Archive for the ‘uncategorised’ Category
Is it too late to defuse the Business Succession Time Bomb in Wales?
Business succession is a ticking time bomb in Wales.
Our economy is dependent on SME’s and Micro businesses. In Wales our business owners stay with their businesses longer than other owners anywhere else in the UK. If business owners do not have a robust exit strategy in place, they may find that the only option remaining to them when the time comes is to close the company and make their employees redundant.
According to the Federation of Small Businesses research, business owners in Wales have owned or co-owned their businesses for an average of nearly 16 years and 29% of businesses have been owned by the same owners for 21 years or more. This suggests that business owners in Wales see the growth and nurture of their businesses as a long-term commitment and devote a large proportion of their lives to it. However, it also suggests that there is a massive proportion of business owners approaching a realistic retirement age. With approximately 99% of businesses in Wales classified as SME’s or micro-businesses, it is apparent that these business owners succession plans have more than just the successful continuation of their companies dependent on them.
29% of small businesses in Wales equates to somewhere in the region of 15,000 owners who could be looking to leave their business in the next couple of years (See footnote). In an economic climate which makes trade sales difficult for most owners and in a country where the vast majority of businesses are too small to consider public listing, the effect of poor or non-existent succession planning on the Welsh economy cannot be underestimated.
If 15,000 business owners closed theirs shops, factories and warehouses tomorrow, where would that leave the Welsh economy?
Media focus lately has been on business start-ups, inward investment and the dramatic reduction in employment in the public sector currently occurring in Wales. Yet, with the implied need to find replacement employment from the home grown, domestic private sector, very little concern has been raised about the approaching issues of an ageing owner manager population.
Who will ensure these existing businesses survive, grow and flourish?
Our report published today looks at these issues in detail; it identifies issues with the traditional approaches of family succession and trade sales and offers employee ownership as a viable and sustainable alternative which benefits both the business owners and the employees.
The report, which has been endorsed by the Federation of Small Business in Wales and written by the Oxford Centre for Mutual and Employee-owned Business at Kellogg College, Oxford University suggests that there is a need for
- Further awareness of the need for earlier succession planning and for businesses to allow a reasonable amount of time to manage an exit strategy effectively
- A one-stop shop that integrates the knowledge of Wales Co-operative Centre, Federation of Small Businesses in Wales, Finance Wales, Co-operative and Community Finance and the Employee Ownership Association for owners contemplating an exit strategy.
- An equity fund to help facilitate more employee buy-outs
- More extensive research on the topic to gain a clear focus on the risks and precise costs that bad business succession strategies have on Wales.
Employee ownership schemes, employee buy-outs and support for the development of worker co-operatives could all contribute to a more stable economic future for Wales – but the work needs to be undertaken now.
For example, Skye Instruments in Mid Wales produces electronic instruments used to monitor the impact of micro-climate variations on crops. The owners came across the idea of employee ownership via the Wales Co-operative Centre and were attracted to the possibilities for using it to secure the businesses location in Mid Wales. After initial difficulties in finding accessible and clear advice on how to approach the process the owners presented several options to their staff who voted for an employee benefit trust. This was set up in 2009 and 40% of company shares are now in the trust. The remaining 60% of the shares will be sold to the trust over the next 6 years and whilst the owners will have exited financially, the hand over process will be on-going and they will retain involvement in the business.
Installing employee ownership mechanisms and developing and engaging staff takes specialist knowledge, time and effort and the work needs to be undertaken from the moment the owner starts considering succession – not from the moment the owner starts trying to sell their business. At the Wales Co-operative Centre, we have been involved with employee ownership and worker co-operatives ever since we started 30 years ago. Our specialist Business Succession Team offer advice and support to business owners and employees taking their first steps down the road to employee ownership. They can help provide advice on suitable employee ownership models, look at how vehicles such as Employee Benefit Trusts and Share Incentive Plans can be used to support the transfer process, and provide support with finding finance, business planning, management and governance issues.
So is it too late to defuse the Business Succession Time Bomb in Wales?
No, it’s not – but to avoid a massive drain on the Welsh economy over the next few years it is essential for politicians, business advisers and business owners themselves to consider all sorts of plans for viable and sustainable business succession including the benefits of employee ownership and to ensure support and assistance for those businesses is provided as and when they need it. There is every reason to believe that long-term succession planning leads to long term success but that planning needs to be implemented and the available options discussed now.
Footnote
Figures taken from Welsh Government’s ‘Economic Renewal: A New Direction’ http://wales.gov.uk/topics/statistics/articles/economicrenewal/?lang=en
In 2009 there were 53,205 active SME’s (1 – 249 employees) in Wales. Federation of Small Business Research suggests 29% of Welsh Businesses have had the same owner for 21 years or more. 29% of 53,205 is equal to 15,429 small businesses.
Beware Christmas loan sharks, says First Minister
First Minister Carwyn Jones today [13th December] urged people finding it difficult to meet the cost of Christmas this year not to take out loans from high cost lenders, even if it seems quick and easy.
