Archive for October 2012
Welsh duo bid for global gains at Co-operatives United
PrimePac Solutions busy networking with Brazilian delegates at Co-operatives United, earlier today (Wednesday)
Tomorrow, at the ICA Expo ‘Co-operatives United’, two Welsh co-operatives will go in front of an international audience in a bid to sell their products and services. The hosted buyers workshop at the event, being held at the Manchester Central, could be attended by up to thirty companies looking to do deals with Dulas Ltd and PrimePac Solutions.
Both are also exhibiting alongside the Wales Co-operative Centre and the Co-operative Group who have sponsored the Co-operatives in Wales stand.
PrimePac’s Managing Director, Steve Meredith has told us how he has prepared for the event and how he is feeling ahead of the meet the buyer session:
I have exhibited PrimePac’s services and capabilities at numerous exhibitions with, to be honest, limited success. Networking is the most you can hope for. I live in hope but don’t expect anyone to visit any exhibition stand with a need for a million sachets. But who knows?
Usually I am just one of the many companies vying for the attention of the buyers attending. The difficult part is to know who the buyer is. I have often mused that if only they would make the buyer, who is actually keen to develop a business proposal, wear a big orange hat! Never going to happen, so the challenge is similar to a shop or pub worker who has a secret customer who will appear at any time, you have to keep positive and read name tags fast. The hardest thing for me is to smile when I know the visitor, although maybe interested, is never going to raise an enquiry or place an order. Worse still is the salesman who wants to sell me something when I am trying to sell, and as you’re talking to this visitor you see the buyer you really want to talk to walk past, straight into the outstretched business card of a competitor.
Enough negatives and whinges, in sales every ‘no’ means you’re closer to the next ‘yes’.
Contract packing is a strange sell. I basically sell machine time, as the products are not mine they are my customer’s. In the past I have stood there with all the sachets, bottles and packs previously made at PrimePac scattered and arranged around me, thinking everyone knew what a contract packer does, and the sad fact is that they don’t.
So at the ICA Expo I am going minimalist. No samples of other people’s products, it’s stripped to bare bones…a few PrimePac sachets and bottles and two pop-up banners. My first aim this time is to make sure people know what we do and what a contract packer can offer. Fingers crossed on that one! Apologies for my scepticism but last time I stood there with samples of all sorts and a large poster behind, professing that PrimePac is a great contract packer, packing sachets, bottles, strip and blister packs only to be asked what I did and if I had anything to clean the wheels on their van! But as always keep smiling, well try to anyway.
Sales are key to any business. It’s what feeds the hungry mouths otherwise known as employees and members. It’s what drives me to think that the next yes is just after the last no.
Cup half full at the moment, but what will I be like two days into the event? Smiling and pleasant or will the veil slip and a glimpse of a salesman trying to keep a multimillion-pound business fed, peep through?
The last few days I have designed the banners and set about putting PowerPoints and videos onto my iPad! So now I have an iCloud account, a Dropbox and some mpg to mp4 converter software. Whoever says Apple, iTunes and iPads are easy is very much respected by me. I struggle to find my way around the forums but it looks like I have made it.
Having spent the last few days on sales visits and getting everything ready for Manchester, the adventure can begin………….
Welsh Co-operatives Mean Business
Three of the most successful co-operative businesses in Wales are exhibiting at a major international trade fair and expo in Manchester this week. Dairy producers Calon Wen, packing specialists Primepac Solutions and renewables specialists Dulas will be joining the Wales Co-operative Centre and The Co-operative Group at the International Co-operative Alliance’s ‘Co-operatives United’ conference and biennial international trade Expo at the Manchester Central Convention Centre (formerly known as Manchester G-Mex).
The conference and expo, which runs from 29th October to 2nd November, marks the culmination of the United Nations International Year of the Co-operative with a global celebration of co-operative business. The expo is an opportunity for the Welsh co-operative sector to develop trading links with other co-operatives across the world. Wales Co-operative Centre research, commissioned as part of the International Year of Co-operatives, has demonstrated that the co-operative sector in Wales is a key economic driver and this event is an opportunity for the businesses attending to develop trading opportunities across the world.
