Training And Enterprise Councils Research Articles

Local employer engagement or distant elites? Local enterprise partnerships and employment and skills in England

ABSTRACTThis paper investigates the responsibilities and membership of Local Enterprise Partnerships (LEPs) in England in the light of devolution of employment and skills responsibilities. Through the theoretical lens of ‘hollowing out’ and a direct comparison with the late-Thatcherite Training and Enterprise Councils (TECs) of the 1990s, the paper argues that LEPs represent a fresh, market-driven attempt by the government to alter the institutional framework for meeting local labour market needs through ‘local business leadership’. However, through a synthesis of publicly available data across all LEPs, the paper shows that while LEPs assume important strategic and practical roles, their structure, resourcing and sectoral affiliations are poorly aligned for the engagement of local employers. Rather, it is argued, LEPs may be characterised as distant business elites, with only weak connections to local employment and skills priorities. Conclusions are drawn about the implications of distant and elite LEPs boards for future employment and skills policy.

LOCAL ECONOMIC DEVELOPMENT INITIATIVES AND THE TRANSITION FROM TRAINING AND ENTERPRISE COUNCILS TO NEW INSTITUTIONAL STRUCTURES IN ENGLAND

Current British government economic development policy emphasises regional and sub-regional scale, multi-agent initiatives that form part of national frameworks to encourage a ‘bottom up’ approach to economic development. An emphasis on local multi-agent initiatives was also the mission of Training and Enterprise Councils (TECs). Using new survey evidence this article tracks the progress of a number of initiatives established under the TECs, using the TEC Discretionary Fund as an example. It assesses the ability of successor bodies to be more effective in promoting local economic development. Survey evidence is used to confirm that many projects previously set up by the TECs continue to operate successfully under new partnership arrangements. However as new structures have developed, and policy has become more centralized, it is less likely that similar local initiatives will be developed in future. There is evidence to suggest that with the end of the TECs a gap has emerged in the institutional infrastructure for local economic development, particularly with regard to workforce development. Much will depend in future on how the Regional Development Agencies deploy their growing power and resources.

Managing retention under he new skills agenda

Colleges may be well placed to compete with industry training providers if retention continues to be a key factor in attracting and retaining funding under the Learning and Skills Council (LSC), but college managers will need to be proactive in their approach. Issues concerned with the retention and early leaving, or drop out of students have assumed renewed significance and emphasis in the further education (FE) sector since incorporation. Under the new LSC, where value for money is a key measure of success, increasing recruitment, improving retention and seeking to understand and address early leaving, from a wide range of education and training programmes, are set to remain high on the agenda, for managers working in FE and industry training organisation. This article summarises research carried out with training provider managers to explore strategies to improve retention on training programmes previously funded by the Training and Enterprise Councils (TECs). The article concludes that, staff employed by training providers to support trainees and provide training, are a key factor in reducing the rate of early leaving. Provision of monitoring, support and guidance is a key factor for improving retention, although not all factors affecting retention can be controlled by training provider managers, especially when trainees’ decisions are influenced by financial considerations.

The End of TECs: A Challenge for Partners and Successor Bodies to Maintain Discretionary Activity

This paper examines the scale and form of discretionary activity in Training and Enterprise Councils (TECs). Discretionary activity was a key aspect of TECs. In particular it underpinned their role to be flexible local agents offering leadership and finance to lever partnerships with other agents. The paper examines TEC discretionary activity at the peak of its development in 2000. This amounted to about 200m per annum. Their activity covered fields of economic development, business support, education and training, and workforce development. TECs were abolished from April 2001. The paper examines the challenges faced by successor bodies (the Learning and Skills Council, Regional Development Agencies, and the Small Business Service) in maintaining significant local initiatives. TEC projects chiefly depended on the TEC for both leadership and finance. Without a continuation of both, many local projects will disappear and employer commitment is endangered. Employer commitment is shown chiefly to have involved large national firms, or significant local and regional employers. Their commitments and the need for leadership appear to be the most fragile elements, which are hence most vulnerable.

