Evaluation of account managed companies

Scottish Enterprise Renfrewshire (SER) account management activities aimed to select companies for account management support on the basis of their importance to the economy, so that sustaining the business or improving its performance produced significant economic progress. The evaluation aimed to gather economic intelligence on the effectiveness of SER’s account management support to client companies, from April 2001 – July 2004, by examining: the contribution to Gross Value Add (GVA) from account managed companies over the three year period; the extent to which market failure has been met with the client group; and the feedback on the account management approach.

The evaluation consisted of: a documentation and data review, with an assessment of key demographic and market indicators; consultations with SER Account Managers; a survey of account businesses (the total sample population was 28 companies); analysis of survey results; preparation of economic impact models; and a conduct learning workshop.

Finds that the intervention made positive contributions to sales and employment growth, which in turn contributed to GVA growth of over 7m and £27,000 per employee. A number of market failures were addressed, linked primarily to risk aversion. Considers that feedback from assisted businesses was largely positive, with a few companies expressing a high degree of satisfaction with the support. Shows that only a few weaknesses or needs for improvement were identified. The account managed jobs outcomes fall towards the lower end of the EKOS evaluated programmes; the account management process can therefore be regarded as offering value for money.

Recommends that SER should: revisit each account managed company’s status to review whether they remain a high growth company; consider whether the balance between account managers and companies could be improved by a combination of additional account managers and a reduction in the number of active account managed companies; and realise that account managers should shift the relationship away from providing financial assistance in reaction to companies’ short term need towards a more proactive relationship that focuses on long term growth strategies.