Calon Wen is a co-operative of 27 family-run farms across Wales who supply organic milk products throughout the UK. The co-operative was developed from a desire to ensure that as much Welsh organic milk is processed in Wales as possible. Since its inception it has developed innovative partnerships with both suppliers and customers and supplies products to most of the main supermarkets in the UK.
Primepac is a worker co-operative created when nineteen staff members invested their redundancy payments in a new employee owned company after the Dutch Company pulled out. They opened a production facility in Ebbw Vale which fills bottles and sachets for clients in a number of sectors. Since they started in 2005 they have grown into a £3 million per year turnover company.
Dulas Ltd was set up by engineers from the Centre for Alternative Technology in Machynlleth to provide professional renewable energy services on a commercial basis. Dulas is owned by its employees, has no external investors and is financed largely through sales. Dulas has won numerous awards for its outstanding performance and innovative products. The company has 110 employees with most at its headquarters in Machynlleth, making it one of the largest employers in the area, as well as an office in Scotland. In 2012, Dulas featured in the Wales Fast Growth 50 for the fourth year in a row.
As well as exhibiting, two of the businesses will also participate in a buyer workshop in front of up to 30 businesses interested in Welsh co-operative produce. Steve Meredith, Sales Director of Primepac Solutions is looking forward to the event, “The ICA Expo is an excellent opportunity to meet with businesses from across the world, to swap ideas, make new contacts and hopefully develop new business opportunities”.
Mike Clay, Marketing Manager at Dulas stated, “We are looking forward to exhibiting at ICA Expo and as we are celebrating our 30th Anniversary in the International Year of the C-ooperatives this will be a landmark moment for us. We hope to hear from organisations interested in how renewable energy can secure power supply, reduce energy costs and deliver the environmental benefits that serve to protect our whole planet”.
Calon Wen’s Marketing Director Richard Arnold states, “Calon Wen is keen to develop and grow its distribution beyond the Welsh borders, with interaction with other cooperative groups high on its agenda”, he continues, “Demonstrating our milk, butter cream and award winning cheeses at an event like ICA Expo, is we hope, going to get us in front of like-minded customers and buyers from across the sector and while its further afield than we’ve ventured recently, we think it looks like it has all the ingredients for an excellent event”.
Derek Walker, Chief Executive of the Wales Co-operative Centre is delighted to be able to work with examples of co-operative success in Wales and help showcase them on a world stage, “Dulas, Primepac and Calon Wen are proof that co-operatives mean business. In Wales, the co-operative and mutual sector contributes in the region of £1billion to the economy. These businesses exemplify the ambition and ability of the co-operative sector in Wales and I wish them luck in developing new markets and gaining new business at this event”.
Mike Ash-Edwards, The Co-operative Group Regional Secretary for Wales, said: “Co-operation has its historical roots in Wales and co-operative ways of working still resonate with communities across the country. In addition to the 400 Co-operative stores and branches owned by our 500,000 members in Wales, there are many more examples of co-operation in action which deserve to be celebrated during the United Nations International Year of Co-operatives. We are very much looking forward to working alongside the Wales Co-operative Centre to showcase an ethical business model that puts control in the hands of workers, members and local communities.”
In Wales, co-operatives and mutuals are estimated to generate in the region of £1billion for the Welsh economy per year. Co-operatives employ in the region of 7,000 people in Wales and the co-operative sector in the UK generates an estimated £25billion in revenue which is equivalent to 2% of UK GDP. The co-operative sector in Wales is sustainable, provides high quality jobs, benefits communities and the environment and is committed to generating growth in Wales.
As well as the Expo activities, the ‘Co-ops in Wales’ stand will feature a host of co-operative related activities. These include daily prize draws to win bottles of Welsh Co-operatively produced Cider, postcards of Welsh co-operatives, cheese tasting and information on the work of the exhibiting co-operatives and the co-operative sector in Wales. Further information on the co-operative sector in Wales and the exhibiting co-operatives can be found at www.coopsinwales.coop
And the winners are…
North Wales Social Enterprises scoop the 2012 Social Enterprise Awards Wales
Three North Wales social enterprises have won categories in this years Social Enterprise Wales Awards which took place today (Friday 19th October) at the Scala Cinema and Arts Centre in Prestatyn.
