Training Services
30. Industry New Zealand and Trade New Zealand currently offer four types of training services, in partnership with non-government providers - management training through BIZ Training, investment skills training through the Investment Ready Scheme, export education training, and e-business capability development.
- BIZ Training aims to enhance management capability (at a basic level) amongst owners and operators of SMEs, those wishing to establish a business, and the trustees and managers of Maori organisations managing assets. BIZ Training is delivered on a regional basis by 16 Lead Providers contracted to NZTE. The services offered to clients include capability assessments, seminars, workshops and courses, and follow-up coaching. All services are provided free of charge. In 2001/2002, BIZ Training services were provided to 14,532 individual clients, representing 11,860 businesses. $9.105 million (GST inclusive) is allocated for BIZ Training in 2003/2004.
- Investment Ready Training workshops aim to improve small business and entrepreneurs' awareness and understanding of equity financing. Training is delivered under contract by EDANZ and I Grow. 121 workshops have been delivered since inception of the programme in July 2002, with over 1,700 businesses and entrepreneurs attending. $0.360 million (GST inclusive) is allocated to Investment Ready Training annually.
- The Exporter Education Programme aims to provide businesses with information and skills relevant to exporting. Trade NZ facilitates and delivers these programmes and contributes funding toward marketing expenses and administrative resources. Seminars and course content are managed jointly with other providers such as Export New Zealand, Chambers of Commerce and Auckland University. Funding is $0.732 million (GST inclusive) annually.
- The e-business programme offers exporters a step-by-step guide to enable them to maximise their returns from participating in e-business. It is an interactive programme provided at no cost to the client. Companies are interviewed to determine their e-business capability and then an e-business expert works through the various steps required to become fully e-enabled. The e-business guide also lists suppliers of e-business products and services. Funding is allocated as part of the e-Business portal, which is discussed in Paper 4 - Growth Services.
Lessons Learned and Proposed Enhancements
31. An evaluation of BIZ Training was undertaken in late 2002/early 2003 to establish what impact the programme has had on businesses. The key findings are:
- BIZ Training is making a significant positive difference to businesses with 72% citing improved management capability, 68% increased business confidence, and 64% improved planning
- Post BIZ Training, 75% of clients consider they need further management training and 54% are willing to pay - BIZ Training creates demand for private sector training and advice and is often the first step in continued learning
- Learning is more effective when classroom participants are similar e.g. sector, stage of maturity, stage of growth, and when course content is tailored to needs (the trainer uses case studies relevant to class participants)
- There is significant variation across BIZ providers in the quality and content of training delivered on the same issues
- One-to-one mentoring can add value to certain participants, particularly where major change or growth is taking place. However, the benefits vary depending on the quality of the mentor.
32. An evaluation was also undertaken of the Investment Ready Scheme in late 2002/early 2003. The key findings are:
- The five workshop modules are time-consuming, with each taking up one full half-day. This has led to difficulties in maintaining attendance as the attendees move through to higher-level modules.
- The modules are held only sporadically in any one location, meaning that it can take months for a firm to attend two or more modules. This has a de-motivating effect on programme participants and makes it difficult to "connect" the training and deal broking channels.
- There is a lack of integration between the workshops and the deal broking services.
33. Based on these various evaluation findings, it is proposed that all training services funded by NZTE, including export education and basic investment ready and capital raising workshops, be administered and delivered via the BIZ model of an open and contestable approach utilising regional providers. This will improve recognition and coverage and provide consistency in terms of delivery.
34. It is also proposed that BIZ Training improve the alignment of participants with the Growth and Innovation Framework, sectoral and regional strategies. Where practical, groups of similar businesses will be encouraged to attend the same courses. This will encourage interaction and networking as well as allow courses to be delivered at a level that all participants can understand and gain more relevant skills. This is also consistent with the Ministry of Economic Development's Business Practices and Performance Study 2002, which found an absence of strong inter-firm networks and learning in New Zealand and recommended that BIZ Training should encourage more opportunities for businesses to learn from one another. Positioning BIZ to focus a proportion of training programmes on cluster or sector-based client groups will play an important role in facilitating learning networks and trust.
35. The content of training courses will be standardised (basic content will be developed and supplied to providers). Building on the current range, courses will cover:
- Starting up a business
- leadership and business planning
- compliance (IRD, ACC, OSH etc)
- financial management (cash-flow, forecasting, debt management, financial statements, getting capital, risk management, costing and pricing)
- e-commerce
- managing resources (staff, plant, equipment)
- managing relationships (customers, suppliers, partner organisations)
- business and operational excellence (quality and continuous business improvement, customer service, performance monitoring and improvement)
- environmental management
- capital raising
- managing information and benchmarking
- market development and exporting
- Maori Trustee training.
36. The Business Practices and Performance Study also pointed to particular areas of management practices where New Zealand firms are relatively weak, including strategic planning, managing information and benchmarking, supplier relationships, environmental management and staff performance management. Within the suite of training provided, more emphasis will be placed on providing training in these areas.
37. NZTE also intends to support, through BIZ, a mentor/SME advisor accreditation scheme currently under development. This will assist delivery agencies by providing a guide to the competence of advisors that they assign to SMEs. It aids SMEs themselves by increasing the level of confidence in their selected advisor. SME advisors may consider accreditation will add value to their marketability. It is expected that, over time, BIZ providers will give preference to accredited advisors as coaches and mentors for clients.
38. The BIZ Training model has successfully built up the supply of basic management training to SMEs in New Zealand, and the approach will continue to focus on purchasing the services through private and non-government providers rather than direct provision. This not only reduces delivery costs, but also encourages supply capability and contestability.
39. The current BIZ Training contracts expire on 30 June 2003. Subject to satisfactory compliance audits, existing contracts with Lead Providers will be extended for a further one-year with an annual right of renewal for two years. NZTE will also continue its relationship with Export New Zealand in delivering export education seminars in conjunction with BIZ lead providers. All contracts will expire on 30 June 2006 and be re-tendered.
40. The enhancements to BIZ Training will be delivered from 1 July 2003.
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