The Central Coast Business Enterprise Centre (CCBEC) has been closed as a result of changes in State Government funding models.
CCBEC has been supporting Central Coast small businesses since 1998 by providing business guidance, one-on-one facilitations, subsidised workshops and events, referrals to specific field advisors and experts, business mentoring, growth groups and services and resources.
Funded by the State Government, supported by the Gosford and Wyong Councils and occasionally supplemented by the Federal Government, the CCBEC consistently appeared in the top five BECs nationally, despite having far fewer resources and support than the majority, according to its Chair, Mr Geoff Hetherington.
“In 2014, the board and management were informed that because CCBEC did not own any bricks and mortar, it would need to partner with or amalgamate with an organisation that did, or its chances of continued and renewed funding would become slimmer.
“The Board and CCBEC team immediately took action and found a suitable partner in Coast Community Connect,” Mr Hetherington said.
An agreement was struck and due diligence commenced.
“Not far into this process, the then CEO of Coast Community Connect left the organisation and the amalgamation process was put in the hands of a consultant.
“The process continued with minor issues being flagged and dealt with.”
It looked like the CCBEC had a new home.
“Then the bombshell came from the State Government that funding which had previously been paid up front with performance reviews against Key Performance Indicators, was changed to a payment in arrears model.
“In other words, the CCBEC would have to operate for at least six months with no state government funding.
“Even with the support of the two (now one) council(s), there was no way for the CCBEC and potential partner, Coast Community Connect, to be able to do this.
“Moreover, funding was not allowed to be spent on rent.
“As one of the few BECs without its own building, the CCBEC had no choice but to seek to join with another BEC in order to secure funding and to stay in operation.
“After discussions with a number of Sydney and even North Coast BECs, it was decided by the Board that a joint application for funding with the Newcastle Business Centre was the best available option for at least some support for Central Coast businesses to continue.
“Information was shared, a tender submitted and the Newcastle Business Centre won the tender.
“They also decided that they did not want the current CCBEC premises, nor two of the staff.
“The CCBEC would in effect cease to exist and the Newcastle Business Centre would provide the services and support from their base in Newcastle.
“An article appeared in various newspapers suggesting that the CCBEC had decided to abandon the Central Coast and its clients,” Mr Hetherington said, adding that the article contained several mis-statements he wished to correct.
“Ms Debbie Carroll, former CCBEC Manager and a colleague, will remain on the Coast as a Newcastle Business Centre employee, effectively operating out of a car boot for a new company, The Business Centre.
“The relocation to Newcastle was not done by the CCBEC, but by a change in State Government funding.
“The CCBEC did not pull the pin, it had no alternative but to become a part of the Newcastle Business Centre.
“Services would not be provided out of the boot of a car.
“Services will be provided by a mobile service to the clients’ place of business, also via Skype, e-mail and telephone.
“There is a physical presence in a ‘Hub’ at the rear of the Central Coast Group Training Building.
“CCBEC had no choice but to close its premises at Tuggerah, which were rented by the CCBEC from Central Coast Group Training and the Central Coast Council.
“It was a commercial decision made by the Newcastle Business centre.
“The CCBEC Board strived for the last two years to keep a BEC on the Central Coast and had to deal with a constantly shifting landscape in which to secure funding.
“All staff entitlements have been met, all creditors paid and the CCBEC is no more.
“Instead the businesses of the Central Coast will be supported by the Newcastle Business Centre.
“Since 1998, when the Rotary Club of Gosford applied for and received funding, the CCBEC has been a vital part of small business support on the Central Coast.
“Changes in State Government funding policies have seen that change, not plans or actions by the Management or Board of the CCBEC,” Mr Hetherington said.
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Feb 23, 2017
Geoff Hetherington, The Clarity CEO