Business Inspiration: small

business leadership in
recovery?
David Rae, Liz Price, Gary Bosworth and Paul Parkinson

Abstract: Business Inspiration was a short, action-centred leadership and

innovation development programme designed for owners and managers
of smaller firms to address business survival and repositioning needs
arising from the UK’s economic downturn. The article examines the
design and delivery of Business Inspiration and the impact of the
programme on participants’ learning experiences. It also assesses
whether there are transferable lessons to be learned for the development
of small firms in general. The article contributes new insights to the debate
and the literature on owner–manager development in small firms. The
authors propose that there is continuing need and demand for such
learning. They examine the requirements for public-sector investment and
for specific approaches and skill sets in designing, marketing and
delivering effective programmes of this type.

Keywords: entrepreneurship; leadership; small business; enterprise

management; recession; innovation

The authors are with the Lincoln Business School, University of Lincoln, Brayford Pool,
Lincoln LN6 7TS, UK. E-mail: drae@lincoln.ac.uk. Corresponding author: David Rae.

This article presents insights from a business 1971; Storey, 1994, 2004; CEML, 2002). The
development project, ‘Business Inspiration’, which was underlying assumption has frequently been that
designed to support smaller firms in Lincolnshire, owner–manager skills are deficient, positing a
England, that had been adversely affected by the questionable ‘deficit’ model.
recession that started in 2008. It narrates the The sustainability of the provision of leadership and
development, delivery and evaluation of the Business management development for smaller firms is a critical
Inspiration (BI) programme. Although based on an issue for the survival and success of the enterprise
example of a specific, localized programme, the article sector. The independently owned micro and small
addresses wider issues including the role of business business sector in the UK is highly significant in terms
support (in particular from higher education) during a of its economic contribution and employment,
prolonged period of recession; and the changing role of particularly in more rural areas such as Lincolnshire.
public agencies in owner–manager development. However, micro and small businesses are less likely to
The question of how the owner–managers of small engage in management training and development than
businesses can develop their skills, in order to manage larger firms. This is important because the levels of
and develop their businesses more effectively, is a management skill have been cited as an important
long-standing issue in UK small business policy and contributory factor to the incidence of business failure
research which has been explored by many writers over and the low levels of growth in firms (Matlay, 2000,
more than 30 years (see, for example, Bolton Report, 2004; CEML 2002).

INDUSTRY & HIGHER EDUCATION Vol 26, No 6, December 2012, pp 473–489, doi: 10.5367/ihe.2012.0125
Small business leadership

This trend has been exacerbated by the UK recession There is a continuing conceptual and philosophical
which began in 2008, following the banking crisis and divide in the literature reflecting the parallel schools of
‘credit crunch’ and which has had serious and ‘training for small firms’ and ‘entrepreneurial learning
continuing adverse effects on many small firms. The within the small firm’. ‘Training’ refers to externally
Labour government of the time attempted to mitigate defined or imposed standards or curricula that the
the effects of the recession with a range of policy learner is expected to accomplish or understand, notably
measures including quantitative easing and initiatives the Small Firms Enterprise Development Initiative
such as Economic Challenge Investment Fund (ECIF) to (SFEDI) standards, which tend to perpetuate the
support small firms. There have been few attempts to ‘deficit’ model. ‘Learning’ can be taken as emergent
assess the effects of the recession on small firms (for sense-making by the individual within their social
example, Anderson et al, 2009). However, the economic context through which they develop the ability to
downturn has proved to be longer lasting and more change. ‘Entrepreneurial learning’ means learning to
structural than anticipated: evidence of its deeper and recognize and act on opportunities and interacting
continuing effects lies in the return to recession in early socially to initiate, organize and manage ventures (Rae,
2012. 2005). Learning and training can be viewed as distinct
Three questions are explored here. yet parallel activities: the essential difference is that the
learning process is associated with the ownership,
(1) How was Business Inspiration designed and
personal construction and identification with outcomes
delivered?
perceived as relevant to the enterprise and entrepreneur.
(2) What was the impact of the programme on
In relation to the ‘training school’, Smith and
participants’ learning experiences?
Whitaker (1998) questioned the appropriateness of
(3) Are there more general transferable lessons for small
competence and standards-based frameworks, also
firm development?
arguing that the contribution of training to business
The article first summarizes relevant work on small performance was unclear. O’Dwyer and Ryan (2000) set
business and leadership development, then provides an out a model of a management development training
overview of the genesis of the Business Inspiration strategy for owner–managers in micro-businesses with
programme. The methodology describes how the practical suggestions for training design covering
evaluation was undertaken and the results section covers content, cost, interaction, sector and business specificity,
the findings of the evaluation. Finally, the conclusions timing and nature of delivery. This work, and that of
debate broader questions on the future role and Schaper et al (2005), provided guidelines for more
sustainability of development programmes for small effective training rather than for learning.
firms. The determinants of management development in
small businesses were explored by Thompson and Gray
(1999) and Patton and Marlow (2002). Commenting on
Prior work the reasons for the limited take-up of training, they
There have been many approaches to leadership and suggested that it is seen as tactical problem-solving,
managerial development in the context of the small aiming at short-term solutions in response to crises and
firm. Business Inspiration can be viewed as part of a critical incidents which impinge on performance and
continuum which included previous Small Business survival. Matlay (2000, 2004) explored organizational
Development programmes led by Lincoln Business learning in small firms, finding that only a minority of
School, such as the ‘Accelerated Business Development them manage new knowledge strategically in order to
Programme’, and ‘Achieving Business Focus’ (Rae, sustain their commercial advantage; whilst incidental
2007a). There has been extensive conceptual and and sporadic learning is more common, intentional
educational writing on the subjects of owner–manager, learning is more effective. However, Matlay also
entrepreneurial and action learning in the context of highlighted the low take-up of formal,
small businesses. A recent publication on action government-sponsored interventions. These studies and
learning and small- and medium-sized enterprises by others (for example, Cosh et al, 2000) indicate that
Thorpe et al (2009) brought together perspectives on management training in small firms is fragmented, that
these topics and summarized some of the unresolved the benefits and levels of adoption are suboptimal, and
debates, some of which were also addressed by Jones that government funded programmes are often of
et al (2010). Gibb (2009) proposed that whilst action limited utility. Recent experiences of national,
learning should be central to small-firm managerial government-sponsored leadership and management
development, there are significant structural, initiatives tend to confirm this view. Also, in rural areas,
institutional and cultural barriers to this. take-up is much higher among younger business