The Impact of Collaboration Between Industry and Academia on SME Growth

One important aspect in the small firm sector is the increased provision of training available to encourage small businesses to expand and develop their knowledge base. In the belief that new small firms can generate a number of new jobs at a time of high unemployment, the UK government in the early 1980s developed public policy to encourage small firm formation and growth. Measures have been enacted to assist small firms in the UK in areas of taxation, education, funding and placement schemes. (Cross 1983). Although Curran (1986) describes this as a 'heading plunge' into a policy of discrimination in favour of the small enterprise, and is critical of the effectiveness of many of these actions, the measures are a clear indication that public policy and funds are firmly committed to support the small firm sector (Marlow 1992). Since then local support agencies, such as The Training and Enterprise Councils (TECs), and Local Enterprise Councils (LECs) in Scotland, funded by the Department of Trade and Industry and European Union offer professional consultancy advice and training to small firms and their owners. Such agencies offer help in the form of business start-up support and training, management skills and any aspect, which can aid growth in the small firm. However, the indications from the agency consultants have found that not enough owner/managers are utilising this enterprise network to assist business growth (Marlow 1992, Choueke and Armstrong 1998).

Funding Post Compulsory Education and Training: A retrospective analysis of the TEC and FEFC systems and their impact on skills

The way is now being paved for a major upheaval to the post-compulsory education and training system in England. By the time the new Learning and Skills Council (LSC) opens for business on 1 April 2001, the Training and Enterprise Councils (TECs) and the Further Education Funding Council (FEFC) will have been in existence for barely ten years. This paper outlines the funding principles on which the TEC and FEFC systems were established and what this meant in practice. It also traces the consequences these arrangements had for skills delivery. The paper therefore offers a retrospective account of previous regimes and their consequences. It is hoped that the paper will serve to inform current policy debates as well as provide a benchmark against which to judge the effectiveness of the LSC in future years.

Competence‐based management development in small and medium‐sized enterprises: a multi‐stakeholder analysis

Small and medium‐sized enterprises (SMEs) are considered increasingly important for economic growth (Wilson, 1995) and effective management of them is regarded as essential for their survival and success (Jennings and Beaver, 1995). This study adopted a multi‐stakeholder perspective in order to explore the promotion, via Training and Enterprise Councils (TECs); provision and (potential for) purchase of competence‐based management training and development (MTD) in the SME sector in the United Kingdom. Survey data from (551) and interviews with (12) SMEs; plus interviews (6) with TECs and interviews (29) with providers of MTD are reported. ‘Product’ deficiencies in competence‐based MTD are identified and recommendations for promotion made.

Supporting Ethnic Minority Business: A Review of Business Support for Ethnic Minorities in City Challenge Areas

In England, the use of targeted training and employment initiatives directed at particular localities, particular sectors of the local economy or particular social groups characterised both mainstream urban regeneration initiatives of the early and mid-1990s, such as Training and Enterprise Councils (TECs), and special urban regeneration initiatives, such as City Challenge and the Single Regeneration Budget Challenge Fund (SRBCF). This paper focuses specifically on business support for ethnic minority groups in City Challenge areas.

Management training and development in small and medium‐sized enterprises: an assessment of the effectiveness of training and enterprise councils in the East Midlands

This paper presents findings from a major research study investigating management training and development (MTD) activity within small and medium‐sized enterprises (SMEs) in the East Midlands. Despite the fact that the academic evidence linking training and development with business performance remains inconclusive, the previous UK Government clearly signalled the importance of improving skills levels to promote business success. The Training and Enterprise Councils (TECs) are charged with a key role in stimulating MTD activity within SMEs, a sector where MTD has traditionally been given a low priority. The system of government‐backed support for SMEs is currently under review, and the continued existence of the TECs in their present form largely depends upon their ability to provide proactive, tailored solutions to local business needs. It is, therefore, an extremely opportune time to review the TECs’ performance. Based on detailed analysis of the activities of six TECs in the East Midlands, the paper examines how they define MTD, establish the MTD needs of SMEs within their respective catchment areas, and formulate appropriate strategies to meet those needs. The reasons why generic MTD products are not generally taken up by SMEs are explored; supply‐side obstacles hinder the promotion of generic products by the TECs and demand is constrained as owner‐managers are reluctant to adopt such initiatives, although the boundaries between these two sets of factors are blurred. After reviewing the ways in which the TECs evaluate their activities, the paper concludes by offering some recommendations as to how the TECs could increase the take‐up of MTD by SMEs and improve the targeting of SMEs for assistance.

VIEWPOINT: Sub-regional planning: the missing link?

