AN ORGANISATION which has helped hundreds of enterprising new businesses start up across the Whitby area could be facing closure.
The Whitby and District Business Development Agency (BDA) – which has just celebrated its 25th anniversary – has halved ts £100,000 annual turnover due to problems with government funding.
It could fold in a matter of months if help is not forthco
ming.
The agency, which was set up with the aim of improving the area's economic prosperity and creating job opportunities, provides advice, help with grant applications and training for both start up and existing businesses.
Now its chief executive officer Tom Saunders is appealing for the business community across the Whitby area to help "pay them back" by supporting a range of new services it plans to introduce and assisting with sponsorship.
He is urging them to attend an open meeting on Tuesday at St Hilda's Business Centre in The Ropery to discuss how the BDA can best serve businesses in the town and to see if they too have any suggestions.
Among the businesses the not-for-profit agency has helped get off the ground are award-winning seafood restaurant Green's, AT Cowen Ltd, Dolly's Deli and The Computer Centre.
Mr Saunders (69) said it would be devastating for the town if the BDA was to close.
"The number of people starting their businesses is going up," he said.
"We had three or four last week.
"Because of the recession, because there's no other work, it's a final option in many cases. Now the main business advice for the town is under threat, we are running out of money. Nobody else does this sort of support.
"We cannot continue with this uncertainty, hence the board has decided in addition to the business advice and support currently offered, to launch a range of services for the business community in Whitby.
"These include enhancing training programmes such as Food Hygiene and First Aid, further services and support for business start up, affordable conference facilities and a regular business lunch club with keynote speakers."
The BDA was formed in 1984 by Dr Peter Horn. It has relied on government funding streams but the Government has begun contracting with larger providers, ignoring local providers such as the BDA.
This has resulted in delays in funding payments and the New Deal contract for self-employment, which helps people out of work start their own business and has sustained the BDA in the past few years, ended in October last year.
As yet the proposed Flexible New Deal scheme which will replace it has not yet been implemented.
The new scheme will also create further delays for the BDA as there will be a 12-month qualifying period instead of six months for recipients of training.
"If businesses in Whitby could pay us back by supporting and helping us we would be extremely grateful," Mr Saunders added.
"We used to be able to have an annual business awards event but we haven't done that for a few years, we haven't had the funds to do it.
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