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
• literature 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 intend to continue this research programme in 2001-2002. Some changes have been made to the Academic Sponsorship following a review of the first year of operation and the first round of bids received for the April 2001 deadline.

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:

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

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

(iii) outline policy implications and

(iv) 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. Organisations interested in registering for this should specify their areas of expertise with supporting evidence.

5. It is envisaged that normally some recent research will precede the development of the research proposal. 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 order to achieve a greater match between proposals and SBS research requirements, the next round of bids to be submitted by the end of July 2001 should fall under at least one of the following topics.

• Small Businesses and the Productivity Challenge

• Enterprise and business education in schools and colleges

• Regulatory burden on SMEs

• Entrepreneurial attitudes/culture

• Social enterprises

• Ethnic minority businesses

• Social Exclusion

• E-commerce (barriers to, readiness of SMEs to use e-commerce)

• The third age entrepreneur

• Family businesses
• SME public procurement
• Start-ups: enablers, barrier and business support

The above list is not intended to be comprehensive. You may wish to draw our attention to other areas that we have overlooked. Bidders should check out the SBS website to see how their proposed research links with current SBS policy (www.sbs.gov.uk)

7. Proposals related to the four key areas identified in the SBS Research Strategy are particularly welcome (this will soon be posted on the SBS website).

• 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. This should come in a short summary at the start of the proposal;
2. To state from the outset 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. Indicate evidence to demonstrate a research gap;
5. Outline funding already received for related work;
6. Tell us what resources you propose to make available;
7. Outline your proposed charging structure;
8. State the cost of providing a specific service ( i.e. literature review);
9. 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 website: www.sbs.gov.uk). 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). 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 2

St. Mary’s House

c/o Moorfoot

SHEFFIELD

S1 4PQ

Tel: 0114-259-7721

Fax: 0114-259-7505

Around 26 bids were received in round one (end of April 2001). Only about one in five bids were successful, indicating a high rejection rate. Clearly, it is not a good use of SBS Research time to read and sift inappropriate bids nor bidders to use limited resources submitting proposals. Therefore, the following points will hopefully help future potential bidders decide whether they have an appropriate proposal to submit and what to consider when drafting a proposal.

• Bids need to clearly outline what the proposal is about. A summary at the start of the proposal including objectives, outputs and method would be useful.

• SBS Research are keen to commission people/organisations with an expertise in small business research as this offers a better guarantee of likely quality of work and credibility. It is unlikely that more generalist researchers will be commissioned unless they have a very good proposal and evidence that they can undertake small business related research.

• Bids over £20k are very unlikely to be accepted unless they are of very clear value to SBS. Day rates of over £600 even for very experienced staff are unlikely to be competitive.

• There is a degree of competition between bidders and so value for money is a key determinant of what is commissioned.

• Bidders need to emphasis the policy and/or operation benefits of conducting the research. How will the research feed into SBS policy? A clear rationale for the research needs to be articulated.

• This funding is for Research and not development projects. It is not a grant, but a fund for commissioning research usually culminating in a report.

• Bidders should demonstrate value for money and added benefits from applying additional SBS Research funding to currently funded research projects.

• Proposals should demonstrate evidence of a research gap. If a gap clearly exists and the project is relevant to SBS this will increase the chances of it being adopted.

• Proposals should include a clear timetable and indicate what the outputs will be (e.g. report, seminar, recommendations, etc).

• For primary research the proposal should make it clear how you will ensure access to the required firms or sample.

• SBS Research are only interested in well considered bids which include clear details of: purpose, method and outputs. "Speculative" bids outlined in a couple of sides are not likely to be adopted.

• Multiple bidding from contractors is not encouraged, although 2-3 separate proposals are accepted, if the bids are of good quality and relevance to SBS.

• Please avoid the use of technical terms, jargon and abbreviations (at least where they have not been first spelt out). Some of the selection panel includes non-researchers and the proposals are often widely circulated for consideration.

• Do not use less than font size 10.

• Do not treat the proposal as the start of a longer term negotiation process (i.e. floating an idea for later refinement). It is possible that SBS Research will seek to commission the proposal following some negotiation but, all proposals will be sifted on their initial merit. SBS Research are not offering the opportunity for bidders to submit revised proposals at a later date unless asked otherwise. SBS Research do not have the resources to undertake an iterative process of refining research proposals. Treat the submission of your proposal as possibly your last opportunity.