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owners, those with experience of higher education and highlights the learning issues in the ‘crisis of growth’
those who have moved into the area, suggesting that providing a layered model which encompasses
targeting more traditional firms will continue to be entrepreneurial, enterprise and network learning, reliant
challenging (Bosworth, 2009). on experiential learning rather than on formal learning.
Storey’s influential contribution (2004) advanced The entrepreneurial learning ‘school’ (for example,
previous arguments (Westhead and Storey, 1996, 1997) Taylor and Thorpe 2004; Rae, 2004; Cope, 2005)
to question the links between training for managers in proposed a different perspective to the ‘training’
small firms and the performance of businesses in the orthodoxy, in seeking to understand learning in the
OECD, claiming that, ‘...there is currently no ‘naturally occurring’ context of the small firm, rather
satisfactory assessment of the link between small firm, than the controlled environment of the classroom.
formal management training and firm performance’. Devins et al (2005) developed a conceptual model based
This study (Storey, 2004) also highlighted the low on the ‘informal or incidental’ nature of learning in the
take-up of training and suggested that this is the result micro business world. Many examples of innovative
of informed judgements by owners that the costs entrepreneurship programmes have aimed to connect
outweigh the benefits. It noted that small firms are likely entrepreneurial and action learning, with increasing
to prefer informal training as a less costly option that is evidence of its efficacy in improving small firm
also more contextualized to the needs of the firm. The performance and small and medium-size enterprise
main conclusion was to advocate a free-market model of (SME) managerial leadership (Taylor and Thorpe, 2004;
experiential learning, as preferable to government Smith and Robinson, 2006; Powell and Houghton,
intervention through training, an argument politically 2008; Stewart, 2009; Leitch et al, 2009; Ram and
convenient for a cost-cutting government. Trehan, 2009).
It can be argued that, because of the economic These studies illustrate the theoretical divide in
significance of the small firm sector, management owner–manager development; recent work by the UK
learning in small firms is too important simply to be left Commission on Skills and Employment (UKCES) has
to ‘the market’, especially in or following a recession. A added to these. Edwards (2012) found evidence of a
more effective and proactive approach may be required, training deficit in small firms which was deepening
but it may also be that the models of learning which through dynamic economic effects, but also evidence of
have been adopted are less appropriate to the small firm frustrated demand for training. In a major study on
‘lifeworld’ than the provision of learning per se. Several skills for self-employment, Meager et al (2011)
learning models have been developed for the small firm. commented on the lack of evidence of skill needs and
Gibb (1997) conceptualized the learning environment of the lack of awareness of the need for skills development
the small firm as a relationship based network and among this group. They also found limited evidence of
suggested that little was known about how learning the effectiveness of interventions. The study found that
occurs within the small firm. Down (1999) set out the the self-employed (including owner–managers) were
importance of context in owner–manager learning, the much less likely than those employed to be studying
role of networking and social learning, and offered a towards a qualification or to have recently received
critique of training intervention policies whilst work-related training (Meager et al, 2011, p 112). Their
suggesting targeting participants in management conclusions (ibid, pp 117–118) on the generic skill
development activities. needs of the currently self-employed, including this
Floren and Tell (2004) proposed a set of emergent self-awareness of skill deficits, soft and social skills,
prerequisites for higher level management learning in business and management training, winning new
small firm networks based on a process of customers and managing cash flow and finances,
trust-building. These included reciprocity between concurred with the present researchers’ own assessment
actors; their receptive and confronting capacity; and of the needs of this group which were to be addressed
transparency of dialogue in networks, through which through the Business Inspiration programme.
better opportunities for higher level learning can be Activity on the ground has been driven historically
created. Interest in owner–manager development from a through a series of government-led training initiatives in
social constructionist perspective included that of the UK, accompanied by independent activity. Since
Devins et al (2005), who proposed a three-stage model 1990, these have included Business Growth Training,
of management learning in micro businesses. Warren Training and Enterprise Councils, Business Link and the
(2004) advanced the foundations of Fuller and Moran Small Firm Service, National Vocational standards for
(2001) and proposed a systematic schema for the study owner–managers leading to the Small Firms Enterprise
of management learning, based on women’s narratives Development Initiative, Leadership and Management,
of their learning as micro-enterprise managers. This High Growth programmes and many local and regional

