ERDF Call Briefing: Social Enterprise
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- Clement Martin
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1 ERDF Call Briefing: Social Enterprise WE ARE A PRIVATE/PUBLIC PARTNERSHIP THAT IS GROWING THE ECONOMY OF THE BRISTOL & BATH CITY REGION. SKILLS MANAGING FUNDS INWARD INVESTMENT PLACE & INFRASTRUCTURE MARKETING
2 Agenda 1. Introduction to ERDF I. General Introduction II. National Operating Programme III. Local EU SIF Strategy 2. The detail of the Call 3. Outputs 4. Questions and Answers with Hints and Tips: I. What will make a good application? II. State Aid III. Match funding
3 Introduction to ERDF Programme runs It s about business growth, jobs, innovation with a low carbon slant. National Managing Authority Department for Communities and Local Government. National Operating Programme.
4 Introduction to ERDF West of England has m over the period. Worth between 25m and 30m. What is already done or planned? March calls - 4.5m Bristol s Sustainable Urban Development plan - 2.5m. Value of the November calls - 8m Low carbon call - 3m Local Impact Fund - 1m Remainder: 6m - 10m
5 Introduction to ERDF: Local Strategy
6 Guidance Two key documents you need to refer to for guidance on outputs: 1. The ERDF England Operational Programme (2014 to 2020) 2. The Output Indicator Definitions Guidance for the European Regional Development Fund (September 2015) Both are easily found on the ERDF website:
7 Research Inputs Activities Outputs Results Analysis This Opinion Market failures If we do This Growth will happen Theory This
8 Inputs Activities Outputs Results Grants scheme for SMEs Grants to support productive investment disbursed Increase in entrepreneurship Indicators of change Number of enterprises signed up to receive support Number of enterprises receiving support % Increase in the Total early stage Entrepreneurial Activity rate
9 Enhancing the competitiveness of SMEs Investment Priority Specific obj Output indicator First level subset indicator Second level subset indicator No' of enterprises receiving support C2 Number of enterprises receiving Grants C28 Number of enterprises supported to introduce new to the market products C1 C3 Number of enterprises receiving financial support other than grants C28 Number of enterprises supported to introduce new to the market products C5 Number of new enterprises supported 3a - Promoting Entrepreneurship, in particular by facilitating the economic exploitation of new ideas and fostering the creation of new firms, including through business incubators Increase entrepreneurship, in particular by facilitating the economic exploitation of new ideas and fostering the creation of new firms. C6 C7 Private investment matching public support to enterprises (grants) Private investment matching public support to enterprises (non-grants) C8 Employment increased in supported enterprises P2 Public or commercial buildings built or renovated P11 Number of potential entrepreneurs assisted to be enterprise ready
10 Enhancing the competitiveness of SMEs Investment Priority Specific obj Output indicator First level subset indicator Second level subset indicator C2 Number of enterprises receiving Grants C28 C29 Number of enterprises supported to introduce new to the market products Number of enterprises supported to introduce new to the firm products C1 No' of enterprises receiving support C3 C4 Number of enterprises receiving financial support other than grants Number of enterprises receiving non-financial support C28 C29 C28 C29 Number of enterprises supported to introduce new to the market products Number of enterprises supported to introduce new to the firm products Number of enterprises supported to introduce new to the market products Number of enterprises supported to introduce new to the firm products 3c - Supporting the creation and extension of advanced capacities for products, services and development 3.2. Increase growth capacity of SMEs C6 Private investment matching public support to enterprises (grants) C5 Number of new enterprises supported C29 Number of enterprises supported to introduce new to the firm products C7 Private investment matching public support to enterprises (non-grants) C8 Employment increased in supported enterprises C29 Number of enterprises supported to introduce new to the firm products C28 Number of enterprises supported to introduce new to the market products (where relevant) P2 Public or commercial buildings built or renovated P13 Number of enterprises receiving information, diagnostic and brokerage support