The awards were hosted by Wales Co-operative Centre and Wales Social Enterprise Coalition and was sponsored by not for profit internet registry company Nominet.
The full list of winners reads as follows:
Kelly Davies, Managing Director, Viability, Conwy; winner of the Social Enterprise Leader of the Year award with Wales Co-operative Centre Chief Executive Derek Walker
Social Enterprise Leader of the Year
Kelly Davies of Vi-ability
Kelly Davies has been Managing Director of Vi-ability for nearly three years. Kelly has succeeded in positioning Vi-ability as one of the leading personal development/employment facing sport industry programmes in UK and Europe for socially disadvantaged participants It produces consistently positive outcomes in relation to engagement, retention and progression.
Kelly was delighted to win the award, “I’m overwhelmed! I really didn’t expect to win after our success in these Awards last year. It shows that we haven’t stood still and we’re still doing something right!”
Wales Co-operative Centre Chief Executive Derek Walker, with Mac McCarthy and Barry Roberts from the North Wales Credit Union, Social Enterprise Start Up of the Year Winner
Social Enterprise Start up of the Year – North Wales Credit Union
North Wales Credit Union is a financial co-operative which provides a wide range of ethical financial services across North Wales. Regulated by the Financial Services Authority, it is the fourth largest financial mutual in Wales. It was formed in January 2011 through the merger of five credit unions. Since then it has been looked to as a model of excellence by credit unions and policymakers from across the UK.
Mac McCarthym from the North Wales Credit Union, commented, “Wow! From our persepective, this award is fantastic. Creating North Wales Credit Union took 18 months of really hard work by both staff and volunteers, and we’re accepting this Award on their behalf.”
Social Enterprise Supporter of the Year – St Illtyd’s Communities First Partnership
Anna Chard, St Illtyds Communities First Partnership, Abertillery, Social Enterprise Supporter of the Year Winner, Wales Co-operative Centre Operations Director Nia Wright Morgan and Wales Co-operative Centre Chief Executive Derek Walker
St Illtyds Communities First is part of a Welsh Government anti-poverty campaign which has been established for 10 years. The team consists of 5 individuals who are dedicated to supporting and encouraging initiatives that make positive changes to the social economy. They work in Llanhilleth Institute supporting communities from Brynithel, Swffryd, Aberbeeg and Llanhilleth. St Illtyd’s Communities First has been responsible for starting up and supporting 3 social enterprises and creating 16 jobs in a socially deprived area of Wales.
Anna Chard from St Illtyd’s Communities First Partnership stated, “Its a real honour to accept this Award on behalf of the Communities First Partnership Board, the staff team and the social enterprises we support.”
Social Enterprise Supporter of the Year – Special Mention
The City & County of Swansea, Housing Renewals & Adaptations Department was singled out for a special mention as an example of a Local Authority who have made a major contribution to supporting the development of a social enterprise. City & County of Swansea has provided support and been available to reflect, counsel and steer changes to other organisations that resulted in the development of social enterprises such as Swansea Care & Repair Services.
Sharon Jones, Chief Executive , Crest Co-operative ,Llandudno Junction, Social Enterprise of the Year Winner with Wales Co-operative Centre Operations Director Nia Wright Morgan
Social Enterprise of the Year – Crest Co-operative
Crest Co-operative operates a number of recycling enterprises including , a food poverty project that distributes in-date food from food manufacturers to the homeless and vulnerable across North Wales; a textile recycling operation throughout Conwy County Borough Council; and finally Crest Co-operative work with North Wales housing associations to clear empty properties and save kitchens/bathrooms from landfill. Crest Co-operative’s work primarily focuses on social and environmental purposes, working to promote social inclusion and at the same time work to save materials and food from landfill. Sharon Jones from Crest Co-operative recieved the award, “I’m speechless. This is a real surprise and its great to win such as prestigious award.”
Wales Co-operative Centre Chief Executive Derek Walker commented, “The quality of nominations this year demonstrated not only the breadth and versatility of the sector but the importance the sector has to communities across Wales. The judges this year had a tough task deciding between a number of very dedicated people and a number of extremely deserving nominees. The winners chosen demonstrate an impressive commitment to their area of expertise and a level of service that is outstanding. We congratulate Crest Co-operative, St Illtyd’s Communities First Partnership, North Wales Credit Union and Kelly Davies and all of the other excellent social enterprises who were shortlisted.”