The cost of a personal unsecured loan from a high cost lender of £500 paying back £17.50 for 52 weeks means that you will actually pay back £910.
The same loan from a credit union would cost about £10.83 each week, paying back a total of £563.16, a saving of more than £340.
The First Minister will talk about the impact of high cost credit on families and communities during a visit to the Save Easy Credit Union in Llanelli.
The First Minister said,“Too many people do not realise that Welsh credit unions provide savings accounts, personal loans and other basic financial products that can save them money. Credit Unions offer a real alternative the activities of high cost lenders and illegal loan sharks, by offering safe and affordable alternatives.
“Tackling poverty and financial exclusion where it persists in our communities is one of my key priorities over the next five years. Credit unions are ideally placed to help achieve this.”
The Minister also emphasised he wanted to continue to raise awareness of credit unions.
He said,“Too often we hear stories about people on low incomes and others who are most vulnerable in our society not being able to access affordable sources of credit.
“Some communities remain blighted by loan sharks exploiting vulnerable people in an environment of intimidation and violence. This has a devastating cost on individuals, families and entire communities.
“Credit unions can and do make a difference in such a situation. Having strong credit unions here in Wales will help us as we continue to build the fair and just society we all want to achieve.”
Source: News Wales
Find out more about credit unions in Wales on the Wales Co-operative Centre’s website.
Job vacancy – mapping and web assistant
Communities 2.0, the digital inclusion initiative from the Welsh Government, is looking for a mapping and web assistant. The role will be based in the Wales Co-operative Centre’s Cardiff office.
The successful applicant will need to be a graduate able to collate data and information into a self-built SQL databse. This data will be collected over the phone and by post from various groups throughout Wales.
As part of the web assistant role, the applicant will also need to be familiar with writing for the web and using social media. This work will involve writing blog posts and updating social media accounts as well as the initiative’s website and associated sites.
The role is available as a fixed term 6 month contract with a salary of £19,250 to £23,691 pro rata.
If you are interesting in applying, please visit the Wales Co-operative Centre’s website http://www.walescooperative.org/current-vacancies
Figures show Wales is closer to becoming a sustainable nation
Wales is a step closer to becoming a sustainable nation.
Air quality, electricity production from renewable resources and recycling rates have all improved in Wales over the last year, according to new figures.
The latest sustainable development figures show that Wales has made clear improvements in 19 of the 44 areas measured by sustainable development indicators (an increase on last year’s figure of 17).
The figures also reveal that Wales’ performance in 18 of the indicators has shown little or no change. Unfortunately the number of people volunteering on a formal or informal basis at least once a month is at a 10-year low.
The percentage of electricity generated from renewable resources has steadily increased for the past 10 years to 5% in this report.
Speaking about the figures, Minister for Environment and Sustainable Development John Griffiths said: “I am pleased that these figures show how Wales has made good progress in a number of areas that are key to making Wales a sustainable nation. The statistics show improvements in key areas such as urban and rural air quality, production of electricity from renewable sources and household waste recycling and composting.
“The Welsh Government is committed to one planet living, where we live and plan for a future that only uses our fair share of the earth’s resources. Today’s figures prove that we are making good progress but of course there is still scope for improvement.”
The new Sustainable Development figures are available both as a pocket sized leaflet or on-line via the StatsWales website at www.statswales.wales.gov.uk.
Source: Welsh Government
Welsh charities set for £162,000 windfall
Welsh communities will benefit from a total of £162,000 in fund awards through CommunityForce this year. It is hoped the initiative will raise awareness of the nominated charities and organisations and encourage people to get involved as volunteers. By bidding for a share of the fund, charities and projects will become part of a local online network giving them greater visibility, and the opportunity to attract volunteers from the local area.
NatWest staff will also get involved by volunteering their time as part of the bank’s customer charter commitment to deliver 7,000 days of community volunteering this year.
Until 4 September 2011, organisations and charities can apply for a CommunityForce award online at www.natwest.com/communityforce. On 26 September an online public vote will begin, to decide which three causes in each area will receive £6,000 each, ensuring that the organisations that benefit are those that matter most to the local community. The winners will be announced in November.
In 2010, over 600 UK projects benefited from the fund. This year in the UK, £1.9 million will be awarded to good causes nationwide.
Mark Douglas, NatWest Regional Retail Director for Wales, said: “NatWest has a long and proud history of supporting local communities across Wales and I’m delighted that my teams across Wales are now able to offer even more money to good causes this year. Giving the community the chance to vote for the winners will ensure these funds go to the organisations local people value the most.”
Source: 4 Traders
Wales Co-operative Centre vacancy for Director of Corporate Services
Position: Director of Corporate Services
Period of Employment: Continuous, subject to appropriate continued funding
Accountable to: Chief Executive
Location: Cardiff
Salary: £46,519 – £51,606
The Wales Co-operative Centre, the UK’s largest Co-operative Development Agency, seeks to employ a dynamic and multi-disciplined Director of Corporate Services who will strategically lead the Centre’s financial, administrative, ICT and HR systems and controls.
