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Grant Services Increase Engineering Investment Despite Erratic Delivery
01 Jul 2006
Grants affect the way companies invest. As much as 50% of mechanical engineering SME investment in areas such as R&D, training, IT and machinery would not take place without grants according to the Engineering and Machinery Alliance (EAMA) in a report on the industry's views and use of grants: 'Grants - Perception and Use of the UK Regime'.
Six in ten firms had applied for a grant in the last ten years, with a third applying on average every two or three years. However, some of the companies' biggest criticisms of the grants' regime are targeted at the complexity of the system and the consultancy business that has grown up because it is seen as so complicated.
Just over two-fifths of companies applying for grants use a consultant.
However, only 13% thought the money was well spent. A third of all applicants and half of all well informed firms disagree. This may be because while over a third of consultants take four per cent or less, approaching another third charge 20-29% of the grant for their services (typically £5k on a £25k grant).
Business Link and Manufacturing Advisory Service both enjoy a positive reputation, well ahead of other agencies including UKTI, RDAs and the EU. However, even in their case a fifth of respondents rate them negatively, indicating as with the other agencies that delivery across the country is erratic.
www.eama.info
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