Not for profit Internet registry company Nominet sponsoredthe Social Enterprise Awards Wales 2012. Nominet run one of the world’s largest Internet registries and manage over ten million domain names. They are entrusted with the safe, stable and secure management of the .uk Internet name space and recently submitted applications for the new .cymru and .wales top level domains. For more information visit www.nominet.org.uk
Employee ownership can drive growth without leaving behind workers rights.
At the Wales Co-operative Centre we have been proposing that engaging employees in ownership schemes could help secure the long term success of businesses in Wales. Employee ownership approaches engage workers and encourage them to take a positive and proactive role in helping their companies grow. Evidence shows that employee ownership is proven to support strategies for business growth as well as importantly laying the foundations for successful business succession for owners across the UK. Employee ownership is a growing economic force across the UK and it is very encouraging to see it on the agenda and stimulating so much debate.
The Wales Co-operative Centre has a dedicated project aimed at promoting the benefits of various forms of employee ownership at governmental level and throughout different business and industrial sectors.
Last week the Chancellor, George Osborne, announced that he intends to set up a new owner-employee contract which will be introduced in April 2013. The contract, which allows owners to award tax free shares worth of between £2000 and £50,000 to their staff, in exchange for staff giving up workplace rights around unfair dismissal, training and redundancy amongst others has added a new twist to the discussion. Many commentators have questioned the link between employee ownership and the requirement to sacrifice worker rights.
Employee ownership can be an opportunity for businesses to re-engage with their employees, reinvigorating the nature of the relationship between the employee and the company. However, this process must be managed to ensure the optimum benefits for everyone involved and should involve wide engagement with employees so they understand what ownership means, how it relates to their position as an employee and how they can enact their rights as owners. Where employee ownership approaches have failed they have generally been where the process is considered purely as a financial transaction with no consideration given to the needs of the various stakeholders involved.
The Chancellor’s approach raises a number of practical questions.
How are shares valued and managed? How will employees be able to make a judgement on the value of their shares against the value of their employee rights? Share values fluctuate according to the performance of the company so there is no way of guaranteeing a value to the shares. It is worth remembering that redundancy options are often presented when a company is not performing well and share values are likely to be lower. Also, how would dividend distribution be agreed and managed?
What voting rights are attached to the shares? What power within the company will a shareholding give the employees? Assuming voting rights will be proportional to shareholding the employees will be minority shareholders so could have little power attached to their shareholding.
So if an employee takes up this approach, or, is forced into a situation where they have to accept it as part of a contract when starting a new job, what, if any, safeguards are there for them?
The Wales Co-operative Centre always makes it very clear when working with employee groups that they are employees first and shareholders second. Ultimately their shareholding isn’t worth anything if they don’t fulfil their roles and responsibilities as employees. With this approach the employee ownership is both the carrot and the stick – a company that performs well is able to offer bonuses or dividends, a company that underperforms will not. It is intrinsically in the employee’s interests to work towards making the company a success. The Chancellor’s new policy announcement could put employees in a position where they have to choose between being an employee with employment rights and being a shareholder with rights to a share of any profits created. The roles of employee and shareholder in an employee owned organisation should compliment each other for the long term benefit of the business.
As an organisation we look forward to examining the finer details of the Chancellor’s proposal when they emerge.
In the meantime, owners will still be able to choose to implement employee ownership and offer its benefits without insisting on the withdrawal of the rights of its workers. This has the potential to create a whole sector of partially employee owned businesses whose employees are engaged, innovative and committed to developing their businesses and helping them grow
Rhian Edwards is manager of the Business Succession project at the Wales Co-operative Centre. Her team works with micro-businesses and SME’s across Wales to develop employee ownership approaches and employee ownership based succession planning.
This article first appeared in the Western Mail on Wednesday 17th October 2012.
Money problems do not have to lead to homelessness
Katija Dew
Project aims to safeguard rent payments for vulnerable tenants
On International Credit Union Day (Thursday 18th October), Katija Dew, Programme Director for Financial Inclusion at the Wales Co-operative Centre, and Welsh Government Financial Inclusion Champion for Wales, looks at the potential effect of Universal Credit on vulnerable tenants and how a new project could utilise credit unions to safeguard rent payments.
