16 APR ASSISTING SMALL BUSINESSES IN 2024 – HOW UNIVERSITIES CAN HELP!

IMPACT OF THE CURRENT RECESSION ON SMALL BUSINESSES

The UK economy has faced significant challenges, indicating a recession period which is why it is more important than ever to be assisting small businesses in 2024. According to the Office for National Statistics, the UK’s Gross Domestic Product (GDP) declined by 0.3% in the last quarter of 2023, following a 0.1% contraction in the third quarter, marking the UK’s entrance into a technical recession characterised by two consecutive quarters of negative economic growth. This downturn reflects the most significant GDP fall since the first quarter of 2021 and signals stagnation, which has been prevalent for nearly two years. Factors contributing to this situation include geopolitical tensions, the aftermath of Brexit, and other internal economic pressures.

The recession’s impact on small businesses has been profound, particularly in sectors that rely heavily on consumer spending and confidence. Industries like retail, hospitality, and leisure have been hit hardest due to decreased disposable income and cautious spending habits. Conversely, specific sectors might be experiencing growth, such as technology and digital services, driven by the ongoing digital transformation and increased reliance on remote working tools and services. These sectors may thrive due to their adaptability to changing consumer preferences and the shift towards online platforms.

In response to these challenges, universities in the UK have been stepping up to support small businesses and encourage economic revival. 

HOW ARE UNIVERSITIES HELPING SMALL BUSINESSES?

UK universities are significantly assisting universities in 2024 to support and foster growth through various innovative programs, focusing mainly on accelerator programs, incubators for start-up businesses, and other forms of assistance like funding internships.

University Accelerator Programs and Incubators

Oxford University’s Startup Incubator is a prime example of how universities nurture new ventures. Aimed at members and ex-members of the University of Oxford, the incubator offers tailored support to entrepreneurs from the idea stage or to more mature ventures seeking acceleration. Since its inception in 2011, it has supported over 80 startups across diverse fields, helping them attract over $70 million in funding from public and private sources. The program offers advice, mentoring, accelerator programs, incubator facilities, funding support, and cloud computing services, among other support​ services (Oxford University Innovation).

King’s College London’s Entrepreneurship Institute also plays a pivotal role with its King’s Start-up Accelerator, supporting ventures with the potential to make significant societal impacts, such as in climate change or healthcare. The accelerator, part of a broader initiative that has supported over 140 ventures since 2016, offers access to office space, intensive program support, coaching from experts, and access to the King’s Investor Network. This initiative has proven remarkably successful, with ventures raising £100 million in investment and generating over £83.5 million in revenue while creating jobs for more than 1,200 people​ (King’s College London)​.

The University of York’s Phase One Incubator Programme, hosted at York Science Park, is designed to nurture digital, creative, tech, and science startups. This initiative offers a supportive environment for pre-startups or businesses under 12 months old, providing them with advice, workshops, and mentoring. Located at The Catalyst in the heart of the University of York’s Campus East, Phase One facilitates access to a network of partners, promoting growth and innovation among its members.

As a participant in the University of York’s Phase One Incubator Programme, we at Venturi Marketing have honed our ability to offer specialised business consultations that propel small businesses forward. Our journey with the incubator gave us unique insights into developing strategies that enhance a brand’s digital presence and market growth. We’re passionate about crafting customised marketing solutions to support your business objectives.

Currently Assisting Businesses in 2024:

These universities don’t just focus on budding entrepreneurs but also offer significant support to existing businesses. This includes:

• Mentorship and Expertise: Through their accelerator and incubator programs, universities provide mentorship from seasoned entrepreneurs and access to a broad network of experts. This helps existing businesses navigate challenges and growth opportunities more effectively.
• Funding Internships: By funding internships, universities facilitate a valuable exchange where businesses gain fresh insights and workforce support while students gain real-world experience. This symbiotic relationship often leads to innovative solutions for the companies involved and invaluable practical experience for students.

Future Directions

While current programs have shown success, there’s always room for improvement. Universities could enhance their offerings by:

• Expanding Access to Resources: Increasing the availability of physical and digital resources to a broader range of startups and small businesses.
• Strengthening Community Connections: Developing more robust networks that connect university-supported startups with local businesses and industries could foster a more vibrant entrepreneurial ecosystem.
• Enhancing Funding Opportunities: Facilitating more direct investment opportunities and financial support for startups and small businesses at various stages of growth.

The existing university-led programs and institutions have demonstrated effectiveness in supporting the launch and growth of new businesses. By continuing to evolve these programs and addressing areas for improvement, universities can significantly bolster their role in nurturing entrepreneurial talent and supporting the small business sector amidst the challenges and opportunities of the current economy.

ARE THE PROGRAMS AND INSTITUTIONS GOOD ENOUGH?

University-funded and led programs, including accelerators and incubators, play a crucial role in helping students and alumni start and scale their businesses. These programs offer a range of supports such as mentoring, training, access to co-working spaces, and funding opportunities. For instance, Northeastern University’s IDEA accelerator provides $30,000 in grants and has launched programs like WeLaunch and WeBuild to support non-binary or female founders. Similarly, the University of Edinburgh’s Startup Summer Accelerator focuses on sustainable startups, offering £3,000 in funding and a 12-week intensive program.

While these programs have shown significant success, improvements can be made in some areas to be better assisting small businesses in 2024. One common issue is that the focus can sometimes be too academic not as closely aligned with the practical, real-world challenges of starting a business. Furthermore, while providing valuable resources, the competitive nature of these programs can sometimes exclude promising ventures due to stringent eligibility criteria or the intensive application process.

To enhance their effectiveness, universities could:

• Broaden Accessibility: Making programs more inclusive by relaxing some eligibility criteria and providing more support for early-stage ideas.
• Increase Practical Exposure: Incorporating more real-world business challenges into the curriculum and expanding co-op programs like Northeastern’s allows students to work at startups.
• Strengthen Support for Post-Program Growth: Extending the support phase even after the official end of the accelerator or incubator program to help startups navigate growth challenges.
• Expand Network Access: Providing more opportunities for networking with investors, alumni entrepreneurs, and industry experts to open up more avenues for mentorship and funding.

Robert Gordon University’s Startup Accelerator exemplifies a comprehensive approach by offering structured skills development, equity-free funding, and co-working spaces. It aims to have a broad impact across all sectors.

In conclusion, while university-led startup programs have made significant strides in supporting entrepreneurial initiatives, there’s a continuous need for evolution and adaptation to serve startups’ and the market’s changing needs better. Expanding access, focusing on practical experience, and providing ongoing support are key areas that can enhance the value of these programs for budding entrepreneurs.