INDUSTRY & HIGHER EDUCATION December 2012 475

Small business leadership

programmes. Much publicly funded provision was banks to support lending to small firms, as a result of
ended, first by the ‘simplification’ of business support bank instability and the ‘credit crunch’, and the sharp
services introduced by the Labour government from downturn in market confidence and demand. The
2007 and, subsequently, by reductions in regional economic productivity of Lincolnshire had consistently
programmes and public spending by the coalition trailed the wider region and the potential for lasting
government from 2010. It can be argued that public damage to the small business infrastructure of the
provision has, overall, failed to provide either a county was viewed with anxiety. The need for the
sustained foundation for skills development in small project arose from a dialogue between Lincoln Business
firms or coherent evidence of impact and to this extent School and representatives of the Regional
the critique offered by Storey (2004) remains valid. Development Agency and its Lincolnshire agent,
However, where there has been sustained investment Lincolnshire Enterprise, during 2009.
and commitment by Business Schools and other A process of proposal and negotiation finally
agencies to their development, some sustainable produced agreement to fund a project given the working
initiatives have been created. Examples include the title ‘Robust Futures’. It was created to provide
LEAD programme based at Lancaster (Smith and academic support to ‘forward-looking’ companies in
Robinson, 2006) and new private-sector initiatives such Lincolnshire, to help them in responding to the
as the Goldman Sachs ‘10,000 Small Businesses’ recession and recovery and to facilitate the development
programme. of an ‘economic impact response plan’ for each business
The lack of effective development should not in itself to enable them to become more robust and sustainable.
be a reason to give up. The disproportionate effect of the The project was open to 48 prospective companies in
continuing recession on the small firm sector, and the Lincolnshire, from any sector, to join a ‘Robust Futures’
increasingly important role it is expected to play in the network. The selection criteria were that businesses had
eventual economic recovery, provide a clear impetus for to have been affected by the recession, and that an
effective skills intervention. There are many basic owner–manager was present who had identified the
problems, such as the heterogeneity of the sector, with nature of the impact on the business and was willing to
many firms and relatively high failure rates. Few small commit to a learning programme on managing their way
businesses grow rapidly or substantially, while many out of the downturn. Each participating company was to
struggle or satisfice. Many people managing small receive support from a specialist from the university or
firms have not developed the skills needed to address professional services organization who would work with
business decisions and problems in complex economic the company, provide research support and help the
circumstances very effectively and this has an effect on business prepare for the future. The project was
the survival and growth of firms and on regional and designed to comprise a number of elements, including:
sub-regional competitiveness. These skills include, for
• one launch event, followed by six ‘Business
example, making strategic decisions in conditions of
Briefing’ meetings around the county;
rapid change and uncertainty; reducing costs without
• a ‘knowledge pool’ of academic, professional and
impairing future business effectiveness; anticipating
small firm representatives to connect expertise with
emergent and future market conditions and
business support activities;
opportunities; leading the business in conditions of
• three cohorts of business development ‘learning
personal insecurity; and developing economically
sessions’ with 36 participants from at least 24
sustainable business models. One of the tasks of the
companies attending;
present project, given the short timescales, was to learn
• twenty-four of these companies to be assigned a
and draw useful insights from the prior work cited and
specialist and receive one-to-one support;
avoid ‘reinventing wheels’. This learning, together with
• twenty-four Economic Impact Response Plans were
understanding about the emergent needs of participating
to be created;
firms, was applied to create an effective development
• the development of a ‘Robust Futures’ cluster; and
programme and provide the assistance required.
• one closing event.
The project was undertaken in parallel with a bimonthly
The development of the Business electronic survey of business confidence: this did not
Inspiration programme form part of the project but proved to be a valuable
In late 2008 and 2009 there was increasing concern synchronous research activity and provided regular
about the actual and anticipated impact of the recession topical information on the business climate for the
on local small firms. There was a clear risk to the sector participants (Price et al, 2012). The general lack of
arising from both a sharp decline in the willingness of confidence in the economy, extensively promulgated by

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media coverage, and the consequential effects on knowledge, as summarized in the previous section. The
businesses’ decision-making, were seen as significant higher-level needs and expectations of ‘target’
factors that could further depress market sentiment and businesses were identified through intelligence gained at
demand and the prospects for small firms. The the launch and subsequent briefing events and the
orientation taken by the project was intended to be knowledge pool. These were identified as:
counter-cyclical and to promote a perspective of
• a need to inspire confidence in business managers’
bounded entrepreneurial optimism, which could be
ability to direct and control their firms in a volatile
shared socially to encourage the view that, whilst
and uncertain economic period, including enhanced
pessimistic narratives exist and have validity, agents can
planning and decision-making skills;
act independently of such narratives. The key aspects of
• the ability to identify and target opportunities and
the project were, therefore, that:
strategic directions which offered growth and
• entrepreneurial and growth opportunities change and higher-value activities, using innovation and new
exist in recessionary conditions; business models;
• market sentiment is not always consistent with • enhanced marketing and sales capability, especially
experienced reality; and through e-marketing;
• entrepreneurs acting counter-cyclically may be better • improved financial management and
placed to experience business recovery. decision-making to address limited sources of
working and investment capital;
Contractually, the project had to be delivered in
• personal skills of business leadership and
compliance with the Solutions for Business portfolio.
communication; and
Businesses signing up were intended to be referred from
• the ability to develop and implement an action plan
Business Link, but only four firms enrolled on the
supported by relevant expertise.
project this way. All marketing had to conform to the
Solutions for Business branding and portfolio These needs should not be seen as novel or
requirements and the project title had to include the controversial, but rather as reflecting the uncertainty and
words ‘Innovation Advice and Guidance’. The vulnerability which many owner–managers experienced
administrators of this branding exercised tight editorial during recession: the changing economic climate meant
control over the content of promotional materials, which that previously effective business activities and models
prevented the production of an accurate description of had been found to be ineffective. The motivation to
the programme. These two conditions meant that learn may also be accentuated in these conditions.
marketing of the initiative was severely constrained by When a business is performing satisfactorily, its owners
public sector agencies more concerned to comply with frequently find themselves ‘too busy’ to undertake
government prescription than with effective responses to external development; but when its prosperity is
business needs. This lack of responsiveness by the threatened they are more likely to recognize the need
support agency to genuine business needs was far from for fresh thinking. An important dimension of the
an isolated experience and was an example of the programme dealt in particular with personal as well as
dysfunctionality in business support which led to the business development. Business owner–managers
dismantling of Business Link under the coalition whose firms and livelihoods have been affected by the
government. recession often find their levels of personal confidence
The development of the project took place following and resilience to be adversely affected by events and
the award of the contract in November 2009. Two factors beyond their control. Self-efficacy has been
highly motivated and capable people were appointed as identified as a core aspect of entrepreneurial behaviour
Project Leader and Events Co-ordinator/Administrator and learning (see, for example, Boyd and Vozikis, 1994;
respectively, to work with a small academic team. A Chen et al, 1998; Rae and Carswell, 2000) and so
launch event took place in March 2010 and, in parallel, opportunities for the renewal and development of
the ‘knowledge pool’ of academic, professional business self-efficacy, as well as development of the capabilities
support and small firm representatives met to advise on identified above, were designed into the learning
the development of the initiative and act as a ‘sounding process.
board’. The core ‘offer’ to small firms was to be the The design principles for the development
learning programme, accompanied by individual programme were drawn from the five themes for
support to meet specific needs. Development of this owner–manager engagement in learning: that the
programme was intended to reflect understandings of learning should be relational; relevant; authentic; useful;
entrepreneurial action learning and leadership and produce and share new learning (Rae, 2007a, p 418;
development gained from prior experience and wider shown in Appendix 1). A core feature of the programme

