Select Committee on Education and Employment Appendices to the Minutes of Evidence


APPENDIX 28

Memorandum from Glasgow Works (JG 37B)

NEW JOBS FOR GLASGOW 2

OBJECTIVES

  The objective of New Jobs for Glasgow 2 is to create new or expanded social enterprises and additional jobs by:

    —  using established intermediate labour market models;

    —  identifying new job growth areas;

    —  demonsrating how the basic models can be developed to contribute to the local economy.

  Based on a Pilot (New Jobs for Glasgow) operated over 2.5 years (1996-1999, ERDF Article 10 direct from EU) to identify both the barriers to be overcome and the opportunities to exploit, the foundation now exists for New Jobs for Glasgow 2 to develop the concept into a tool to be used by local bodies in Glasgow's priority regeneration areas.

  NJFG 2 will provide resources to a number of new and existing social enterprises for:

    —  development and start up;

    —  business planning and advice;

    —  market research;

    —  management support.

BACKGROUND

  The project will be implemented through a range of locally based organisations using the basic structure of the intermediate labour market (ILM) operated by Glasgow Works' and the Wise Group:

  Glasgow Works and WG already have experience and a track record in:

    —  Recruiting and training in these job areas;

    —  Setting up and managing projects/enterprises with partners in these job areas using ILM models;

    —  Knowledge of the general labour market context of these job areas;

    —  Market research and development of new sources of financing.

  In addition, the model relies on supporting local, bottom up initiatives:

  The model is successful in achieving job and training outcomes for the most excluded group (over 65 per cent positive outcomes with 86 per cent still in work after six months (see GW Evaluations; Durability of Outcomes, CPC, 1998)

  But it also can be shown to have an impact on the social economy of the areas, for example, the Glasgow Works Childcare projects (Easterhouse and Glasgow North) have provided about 300 places and have directly resulted in an increase in parents' economic activity estimated at an additional £450,000 income per year. With the introduction of the Working Families Tax Credit/Childcare Tax Credit the basis now exists to produce a revenue income which will allow increased sustainability for these projects

NEW JOBS FOR GLASGOW 2 PROJECT

  The work of the NJFG Pilot has identified the barriers to be removed and the capacity building required enabling the model to be rolled out and used as a job creation tool suitable for priority regeneration areas. this will be the aim of NJFG2

Removing Barriers

    —  Widen sources of funding support and demonstrate added value of using mainstream sources such as New Deal, ESF etc,

    —  Develop new, more appropriate organisational models and legal structures,

    —  Encourage mainstream business development agencies to support social enterprises,

    —  Develop working Partnerships with the private sector,

    —  Demonstrate successes to change attitudes.

Capacity Building

    —  Develop entrepreneurship skills in project managers and other staff.

    —  Facilitate secondments/networks within social economy and with private sector.

Existing Projects/Enterprises

  The following existing projects/enterprises supported by NJFG will be developed further by the GW Business Development Managers: Teleworks, Electronic Village, RRS recycling, True Grit, and Childcare.

  Work will focus on:

    —  Widening the markets and sources of income.

    —  Packaging of public support and revenue sources to create viable enterprises.

    —  Rethinking of legal structures to allow flexibility of funding, investment and business support.

    —  Build the capacity of managers and host/partner bodies to manage and develop social enterprises.

    —  Demonsrtate success to change attitudes.

  The Objective is to achieve a 50 per cent degree of sustainability (ie income from operational sources, such as revenue and contracts) by 2001.

New Project/Enterprises

  The main part of the Work Programme will be to create new enterprises, based on the identification of markets and of local needs from both Glasgow-wide and local strategies by collaborating with community based bodies and local development companies. At least one, possibly most, will also be in collaboration with the private sector. To demonstrate:

    —  Viable new markets and methods of work with local bodies to identify needs and markets.

    —  Work with private sector.

    —  Repackaging of mainstream funding, sourcing investment and micro-credit.

    —  Selection of managers, other staff and the creation of an entrepreneurial culture.

    —  Intergration of major capital spending in CED areas into sustainable ILM models.

  Fields to be researched (not exhaustive)

    —  Environmental maintenance, conservation, auditing (eg with GCC and housing associations).

    —  Safety/local wardens.

    —  Tourism, cultural sector.

    —  Sport, health promotion.

    —  Support for young people, educational services.

    —  New technology.

    —  Childcare Services.

TARGETS

  Eight new enterprises to be created in 2000 and 2001. Additionally, in the field of childcare services, the aim is to create up to 16 additional after-school and day care centres by 2001 (Childcare Works).

  Most will be based in the priority regeneration areas of the City with at least four of the areas included. Special attention will be paid to the potential in those areas which do not as yet have an ILM project.

  The aim will be to achieve at least 50 per cent income from revenue or contract sources within three years of start up of each enterprise with the remainder from training and other subsidies.

TOTAL TARGETS (MINIMUM)
Sustained Enterprises
9
New business start ups (excluding childcare)
8
Training places created
440
Additional direct permanent jobs created
162

  At least 60 per cent of these targets to be achieved by the Glasgow Works Business Development Manager and the rest by additional Wise Group staff.

MANAGEMENT

  The project will be managed jointly by Glasgow Works and Wise Group with the overall division of staff and other resources 60 per cent to Glasgow Works and 40 per cent to WG.

  The Glasgow Works Business Development Manager will co-operate with the already appointed Childcare Works Development Manager. In addition there will be one full time and a part time business development managers for the Wise Group projects. There will be an administrator/finance person supporting both Glasgow Works and Wise Group.

  There will be a fund of over £100,000 over a two year period available to the GW Business Development Manager to use for business support and marketing support to existing and new enterprises.

Glasgow Work.

December 1999


 
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