11 Enhancing the competitiveness of SMEs Investment Priority Specific obj Output indicator First level subset indicator Second level subset indicator 3d - Supporting the capacity of Small and Medium Enterprises to grow in regional, national and international markets and to engage in innovation processes 3.2. Increase growth capacity of SMEs C1 C6 C7 No' of enterprises receiving support Private investment matching public support to enterprises (grants) Private investment matching public support to enterprises (non-grants) C2 C3 C4 C5 Number of enterprises receiving Grants Number of enterprises receiving financial support other than grants Number of enterprises receiving non-financial support Number of new enterprises supported C28 C29 C28 C29 C28 C29 C29 Number of enterprises supported to introduce new to the market products Number of enterprises supported to introduce new to the firm products Number of enterprises supported to introduce new to the market products Number of enterprises supported to introduce new to the firm products Number of enterprises supported to introduce new to the market products Number of enterprises supported to introduce new to the firm products Number of enterprises supported to introduce new to the firm products C8 Employment increased in supported enterprises C29 Number of enterprises supported to introduce new to the firm products C28 Number of enterprises supported to introduce new to the market products (where relevant) P2 Public or commercial buildings built or renovated P13 Number of enterprises receiving information, diagnostic and brokerage support
12 Example: C1 Number of enterprises receiving support
13 C1 - Number of enterprises receiving support C2 - Number of enterprises receiving C4 - Number of enterprises receiving grants non-financial support Unit of measurement: Number of enterprises Number of enterprises Number of enterprises Criteria: Consultancy, information, diagnostic advice, guidance to individual businesses Financial assistance for investment that results in the production of goods and services Cash payment by the project which is Service or services by the project with no not repaid direct payment of monies All size of social enterprises engaged in economic activity Initial diagnostic assessments as well as defined subsequent support Face to face, telephone, web based dialogue, conference, seminars, meetings, workshops One to one or in groups Including but not limited to Management leadership support, corporate and social responsibility, access to new supply chains and markets including new international markets, marketing, innovation and commercialisation A specific business can only be counted once by a project. Multiple instances of financial or non-financial support within a project cannot be counted multiple times. So financial or non-financial assistance Threshold: One instance of either: Grant of at least days/ 12 hours of active consultancy support Travelling and preparation time Mail shots and brochures Exclusions Activity already counted toward achieving indicators for ERDF outlined in this note Any businesses ineligible for ERDF support under national eligibility rules
14 C1 - Number of enterprises receiving support Record of business (name, address including postcode, contact details, company registration number C2 - Number of enterprises receiving grants C4 - Number of enterprises receiving nonfinancial support Unique identifier Evidence required Record, electronic or paper of support over the minimum threshold. Signed and verified by senior member of staff in the enterprise assisted including time period claimed Copy of signed loan agreement, signed grant funding agreement or other risk finance investment documentation demonstrating value over minimum threshold has been provided to the business Additional info Details of company (size, sole trader, SME, large company) Indicators C2 - C4 are subsets of indicator C1. All instances reported under C1 should also be reported under C2, C3, C4 Enterprises reported under C2 may also be reported under the following where they meet the relevant definition, criteria and count threshold - C28, C29 Enterprises reported under C2 may also be reported under the following where they meet the relevant definition, criteria and count threshold - C28, C29 Relationship to other indicators: Enterprises reported under C1 may also be reported under C5, C28, C29. Enterprises reported under P13 may be reported under C1 but only where they have met the C1 count threshold of 12 hours. The 3 hours can be counted towards the 12 hours needed for an output under C1
15 Subset Subset Subset Related C2 Number of enterprises receiving Grants C29 Number of enterprises supported to introduce new to the firm products C28 Number of enterprises supported to introduce new to the market products (where relevant) C8 Employment increase in supported enterprises No' of enterprise s receiving support C3 Number of enterprises receiving financial support other than grants C29 Number of enterprises supported to introduce new to the firm products C28 Number of enterprises supported to introduce new to the market products (where relevant) C8 Employment increase in supported enterprises C5 Number of new enterprises supported C29 Number of enterprises supported to introduce new to the firm products C8 Employment increase in supported enterprises
16 Additional counts Indicator C1 No' of enterprises receiving support OR P13 Number of enterprises receiving Information, Diagnostic and Brokerage support C5 Number of new enterprises supported
17 Example: P13 Number of enterprises receiving Information, Diagnostic and Brokerage support