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Small business leadership

was opportunity-centred entrepreneurship, to enable asked to complete short assignments or workbooks

businesses to explore emerging and potential between each session which then contributed to their
opportunities within a rapidly changing economic action plan for business improvement. These were
context (Rae, 2007b). To this end, the features and presented by participants to an advisory panel in the
benefits of the programme were described in terms final session. They then received written feedback on
intended to highlight its practical relevance – normally, this which highlighted questions, discussion and
businesses and owner–managers will benefit from the suggestions made at the panel presentation. This process
following: was found to build confidence and a sense of
reinforcement of the changes each participant had
• being inspired – regaining control of the business;
decided to make and their ability to implement their
• developing future direction, to recover from the
plan. The social learning aspect of the programme was
recession;
an essential component of the overall learning process.
• exploring opportunities for business advantage;
A key aim of the programme was the development of
• improving business performance to increase
self-efficacy and the confidence-building and
effectiveness and efficiency;
reinforcement to enable participants to plan and
• gaining university (academic) and expert
implement significant changes in their businesses.
professional input;
Wenger’s social learning model (Wenger, 1998)
• relevance to immediate decisions and problems; and
articulates a process of moving between participation
• action-based learning with practical tools, techniques
and reification and of gaining community support for
and frameworks.
action. The group interactions within the programme
Overall, these provided an opportunity to transform and included many such instances and opportunities for
reshape businesses in order to be able to take advantage problem-sharing, investigation, peer feedback and
of the economic upturn. support in which some of the participants formed close
An identity for the programme which encapsulated social and learning relationships with peers – often
the aim of building participants’ confidence in their own those running very dissimilar businesses.
capabilities and potential was manifested in the change The delivery team for Business Inspiration was led
of title to ‘Business Inspiration’ which expressed the by the project director and included the programme
desired result of inspiration arising from inter-business leader and business support professionals selected for
learning. Balancing the available financial and academic their expertise, commitment to small firm development
resources with the participants’ preference for minimal and ability to relate their knowledge to the small firm
time ‘away from business’ and contractual obligations, context. Several attempts were made to engage
the programme was designed around six half-day group academic experts in either delivery of the programme or
sessions held on one day per week, producing the in one-to-one support of participating firms, but these
following delivery model: were generally unsuccessful. It was found that most
academics tended to prioritize their own expertise over
the interests or needs of participants, or were not seen to
Business Inspiration have the direct experience of small firm management
that afforded personal credibility. This experience
• Enhance your business capability • Plan your future direction reinforced the validity of the ‘five themes’ mentioned
• Improve your financial planning • Position your marketing
previously, especially that of authenticity.
• Prepare for action • Make it happen
The programme was delivered four times between
June 2010 and March 2011 in three different areas of
Lincolnshire. Very positive endorsement and feedback
The detailed design of the programme is shown in was received and this, together with a strong
Appendix 2. An important aspect of the design was the social-learning bond between the participants and
interactive nature of the learning materials and delivery. delivery team, led to a high level of demand for the
Each session included practical tasks and exercises, programme. A closing event for the programme was
which focused on the individual participant and their held in March 2011, which most participants attended.
business, as well as tutor presentations. All materials Highly favourable testimonials and continued
were supplied digitally (on a ‘memory stick’) as well as networking through peer-led development sessions and
in printed form, easing the completion of workbooks an active LinkedIn social networking group indicated
and plans. The aim was to highlight areas of potential that the programme had generated an ongoing social
opportunity, innovation or improvement and to adopt interaction and bond. One reason for this level of
practical approaches to work on these. Participants were endorsement was the effectiveness of the project leader

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 Small business leadership

and events co-ordinator. Both had a commercial, for businesses; views on the programme, changes made;
non-academic background and had been selected for special moments; areas for improvement; working with
their complementary skills and attributes. Whilst they the university; and networking.
encountered and overcame many obstacles in realizing
the programme in practice, the evaluation demonstrated
that their effectiveness was the platform for the Referrals to the project
programme’s success. The majority of the individuals representing
Participating firms represented the profile of the participating businesses in Business Inspiration found
Lincolnshire business population in that 36 (72%) were out about the programme by being contacted directly by
micro-firms with fewer than 10 employees; 10 (20%) the project team, either by phone, email or in person.
were small firms with 11–50 employees; and four (8%) Smaller numbers, between two and six, recalled
had more than 50 employees. Turnover in the year prior receiving a flyer from the Chamber of Commerce for
to the programme ranged from £15,000 to £12 million. the launch event, being referred to the project by
A diversity of manufacturing, business and industrial Business Link or a District Council, finding out via a
service, personal service, educational, creative and retail networking event, or being recommended by other
firms participated. Rather than there being recognizable businesses. This reflects the diverse methods that were
patterns in the types of business, there were much used to promote the programme, including referrals
stronger connections between their expectations and through partner organizations, flyers and
learning gained from the programme. advertisements, and the launch event and business
briefings. However, direct personal contact from the
project team at the university proved to be the most
Evaluation methodology successful method for signing businesses up to the
The evaluation study was led by a principal researcher programme as well as for ongoing relationship-building.
who had not participated in the programme delivery. A
spreadsheet dataset which recorded extrinsic
characteristics of the fifty participating firms was
Key issues for businesses
created and used to plan interviews with each of the Respondents described the key business issues that
participating firms; and an interview schedule featuring concerned them at the time they enrolled on Business
a semi-structured approach was developed, tested and Inspiration: these are set out in Table 1. The most
finalized. Four interviewers, two not involved in project frequently cited issue was the need to refocus their
delivery and two members of the delivery team, business or to review the business as a whole (15
undertook the interviews between February and April businesses).
2011. Briefing and co-visiting were used to standardize
data gathering, with all interviews being recorded and ‘We were keen to clarify our thinking and see if we
subsequently transcribed from audio files or tapes into were on the right track.’
individual documents which were then collated into a
master data file. The lead researcher conducted
comparative qualitative and quantitative analysis across Table 1. Businesses issues identified.
the 46 firms that were visited, representing a 90%
participation rate in the evaluation. This was analysed Issue Number of
to identify the most significant features of the occurrences
programme. Refocus/look at business as a whole 15
This was a short-run evaluation study using data Market more effectively 8
which could be obtained immediately after the end of Grow the business 5
General refresh 5
the programme. Whilst questions were asked about the Raise company profile 4
impact of the programme on business performance, in Expand market 4
most cases it was too early to establish what effects Increase sales/profit 3
there might have been on factors such as sales revenue, Find the right market for a product 3
cost reduction or profitability: a longer-term follow-up Learn more about finance 2
Get a good business plan/strategy 2
study would be required to explore this. The following Cash flow 2
sections use descriptive statistics and representative System changes 1
quotations from the interviews to summarize the results Develop a website 1
from the evaluation study. These are grouped into Access to Knowledge Pool 1
sections as follows: referrals to the project; key issues

