Profitnet - building SME owner capacity through peer learning.
About this good practice
Profitnet is an innovative learning business network designed to enable businesses to learn from each other through expertly facilitated confidential group sessions.
The programme consists of monthly meetings over an average of 18 months which include:
• Development of your company strategy
• Peer to peer action learning, real life challenges.
• Problem solving your challenges through Action Learning
• Opportunity to reflect, plan and commit to an action plan
• Support business growth and development.
• Access to business support services of LEO.
A group of between 15-20 businesses attend meetings which last for up to 3 hours. At the start of the programme, the businesses develop a code of conduct which the must sign up to and agree to the terms of a confidentiality agreement.
Monthly meetings are structured into three parts:
1. Presentation of individual business plans with feedback from other members as per agreed schedule.
2. Action Learning - discussion of common business issues and agreed actions.
3. Creativity session – external speakers on agreed topics which have been identified by the group members at the first two meetings.
4. Actions noted and circulated.
A key challenge for business owners can be the lack of accountability in delivering upon actions that are needed to develop or sustain the business. Profitnet creates a collective sense of accountability with businesses agreeing to key actions at each meeting and being asked to update the grou
Expert opinion
The ProfitNet practice is an interesting soft-support measure to support local businesses. It highly depends on participant commitment (to deadlines, providing peer feedback) and respecting set rules (confidentiality) which can only be achieved by good coordination and a skilled facilitator. However, if there is a will among participants, then as the evidence of success suggest, this soft-support measure can make quite the impact with relatively few resources.
Differently from more relaxed networking and discussion groups, this method stands out with its long-term fixed structure with various session-types which help to create more commitment and sense of accountability. Similar business peer-group sessions could potentially be set up within cluster organizations, where there is likely already more trust among members.
This practice should interest policymakers seeking for clever new methods on how to facilitate growth of local businesses and might have high replication value in other contexts.
Resources needed
• Trained independent Group Facilitator @ rate of €600 per meeting.
• Budget – estimated at €10,800 from LEO supported by ERDF.
• Internal staff member to manage programme.
• Potential consultant for diagnostic and report
• Nominated Venue and “set date” used every month
Evidence of success
The Donegal County Enterprise Board Commissioned an Evaluation of the ProfitNet between 2008-2010. 33 businesses participated in the evaluation. The results indicated:
• 52% increase in turnover.
• 67% increase in Gross Profit.
• 78% increase/maintenance of employment.
Participants reported enhanced business skills i.e. 82% business networking, 76% business strategy and 73% problem solving
Potential for learning or transfer
The ProfitNet model can be adopted by any other region or industry sector provided the resources and commitment from businesses is evident. Coordinating body and facilitator is key to sustaining a productive ProfitNet group.
The programme framework has proven to improve the capacity and mindset of those participating in the programme, as they collectively drive each other forward, dealing with business issues as they progress to be more stronger and more sustainable.
Further information
Website
Good practice owner
You can contact the good practice owner below for more detailed information.
Donegal County Council (Local Enterprise Office Donegal)