Exclusive: Goldman Sachs to help small enterprises realise potential

The investment bank is funding a pilot business education programme for 25 entrepreneurs from across the region who have been chosen for their high growth capacity.

Goldman Sachs selected Yorkshire and the Humber for its first philanthropic venture outside the South East because of its "very strong history of entrepreneurial success", said Michelle Pinggera, the bank's chief of staff in Europe, Middle East and Africa.

Under the programme, the entrepreneurs will go on a four-month business and management course which will have an emphasis on real-life practical experience.

The course will be delivered by experts from Leeds University Business School and Sad Business School at Oxford University, who helped to devise the programme.

Most of the courses will take place at Shine at Harehills, the social enterprise centre founded by American entrepreneur Todd Hannula.

Leeds Ahead, the social enterprise set up by former high-flying lawyer Stephanie Burras, helped the bank with introductions, marketing and processing applications.

Ms Pinggera told the Yorkshire Post: "We were able to move much faster in Yorkshire and the Humber than we thought we would because the local partners we worked with had the the right contacts with small enterprises who could tell us what they thought was needed from a business educational programme.

"We want this to go way beyond the four-month programme and hope that the success of this pilot could lead to something nationwide. The combination of business education and wraparound support for both SMEs and social enterprises, is we believe quite unique in the UK.

"We want this to be part of the economic growth of the region and part of an ongoing programme of support."

The chosen entrepreneurs are aged from their mid-20s to early-50s and represent a range of sectors including retail and manufacturing. Around half are from Leeds, while others are from Selby, Bradford and Doncaster.

A quarter of those taking part are social enterprises, which will be helped to achieve the scale they need to deliver their social goals.

The classes will be held every fortnight and participants will be mentored so they can apply what they learn in real time.

Deepak Jayaraman, the bank's head of corporate engagement for EMEA, said: "The programme is all about putting an eco-system in place. It's providing them with the skills, confidence and the networks to succeed."

Ms Burras added: "It's about investing in businesses now and giving them the skills and tools they need to grow. Our role has been to make this happen locally.

"Encouraging entrepreneurial behaviour is absolutely vital. We are going to have to generate jobs and small businesses have a huge part to play in that."

Professor Richard Thorpe, of Leeds University Business School, said: "We need to add value through growth companies that can make a difference."

Ms Pinggera said the scheme was not launched in response to negative publicity about investment banks following the financial crisis.

"The programme is focused on job creation and growth. Every one of the entrepreneurs has a business plan to create jobs in this region," she said.

Support is heaven sent, says Lord Kirkham

One of Yorkshire's most successful entrepreneurs has given his full endorsement to the business education programme.

Lord Graham Kirkham, who was guest speaker at last night's launch event at Shine in Leeds, is a client of the investment bank, which helped sell his Doncaster-based retail business DFS for a reputed 500m earlier this year.

He told the Yorkshire Post: "I spent 41 years building the business from scratch. Any success or recognition that I enjoyed I owe to Yorkshire people. I started DFS here in 1969. It's fair to say I can identify with all the challenges that new businesses face today. I learnt the hard way.

"Goldman Sach's help is heaven sent. It's going to increase the odds of them surviving and minimalise the odds of them failing. For the country to recover, it's only going to be able to be done through successful businesses; the people who can create future employment.

"What they are doing is great is because they are doing it for nothing."

Lord Kirkham, 65, said bureaucracy and the prevailing economic conditions are the biggest challenges to small businesses today.