Concerns have been raised over future help for small businesses following a decision to switch the provider of a multimillion- pound training and support contract.
Until now, the Government-backed advice service Business Link was run in Sussex by Sussex Enterprise.
But the South East England Development Agency (Seeda) recently approved international service provider Serco Group as its preferred bidder to deliver the service for three years from April 2010.
Although Seeda has pledged that Serco, which currently delivers Business Link services in London, Cornwall, Devon and Somerset, will provide an “enhanced” service, with more investment and support, some business groups are worried about the amount of help which will be available.
There are also worries over the employment of current Business Link advisers in Sussex.
Ken Stevens, Sussex representative of the Federation of Small Business, is concerned about the possibility of Serco increasing the amount of online advice at the expense of personal meetings.
He said: “We have to preserve the face-to-face help for small businesses.
The one-to-one advice has been the bedrock of the Business Link service over the years.”
Julie Stanford, president of the Brighton and Hove Chamber of Commerce, said she was disappointed to hear the Business Link contract had gone to an organisation outside of Sussex.
She said: “I hope we do not lose the knowledge, expertise and skills of our local Business Link advisers.”
Alistair Smith, chief executive of the West Sussex Economic Partnership, would not comment on whether or not he thought Business Link would be better served under Serco.
But he added: “We will be watching very carefully in order to get the best possible service for businesses in West Sussex.”
Julie Kapsalis, director of business support enterprise at Seeda, said full details of Serco’s plans would not be released until after the contract had been signed.
She added: “Once contract discussions are complete we will be able to release details of planned new staffing levels, plus the new level of service we expect the contract to deliver, for an enhanced Business Link service.”
A spokeswoman for Serco said: “We are going through the due diligence process and until those formalities are completed we are not able to discuss things further.”
Mark Froud, chief executive of Sussex Enterprise, admitted it was “disappointing” to lose the Business Link contract.
He said: “I want to emphasise that Sussex Enterprise will continue to operate as the chamber of commerce for the county. Fortunately, Sussex Enterprise is one of the most successful chambers in the country and I’m delighted we are in a strong position.
“We’ve got lots of exciting plans for the future, including developing our tailored membership packages and new training and HR services.”
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