The recent revival of regional planning in Britain has been accompanied by a number of related political and procedural innovations. Examples of associated changes in policy include those that result from devolution to Wales, Scotland and Northern Ireland; the proposed establishment of an elected Greater London Authority; the creation of Regional Redevelopment Agencies (RD As) in England; the review and revision of the operation of English Regional Planning Guidance (RPG); changes in the structure and organisation of Training and Enterprise Councils (TECS) at regional level; and, more recently, a number of adjustments to the regulations that govern the allocation and use of the European Union's Structural Funds. Change is also the order of the day at local level. In England, the final years of the Conservative administration saw the abolition of a number of county authorities and the granting of unitary status to shire districts; the hiving-off of larger districts as unitary authorities within those counties in which the county council was retained; and, as a consequence, the creation of joint arrangements for the preparation of structure plans. Similar reforms took place in Wales, with the abolition of all of the county councils and the creation of all-purpose unitary authorities, and in Scotland, with the abolition of the regional councils and the creation of unitary authorities. An interesting additional feature of Scottish reorganisation was the establishment of a special joint committee with responsibility for preparing a structure plan for the Glasgow and Clyde Valley sub-region. This institutional 'churning' has produced both positive and negative consequences for strategic planning. In one sense, the abolition of the county and regional authorities could be viewed as an opportunity to establish new administrative and planning arrangements that are more in-tune with the needs of the twenty-first century, whilst, from another perspective, the same 'reform' was considered by some observers to be the penultimate act in the

Local Business Co-operation and Training and Enterprise Councils: The Development of Inter-firm Networks

HUGGINS R. (1998) Local business co-operation and Training and Enterprise Councils: the development of inter-firm networks, Reg. Studies 32 , 813-826. This paper investigates awareness among Training and Enterprise Councils (TECs) and firms in the UK of inter-firm networking, and the effectiveness of the instruments used by TECs to generate networking. It evaluates the consequential outputs of and barriers to networking, the level of involvement encountered, and existing regional disparities. The study sought to obtain the opinions and views of as wide a range of the 81 TECs in England and Wales as possible, therefore a postal survey approach was adopted which yielded 63 replies, a response rate of 77·8%. The paper finds evidence that, despite TECs being committed towards the development of inter-firm networking, this commitment does not equate with the perceived success of those networks which have been facilitated. The analysis suggests that the performance of TECs as network generators has been low by their own expectancy criteria. The most common and important output of networks was their role in aiding collaborative learning among businesses, and process developments involving the dissemination of best practice and benchmarking through programmes such as manufacturing and management development initiatives. A number of doubts are raised concerning the efficacy that has been attached to the local delivery message associated with TEC programmes and initiatives. The paper concludes with some remarks concerning the emergence of three network types within the TEC scenario: (1) learning networks; (2) commercial networks; and (3) innovation networks. HUGGINS R. (1998) La coopération commerciale locale et les 'Training and Enterprise Councils': le d éveloppement des réseaux interentreprises, Reg. Studies 32 , 813‐826. Cet article examine dans quelle mesure les 'Training and Enterprise Councils' (les TEC: des conseils qui encouragent la formation et l'esprit d'entreprise) et les entreprises situées au Royaume-Uni sont conscients de la constitution des réseaux interentreprises, et l'efficacité des outils employés par les TEC afin de constituer de tels réseaux. Il détermine les conséquences de la constitution des réseaux et les obstacles, le niveau d'engagement, et les écarts régionaux. L'étude cherchait à solliciter les opinions et les points de vue d'autant des 81 TEC situés en Angleterre et aux Pays de Galles que possible, d'où une enquête par correspondance dont 63 réponses, à savoir 77,8%. Cet article laisse supposer que l'engagement de la part des TEC quant au développement des réseaux interentreprises, ne compare pas à la réussite évidente des réseaux qui ont été facilités. L'analyse indique que la performance des TEC comme élément moteur des réseaux a été peu importante et n'a pas répondu à leurs propres attentes. La conséquence la plus fréquente et la plus importante des réseaux a été le rôle qu'ils jouent dans l'aide aux entreprises quant à la collaboration; et le développement des processus qui nécessitent la diffusion des idées et l'établissement des critères de référence à partir des programmes visant des initiatives relatives au développement de l'industrie et du management, par exemple. L'efficacité du message rattaché aux programmes et aux initiatives des TEC a fait naître quelques doutes. En guise de conclusion, l'article commente l'émergence de trois types de réseaux au sein des TEC: primo, les réseaux d'apprentissage; secundo, les réseaux commerciaux; tertio, les réseaux d'innovation. HUGGINS R. (1998) Kooperation zwischen ortsansässigen Betrieben und Beratungsstellen für Ausbildung und Unternehmen: die Entwicklung zwischenbetrieblicher Netzwerke, Reg. Studies 32 , 813‐826. Dieser Aufsatz untersucht das Bewußtsein in Beratungsstellen für Ausbildung und Unternehmen (Training and Enterprise Councils TECs) und in Firmen des Vereinigten Königreichs, sowie die Wirksamkeit der Instrumente, welche die TECs zur Schaffung von Netzwerken einsetzen. Er beurteilt die sich daraus ergebenden Leistungen und Grenzen der Netzwerke, das Ausmaß des feststellbaren Mitmachens und regional bestehende Ungleichheiten. Da die Untersuchung sich bemühte, Ansichten und Meinungen von möglichst vielen der 81 TECs in England und Wales zu sammeln, wurde eine Umfrage mittels Postsendungen unternommen, die 63 Antworten einbrachte, eine Antwortrate von 77,8%. Die Arbeit fand Anzeichen, daß trotz der Verpflichtung der TECs, zwischenbetriebliche Netzwerke zu entwickeln, sich diese nicht mit dem vermeintlichen Erfolg jener Netzwerke deckt, die eingerichtet wurden. Die Analyse legt nahe, daß die Leistung der TECs als Netzwerk schaffende Organisation ihren eigenen Kriterien nach gering geblieben ist. Die am häufigsten anzutreffende und bedeutendste Netzwerkleistung betraf ihre Rolle der Hilfestellung bei der Zusammenarbeit von Betrieben beim Lernen, und Verfahrensentwicklungen, bei denen es sich um Verbreitung von bestmöglichen Verfahren und Maßstabsetzungen mit Hilfe von Programmen zur Entwicklung von Initiativen bei Herstellung und Leistung handelte. Es erheben sich verschiedentlich Zweifel an der Wirksamkeit, die der örtlichen Lieferungs botschaft beigemessen wurde, die als mit TEC Programmen und Initiativen in Verbindung stehend bezeichnet werden. Der Aufsatz schließt mit einigen Bemerkungen betreff Auftauchen dreier Netzwerktypen innerhalb des TEC Szenario: (1) Lernnetzwerke; (2) Handelsnetzwerke; und (3) Innovationsnetzwerke.

