The team has won the Team of the Year Award at the Inspire! Adult Learning Awards, which celebrates the hard work of enterprises throughout the country.

Headed up by Ferenc Blizsko, and supported by Vicky Williams and Gemma Perman, the Grow Enterprise Wales team has achieved a 41% success rate in helping young people into full-time employment.

People as old as 55 who were unable to find work have secured jobs through the scheme, and many of those who have completed placements are now employees at Grow Enterprise Wales.

Head of learning Ferenc, 53, who got his first degree aged 40, said: “We are thrilled to win the award and it’s great to be recognised.

“Many of the young people who come through our doors live in households where there isn’t a working role model and some come from families who are in their third generation of unemployment.

“Our work goes beyond moving people into employment; it changes lives. There is a lot of talk of regeneration in the Valleys at the moment, but it all starts with people. It is people who make communities and we encourage them to take pride in earning money and making a difference.”

A report on one Welsh government-funded umbrella group said by 2011 it helped set up 280 supplying 10,000 customers with locally-grown food. The Rural Regeneration Unit (RRU) in Wrexham says more have since started, run by more than 2,700 volunteers.

In Wrexham, for example, there are at least seven food co-ops supplied by a local farmer. But the true number of groups across Wales is not known as they can be set up and run independently.

One such group is Roots and Fruits, which has been operating at Wrexham’s Caia Park housing estate for the last two years.

As well as getting fruit, salad and vegetables from a local farmer, an estate gardening team of 15 volunteers grows food for a nearby day care nursery, older people’s day centre and cafe.

If the gardeners produce a glut it is put in with food co-op customers’ veg bag orders.

Volunteer support worker mentor Caroline Harry said the co-op and gardening schemes brought the community together.

How food co-ops work

Groups buy seasonal produce in bulk from a local supplier each week. The fruit, vegetables and salad are bagged up by volunteers running the co-op at a community venue and collected by customers at a set time each week.

Usually, customers place an order a week ahead and do not know for sure the exact contents of their bag in advance, although they can usually expect things such as potatoes and carrots. A bag costs about £3 and is considered enough for two people.

“They show community involvement, that people don’t need to spend a fortune to eat healthily and it is sustainable living,” said Mrs Harry, a volunteer mentor from Caia Park Partnership.

The community food co-operative programme began in 2004 with a small pilot, the same year a report showed only 41% of people in Wales ate a recommended five portions of fruit and vegetables a day, according to the Welsh government website .

Some food co-ops also sell eggs and meat via over 400 suppliers in Wales, according to the RRU, although 80 are regular suppliers.

One supplier is Huson Farm in Hawarden, Flintshire, which grows a lot of its own seasonal fruit and vegetables and acts as a wholesaler offering other produce. Alan Huson, whose family has been at the farm for four generations, said food co-ops have become successful due to their community ethos.

“It’s a community thing, bringing people together,” he said.

Volunteer co-ordinator Shirley James agreed with the sentiment. She helped to set up her group in March with fellow residents at Plas Hyfryd, a group of flats with extra care facilities operated by United Welsh Housing Association (UWHA) in Caerphilly.

Ms James said the scheme has been a success with between 25-30 weekly customers because produce is delivered to residents, some of whom have difficulty in getting out.

She said residents used the collection time as an opportunity to meet up and have a coffee and a chat, and it also saved them money.

Meanwhile, in Gwynedd, Bangor Veg Co-op relaunched at Maes Glas Sports Centre late last month.

It was originally set up by Dr David Shaw, director of research at Bangor University’s Henfaes Research Farm in Abergwyngregyn.

Now it has been taken over by volunteers, including Jamie Stroud, a PhD student at Bangor University, and Stephanie Johnson, who works for Action on Hearing Loss Cymru in Bangor.

“It’s so important to support local producers – to reduce your carbon footprint, and to create healthy, sustainable communities,” said Ms Johnson.