With just under a year to go before Universal Credit is introduced it is fitting to use International Credit Union Day to look at some of the effects that financial exclusion has on citizens in Wales. It is an opportunity to look at how schemes advocating responsible financial products can help safeguard tenants and vulnerable people in our society.
Universal Credit is due to start rolling out in October 2013 and it will have a huge impact on those claiming benefits. The new system will replace the majority of individual payments including tax credits, income support, jobseekers allowance, housing benefits, and some sickness or disability benefits. The approach is intended to simplify an existing system that most people agree is extremely complicated and its planned application raises issues around inclusion and vulnerability.
The payment will be made on a monthly basis to one person, irrespective of the number of people within the household that claim together. That recipient is then responsible for ensuring that the money paid for that month is used for family expenditure such as rent, fuel and heating, food and clothing.
Whilst this approach appears logical for the majority of households, there are a number of issues that could mean that benefits are not used to their best effect, so effectively reducing household income even further. ‘Financially excluded’ tenants, who may not be able to open a bank account or who may fear bank charges and manage by using cash find themselves paying more for day to day living. Those who don’t know how to manage their money well, or lack the financial education to prioritise debt effectively sometimes opt to use their benefits to pay debts on a perceived need basis – for instance paying off a short term loan as the company is literally on the doorstep. As an example of other difficulties people may face; those living in an abusive relationship or other dependency problems may find that the family does not see the money they are supposed to live on.
Beyond the change to the method of benefit payment, there are very significant changes to eligibility for benefits and the level at which they are paid. There are already an increasing number of households who find that their benefits will not cover their rent. This poses a real risk of homelessness and hardship. When Universal Credit is introduced most people who have their rent paid directly by benefits will have to manage the payments themselves. If the recipients have debts, problems with using bank accounts or don’t understand how to manage their money well, this means that the rent may not be paid.
At the Wales Co-operative Centre, we are working to support those most at risk of eviction and homelessness due to problems with managing their money.
Our Tackling Homelessness through Financial Inclusion (THFI) project seeks to support vulnerable tenants through the administration of their benefit through a ‘Credit Union Rent Account’. The project has been running across Wales since October 2011, and is funded by the Oak Foundation and Welsh Government. Its aim is to develop a credit union rent account model where none exists within a local authority, and to promote the scheme to private landlords and tenants to maximise take up.
The Credit Union Rent Account process is simple – the tenant joins a credit union and instructs the Local Authority to pay the benefit into a rent account. The benefit is ring-fenced and paid to the landlord (who pays a small administration fee to the Credit Union). This helps the tenant budget and by becoming a member of the Credit Union they get access to the other products a Credit Union can offer, such as low-cost loans and savings accounts. The tenant still retains control of their benefit. The landlord benefits from a degree of assurance that housing benefit is being used to pay rent.
Bristol Credit Union has provided a rent account scheme since 2008. Bristol Credit Union Chief Executive, James Berry comments, “Our members are fully in control of their account, and landlords like the fact that they are notified of any changes a member makes to the account, in advance to the change taking place. Tenants also particularly appreciate having rent ring-fenced in a jam-jar account as it means they have less of a worry about making sure the rent is paid.” Welsh Credit Unions are working hard to develop ideas further to suit their localised needs. For instance Neath Port Talbot Credit Union has provided a rent account model for over two years. By becoming a member of the Credit Union, over 76% of tenants on this scheme now have loans with Neath Port Talbot Credit Union where otherwise they may approached a high interest loan provider.
There are clear benefits to introducing vulnerable benefit claimants to a credit union now, prior to the introduction of Universal Credit. Credit unions are developing budgeting accounts, known as ‘jam jar’ accounts, to help support vulnerable people to budget for priority debt – ring-fencing priority payments such as rent. This will help vulnerable people, who will receive housing benefit within a larger single payment, to prioritise the rent going forward. Action now to support innovative models such as the credit union rent account will help mitigate against the impact of Welfare Benefit Reform, but this action is needed quickly so that people are prepared for the changes.