Building and Sustaining Inter-firm Networks

The academic discussion of business co-operation and networks is often undertaken in fairly abstract terms. The objective of this paper is to add some realism through “on-the-ground” examples of inter-firm networks in which Training and Enterprise Councils (TECS) have acted in a facilitating and sup-portive capacity. This paper considers the practicalities and problems that TECs, often in the shape of “network brokers”, have encountered in facilitating the building and sustaining of local inter-firm networks, primarily among SMEs, in a number of differing scenarios. It was found that the most effective and sustainable networks are initially based on informal relations, such as those developed through voluntary attendance at “learning” workshops and seminars. As trust emerges and bonds are gradually gained these arrange-ments may evolve into more formal and long-term associations. It is suggested that the initial focus of projects should consist of expanding the “stakeholder webs” of SMEs through learning networks that focus on building the stock of social capital. Furthermore, gaining sufficient reserves of social capital should be considered prior to the planning of any formal “dotted line” commercial or innovation-based relations.

The delivery of modern apprenticeships: are training and enterprise councils the right mechanism?

This article critically assesses the role of Training and Enterprise Councils (TECs) in the development and delivery of Modern Apprenticeships (MAs). It begins by reviewing the genesis of TECs as a new form of policy delivery mechanism designed to re-create a market-led training system. It explains their role in the new policy of MAs. The discussion then focuses on two interrelated questions: can locally based employer-led agencies provide a strategic focus for identifying the economy's intermediate skills requirements and are TECs the best basis for forging a consensus on the need for MAs? The particular position of small businesses in relation to MAs is also considered. The article concludes that there needs to be a greater role for sector organisations and a new basis for dialogue about what the aims of training policy should be.

