Published: 02.07.08

ProfitNet, a new scheme aimed at boosting SMEs (small and medium enterprises), is marking the successful conclusion of a year-long pilot project this week by revealing some impressive measures of its success.

ProfitNet, a business development scheme run by the University of Brighton, has been hailed as a resounding success by organisers and SMEs across Sussex, with 89% of members saying it has made a profound difference to their business. ProfitNet has been so successful that the formula is generating interest across the UK and has been franchised internationally, with networks recently started in Ireland and South Africa with several EU countries expected to follow later this year. ProfitNet has received substantial funding from the Higher Education Funding Council for England (HEFCE).

Members companies have included start-ups, social enterprises and sole traders through to established businesses and benefits seen by members include improved turnover and profitability, new staff, premises and equipment, re-branding and new marketing strategies and improved peer support and social networks between business owners.

ProfitNet's success in figures:

• 89% of members launched organisational or process improvements in their business as a result of taking part
• 82% say they have significantly improved their management skills
• 68% have improved their business strategy
• 32% have already increased their turnover as a result
• 18% have increased gross profit margins
• 40% are buying or selling with at least one other ProfitNet member
• 46% have been able to make cost savings in their business
• 71% found peer support useful to their businesses

ProfitNet works by creating facilitated 'learning networks'; groups of 15-20 businesses linked by business sector or type (creative industries, start-up, social enterprise, business services etc) which meet monthly for discussion and group support based on issues raised by members (such as staff problems, lack of business planning and motivation issues) and solutions suggested by their fellow members. The scheme is free for member businesses. More details on how ProfitNet works can be found at www.brighton.ac.uk/profitnet.

A 'graduation' event at Brighton's Metropole Hotel on Thursday 26 June will see 60 businesses from Brighton & Hove become the latest to mark the end of the first phase of the ProfitNet course and celebrate their successes, following a recent similar event in Eastbourne and with a third to follow in Crawley next month.

CASE STUDIES

(A range of detailed case studies available – see below for contacts)

Tony Barber of Promoseeds says the opportunities offered by ProfitNet have enabled him to radically improve his business:

"Following issues raised within our group and through a course provided by ProfitNet, I've learned how to carry out a strategic marketing analysis on my business which was both enlightening and horrifying. The tools I was given, however, have allowed me to change the business for the better and in the last six months, while our turnover has fallen by 10%, our profitability has risen by 24%. If I hadn't been a member of ProfitNet, I would never have learned what I know today."

Peter Adlington, Managing Director of Plastipack Ltd says ProfitNet has directly enabled him to grow his business:

"As a direct result of ProfitNet, we successfully applied for a KTP (Knowledge Transfer Partnership) from the University of Brighton and graduate Julienne Attwood worked with us on a project for two years that helped define a series of technical tests for our swimming pool material that have helped us gain more business, particularly in Australia where our product is used to stop the evaporation of water from swimming pools. As a result the company has grown, we have employed a further four people, upgraded our computer software and installed a third extrusion line that was commissioned in early 2008 to satisfy customer demand and our planned expansion."

University engagement with business

Anjuu Trevedi, ProfitNet Director for the University of Brighton, says this is the first time a university has cracked the problem of engaging with so many local small businesses on an on-going basis:

"Many universities and learning institutions have tried over the years to engage local SMEs but none have been able to benefit those businesses to the extent that ProfitNet has. Academics don't always talk language businesses understand and businesses don’t fit easily into theoretical models and structures, but with ProfitNet we have been helping businesses to help themselves as well as engaging with the University of Brighton. Sitting in on group meetings it has been remarkable to see how business people are willing to help their peers, colleagues and even competitors, knowing that they can call on that same help in return."

"As well as the anecdotal and quantifiable benefits to the member businesses, the evidence for the success of ProfitNet lies in the fact that the University of Brighton has received a wealth of requests for us to roll out the methodology all over the UK and even around the world. Small businesses want to be able to take part, universities want to have the same level of engagement with member businesses that we enjoy and government and funders are expressing interest in the benefits our scheme can bring to a local economy."

The ProfitNet programme is sponsored/funded by a variety of sources including the Higher Education Funding Council for England (HEFCE), Higher Education Innovation Fund (HEIF), South East England Development Agency (SEEDA) administered by East Sussex Economic Partnership, Local Enterprise Growth Initiative (LEGI) administered by Hastings Borough Council & East Sussex County Council and South East Programme for Innovative Action (SEPIA) administered by SEEDA.

Those taking part this year are now eligible to enrol in ProfitNet Plus, a newly developed advanced scheme to help member businesses further build their businesses. The University of Brighton will also be launching a new round of ProfitNet and is currently in advanced discussions with - and seeking additional - strategic partners to roll the programme out regionally, nationally and internationally.