1. The creation of the SBS has for the first time enabled a more coherent approach to Government research on SMEs and evaluation of Government funded activities. The SBS has created the opportunity to fund additional research which has high level of application to policy review and formulation and development of front line services. During the last year SBS have sponsored around 10 projects including:

• study of business networks
• study of would be entrepreneurs
• review of segmentation of Business Link services
• rural business research
• literature review of ethnic minority business research
• review of female entrepreneurship
• review of planning for business succession
• review of Social Enterprises
• part sponsorship of ISBA conference in 2000
• sponsorship of the Kingston University research seminar series

2. The SBS want to continue this sponsorship in the next 12 months. Some changes have been made to the Academic Sponsorship following a review of the last exercise.

3. Typically it is expected that bids of around £2,000 to £10,000 will be accepted (more in the upper end of this range). Occasionally, bids of up to £30,000 may be accepted if they are thought to be really significant to SBS.

4. Research centres and where appropriate individuals are invited to tender for the following activities:

1. Critical literature reviews (including grey literature where appropriate - Internet, trade journals and press). These reviews need to:

(a) provide a succinct overview of the main research findings and prevailing opinions,

(b) highlight methodological weaknesses and gaps in existing knowledge,

(c) outline policy implications and

(d) outline a possible future research agenda;

2. Secondary analysis of statistical data including government data sources (e.g. Labour Force Survey) and non-government surveys (e.g. those deposited at the ESRC archive).
3. Development of innovative research methodology/application of methods. This is especially welcomed where it can assist the SBS in the future conduct/commission relevant research and impact assessments.
4. Targeted research and best practice studies. These will usually involve working with SBS network (Business Links) and partners. The purpose of this work will be to identify good practice and improve performance.
5. Call-off research. SBS Research are interested in maintaining a reserve list of researchers who we can call upon on specific topics at short notice.

5. It is envisaged that normally some recent research will precede the development of seminars and small scale research studies. Though in exceptional circumstances this may not be the case, such where the bidder is able to demonstrate undertaking a recent review of the relevant research literature.

6. In the interest of encouraging good quality proposals we are not being overly prescriptive about the specific areas we wish to be reviewed. Areas of interest include:

• Regulatory burden on SMEs
• Entrepreneurial attitudes/culture
• Entrepreneurial education
• Entrepreneurial activity/Enterprise within firms & social enterprises
• Ethnic minority businesses
• Social Exclusion
• Literature reviews on specific barriers to business success (e.g. finance, workforce development, etc)
• How businesses Learn?
• E-commerce (barriers to, readiness of SMEs to use e-commerce)
• Inter-Agency partnerships / Collaborative Working
• The third age entrepreneur
• Application of Knowledge Management
• Rural businesses (specific challenges)
• Family businesses
• Women in businesses (what are the specific issues that face women entrepreneurs, how can business advice and support services be made more responsive)
• Future challenges for SME sector
• Identifying high growth businesses/entrepreneurs

The above list is not intended to be comprehensive. You may wish to draw our attention to other areas that we have overlooked.

7. Proposals related to the four key areas identified in the SBS Research Strategy are particularly welcome.

• What is the contribution of small and new businesses to prosperity?
• What is hindering small business owner-managers or potential entrepreneurs from achieving their potential?
• What is the impact of the barriers that prevent small business owner-managers or potential entrepreneurs from reaching their potential?

• What is the most effective way of removing or reducing the barrier?

8. In putting together your proposal we would like you to:

1. State which research area you wish to focus on in the first instance;
2. To state what you are bidding for? (e.g. literature review, small research project, call-off research, etc)
3. Outline those areas which your research centre has specific expertise and knowledge;
4. Provide evidence of existing or planned research;
5. Tell us about the level of research funding that you are receiving for studies currently being undertaken;
6. Provide a list of nominated research staff and their research interests;
7. Tell us what resources you propose to make available;
8. Outline your proposed charging structure;
9. State the cost of providing a specific service ( i.e. literature review);
10. Tell us about the level of on-costs and to what they are applied;
11. State how long your costs will remain valid.

9. All proposals should say explicitly how their proposal will

support current government policy and/or operations (See SBS documents, e.g. Think Small First). Projects are more likely to be approved if they interest SBS policy and operation teams. However, funding for research is not limited to current areas of SBS intervention. We are also interested in all research that can help the SBS develop its future role and identify issues that are not currently being addressed.

10. We encourage collaborative bidding between Institutions where this clearly demonstrates a higher level of capacity and added value.

11. There will be 3 times in the coming financial year to submit proposals. Cut-off dates will be the end of April, July and November 2001. People intending to submit longer projects are best advised to tender in April and July. Projects will typically be expected to be completed by the end of March 2002. Longitudinal Studies that necessarily exceed this timetable will be considered for part funding if of exceptional benefit to SBS.

13. SBS Research may decide to interview proposers if there is significant interest and they think this would clarify a project bid. Not all proposers will be interviewed. Indeed, most people will be informed in writing or by phone of the outcome of their proposal.

14. SBS Research are happy to discuss proposals verbally before they are submitted to save wasted effort on both sides.

15. In judging your proposal we will be looking for

• policy awareness
• publication history in related areas
• breadth of expertise
• good value for money, by which we do not necessarily mean the cheapest
• original thinking
• a grasp of current and possible future issues facing both the SME sector and support agencies
• where appropriate fostering of new research talent in SME research

16. Whilst it makes it difficult for us to compare like with like in terms of costs, we do accept that costing structures will reflect the nature of your proposal and how you plan to deliver it. What we would find useful for comparison purposes is:

1. transparency in costs: hourly or daily rate per member of staff, including administrative support;
2. an indication of the distribution between senior, junior and administrative staff time;
3. envisaged travel and subsistence;
4. what costs are being subsumed for example, reprographics, inter-library and on-line search fees;
5. additional costs not included in (d) that might be incurred which would be separately chargeable;

17. SBS Research particularly welcome proposals where authors have demonstrated effort to secure part-funding (or commercial sponsorship) to complement SBS funding.

18. We would appreciate a brief CV on individual staff members who would be participating in your proposal and especially the experience relating specifically to the proposal. We do not require an exhaustive listing of all publications or work undertaken.

19. All proposals should be no longer than 6 pages including all annexes. SBS Research will request further information if necessary at a later date. Five copies of the proposal should be sent to Peter Weller (address and details below). An electronic version of the proposal (in Word) is also welcome to be sent via e-mail. All successful bidders will be required to provide an electronic version of their original proposal.

Management of Project

20. Project management SBS will be undertaken by Peter Weller (and other SBS Research staff) and in some cases there will be a steering group involving appropriate policy staff. The successful bidder will be expected to provide regular progress reports and papers for meetings. They are also expected to provide a named contact person who will provide updates on progress on a regular basis.

21. SBS expect the research findings to be disseminated in the following ways:

• presentation to policy makers (e.g. Research Seminar Series and ad hoc seminars, conferences, etc)

• publication of written outputs as part of the SBS Research series
• co-presentation & co-authorship of papers especially for ISBA conference

22. If you require any further information, or discuss any aspect of the research, please contract:

Peter Weller

SBS Research

Level 1

St. Mary’s House

c/o Moorfoot

SHEFFIELD

S1 4PQ

Tel: 0114-259-7721

Fax: 0114-259-7505

e-mail: peter.weller@dti.gsi.gov.uk