Source: BBC Wales news

It’s a myth that every portable electrical appliance in the workplace needs to be tested once a year – and what’s more it’s a costly one.

Misleading advice and advertising, often by companies who offer the testing, is contributing to low-risk businesses such as offices, shops and hotels paying unnecessarily for over-the-top maintenance regimes. Read the full article

46 new jobs created in South Wales; 90,000 call-centre contacts in 2012/13.

Today (30 April) the Money Advice Service, the UK’s free, independent and impartial source of money advice, announces the award of a three-year contract to Turn2us to provide its customer contact centre.

The Service currently receives an average of 7,000 calls per month and, from 1 July 2012 the handling of these contacts will be undertaken by Money Advice Line staff at Turn2us’ contact centre near Cardiff in South Wales, where 46 new jobs will be created by 2014. In addition, the team will also provide a new webchat service, adding to the number of ways people can access impartial advice.

Commenting on the signing of the contract, Karen Broughton, Marketing and Service Delivery Director for the Money Advice Service said:
“We are committed to offering a Service that’s free and accessible for everyone. Providing advice over the phone is an essential part of our Service, and Turn2us has a great track record of delivery in this field. I’m delighted to be working with them to reach many thousands of people who will benefit from our help to better manage their money.”

Alison Taylor, the Director of Turn2us said:

“The Money Advice Service is doing some great work, and being accessible over the phone with free and independent advice is fantastic. We are very pleased to be one of its frontline providers and look forward to helping thousands of its customers in the coming years.”
The contract was awarded following a competitive tender process and is worth £4m over three years.

The Mon FM Soul Team and DJ’s Vaughan Evans and Derek Bagnall are hosting the night at the Wellmans Sports Social Club, Industrial Estate Road, Cefni, Llangefni. Doors open at 7.30pm to 1.30am. All proceeds will go to Kiddyland Nursery Community Interest Company. Tickets cost £5 on the door.

Rhian Edwards from the Wales Co-operative Centre has been working with Cilydd since early 2011 and helped the consortia incorporate earlier this year. She has supported them with the development of their consortia business structure and overall strategy, and is now supporting the development of a business and supporting marketing planning.

Cris Martindale of Caffi Cristobal is a wholesaler of loose-leaf teas, coffee roasters and a beverage consultant. Cilydd was founded when Cris organised a meeting of his clients in North Wales to discuss developments in their industry. Cris takes up the story in his own words.

“This is an idea which grew out of a mistake.

I have been associated with the tea and coffee trade for almost forty years. I moved to Wales four years ago to start a tea and coffee wholesalers called Caffi Cristobal supplying cafes, bistros, restaurants and some hotels throughout the Conwy valley and Gwynedd .This experience soon convinced me that the traditional model was no longer fit for purpose. To understand why this is the case it is necessary to see the broader picture.

Looking at the American model of coffee shop it is clear that the independent coffee shop with a genuine idiosyncrasy and access to a much wider range of coffee than the “superstores” is (like micro-breweries in the UK) gaining a larger share of the market. Interestingly when Mr Schultz took up the reins of Starbucks again after the chain began to lose market share he spoke of individualisation –of each shop having a distinctive character. In order for this more sophisticated approach to happen the traditional separation between Grower-roaster –retailer –needs to change. The owner of a small independent coffee shop now needs to have a knowledge of roasting and access to a wide variety of coffees so that her/his coffee offering is part of the overall independent package.

The tea trade is, if anything undergoing an even greater evolution. (Being now where the wine trade was 30 years ago.) The development of the internet as part of globalisation and the shift within China (the greatest tea producer in the world-India produces 10 types of tea, China in the region of 8000.)to a market economy have meant that tea from China is readily available. This new access was first taken up on the West coast of America and has since then moved rapidly east. Loose leaf tea sales quadrupled in the USA between 2002 and 2008 to $6.7 billion dollars. These changes have now arrived in the UK. All cities have specialist tea shops whose popularity is centred in the 18-35 age groups –a group who are health conscious and who want something other than the usual cup of “jo”.