Geographies of governance: TECs and the neo‐liberalisation of ‘local interests’

The paper explores patterns and processes of local economic governance as they have emerged under the Training and Enterprise Councils (TECs) regime in the UK. Case studies of two TECs are presented to highlight the differing ways in which these ostensibly business‐led organisations have evolved within a purposive national regulatory framework. It is argued that TECs must be understood as creatures of central government localism: they strongly bear the imprint of the national rule system in which they are embedded, yet they also exhibit distinctive forms of local institutional socialisation. In this sense, TECs are neither straightforwardly ‘top‐down’ nor ‘bottom‐up’ institutions, but are complex creations of an interplay between national regulation and local governance. They have been active agents in the neo‐liberalisation of local political relations, in decisive yet uneven ways. Some implications for the conceptualisation of such forms of orchestrated local governance are drawn out.

Modern apprenticeships: filling the skills gap?

In the United Kingdom, the Modern Apprenticeship scheme is financed and managed largely by Training and Enterprise Councils (TECs) which are regionally based. The article reports on a study carried out amongst a sample of TECs which examined their financial commitment to Modern Apprenticeships, and their views on the responsiveness of employers and trainees to the scheme. The study found that the funds devoted by different TECs to Modern Apprenticeships vary quite widely, but in general, were minimal compared with money devoted to unemployment containment strategies such as Youth Training Schemes. It is concluded that, unless there is both robust financial commitment to apprenticeship training and a scheme which is national, rather than local in focus, it is unlikely that the United Kingdom will produce a labour force capable of competing with our European trading partners.

Training and Enterprise Councils as Facilitators of a Networked Approach to Local Economic Development: Forms, Mechanisms, and Existing Interpretations

The author reviews and examines the relevant literature concerning the role that networks have played in the local economic development activities of Training and Enterprise Councils (TECs), The analysis focuses on TECs as actors within, and catalysts of, networks—specifically at the local level. TEC mechanisms for economic development and the forms of TEC-facilitated networks are considered, and it is argued that a networking approach has gradually permeated TEC strategies both as a specific policy tool and as an instrument for improving the effectiveness of other support initiatives and programmes. The author finds the existence of a dichotomy between the relatively positive finds of Government-sponsored evaluations of TECs and those of more critical academic studies.

The ISO and TECs: a strategic imperative

Britain’s Training and Enterprise Councils (TECs) have been in the forefront of action to encourage and enhance new business initiatives, to promote growth and prosperity, and to create jobs. Discusses how one regional TEC, covering Barnsley and Doncaster, undertook its journey to ISO 9000, indicating lessons learned along the way.

The degradation of labour market programmes

This article provides the background and subtext to a series of concerns recently raised on the degradation of labour market programmes deliv ered through the implementation of Training and Enterprise Councils (TECs). It illustrates and deconstructs these concerns by way of a critical commentary on the demise of South Thames TEC. This innovative TEC, which was declared bankrupt in December 1994, was caught between juggling the competing demands of the government's arbitrary targets and the needs of the unemployed. Based on the South Thames experi ence, the article argues that there needs to be a radical rethink on the purpose of training (and its funding mechanisms) to prevent further social exclusion and the marginalization of those with special training needs.

Business Partnerships and Regional Government

In the USA local partnerships (‘growth coalitions’) involving leading figures from the public and private sectors date from the years after World War II. But it was not until the early 1990s that the British government recognised the potential contribution to economic regeneration of partnerships involving local authorities, Training and Enterprise Councils (TECs), and Chambers of Commerce. Then in 1994 it set up ‘Government Offices’ in 10 regions, giving them particular responsibility for spending on regeneration; this in turn has led to a strengthening of institutions representing both local authority and private sector interests at the regional level. A debate is now going on as to how business interests should best be represented locally: should local TECs merge with, and thereby strengthen, local Chambers of Commerce? Or as many, for example in the Labour Party, would prefer, should TECs concentrate on training and leave broader interests for economic regeneration to local authorities and chambers? Local strategies based on partnerships between business and the public sector require both parties to be well organised. The creation of effective business leadership at local and regional levels is therefore a necessary and welcome step.

TECs, LECs, and Small Firms: Differences in Provision and Performance

In this paper the way in which the Training and Enterprise Councils (TECs) and Local Enterprise Companies (LECs) have been responding to the small and medium-sized enterprise (SME) sector is considered. By reference to a questionnaire survey of TECs and LECs the organisational mechanisms and policy initiatives which have been developed to reach SMEs are evaluated. The analysis is concentrated on the differential performance of TECs and LECs and whether size and employment composition factors, or the complexity of the area the TEC or LEC operates in, affects its ability to encourage small-business involvement.