Lewisham Town Hall
Feasibility
Final Report
Draft
July 2014
tom fleming / creative consultancy /
Introduction
In October 2013 Tom Fleming Creative Consultancy
was commissioned by Lewisham Borough Council to:
-
Establish the business case for a Business Incubator
Centre on Floor 5 (with added potential on Floor 4)
of Catford Town Hall and to enable the council to
progress to the stage of tendering for the
development and management of the business
centre. It is expected that the soft marketing of the
proposal will result in a shortlist of organisations
which could be approached to tender for the
development and management of the business
centre.
-
In addition to undertake a headline review of space
in the Deptford Lounge and of another council
owned premise in Catford, to assess the potential
of these spaces for supporting small businesses and
/or start ups.
In doing these two objectives we will:
Review demand from local businesses for Incubator
space
Review interest from Tech start-ups outside of Lewisham
Scope out the facilities and services the centre could
provide
Access the different models of incubator space
which could be developed in the building
Including the organisation of space
Support services
Nurturing and development of a cluster
Pricing structure
Integration with overall management of the building
Details of external organisations who could support
the centre
Management structure and staffing
Financial viability Assessment
Risk assessment
Establish Key indicators
Key milestones
Produce a shortlist of organisations which could be
approached
This report has been produced following one-to-one
interviews with a range of stakeholders as well as a
workshop with potential businesses.
-
tom fleming / creative consultancy /
1: Demand and Context for an
Incubation and workspace in Catford
Town Hall and Lewisham
tom fleming / creative consultancy /
Three key drivers of London’s Creative and
Knowledge economy…
London is increasingly recognised as one of the world’s leading
Creative cities. It’s creative economy stretches from the West
End where it’s thriving theatre scene makes it one of the
leading producers of live performance in the world to the
growing international prominence in technology start-ups in
the East End. Silicon roundabout is now home to more startups than anywhere else in the UK – with over 15,000 new
companies in the last year. London tech start-ups are
increasingly dominating European technology awards – with
three start-ups dominating the prestigious Europa awards this
year – Gocardless, Swiftkey and Hailo, Recent estimates from
TechCity show that across London there are 34,000 digital
technology businesses. While we still wait for a UK equivalent
of Facebook or Google to emerge, it is clear that the ecosystem – the mass of small start-ups from which a giant will
emerge - is in robust health.
Linked to London’s strength as a hub of growing importance
for the tech sector has been the growth of social businesses.
Social entrepreneurs have very much moved into the
mainstream – through developing new approaches to tackling
the social challenges that the Capital faces from the better
delivery of public services to new approaches to transport,
housing and the environment. These ‘mission driven’
businesses are those that can be found filling the Impact Hub
network in Islington, Westminster, Kings Cross and now
Brixton. New forms of investment – such as social impact
bonds – are ensuring that this sector is being taken extremely
seriously.
While London’s economy is now comparatively stronger when
compared to the rest of The UK than it is ever been it has not
been immune to the effects of recession and the austerity
agenda. One of the key effects of this in terms of employment
and the work force has been the continual rise in Selfemployment and working from home. Many of those made
redundant from the public sector have joined the the ranks of
freelancers, consultants and micro-businesses. Across the UK
there are now 367,000 more self-employed people than there
were in 2008 and numbers have outstripped employee growth.
For years the self-employed have been ignored by most
economic development plans – among other reasons because
they tend to be invisible and simply don’t make headlines.
However the reality is that they represent a crucial growing
part of the economy who currently lack infrastructure or
support.
These three drivers– Hi tech, social entrepreneurship
and self-employment represent three critical trends in
London Economy that Lewisham – and Catford - can
simply not ignore
tom fleming / creative consultancy /
Lewisham and Catford - Jobs, skills,
aspiration for the future…
For Lewisham, it really does feel that economically this is a
watershed moment for the Borough. Either the Borough joins ‘highgrowth’ London, through growing the number of knowledge
economy businesses it has, or it risks being left further behind.
The Business Growth strategy for the sees the Borough’s economy
as having five characteristics:
1. “Lewisham has become a leading centre for micro businesses,
which benefit from the demand created from the London
economy;
2. Lewisham has a dynamic, diverse, creative and entrepreneurial
population;
3. Lewisham provides excellent value for London businesses;
4. Lewisham is undergoing a period of significant regeneration,
creating new high quality business space and environments; and
5. Lewisham town centres are being revitalised, developing their
unique and diverse offer”
The strategy has three aims to address the current weaknesses and
grow a stronger economic base:
1. “To boost Lewisham’s contribution to the London economy by
enhancing the ability of new and existing business to thrive and
grow.
