Business Enterprise Centres
DESCRIPTIONBusiness Enterprise Centres (BEC) are local organisations that fulfil a facilitating, catalytic role in local enterprise creation, employment generation and economic development.
Business Enterprise Centres provide small business facilitation services to intending new business start-ups and/or existing businesses wishing to expand or experiencing difficulty. They provide business counselling, advice and training in the areas of business planning, marketing, finance and other aspects of business management and development.
USESA BEC provides and facilitates free, independent, confidential, competent advice and practical assistance to foster viable local enterprises and businesses and boost sustainable economic development and employment.
A BEC endeavours to create long-term jobs and economic wellbeing by:
• encouraging new business and self employment;
• fostering the establishment of support services to improve the likelihood of new enterprises being successful.
• They also provide a focus for initiatives that foster:
• fruitful private sector/public sector and community partnerships in project implementation;
• corporate sector involvement in local job creation efforts;
• an increased community interest in job creation.
A BEC provides a service for small business by:
• providing advice and assistance to new start small business, businesses wishing to expand and businesses who may be in trouble;
• aiding community enterprise development.
HOW IT WORKSBECs offer practical hands-on advice and assistance to people:
• wishing to start a small business;
• expand and diversify their business;
• having difficulties in their business.
Other services include:
• referral to specialist advisers (who also give some of their time free) or mentors;
• introduction to government departments, local established business enterprises and advisers;
• business workshops and training;
• business information;
• problem solving;
• business networks.
PREREQUISITESThe legal structure of BECs is generally non-profit with some form of incorporation. This includes companies limited by guarantee and incorporated associations.
In addition, BECs are normally required to:
• demonstrate they have the capacity to manage all aspects of project operations, including the management of funds;
• demonstrate they have community support for the project;
• ensure all aspects of project management and operation are conducted in accordance with relevant Commonwealth, state and local government laws, regulations and ordinances, including professional indemnity insurance where necessary;
• accept all legal and other responsibilities as employers of project staff, including adherence to industrial awards where they apply and the provision of a safe and healthy working environment;
• advertise positions and recruit staff for all project positions in accordance with the principles of Equal Employment Opportunity.
HOW TO STARTA new or existing organisation needs to bring together a board of management with appropriate skills and expertise made up of representatives from the public sector, the private sector and the community. It should apply for funding from the state government.
STRENGTHSBusiness Enterprise Centres are seen to be independent and at arm’s length from government as they are owned and managed by the community. They have the capacity to be flexible in their service delivery and meet the needs of their own unique community and can therefore be a catalyst for community owned economic initiatives. Evaluations have shown that BECs pull in resources (cash and in kind) from the private sector to match funding.
WEAKNESSES• Generally reliant on ongoing government funding.
WARNINGS• Funding is being severely reduced in some states.
• It is important that BECs maintain their community focus, to draw on resources from the local community and to ensure the needs of the community are met.
• A manager is critical to the process. The manager must be a skilled enterprise facilitator (business counsellor), focused on community needs and be flexible enough in delivery to meet those needs.
INDICATIVE PRICE/COSTS• Start-up costs include equipment and could be around $40,000.
• Running costs include a Manager and an Administrative Assistant and would range from $80,000 (bare minimum) to $120,000 per annum.
FUNDING RESOURCE OPTIONS• Some states provide part or full funding for BECs.
• Organisations eligible for assistance are generally a coalition of some or all of the following groups, namely business, trade unions, local, state and federal governments and community organisations.
• For further information contact your state government business department.
MONITORING AND PERFORMANCE EVALUATIONWhen considering the development of a BEC the following issues will need to be considered, and will be part of the state government assessment criteria:
• the project’s viability, including the projected lead time needed to achieve results;
• the potential for job creation/enterprise development;
• the training capacity of the project, if applicable;
• the extent to which it meets community needs or demands;
• the extent to which it will benefit the unemployed;
• the level of cooperation and involvement it will achieve within the local community;
• the level of ongoing community financial support;
• the management capacity of the sponsor;
• the degree to which it fits in with the current government’s policy;
• the local economic conditions and labour market characteristics;
• catchment area;
• population;
• demand for service;
• incorporation of the organisation;
• quality of budget;
• realistic objectives;
• make-up of management;
• labour market conditions, eg unemployment rate.
Once the BEC is up and running its performance will be assessed by the following criteria:
• numbers of jobs created and retained;
• the number of people actually or potentially placed in employment;
• the time to produce results;
• number of persons assisted;
• business established;
• business dissuaded;
SIMILAR TOOLS• Business Incubators.
• Business Mentoring.
• Business Plans.
• Enterprise Facilitation.
INFORMATION RESOURCESAlso State Government Departments of Business or Regional Development or the State Small Business Commssioners