18 P13 - Number of enterprises receiving information, diagnostic and brokerage support Unit of measurement: Number of enterprises Information, diagnostic advice/guidance and signposting to individual businesses. All three elements (information, diagnostic and brokerage) need to be included for activity to be eligible Must signpost to relevant ERDF funded provision and/or other provision relevant to the needs of the enterprise All size of social enterprises engaged in economic activity Structured review lasting a minimum of three hours incorporating information, diagnostic assessment, advice and guidance Face-to-face Telephone Web based dialogue Conferences Seminars Workshops Criteria: One-to-one or in groups Should support project objectives, improving performance of the business or supporting the creation of a new enterprise Including but not limited to: Management leadership support Corporate and social responsibility, Access to new supply chains and markets including new international markets, Marketing, Innovation and commercialisation of R&D Process improvement and quality assurance Access to finance support Direct loans and financial instruments Resource efficiency and environmental management Any other thing addressing genuine business need which is consistent with eligibility rules and Operational Programme Threshold: Business supported with information, diagnostic and brokerage support only (a minimum of 3 hours)
19 Exclusions Evidence required Additional info P13 - Number of enterprises receiving information, diagnostic and brokerage support Excludes travelling time (only preparation and delivery are counted) Distribution of mail-shots and brochures excluded No double counting of activity Any businesses ineligible for ERDF support under national eligibility rules Record of business (name, address including postcode, contact details, company registration number Unique indicator Record, electronic or paper of support over the minimum threshold verified by a senior member of staff in the enterprise assisted, including time period claimed. Details of company (size, sole trader, SME, large company) Will reflect stand alone information, diagnostic and brokerage support only Relationship to other indicators: Can complement but will not be a prerequisite requirement for achievement of outputs linked to C1 and/or C5 Where enterprises receive a sufficient level of support to qualify for C1 they may be reported as such. The 3 hours of support under P13 can be counted towards the 12 hours needed for an output under C1 The 3 hours of support under P13 can be counted towards the 12 hours needed for an output under C1
20 Equality and diversity Equality and diversity information required for some indicators: Gender Age Disability Ethnicity May be worth collecting this data across all indicators where relevant.
21 Recommendations Build simple management information systems (MIS) in to your project design to form the backbone of project activities Ensure a clear intervention logic is in place for your project from the start and make sure the support you provide to beneficiaries fits within this logic File information regularly and systematically Make templates! Set targets for the achievement of outputs and monitor progress against targets regularly
22
23 Project Appraisal
24 Four Delivery Models
25 Managing Authority Department for Communities & Local Government (DCLG) Outputs Funding Funding Agreement Lead Partner/Grant Recipient Reflects terms of Funding Agreement Outputs Funding Legally binding agreement Legally binding agreement Sub-contractors Delivery Partner Delivery Partner Invoice Invoice Sub-contractors Sub-contractors
26 What can be claimed? Lead and Delivery Partners Direct costs exclusively for the project Essential for delivery Procured Auditable Direct staff costs Project time hourly rate options Timesheet records Indirect costs 15% of direct staff costs applied as FLAT RATE Not individually claimed/audited
27 A Good Application Wrong question: a good project is what you need. Your activities need to be clear what are you spending money on? How those activities deliver the outputs required what is the link between the two?
28 A Good Application Value for money cost per output: Base this on your project and the activities that you will undertake Needs to be realistic and deliverable. There are reference figures but they show how cost vary depending on the nature of your activity.
29 State Aid CLG assume that all applicants will be an undertaking State Aid will be a key consideration for all applicants. The focus of your thinking should be the activity you are doing, not your legal status. If your match is already State Aid you will have further difficulties.
30 Match funding For a more developed region - 1 to 1 All claims paid in arrears spend 2 get 1 back. Your match becomes ERDF. You must secure it during the application process.
31 Match funding Capital can match revenue and vice versa PROVIDED: It is a single holistic project that can demonstrate a need for ERDF Capital and revenue activities are mutually dependent. Beware timescales if your capital is already spent ineligible If not, will it be spend in-line with the ERDF spend (an in three years)?
32 WE ARE HERE TO HELP: Call us: Cassie Abbie Jess us: eusifinbox@westofengland.org Web:
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