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Small business leadership

This need to take a step back from the day-to-day

Table 2. Most and least useful elements of the programme.
running of the businesses was a key motive for
enrolling. More than a third identified this as a timely Element Most Least
moment for them to revisit the aims and direction of useful useful
their business. Two people also identified the need to Finance module 16 14
develop a good business plan or strategy. Marketing module 14 5
Strategic directions 9 –
‘We wanted to review the business as a whole and Sharing experiences and peer learning 9 –
Taking time out of the business 5 –
look at the bigger picture.’
Panel presentation 2 1
Future directions 1 11
The need to market the business more effectively was One-to-one consultancy 1 1
identified as a key issue in eight businesses. Other Practical discussion 1 –
aspects of marketing included raising the profile of the Folder/learning materials 1 –
company, expanding or finding the right market for a Style of delivery 1 –
product and Website development. Wishing to grow the Too short a time period – 2
Presenters self-promotion – 1
business as a whole was identified by five respondents Venue – 1
as a key issue, with others aiming to increase their sales
and/or profit.

‘I had a really good product but didn’t know how to

programme. Among those who found the module
market it.’
useful, some (5 people) felt that it had helped them to
The need to have a general review across all areas of understand financial terms and their accounts better; that
business was identified as important in five companies; they understood the need to make better use of their
several interviewees had attended business development accountants (1); and were more aware of how to finance
programmes before but cited the need to refresh their areas of their business (1).
memories, to find out what was new and to help them to
develop new ideas and innovation: ‘The financial part was fantastic. It was simplified.
We worked out our breakeven point, it was nice to
‘I was looking for direction and inspiration.’ know that we were doing it right.’

Only two people cited learning about finance and Among those who did not find the finance module
improving their cash flow as key issues; they were from useful, various reasons were offered for this outcome.
smaller businesses and the individuals concerned lacked Six already had a good understanding of finance; and
confidence in this area. two, from larger businesses with expert staff, did not
need to develop a better understanding. Two
‘Cash flow was a real issue and still is. Chasing respondents felt that the finance module was too much
payments was a major issue.’ of a sales pitch; and a further two felt the session was
too difficult. These findings suggest that the pitch and
Other business issues included system changes and relevance of the finance module was right for around
access to the Knowledge Pool. half of the businesses, but there was a large proportion
for which it was not so appropriate because of the size
Views on Business Inspiration of their business or the possession of prior knowledge
Interviewees were asked to describe what they found to about the topic.
be the most useful elements of Business Inspiration (see
Table 2); the question was deliberately open-ended. ‘I’ve done accountancy training before, and it’s just
Some identified specific modules, whilst others not for me. I use an accountant to look at
identified practical elements of the course, or less spreadsheets for me.’
tangible outputs such as the opportunities for sharing Marketing module
experiences and practical discussion.
The marketing module was identified as a useful
Finance module element of the programme by 14 respondents and not
The finance module was identified simultaneously as useful by five. Ten said that it was generally interesting
both the most and least favourite element of the and useful; four that it had increased their confidence in

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how to market their business; and two that they had the time allowed in the programme for practical
particularly enjoyed learning about the various routes to discussions, which enabled them to share experiences
market. and seek advice from others. Many talked about the
comfort they felt in realizing they were not alone, and
‘The marketing module was very useful. It that this gave them confidence.
highlighted some real flaws in our marketing plan
and our existing website that we could improve on.’ ‘Realizing that I was not alone and having to cope
with similar issues faced by other business owners
Those who identified the module as not useful felt the gave you a sort of confidence.’
session was too focused on online and Website based
marketing and not enough on other ways of marketing a Taking Time Out of the Business module
business, or that they had existing knowledge of the
topic. Five respondents spoke about the value of taking time
out of the business; how they were normally so busy
running their business that they did not get the
Business Capabilities and Direction modules
opportunity to stand back and look at issues which
The business capabilities and direction modules were needed to be addressed. One described the time that
identified as useful by nine respondents who felt that the taking part in Business Inspiration gave them to
session increased their confidence and helped them to concentrate on their business as a ‘luxury’ and that it
identify the steps they needed to make to move their was not something they would otherwise have the
business forward. opportunity to do. Others subsequently planned regular
time away from the business, to think strategically and
‘Business Direction gave us food for thought. The reflect.
homework made us think and we found the thought
process around doing this piece of work extremely ‘Taking time out to work on the business, to stand
valuable.’ back and work on it rather than just steaming ahead.’

Identifying Future Opportunities module Other aspects of Business Inspiration that were found
useful included the panel presentation (2 responses) and
The identifying future opportunities module was the subsequent one-to-one consultancy (1). Three spoke
regarded as ‘not useful’ by 11 respondents. Many of the of the format of delivery, including the value of
comments related to the level of theory that was practical discussion, how useful the folder and learning
included and participants did not find it easy to relate materials were, and the style of teaching and
the content of the session to their business. Given this presentation.
feedback the delivery was changed, after the first Two respondents felt that it would have been
course, to make it more practical. However, there was a preferable to have had more time in between the
polarization of opinion about this session. At least three sessions to complete their assignments and enable them
individuals stated that, on reflection, they were able to to reflect on how the material applied to their business.
see the value of looking at different scenarios for the Other aspects of Business Inspiration that individuals
future of their business. This tended to occur some time did not find useful included the panel presentation and
after the session, when they were able to consider how it the one-to-one consultancy. One person felt that one of
might apply to their business context. the presenters used the session to promote their own
business; another commented on a venue which they did
‘It was so interesting talking about how the future is, not feel was conducive to group discussion.
and there are different ways to look at the future, and
only by doing that can you change the future.’
Changes made by businesses
Share Experiences and Learn From Peers modules Interviewees were asked what changes they had made to
their business since joining the Business Inspiration
Nine interviewees found the opportunity to share programme and whether any of these changes had been
experiences and learn from peers useful. In particular, it informed by the programme. The results are
was agreed that it was useful to share concerns with summarized in Table 3 which shows where the
other businesses and to learn about solutions from those interviewee felt that the change was either informed by
who had experienced similar problems. Several valued Business Inspiration or where it was a change that had

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Small business leadership

Table 3. Changes made to business since joining the BI Programme.

