Anderton unveils another tool to help business

By COLIN JAMES

The Government is about to unveil a scheme aimed at helping promising companies make the best use of its vast array of programmes intended to assist business.

The latest in Industry and Regional Development Minister Jim Anderton's bulging toolbox of programmes aims to "fast-forward" firms with potential for high growth over barriers to realising that potential.

Too often, ministers say, companies reach a size with which an entrepreneur feels comfortable and stop there. They want more out of them.

The cabinet approved "fast forward" last Monday, and will formally announce it this week. Three pilots will begin early next year in Dunedin, Taranaki and maybe West Auckland. Funding at this point goes only to June 30 but will be extended if the pilots show promise.

"Fast forward" meshes with two other new schemes also to be announced this week. One will foster the development of clusters, such as the emerging computer graphics group in Dunedin. The other, called "world-class New Zealanders", will send young entrepreneurs and executives overseas for study, work experience and to seek ideas they can apply on return.

The aim of "fast forward" is to identify businesses with high growth potential which are at a "step-change" stage but uncertain whether or how to take that step - whether into exports, higher production, developing a strategic plan or systems, making new investments or taking on more staff.

Industry New Zealand will intensively case-manage qualifying businesses' access to all relevant government assistance.

Ministers are sensitive to recent criticism (Business Herald, November 26) that small businesses can't hack their way through the jungle of acronyms that make up the sprawling array of agencies offering help and their equally confusing array of programmes. The new programme is a sort of first-stop shop.

It links to other Government agencies such as the Foundation for Research, Science and Technology, Technology NZ, Investment NZ, Trade NZ and the Maori business facilitation service in Te Puni Kokiri (the Ministry of Maori Development).

Each agency now tends to deal with businesses in a "silo" approach, focused on that agency's programmes and not the overall needs of the company.

"What is available is fragmented," says Sharon Brownie, Industry NZ's general manager for regional development and coordination, who is heading the project.

"Fast forward" has also been developed with help from chambers of commerce, regional economic development associations (there is a strong regional focus) and local councils.

Which businesses qualify for case management will be decided by criteria developed from the pilots.

The same goes for "graduation" criteria under which assistance will be ended.

The Ministry of Economic Development says between 200 and 500 businesses might qualify.

How will they be found? Some will find themselves. More likely they will be identified by Industry NZ's or other agencies' field officers, or referred by the chambers or economic development association.

Ms Brownie, formerly Whangarei regional commissioner for Work and Income, insists run-of-the-mill companies will not be targeted.

"We're here to make a difference."

She also insists this is not life-support hand-holding.

"It is very much helping businesses to help themselves."

The cluster programme builds on the notion, spelt out by Small Business Minister Pete Hodgson at the regional development conference last month, that by getting businesses to exploit complementarities, though remaining rivals, the total performance of a group can be greater than the sum of the businesses involved.

The models are Silicon Valley and the north Italy clusters in leather and textiles. There are funds to support 15 clusters through to June.

"World-class New Zealanders" hooks into "fast-forward" by funding young entrepreneurs and people from "fast-forward" firms to go overseas and, in Ms Brownie's words, "be mentored, nurtured and grow" and bring back expertise and ideas to apply here.

* ColinJames@synapsis.co.nz