As explained in my previous post, last week I visited the Hub Westminster in central London. The Hub is located on the first floor of New Zealand house, the New Zealand embassy near Piccadily.
The hub website explains
We believe there is no shortage of good ideas to solve the issues of our time. But there is an acute lack of collaboration and support structures to help make them happen. The HUB was founded to address this need.
We set out to create spaces that combine the best of a trusted community, innovation lab, business incubator and the comforts of home. Spaces with all the tools and trimmings needed to grow and develop innovative ventures for the world. But above all, spaces for meaningful encounters, exchange and inspiration, full of diverse people doing amazing things.
The idea has been spreading like wildfire and resulted in the emergence of a global movement. To date, there are 25+ open HUBs and many more in the making, from London to San Francisco, Johannesburg, Melbourne, Sao Paulo and Milan.
Not withstanding the hype, the Hub was impressive. It consists of a large open working space, with different small work areas, and different meeting areas. there must have been some 60 or 70 people there last Friday. some spaces seemed to be for particular teams, others were hot desking areas.
True, the tech area is very different to more traditional industrial and craft sectors. But it illustrated to me how work is changing. And although European Commission policy recognises the centrality of small enterprises for future employment and economic growth, I think they have been slower to think through the implications of this in social and education policy terms.
Probably the biggest problem for micro and small businesses remains access to capital. and for micro businesses without fixed assets, and with a business plan that is yet to show profits, banks may be even more unwilling to lend that to start ups in more traditional areas of the economy.
Equally such start up businesses are heavily reliant of skills and knowledge. yet the traditional education and training systems seem slow to adapt to new and growing areas of the economy and to the needs for higher level continuing learning than traditional qualifications structures provide.
If SMEs are to play such a key role they are going to need state support. The present EU policy seems to be based on reducing legislation and providing targeted help. Yet the ‘system for targeted help may be to inflexible and slow to meet real needs on the ground. I am also unconvinced that merely exempting SMEs from employment legislation is the right answer. Germany has some of the toughest employment legislation in Europe, yet has a record of thriving SMEs.
One of the issues may be the level of decision making and the forms that decision making takes. More transparency and social involvement in decision making processes could improve the quality of support for SMEs. equally there is a need for more localised economic planning. This, in turn, means better access to data and ideas for those responsible for such planning.
I am not arguing against private sector initiatives to support SMEs and job creation. But I would argue that the public sector has a key role to play and that we need more democratic and open processes if that support is to be effective.
Similarly, we need to re-look at social systems to see how they can be adapted to changing patterns fo work including access to food and recreation systems, transport, nursery provision and education and training.