Change Number of Informed BI clarified

businesses by BI thinking
Make time to plan the business 11 11
Market more effectively 7 6
Clarify focus of the business 6 5
Focus more on finance 6 4
Redevelop website 6 5 1
Improve systems/processes 6 4 2
Change focus of business 5 3 2
Too early to say/still thinking 4
Change product/service 4 3 1
Search engine optimization 4 4
Raise prices 3 3
Develop new brand/identity 3 1 2
Take on intern/apprentice 3 2 1
Network more 3 3
Take on new staff 2 2
Expand premises 2 1 1
Downsize premises 1 1
Buy new machinery 1 1

already been planned but participating had clarified their also said that they were networking more and now
thinking. understood the value of networking to raise the profile
of their business.
‘I actually have a business now as opposed to an idea
that I was tinkering with! I know where I have to go, ‘I have more of a brand and more of a presence, to
who to talk to, I am making money and signing show who I am.’
contracts.’
Six respondents stated that they were now focused more
on finance and had a better understanding of their
The most frequently cited change was making time to
financial systems. This included being more timely in
plan the business within their schedules. Eleven
sending out invoices and realizing that they were
respondents had placed more focus on business
underpricing their products or services – and
planning, many saying that they were making active use
subsequently raising their prices. Five respondents had
of the planning document they had developed as part of
improved their general systems and processes, including
the BI programme. Others talked about setting time
better team management, better record keeping and
aside specifically for business planning, either
more attention to administration.
individually or as part of a team. Several also stated that
Five respondents had changed their strategic focus.
they had become more organized and better able to
This required recognizing that their core service or
prioritize what was important for the success of their
product was no longer sustainable and that they needed
business. Six had clarified the focus of their business;
to make a transition to a more profitable or diverse
this included re-evaluating the goals of the business and
product base. This included, for instance, a plant hire
ensuring that everyone in the business was working
company that made the transition from plant to
towards the same goals.
generator hire.
‘I’m more organized, and I look at the way I manage ‘We just market generators [now], we don’t market
the business. I step back and prioritize work, what is the plant hire at all. The customers for generators are
important? What makes me money?’ much better customers than on the plant hire side.’

Seven respondents said that they now marketed their All these interviewees stated that the decision to change
business more effectively. Related to this, six had the focus of their business was either informed by
redeveloped their Website and four had implemented Business Inspiration or that their participation in the
search engine optimization. Three had developed a new programme had clarified their thinking in making the
brand or changed the name of the business, whilst three decision. A further five said that they had made changes

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Six respondents said that certain moments in the course

Table 4. Special moments.
had given them increased confidence or reaffirmed their
Special moment Number of existing thinking. Related to this, three specifically
occurrences mentioned the enthusiasm and support provided by the
Knowing how to reach customers 8 tutors on the course and the project team as special
Becoming more confident 6 moments. One said:
Understanding finance and breakeven points 4
Understanding search engine optimization 4
Being with other interesting businesses 3
‘This course gave me confidence as did the support
Taking time away from the business 3 of the whole team. A significant moment came when
The enthusiasm of the tutors/project team 3 it was explained to me how there was more than one
Understanding different ways to grow the business 2 way to sell the same product and that I had it within
Refocusing the business 1 me to manage this. It really gave me the boost I
Developing a new area of business 1
Understanding the need to sell better 1
needed.’
Lots of special moments 6
No special moments 4 Understanding the financial side of their business and
being able to identify their breakeven point was
mentioned as a special moment by four people:
to their products or services. For example, two printing
companies planned to add value to their existing ‘The financial side was an eye-opener, it led me to
services by offering 3D printing and mail-out services ask to see the accounts.’
respectively. One training consultancy changed the
structure of its training courses after discussions with Simply taking time out of the business and being with
other BI businesses on how it could be improved. other businesses were considered special moments by
three businesses each. One person stated:
‘We run a number of training courses for businesses.
We used to do it as one day courses but now each
module lasts a morning and each runs regularly each ‘All of it [was a special moment]. I thoroughly
month.’ enjoyed it and got a hell of a lot out of it. The strong
thing is the diversity. . .it was good to have so many
Three respondents had taken on a graduate intern or more businesses because the networking
apprentice since joining the programme, and two had opportunities that were there were fantastic.’
recruited additional staff. Two had expanded their
business premises and one had bought new machinery. Other moments mentioned included understanding the
Equally, one had decided to downsize the business different ways to grow a business, refocus a business
premises, an action they had determined would be and developing a new area of business. One person
financially beneficial. commented:

Significant moments ‘It gave me a total change of mindset and made me

Respondents were asked if they had experienced any realize that growth isn’t just growth of turnover but
‘special moments’ while participating in the also new products.’
programme. The basis for this question was the
inclusion in three of the programmes of a session on Six respondents stated that they could not identify any
‘significant moments’ in entrepreneurial learning (Rae, one ‘special moment’, but rather that there were lots
2012): their responses are summarized in Table 4. of such moments spread over the course of the
The highest proportion, eight, said that learning how programme.
to target customers was a special moment for them.
Related to this, four said they felt learning about how to ‘There wasn’t a significant special moment, but lots
maximize use of their Websites and using search engine of small ones. A lot of it was a refresher. We got
optimization was important. As one person said: from it a number of things to implement.’
‘...the section on segmentation was a very significant
moment. Segmenting customers by business problem Four people said that they could not identify any
rather than by location was very helpful’. ‘special moments’ at all.

