Lifeline centre for start-ups faces axe
A FLAGSHIP enterprise scheme which helps start-up businesses survive could be scaled down under council cost savings, it is feared.
The council's Enterprise and Incubation service could sell off at least two of its successful business hubs which provide a premises for new and expanding firms.
Centres at Normanton and Whitwood are being considered for the axe, the council's local economy overview and scrutiny committee heard this week.
But after Wednesday's meeting, Wakefield Council insisted there will be not reduction in support for small businesses in the district.
The hubs are among nine enterprise centres which are home to 85 small businesses, employing more than 200 people in less well-off areas of the district where the private sector is unlikely to invest.
Enterprise and Incubation team leader Phil Murray, told the meeting that the service, which costs 250,000 each year to run, has helped two thirds of its business start-ups stay afloat where, on average, just one third survive.
He said: "Our success is well above the regional and national averages and that is because the support works.
"It is difficult when people say you have to reduce your costs. That is why we are trying to get a body of support behind us. We believe we are very good at what we do."
He said the Whitwood centre could be taken over by a university. The Normanton centre could be used to provide housing.
Coun Laurie Harrison, chairing the meeting, was concerned there could be a lack of support for small firms as a result.
He said: "If the service is reduced to a more centralised point then I feel that could be counter-productive. That's my view."
Andy Wallhead, the council's corporate director for regeneration, said yesterday: "There are no specific proposals but we are looking at our current provision and will continue to do this.
"We are always reviewing our support to businesses. Their needs change regularly and we need to adapt to ensure our high quality network continues to help businesses.
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Friday 10 February 2012
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