With the above in mind two years ago I organised a meeting of all my clients. What came out of that meeting was a common commitment to being individual and at the same time a feeling of isolation and impotence in a world entering into recession and dominated by the big companies. It was agreed that in future we should meet regularly with a view to finding ways of co-operating with marketing, buying, education and the setting of standards. A local poet suggested a name (Cilydd-together.) a slogan “Dilynn y Ddeilen=Follow the leaf) and ,having commissioned a local artist to produce a map of North Wales we had distributed copies of this and a leaflet giving information about who we are and where we are to be found to all members. This has been successful.

Building on this we have had a two day seminar on roasting and coffee making from a member of the London school of Coffee, several tea tasting seminars and discussion about how we wish to grow. Eighteen months ago we approached the Wales Co-operative Centre and have been working closely with them. On 23 January 2012 (Chinese new year and the beginning of the Year of the Dragon) Cilydd became a not for profit limited liability company open to all cafes etc. in Wales who subscribe to our values-on using local products, offering a knowledgeable and courteous service and leaving the minimum carbon footprint possible.

Our ambitions do not end here. We are already the largest concentration of “tea specialists “outside London and intend to build on this. At the moment we are working on the finishing touches to a Business plan with a view to seeking sponsorship in the near future and working on a marketing strategy. For historical reasons Welsh independent businesses often feel as if they are on the back foot. We no longer feel this way. We are looking to create a coffee and tea culture in Wales which is a market leader in the UK, supported by a Welsh tea and Coffee Council and by establishing a co-operative Roaster will be able to buy directly from the growers (as we do already with many Chinese and Indian teas) so eliminating the middle man, I set out to become , four years ago.”

Rhian Edwards commented, ‘Cilydd is an exemplary example of how consortia working can add value to businesses in Wales. Although Cilydd was originally set up as a tea-buying consortium it has developed and expanded to look at joint marketing approaches, quality standards and training and has ambitions to expand and develop further. At the Wales Co-operative Centre we have been able to help Cilydd focus their direction, incorporate the group as a consortia business and are in the process of developing their long term business and marketing planning. We look forward to working with this exciting co-operative further as they grow and blossom.”

If you would like to know more about the potential benefits of consortia working and how the Wales Co-operative Centre can help you to form a consortia, visit our working with other businesses pages on the www.walescooperative.org website or email us at info@walescooperative.org

Over the year, £15m went out to customers in loans.

The Welsh government launched a £4m programme in 2010 to help credit unions increase support to “financially excluded” people.

It says they can help tackle the activities of illegal loan sharks, with safe and affordable alternatives.

The credit unions are spread throughout Wales. In north Wales, five of the six credit unions combined last year to form North Wales Credit Union.

It has seen lending increase by 20% over the last year to £2m among its 10,000 adult members. There are also 2,000 junior members.

Chair John Killion said despite a 12% rise in members, the not-for-profit organisation had also seen a rise in the number of bad debts, despite people’s best intentions.

‘Bucks the trend’

“People who have had loans and are very reliable have been made redundant and found it difficult,” he said.

Loans issued through credit unions are insured by the organisations. But the money they lend to borrowers is a proportion of the cash members have saved.

Mr Killion said, unlike banks, credit unions are not driven by profit and can also give financial assistance to people who would not normally receive support from high street lenders.

Bill Hudson, who manages the All Wales Credit Support Programme, said the rise in credit union members “bucks the trend” seen by other lenders.

The programme, supported by the Welsh government and the Welsh European Funding Office, gives business support to Wales’ credit unions.

Mr Hudson said the rise in members was partly due to their good terms and the fact that more people were becoming aware of credit unions.

