University of Plymouth, Formation Zone and Formation2.0 (as part of Enterprise Solutions)

Background & Context

The Formation Zone and Formation 2.0 are aspects of the way in which Plymouth University leads the knowledge economy for the city of Plymouth and its region. The University prides itself on having a core belief in widening participation and nurturing talent as part of its mission to be 'the Enterprise University'. Enterprise Solutions provides a total package of knowledge exchange and support to business and organisations, the local community, students and graduates.

Formation Zone and Formation 2.0 are pre-incubator spaces for those in the early stages of developing business ideas.

The University is also a partner in the Tamar Business Park which provides a wide variety of spaces including start-up, incubator, rent-a-desk, grow-on space and university spin-out facilities.

What is it?

They are spaces to support entrepreneurship and business start-ups. Support for the creative industries is provided by Formation Zone and for science, technology, engineering and mathematics (STEM) through Formation 2.0. Both the centres are housed within University buildings sited in the centre of Plymouth. This means that clients have easy access to university facilities, excellent transport links, and a Plymouth centre business postal address. Working within the specialist environments increases the profiles of the young businesses.

What happens in the space?

A range of solutions to help support and encourage entrepreneurs and to assist those who want to develop a business idea.

Anyone can apply; currently approximately 30% are fairly new graduates and these do not have to be Plymouth graduates.

Pre-incubation provides the space and support to an entrepreneur to develop an idea into a viable business. Each space provides for about 21 start-up businesses giving access to a desk with PC or Mac, internet phone and a wireless broadband connection. A few clients attend meetings and access other support virtually. 2 meeting rooms and informal seating areas are available as part of the package. Both hot-desking and grow-on space is available.

There is a three-year limit for businesses to be housed in the zone, but in practice most businesses stay in there for six to 18 months before moving to other premises. Due to this turnround there are fresh people coming regularly into the space which sparks new collaborations between clients.

Practical support is offered through the Entrepreneurship Programme which includes workshops (eg topics are finance, market research, and ideas development), the opportunity to explore business idea in practice in a safe environment with support from dedicated private sector mentors, together with support and advice from centre staff. This support enables clients to write their own business plan, carry out some market research and then put the wheels in motion to set up their company.

An annual competition - Business Ideas Challenge (BIC), has been designed to help turn business ideas into a reality, and to provide exposure to professional advice and potential investors. Successful entrants can receive substantial cash prizes, access to Enterprise Workshops and access to professional services and mentoring from competition sponsors.

The mentor scheme is not formal but on a bespoke basis. This is funded by iNet, a new programme of support from the European Regional Development Fund, designed to strengthen and boost the South West of England's creative sector. It aims to deliver £3.2 million until 2013 to help the creative industries thrive, and advance the South West's growing reputation as a global creative hotspot. Working with new and established innovative firms, the iNet supports projects that are working to catalyse innovation, transfer knowledge and connect and export.

One Stop Ideas Shops monthly events hosted in the University's LINK space provide specialist information and guidance on protecting a business idea or product. It is based on the format of Dragon's Den but without financial support available, so people can turn up with an idea and receive expert feedback on whether or not it is worth pursuing and discussing the next steps.

Some of the clients are able to offer placements to university students, bringing into their young company specialist skills and knowledge that they may require on a short-term basis (and at an affordable rate!) and the students in turn gain valuable business experience. For the client it also reduces the risk of employing new staff whilst still in the early stages of business development.

The bright and modern spaces encourage potential clients to take those first steps to realising their business ideas. As a professional and exciting environment is provided, the incubator clients enjoy introducing their prospective clients to the space.

For businesses that are struggling in the recession, the University was able to offer (for a limited time) Enterprise Vouchers that were funded through the HEFCE Economic Challenge Investment Fund. Amounts up to the value of £3,500 were offered to assist eligible businesses to access University facilities. The vouchers were very successful and were used to access a full range of university services from business needs analysis and leadership and management training to use of specialist equipment.

'Community breakfasts' have proved popular (focus for example - identifying barriers), appealing to a very diverse group of people from a range of organisations including voluntary sector charities, an arts festival organisation, Romanian fanzine, RSPCA.

'Business breakfasts' enable those at the start of their entrepreneurial journey with local businesses and possible mentors.

Social activities have also been organised.

The Formation Zone's rates are £150 a month for a full-time desk and for entrepreneurs trying to develop their ideas, a 20 day package is available offering desk space and support for £50.

The centres are open 7am-10 pm, 7 days a week (excluding Public Holidays).

Further details

Sally Sharpe, Project Manger, Economic Challenge Investment Fund

Address: University of Plymouth, Research and Enterprise, 3rd floor, Link Building, Drake Circus, Plymouth, PL4 8AA.

Enterpise Solutions - Email, Call: 0800 052 5600