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Small business leadership

Areas for improvement programme. The highest number, 15, suggested a price
of £1,000 or more, whilst 12 considered £500 to be
Interviewees were asked how Business Inspiration could
appropriate. However, most stressed that they would not
be improved. The suggestions are presented in Table 5.
have been able to afford the fee they suggested. The
Eight suggested that the teaching could be more
implication is that whilst there were strong perceptions
interactive and delivered in a less presentation-style
of value and benefit subsequently associated with
format. Three felt that the content of the programme
participation in the programme, there was much less
was too academic and would have preferred more
willingness – and ability – to pay for it. This has been a
practical content.
major constraint on the future development of the
Eight people felt that the course could be delivered
programme
over a longer period. This included leaving a longer
time period between sessions, such as two weeks, to
enable them to complete their homework and to enable Working with the university
the participants to get to know each other better. At least
two identified the need for a follow-up or refresher Interviewees were asked about their experience of
session and felt that the programme had ended too working with the University of Lincoln. Overall the
abruptly. There were several suggestions for additional comments were positive, with none of the respondents
modules, including those dealing with people saying that they had had a bad experience. For the
management, sales, employment law, tax planning, and majority of those participating, this was the first time
how to access funding. they had engaged with the university and the experience
Two respondents felt that the programme could be was not what they had expected, as the following
tailored more specifically to different sizes of quotations illustrate.
companies, to accommodate, for example, the needs of
sole traders or large companies. There was also a ‘It has given us a different perception of the
suggestion that modules could be offered as ‘pick and university as we didn’t know it provided this sort of
mix’ options, so that businesses could select only those support and training to businesses.’
that they considered relevant to them. ‘I suppose I felt a bit closer to it now. It was just
Other suggestions included making the course there before and I’d never even been in the
accredited, providing more one-to-one support, university before. It’s nice to know that the
providing the opportunity for joint business projects, university is working with businesses and that, and
and ensuring businesses had finished their homework so not just with students though, I hadn’t realized that
that more benefit was gained from the discussions at the before.’
subsequent session.
Interviewees were asked what they would consider ‘Our opinion prior to the course was that the
to be a realistic fee for the Business Inspiration University acted as if it was a ‘‘city within the city’’.
It was an organization that didn’t engage! However,
we now have a very positive perception of the
Table 5. Areas for improvement. university from the project and the members of the
project team. The university still needs to do more to
Area for improvement Number of
enhance its image and the perception of itself to
occurrences
businesses throughout the county.’
Make teaching more interactive 8
Deliver course over longer time period 8 ‘My perception before was that it wasn’t possible to
Include session on people management 5
engage. Now not only have I done the course, I have
Less academic content 3
Include session on sales 3 hired one graduate intern through the university, and
Tailor course to company size 2 I am looking at hiring another, I am also looking at
Less internet-focus in marketing session 2 renting office space. If businesses were aware of all
Include session on employment law 2 these ‘fringe benefits’ and the different ways they
Include session on tax planning 1
could engage with the university then I am sure that
Make sessions pick and mix 1
Credit course with CATs points 1 they would engage more often.’
More cross-business projects 1
Session on how to access funding 1 ‘We just assumed that the university was a place
More one-to-one support 1 with students in it who were there to get degrees. We
Make sure all businesses do their homework 1 hadn’t realized it had departments in it that wanted to
engage with businesses and the community.’

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 Small business leadership

These comments indicate that, before participating, • events having an educational focus to build on
those in business did not understand what the university Business Inspiration: these might comprise lectures
could offer them; many felt that the university was or seminars focused on owner–manager
difficult to access and they did not understand which development; and
part of it they should contact. The comments suggest • having networking events hosted at each of the BI
that the university could improve the way it markets its businesses premises, to show others what they do.
services to businesses and provide better information
on, and easier access to, which members of the Interviewees were asked if they would be prepared to
university academic staff to talk to about different areas pay a fee to cover the costs of any future networking
of business support and engagement. events and whether this fee should be a small charge per
Many of the favourable comments about working event or an annual fee. Most businesses preferred the
with the university related specifically to individuals’ option of a small charge per event.
engagement with the project team. For instance:

‘It was an excellent and positive experience working Conclusions

with the university and the BI team. I had a pretty The evaluation study confirmed that the programme
positive view of the university prior to the had been a valuable experience and was well received
programme and this experience only reinforced that by the participants. This is welcome; but other insights
feeling.’ from the delivery experience and the evaluation can also
be gained. First, the approach taken to the design, based
‘It makes it so much easier to learn when you know
on prior experience with this type of programme, and
there’s so much support there.’
the application of the ‘5 themes’ for learning, were
‘The organization, the way that they got people there, effective. Translating this approach into the new context
the support they gave us, from start to finish, of a recessionary economy with significant levels of
faultless.’ uncertainty and lack of confidence also seemed to work
effectively. It was evident that the programme met a
genuine learning and developmental need for most of
Business Inspiration network the participating businesses which had not been met by
other forms of intervention. References were made back
Interviewees were asked if they had maintained contact
to the ‘Accelerated Business Development’ programme
with the other participants. The majority, 24, said they
which had met a similar need until funding ceased some
were still in contact with at least one of the businesses,
five years earlier.
either directly or via the LinkedIn discussion group.
The evaluation demonstrated ‘what worked’ in the
Four had set up a joint project with other businesses;
programme from the perspectives of the participants.
and ten had traded directly with other businesses and
Social and peer learning and access to a learning
thus had either provided a product or service or had a
network; the practical focus on exploration of strategic
product or service provided to them by a business on the
and market position; opportunity-centred learning,
programme.
preparation and action; and personal development which
Most respondents, 34, stated that it would be useful
enhanced self-efficacy and confidence all provided an
to keep in touch with other businesses via networking
effective combination which met or surpassed the
events. Those not considering it useful included
expectations of most participants.
individuals who felt there were not enough businesses
At the end of the one-year funded project, the strong
of a similar size or sector to theirs in the group, or those
positive feedback on the value of the programme led the
with family commitments which made networking
team to pursue a plan to create a sustainable,
outside normal working hours difficult.
self-funded programme with sponsorship to replace
Several people commented that they would not be
public funding. Two sector-specific funded programmes
interested in networking ‘for networking’s sake’ and
were developed and delivered for the construction
that there would need to be a clear purpose for future
industry.
networking events. Suggestions for possible formats
However, it has been very difficult to translate the
included:
attractiveness and effectiveness of this approach into an
• making greater use of the LinkedIn discussion group economically sustainable business model. The economic
to get feedback on new ideas and share concerns; environment in 2011–2012 was one of continuing
• future networking events which would need to offer depressed demand and lack of confidence affecting most
something different from existing networks; businesses. The parallel survey, and other indicators,