And, at a time when high street banks are closing some branches, credit unions are available at the heart of communities with volunteers running services at local buildings such as community centres.

Mr Hudson said during the economic downturn attitudes to debt had changed among customers who are trying to be wiser with their money rather than having loans “left, right and centre” as they did three to four years ago.

“Now people are thinking debt is not healthy and they are trying to save a bit,” he said.

How credit unions work

• Credit unions are not for profit, owned by members with no external shareholders
• By law the amount of interest charged by a credit union can be no more than 2% a month – that’s an APR of 26.8%
• In reality, many credit unions offer loans of 1% a month, equivalent to 12.7% APR
• There are no set up fees or early redemption fees
• Some credit unions limit borrowing to a proportion or multiples of cash deposited by members
• Some credit unions operate more like banks, including offering current accounts
• Credit unions are regulated the same way as banks

Source: All Wales Credit Support Programme

Source: BBC News 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.

The report ‘Employee Ownership: Defusing the business succession time bomb in Wales’ can be downloaded from the Wales Co-operative Centre’s website here.

The Wales Co-operative Centre’s Business Succession Team is running a series of business succession roadshows in Swansea, Caerphilly, Bangor and Ruthin. Further information and ticket booking facilities are available on the website here.

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.

The Public Services (Social Value) Act requires local authorities and other public bodies to look at the social value of competing tenders as well as best price when awarding contracts. It is hoped that this will help social enterprises and charities to compete more fairly with larger firms for public sector contracts.

The Bill has a limited scope in Wales as Welsh public bodies that exercise wholly or mainly devolved functions are excluded from its remit. However, Welsh Social Enterprise Coalition Chief Executive, John Bennett, said that social enterprises in Wales should welcome the news.

He said “Whilst its application in Wales is limited, the passing of the Public Services Bill is certainly a step in the right direction. Across the UK, many social enterprises have been overlooked when bidding for public sector contracts but this legislation means that the added value social enterprises offer, in terms of the social impact they have, will be recognised in the tendering process.”

As businesses that exist primarily for a social or environmental purpose, social enterprises are well positioned to offer the best overall value when awarding contracts. Profits are pumped back into the community and into its social mission rather than concentrated in the hands of shareholders or owners.

Whilst a number of local authorities in Wales already factor in community benefit into the tendering system, many don’t. Progress is being made through a series of initiatives including the Welsh Government’s community benefits approach, which has been used in over £3 billion worth of projects across Wales, helping to sustain and create jobs and generate other opportunities for local communities.

Policies to increase the numbers of contracts being awarded to Welsh companies, widening the advertisement of lower value contracts and the simplification of the pre-qualification process (PQQ) are helping to break down the barriers to public contracts for Welsh social enterprises but there is still a lot more to do.

John Bennett added: “The public sector in Wales spends over £5 billion a year on goods and services and if we truly want to make procurement work for the Welsh economy and our communities, we need to ensure that it delivers significant social as well as economic benefits.”

Source: Welsh Social Enterprise Coalition

They’re calling on you to nominate inspirational social entrepreneurs. If you know someone running a project or organisation that is having a significant positive impact on the community, we want to hear from you.

It could be someone who runs an educational club that takes young people off the streets and gives them a constructive and positive hobby or someone helping to provide local healthy food for the community by running communal gardens. We want to celebrate inspiring individuals who are coming up with innovative and enterprising solutions to help tackle social issues.

The winner of the competition will be featured in an interview published in The Sunday Times newspaper, be awarded £500 from Media Trust to further their work through digital media and receive a raft of professional media support from The Sunday Times*. The winner will also be showcased in a special episode of UK360 on Community Channel, a programme dedicated to sharing the most inspiring local stories from across the UK.

All nominees must be available for interview with The Sunday Times and Community Channel journalists, and for filming the UK360 episode, during the week of Monday 2 April 2012.

The closing date for entries is Wednesday 28 March 2012 at 12pm. Enter now!