11:50 - 28 September 2006

Transforming the way we approach business in Plymouth is one of the keys to achieving the city's big ambitions for economic growth - and this month a bid was submitted for more than £20 million of government funding to help do just that.

One of the key issues facing Plymouth is the historical lack of entrepreneurship in the city. It stands in the way of the city economy reaching its full potential and we can only tackle it by going all out to encourage and develop a spirit of enterprise and ambition within our communities.

That is why the success of the Local Enterprise Growth Initiative (LEGI) bid is so important.

The benefits to the city's economy would be significant, with funding for projects leading to the creation of new businesses and the growth of existing ones. LEGI would especially benefit areas such as the city centre, Barne Barton, Devonport, East End, Efford, Keyham, Morice Town, North Prospect and Stonehouse - where the need to create more jobs and businesses is greatest. There is also enormous opportunity arising in these areas through redevelopment and regeneration.

The bid has been led by the city council with the help of several organisations, including the South West RDA, and a decision is expected in December.

In many areas, Plymouth is doing exceptionally well and setting regional and national standards in fields such as biomedical and marine research and development. The city is pursuing an ambitious growth strategy, to increase the population from 240,000 to 300,000, and this is bringing with it exciting opportunities for regeneration and inward investment. However, if we are truly to have a renaissance of the city it must be socially inclusive and sustainable; and the importance of LEGI is it will enable help and support to be given to those in our most deprived neighbourhoods, to raise their aspirations and capitalise on these opportunities.

A successful LEGI bid will transform the entrepreneurial spirit within these areas, over the course of four years, achieving three core outcomes: increasing entrepreneurial activity, supporting sustainable growth and reducing business failure and attracting inward investment and franchising.

The four key bid elements are: tackling the inherent lack of aspiration and ambition amongst residents in deprived areas; creating the next generation of entrepreneurs from these areas; delivering tailor-made business support; building on Plymouth's excellent reputation in the area of social enterprise

Latest figures highlight the dearth of entrepreneurship and show how Plymouth lags in self employment and local business start up and development, with just 67 per cent of the business density of Swindon, 48 per cent against South West England and 51 per cent of the average for England. It is the 3rd largest of the nine South West unitary authorities, but has the 2nd fewest businesses, and start-up rates are amongst the lowest in the country.

We must change the mindset in Plymouth towards entrepreneurship, after centuries of the city's economy being dominated by the Royal Navy and large industrial employers, and this programme of projects is designed to have a transformational impact on the business activity of the city.

LEGI projects would include schemes and support staff to encourage enterprise in communities, including among young people and women, establishing business development and franchise support teams, links with the University of Plymouth and Chamber of Commerce, as well as a Plymouth-specific business loan fund.

But there remains one vital ingredient for the success of LEGI and that's where our existing and new businesses come in.

To make LEGI work, Plymouth needs the business community to be involved in each project, to deliver experience locally and, most importantly, to act as the role models to give individuals and the city the belief they can succeed.