Increasing small business innovation and productivity through action-orientated methods

The Approach

In a study commissioned by the Small Business Service, the unique nature of the micro business learning environment and the challenges this presents for policy were highlighted. Initiating and sustaining communicative relationships between micro business leaders and the intervention agencies was found to be a critical success factor in the design and delivery of relevant services. This led to the development of the conceptual model of management learning in micro businesses which still underpins the constructs and approach applied by the researchers today, namely that the foundation of successful intervention should be the interests of the managers themselves (R3).

Building on this, later research showed how the informal aspects of learning in SMEs can be stimulated by action learning (AL). AL also allows critical reflection to be embraced and a commitment to act. The importance of finding a common ground in order to develop effective networks was also emphasised (R4). The research investigated engagement with SMEs, highlighting how argument and persuasion are crucial skills that allow interaction which attunes to the needs and interests of SME leaders.

In further development of their ideas, Devins and Jones (R5) explored the challenges of developing strategy in small family businesses. They presented a framework to explore wicked problems, connections with organisational innovation and the need to re-frame strategising as a social endeavour to achieve more sustainable family business futures. Communication was again highlighted as being critical.

This innovative and proven approach to SME engagement has been tested and refined many times over the past years. However, at the heart of it remains the same conceptual model and social constructionist principle that the development of relationships between SME managers and those who wish to intervene in the business is a crucial element of the support process and any that do need to find a common area of understanding and approach as a ‘helper’ rather than an ‘expert’.

Using this method, the research team has successfully applied the model to a range of regional development programmes, networks and knowledge exchange activities that have helped small businesses to grow and thrive. Further, this body of work has extended practice in the field and contributed to the theoretical knowledge base within business and management.

The Impact

Our principles of good practice for SME leadership development, including the need to understand and build from context so that development can take into account the lived experience of managers, have been a critical design factor in all our activities. This is most evident from two substantial EU-funded regional development programmes that the research team supported.

As lead partner for business support, incubation and acceleration for the consortia, our conceptual model and approach informed the design of the Leeds Beckett University element. Programme participants contribute to the knowledge production process through a conversational diagnostic to benchmark activity and performance, and this intelligence is used to inform the development and delivery of services for smaller enterprises. Applied ‘masterclasses’ informed by the interests of local small businesses blend academic knowledge with practical intelligence to ensure that the learning is relevant and actionable in the SME context, plus the one-to-one mentoring ensure these mechanisms transfer and embed learning in the SME workplace. To this end, both projects achieved significant results, specifically:

UNIVERSITY BUSINESS CENTRES (UBCS)

Delivery of the knowledge exchange services through our six University Business Centres (UBCs) is also influenced by our research. Recently established by our university to encourage the start-up and development of smaller businesses in the regional economy, the UBCs provide dedicated space and support for more than 250 start-up and growth-oriented entrepreneurs. Each UBC has developed its own specialism working with local stakeholders and our lessons on engagement and preferred activities have become embedded to provide a successful programme of events targeted at the business community, regional policymakers and growth-oriented SMEs. The impact of the centres is particularly evident following a smart engagement approach to widen access so, as well as developing UBCs in Leeds, we have worked with a variety of public and private sector partners to introduce UBCs into higher education ‘cold spots’ in both Halifax and Wakefield where this type of support had not existed before.

ENGAGING LEADERS IN PEER-TO-PEER LEARNING

Our research points to the value of networks as a way of engaging leaders in peer-to-peer learning that focuses on relevant business issues. Such networks, including the Business Alliance (facilitated) by Leeds Business School have been operating for more than 10 years. This successful programme uses action learning to support small business leaders to thrive, as one states: “I have always found the action learning workshops helpful, from a business and personal point of view, having an executive board of people looking at issues from a different angle helps to clarify the thought process. Without measuring this, I’m sure it has had a positive effect on the bottom line of the company”.

INNOVATE UK KNOWLEDGE TRANSFER PARTNERSHIPS

Our targeted knowledge exchange programme has helped secure three Innovate UK Knowledge Transfer Partnerships (2016-current) working with SMEs to provide services to make a material difference to their strategic orientation and use of technology with projected increased profits of over £5m. Further, in 2017, to enhance our knowledge exchange activities, Devins established an Entrepreneur in Residence (EIR) programme at Leeds Business School to provide opportunities for small business leaders to share knowledge and experiences with students, academic staff and entrepreneurs looking to start or grow a business within the Leeds Beckett University environment. It provides an opportunity to inspire the next generation of entrepreneurs and to mentor small business leaders that seek to grow businesses in the Leeds City Region and beyond. Three EIRs joined the network when it was launched in 2017 and this network has grown to eight who have contributed to guest lectures and mentoring to students and small businesses facilitating the exchange, flow and co-creation of knowledge.

MENTORCERT ERASMUS+ PROJECT

As stated earlier, for more than 25 years academics at Leeds Business School have promoted the role that mentoring plays in supporting and empowering small business development, incorporating mentoring into our mainstream curriculum for undergraduate and postgraduate students, and delivering professional development and support programmes for business leaders. Recently we were able to extend this model to partner institutions in Europe through our participation in the peer-reviewed MentorCert (2017-2020) Erasmus+ project. Our learning across the partnership has informed the development of a skills matrix, assessed by an expert committee drawn from 12 countries. This provides a foundation for a new ISO equivalent business mentor certification scheme. As the project draws to a close, partners are making various arrangements to incorporate the learning in the curriculum and to develop bespoke courses to support the development of business mentors in their localities. As such, this project has international impact in countries such as Hungary, Poland, France, Portugal and Belgium.