The Cockpit Effect 2011
The Cockpit team works with leading economists and research institutions to track and evaluate the development of designer-maker businesses based at our incubators through annual business reviews. The process highlights key drivers and barriers to growth and demonstrates how our incubation model is making a difference. This year we were able to compare our data with the national findings reported in the Crafts Council’s ‘Craft in an Age of Change’ study. Download the Report PDF here or read on for the highlights.
2011 Report Highlights
· Average profits reported by designer-makers at Cockpit Arts are 70% higher than the national average.
· 57% of Cockpit Arts designer-makers are now exporting their work, compared to only 30% nationally.
· Two thirds (65%) of Cockpit Arts businesses reported growth in turnover in 2010 and this increased to 70% in 2011.
· Half (51%) of Cockpit Arts businesses reported an increase in profits in 2010 and this increased to two thirds (66%) in 2011.
We recently collaborated with Pro Bono Economics to measure the impact of incubation using econometrics. Their report, available to download here, explores topical issues relating to impact measurement likely to be of wider relevance to both business incubators and social enterprises. Whilst much of the impact that Cockpit has achieved so far is focussed on a relatively small number of ‘beneficiaries’ we have a wider goal to influence ‘group behaviour’ as well as the creative industries network. We consider that both are critical factors in supporting sustainable social, cultural and economic benefits.
Our past research papers are available to download here. For a full copy of these reports or to find out more about our research work please email email@example.com. We plan to continue research over the long term and welcome comment, feedback or collaborations from other individuals and organisations in the field.
Business Growth Loan Scheme
Between 2006 and 2010 Cockpit Arts piloted a Business Growth Loan Scheme, supported by the Esmée Fairbairn Foundation. The scheme provided a combination of low interest loans and tailored one to one business development support to studio holders at Cockpit Arts. The aim of the pilot project was to test the impact of small loans and intensive one to one coaching on the growth and sustainability of craft businesses. The scheme has been highly successful and has a zero bad debt record. Furthermore, loan recipients have reported an average increase in turnover of 28%, and an average increase in profits of 75%. An independent Social Return on Investment study was conducted in 2010 to measure the wider impact of the scheme and estimates that for every £1 invested in the BGLS there is value in the range of £2.01 to £3.36 created. The full SROI report and calculations are available to download here as well as a project case study by NCVO.
A new Growth Loan Fund has now been launched by Cockpit Arts in partnership with Ingenious, an investment and advisory group renowned for their work in Media & Entertainment. The Cockpit Arts & Ingenious Growth Loan Fund will provide low interest loans, coupled with intensive one to one business support to studio holders. Loans of up to £10,000 can be accessed to support developments such as improved production processes, new routes to market and taking on staff. In each case, the loans support the owner-manager to create a more sustainable business, capable of economies of scale and increased profits as the business continues to grow and develop.