The successful candidate will be a qualified accountant with sound knowledge and experience of European funding, providing strategic direction, achieving the highest standards of financial management and corporate governance.
With experience of managing at a senior level, the successful candidate will champion the Centre’s values and be committed to continual organisational improvement and efficiencies.
Closing date for receipt of applications is 5pm Thursday 23rd June 2011.
Please visit www.walescooperative.org/current-vacancies for more information and to apply.
Community training in Wales survey
The Council for British Archaeology (CBA) are investigating the training needs of voluntary heritage groups in Wales.
They are coordinating a Community Archaeology Training programme (external website), with four 12-month-long traineeships in Wales each year for the next three years. The scheme is funded by the National Lottery through the Heritage Lottery Fund, with additional support from Cadw.
Linked to these traineeships, the CBA are currently investigating the possibility of providing a series of training days for voluntary groups. They would be grateful for input from anyone involved in a voluntary heritage group in Wales, as this will help them to get a clearer picture of potential training needs.
If you are part of a Welsh voluntary group you can answer their questionnaire online (external website) by Monday 13th June.
International Women’s Day 2011
International Women’s Day has been held since the early 1900′s; a time of great expansion and turbulence in the industrialized world that saw booming population growth and the rise of radical ideologies.
Annually on 8 March, thousands of events are held throughout the world to inspire women and celebrate achievements. A global web of rich and diverse local activity connects women from all around the world ranging from political rallies, business conferences, government activities and networking events through to local women’s craft markets, theatric performances, fashion parades and more.
For more information on International Women’s Day and to see the hundreds of events organised across the world, please visit the website.
This year, Divine Chocolate, the only farmer-owned, Fair Trade chocolate brand, are celebrating International Women’s Day by investing in women cocoa farmers.
Divine Chocolate encourages chocolate lovers to use a $1 coupon to treat themselves to a bar of delicious Divine Chocolate. For every coupon redeemed, Divine will invest a dollar into Kuapa Kokoo’s Women’s Fund in support of small-scale cocoa farming communities in Ghana. Another reason women think chocolate is Divine. The coupons are available on Facebook and in retail outlets nationally.
You can also view a large collection of videos on YouTube, from organisations and individuals, celebrating International Women’s Day and enforcing the message in different ways.
Free employment advice for small businesses in South West Wales
Business Wales are running several Human Resources (HR) Advice Days:
Meet with our HR Advisor who can provide advice and support on anything to do with employment:
- Contracts of employment
- Flexible working
- Holiday entitlements
- Discipline and grievance
- Sickness absence policies
- Appraisals
And lots more………….
Contact us now, to arrange a confidential one to one appointment for the following dates:
Tuesday, 8th March 2011 – Carmarthen
Wednesday, 9th March 2011 – Pembroke
Tuesday, 29th March 2011 – Swansea
Tuesday, 29th March 2011- Llandarcy
01639 686846
Please do not contact the Wales Co-operative Centre regarding this promotion. Please use the above phone number to arrange an appointment. Thank you.
National Ethical Investment Week
So what is National Ethical Investment Week? Well, if you buy Fair Trade, have you considered investing in an ethical manner?
When it comes to financial products, being green or ethical is often not a consideration.
This week, November 7-13, is National Ethical Investment Week (NEIW) and Nick Scarrett, head of investment and pensions at Fair Investment Company, explains why making green and ethical financial choices is just as important as drinking Fairtrade coffee.
“While many of us would go out of our way to avoid unethical products, ethics are often not considered when it comes to finances, but the same principles should apply. If you care where the coffee you drink comes from, then you should care how your money is being invested.”
Although ethical and green finance products are still in the minority, they are on the increase – for example, there are now almost 100 green and ethical funds available to UK investors compared to a decade ago when there were just a couple of dozen.
And not only are people becoming more ethically aware, but many of the ethical issues that are becoming increasingly important to consumers are also beginning to create attractive business and investment opportunities. People are also starting to demand more from their banks and savings providers, including more ethical choices.
“The financial crisis, coupled with recent environmental disasters such as the BP oil spill, have made people more aware of the impact of their financial decisions,” explains Penny Shepherd MBE, and chief executive of UKSIF, coordinators of NEIW.
“Research conducted for NEIW has found that half of savers and investors want to make money and make a difference and National Ethical Investment Week hopes to raise awareness of the variety of options that may allow them to do just that. In the same way that Fairtrade has moved from the margins to the mainstream, so too can green and ethical finance.”
Nick agrees, but says there is still a long way to go, and that it is up to consumers to help drive the change. “Some might say that high street banks should be offering more choice when it comes to ethical and green funds, but unless the demand is there, the choice won’t be,” says Nick. “Choices have improved massively in the past 10 years and hopefully will continue to do so.
For more information about National Ethical Investment Week, please visit the NEIW website.
Source: Easier.com
The Wales Co-operative Centre offers help and support to businesses in Wales who would like to adopt a Fair Trade policy.
