • Paul Byard Engineering Employers Forum
  • Nia Davies FSB
  • John Harper RICS
  • Richard Houdmont CIM
  • Richard Jenkins FMB
  • Russell Lawson FSB
  • David Lermon ICAEW
  • Bob Macey IoD
  • Martin Mansfield Wales TUC
  • Mick McGuire CML
  • David Morgan RICS
  • Graham Morgan Chamber Wales
  • Paul O’Shea Unison
  • John Phillips GMB
  • Richard Price Home Builders Federation
  • Non Rhys Chair of Business Wales
  • David Rosser CBI Wales
  • David Russ Chamber Wales
  • Derek Walker Wales Co-op
  • Sian Wiblin Wales TUC
  • John Burgham Unite
  • Ben Cottam Chair of Business Wales
  • Pam Drake GMB
  • Robert Lloyd Griffiths IoD
  • Peter Hughes CML Cymru
  • Nick Payne RHA
  • Nigel Keane WSPU
  • Heather Eason WSPU

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