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Small business leadership

showed a decline in business confidence in Lincolnshire aware, confident and better managed; but, without some
firms in line with the national picture; and 2012 saw the public investment, it is increasingly difficult to operate
UK enter a second period of recession (Price et al, them.
2012). The publicly-funded business support One reason for the cessation of programmes such as
infrastructure has been largely dismantled with the Business Inspiration was not their lack of effectiveness
ending of Business Link as a field operation and its but rather the argument that personalized mentoring and
related Regional Development Agency (RDA) funding, coaching support was preferred by businesses on the
and changes in Higher Education Innovation Funding, grounds of flexibility, time efficiency and elimination of
HEIF, affecting university outreach programmes. The the need for a viable size of group. There is relatively
need for this type of programme has certainly not gone little research literature on small business coaching and
away but there is a mismatch between businesses’ needs mentoring, despite their popularity as support activities
and their ability and willingness to pay. (Peel, 2004). Central government sees coaching for
There is an issue for business schools in particular, high-growth firms and ‘mentoring for all’ (preferably
where entrepreneurship and small business management provided free, by volunteers) as attractive, relatively
specialists recognize the need to provide initiatives for low-cost, flexible approaches to business support.
entrepreneurs and small firms, especially in periods of Whilst not criticizing the value or effectiveness of
economic transition, and policy rhetoric has consistently business coaching, this approach limits the interaction
encouraged this since the late 1990s. However, HEIs are to the coach, the business manager and, possibly
not incentivized to do so and, given the gap between the indirectly, other people in the business. In contrast, one
full economic costs of running small firm development of the major benefits experienced by participants in
programmes and the ability of participants to pay, it is Business Inspiration was the level of intra-group peer
frequently uneconomic for business schools to operate learning. This was different from the social exchanges
in this market. This is exacerbated by the changes to commonly experienced in business networking events,
policy and funding regimes which currently affect the since it depended on a degree of trust, common interest
sector. The Wilson Review (Wilson, 2012) identified and habitual time spent together to create the conditions
strong arguments, business and economic benefits for for productive peer learning. This is consistent with
SMEs to access and use university knowledge and the value of action learning found by Thorpe et al
expertise to stimulate innovation, higher-level skills and (2009).
growth, but did not make specific recommendations on This social dimension of learning, which created
how skills development in small firms could be conditions for the development of enhanced personal
resourced. and group confidence, can have significant value and
Coalition government policy rhetoric, especially lead to enduring learning relationships. Participants are
from the Treasury and the Department for Business, able to access creative and critical thinking, problem-
Innovation and Skills (BIS), has argued that economic solving, practical and emotional support from peers, in
growth led by the private sector would replace ways which are ‘naturally occurring’ but not readily
public-sector funding. Entrepreneurship is key to such available in a one-to-one coaching relationship. Within
an aspiration, but the policy focus again centres on each group, several business collaborations to address
‘high growth’ firms with the potential to demonstrate new opportunities or to share or exchange resources
significant increases in turnover and employment were initiated, leading to the potential for business
growth. However, it is well known that high growth innovation and commercial development. Even in an
firms are the exception and they are not immune to adverse economic climate, this demonstrated the
economic downturns. After a lengthy delay, BIS potential for entrepreneurial spirits to pursue such
launched the Growth Accelerator initiative, backed by opportunities counter-cyclically, by creating their own
funding of £200 million, in May 2012. This aims to confidence and pooling their resources.
help up to 26,000 businesses over three years,
through a network of 800 so-called ‘Growth ‘It has given me so much confidence, confidence in
Coaches’. my own abilities, confidence to try new things and
Most small firms are unlikely ever to meet the approaches. Also I feel I am part of and have access
criteria for high growth, but that does not mean they to a supportive network of likeminded individuals. I
are unimportant; on the contrary, they make up the really believe that one of the most important
overwhelming majority of the business population, elements of the course was ‘‘presenting the action
activity and employment. Programmes such as Business plan’’, I had to think about the business in such a
Inspiration can enable such firms to raise their way that it could make thoughts and good intentions
aspirations and become more ambitious, opportunity- become reality.’

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Appendix 1
Five themes for owner–manager engagement in learning

Relational learning
• Does the learner perceive the learning as relevant to their personal identity, goals, motivations and
preferences?
• How do they see their social identity, such as business reputation, being enhanced by participation?
• What forms of social network participation does the learning entail?
• What opportunities or disadvantages might result from participation?
Relevant learning
• How is the learning relevant to the immediate problems and decisions facing the business?
• Does it make a valued difference to the business by solving a perceived problem?
• Is it relevant to the context and stage of development of the business?
• Is it sufficiently attractive to be a worthwhile and immediate investment of time?
Authentic learning
• Is the learning based on a relationship of trust with others involved (co-learners, facilitator, mentor)?
• Is the learning based on real experience which can be ‘tried and tested’ rather than theory?
• Does the ‘story’ about the learning connect with the learner’s lifeworld?
Useful learning
• Is the knowledge valid in relation to the situation of the learner and the business?
• Does the learning work effectively in practice: does it do the job?
• Can it be implemented in the specific environment of the firm?
Production and sharing of new learning
• How do the learner’s reality and experience interact with the learning process to create new
learning?
• Is there dynamic engagement between learners and facilitators to create and respond to a flexible
and contingent learning agenda which addresses diverse needs?
• How is new learning captured and shared as new knowledge?

Source: Rae, 2007a, p 418.

488 INDUSTRY & HIGHER EDUCATION December 2012

 Small business leadership

Appendix 2
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INDUSTRY & HIGHER EDUCATION December 2012 489