Business News Round (26/05/2022)
Optimism dries up for UK services industry – CBI survey
Confidence is draining away from the services firms that dominate Britain’s economy, especially in consumer-facing companies which are most exposed to the worsening cost-of-living crunch, a survey showed on Thursday. The Confederation of British Industry’s quarterly survey of services companies showed declining expectations for business activity over the coming months, and mixed news over inflation pressure. Consumer services companies reported that growth was at a standstill and expected it to fall in the coming quarter, while business and professional services had experienced growth, but expected that to cease. The survey chimed with the closely-watched S&P Global PMI gauge of business activity, which showed a severe loss of momentum in Britain’s economy this month and an increased chance of recession. “Services firms are feeling pretty despondent about their immediate prospects in the face of cost pressures and high inflation,” CBI economist Ben Jones said. “The squeeze on household incomes is already having an impact on activity in consumer services, with fears of worse to come over the summer.”
https://www.reuters.com/markets/europe/optimism-dries-up-uk-services-industry-cbi-survey-2022-05-25/
New £20m life sciences fund launches to support SMEs in Greater Manchester, Cheshire, and Warrington
GMC Life Sciences Fund by Praetura’ aims to bolster Greater Manchester and Cheshire and Warrington’s flourishing life sciences sector. The fund, raised by partners including Bruntwood SciTech, Greater Manchester Combined Authority (GMCA) and Cheshire and Warrington Local Enterprise Partnership (LEP), will be deployed by Manchester-based Praetura Ventures. The fund will be launched with an initial £20m with the aim of supporting innovation and growing the region’s knowledge economy, creating more skilled jobs, and helping businesses to expand internationally. The ‘GMC Life Sciences Fund by Praetura’ – a partnership between Greater Manchester Combined Authority (GMCA), Cheshire and Warrington Local Enterprise Partnership (LEP), Bruntwood SciTech and Praetura Ventures – will combine capital, expertise, and resources to help investee companies in Greater Manchester, Cheshire, and Warrington to scale. GMCA has committed £10m to the fund, whilst Cheshire and Warrington LEP and Bruntwood SciTech have both committed £5m to continue to build on the North West’s world-leading cluster of clinical, academic, and commercial life sciences assets, companies, and expertise. The ‘GMC Life Sciences Fund by Praetura’ will offer investment of £50k-£2m to early-stage businesses and SMEs that are located in Greater Manchester, Cheshire, or Warrington, or those that commit to relocating their operations there. The fund will be launched with an initial £20m with the aim of supporting innovation, creating more skilled jobs, and helping businesses to expand internationally.
Scotland’s 146 employee-owned businesses have a combined turnover of £691m
New research commissioned by Co-operative Development Scotland (CDS) has given the clearest picture yet of Scotland’s employee-owned businesses (EOBs) and their economic contributions. Conducted by academics from the University of Leeds, University of New South Wales and the White Rose Employee Ownership Centre, the new census reveals there are currently 195 EOBs operating in Scotland, comprised of 146 Scottish-registered EOBs -including 27 workers’ co-operatives – and 49 non-Scottish-registered EOBs – including one workers’ co-operative. Findings also revealed that the 146 Scottish-registered EOBs have a combined turnover of £691m and employ more than 5,350 people. Of these, the 27 Scottish-registered workers’ co-operatives have a combined turnover of £30m and employee more than 350 people. Companies are defined as EOBs if there is an employee stake of at least 25%, with no other single majority shareholder. CDS is the arm of Scotland’s enterprise agencies – Scottish Enterprise, Highlands and Islands Enterprise and South of Scotland Enterprise – that supports company growth through collaborative and employee ownership business models.
https://www.insider.co.uk/deals-and-dealmakers/scotlands-146-employee-owned-businesseshave-27069719
IN4 Group’s £4.6 million regional impact
MediaCity-based IN4 Group and Salford City Council have delivered £4.6m of social value and economic impact in the region, according to a new report. It has been awarded the Social Value Quality Mark level two for its “transformational impact.” For every £1 IN4 invests in services and support, there is a £4.69 return of social impact into the Salford regional economy. “IN4 Group is absolutely committed to driving social value and local economic benefit through all its activities across the three pillars of skills, innovation and start-ups, and delivering positive outcomes through operating skills and innovation environments such as HOST in MediaCity,” said Richard Dickins, founder of the Social Value Quality Mark. Led by technology entrepreneurs Mo Isap and Andy Beaden, IN4 has supported more than 450 businesses through innovation and growth programmes, including its FreelanceHER 100 accelerator.
https://www.prolificnorth.co.uk/news/manchester-news/2022/05/in4-groups-ps46million-regional-impact