Vulnerable people need not be financially excluded in Wales. With co-operation and communication between accountable financial institutions, local government and other stakeholders we can ensure that our vulnerable and at risk citizens have the means to access responsible financial services and have the security of a home and food for their families.
Marketing businesses shine together – under one umbrella
A group of three successful business people are coming together under the umbrella of a new co-operative company. ‘That Useful Company’ will be launched at the Business Network Exhibition at the Vale Resort in Cardiff (Thursday 4th October). The three Swansea-based colleagues, who each work as individual businesses, have formed a consortium to deliver a wide range of bespoke marketing services to clients across Wales. ‘That Useful Company’ was created as a means of allowing the individual members to tender for larger contracts and to offer a wider range of services to their existing customers.
Marketing services under one umbrella – That Useful Company and Sarah Owens from Wales Co-operative Centre
Support for That Useful Company has come from the Wales Co-operative Centre, funded through the European Regional Development Fund and Welsh Government. The Wales Co-operative Centre’s Consortia development team worked with the members of That Useful Company to form their aims and objectives and to incorporate the business. The three members of That Useful Company, Natalie Reynolds, Ben Wheeler and Matthew Pugh, chose a consortium approach as it allows the individual businesses to operate independently and maintain their own identity, but also to collaborate and work for larger clients to help grow their businesses. That Useful Company will be able to offer an integrated range of marketing services including marketing strategy, social media, web design, branding, email marketing and print.
Natalie Reynolds, who runs a successful social media business explained why she chose this approach, ‘After seeing my business grow rapidly in just 18 months I was often asked how I would grow my business further, however employing staff didn’t seem the most appropriate option as the services that I provide are based on my experience. Instead I chose to get a group of marketing professionals together to see if we could collaborate, providing support and sharing our experiences to enhance the services we offer our clients. We worked with the Wales Co-operative Centre to put a formal structure to our group with the intention of pitching for larger contracts to help expand our individual businesses’.
Ben Wheeler is a website designer and software developer. He remarked, ‘I’ve worked for myself and built a successful business over the last 4 years; but when I was approached about collaborating with other individuals to be able to work for larger clients and share resources while still being able to keep my own business identity and clients as well, I thought the idea was fantastic and suited my growth plans well. The Wales Co-operative Centre has been excellent in supporting us to achieve this’.
Matthew Pugh’s expertise in design and print had led him to work with Natalie and Ben on several occasions before joining them in forming the consortium, ‘Having worked collaboratively with Ben and Nat for clients it seemed to be the logical step forward for my business to work within this new company. A specifically created cooperative between us gives us all greater weight when approaching larger clients and as a cooperative group we are able to support each others individual businesses and maintain the identity of our own companies. That Useful Company enables us to offer a greater range of benefits and services to existing clients and also gives greater stability and security to my individual company in the future”.
Marketing consortium. (L-r) Ben Wheeler, Matthew Pugh and Natalie Reynolds
The consortium was formed from a group of friends and colleagues developed through small business network events. Fittingly, the consortium’s first large piece of work is for a business network. That Useful Company ran the marketing campaign the Business Network Exhibition– managing the branding, website, flyers, newspaper advertising, social media stream and Facebook data capture.
Sarah Owens, the Development Officer who worked with That Useful Company from its initial meeting through to its incorporation as a company limited by shares stated, ‘It was great to work with the creative team at That Useful Company. Natalie, Ben and Matthew have an innovative approach to growing their business which builds on their individual strengths and allows them to continue to develop their own businesses independently of the consortium’.
Wales Co-operative Centre Business Succession and Consortia Project Manager Rhian Edwards commented,
‘Wales is dependent on its micro business sector. The sector accounts for 94.5% of all businesses in Wales. The Micro Business Task and Finish Group Report supported the consortia approach to give micro businesses better access to public sector procurement opportunities. The launch of ‘That Useful Company’ demonstrates the ambition within the Welsh micro-business sector to grow and expand and to service larger contracts and we wish Natalie, Ben and Matthew the best of luck with this new venture’.
Further information on the benefits of consortia for business are available on the Wales Co-operative Centre’s website www.walescooperative.org. Find out more about That Useful Company at www.thatusefulcompany.co.uk from Thursday.
Wales Co-operative Centre 