2. To accelerate the expansion of the Lewisham economy by
capitalising on major physical regeneration in the borough to
create the right environment
3. To diversify and expand the Lewisham economy by inspiring,
nurturing and promoting the creativity and entrepreneurism of
Lewisham residents.”
Key to the future growth of Borough is to to build on its current
strengths in the knowledge economy (especially the digital and
media sector), grow further its sustainable base of small and micro
businesses, leverage its diversity advantage, higher and further
education strengths, geographic position and relationship to
TechCity.
Unlike many London Boroughs, much of the major physical
regeneration of the area is yet to occur or is in the pipeline. This
means there is opportunity in the coming years to shape the
Borough, perhaps greater than in other boroughs, as a place to start
and grow the knowledge-based, digital and media businesses of the
future. Our work in supporting global creative cities shows that there
are three key factors in determining whether places succeed in doing
this:
- Knowledge exchange and transfer – increasingly critical with
new types of connected, interdisciplinary environments
- Agglomeration – of talent, skills, innovation drive in part by new
forms of social networking (but not dissimilar to that which has
always occurred in cities)
- Vibrancy and buzz – the hard to completely capture, but
nonetheless key cross-over and spill-over between cultural
industries, live performance and the creative industries
Without aspirational workspace which shifts perceptions of
the Borough, encourages new businesses into the area and
promotes a high-skilled Knowledge Economy will Lewisham
be left behind?
tom fleming / creative consultancy /
Four key types of demand for start-up space
in the Borough
Our research – based on interviews with businesses, incubator
managers, key stakeholders – provides a snapshot of the types of
demand in the Lewisham for an incubator space. It is critical to realise
that estimating demand for a business incubation space in the Borough
can never be an exact science as the decision to locate or relocate in a
new workspace is always contingent on ever changing factors (e.g.
turnover, business model evolution, personal circumstance). However
our research shows four types of demand which are not yet currently
being fully met in the Borough:
1) Collaboration and networking space: The key driver behind the
new provision of workspace for the knowledge economy is for
collaboration and networking space. Significant new developments –
including new workspace provided by Impact Hubs, Central
Working, The Office Group, Meanwhile Space – all major on eth
provision of space for collaboration and networking. With the
blurring of traditional sector boundaries and the rise of new areas
which bring together previously separate areas (such as the Internet
of Things) small businesses and start-ups need to work in
partnership and collaboration more than ever before.
2) ‘Pay and play”: The dynamics of business start-ups are such that a
smooth growth trajectory is simply not the reality. Equally business
models change and flex to accommodate new developments. This
means that signing long leases or committing to heavy space
commitments is off the radar for many young businesses – who
prefer to have the flexibility of paying for space as and when they
need it.
3) Finance and access to funding is vital: The perennial challenge
in securing funding for young knowledge businesses who are
concept and idea rich but physical asset poor is still a major barrier
to growth. The start-up’ factory model – made famous by the Y
combinator in the USA – is of growing significance with the opening
of Warner Yard in Clerkenwell which offers a mix of space alongside
funding for appropriate companies.
4) Design and fine grain matter: While the fundamental success
factor for any space for start-ups remains affordability,
unsurprisingly for creative businesses design and detail is vitally
important. Not just in a cosmetic and aesthetic sense – but more
deeply in terms of added value services and fundamental look and
feel. While location is critical – and certain areas such as Shoreditch
and Clerkenwell – delivery and authenticity matter as much for
start-ups.
As our previous work in Lewisham shows there are a growing number of
digital and media businesses in the Borough. With over 600 digital and
media business already present, the Borough is not starting from
scratch. However as that research and this research shows, the sector is
under-networked, suffers from the Borough’s lack of recognition as a
creative place, invisible and lacking in the infrastructure found in many
neighbouring boroughs. There is currently no specialist provision for
creative businesses in the Borough – certainly not in Catford.
Lewisham is currently lacking in the provision of workspace
within the Borough – it behind in comparison to other London
Boroughs – and requires a significant project which will raise
awareness of the sector, change perceptions and provide new
networking and collaboration space.
tom fleming / creative consultancy /
Workspace demand in Lewisham –
Further demand trends
From our interviews with businesses and workspace providers we
would add the following key demand trends relevant for
Lewisham:
1) Lewisham – and Catford – are widely seen by workspace
providers having real potential and as being ‘next generation’
locations for workspace. The connections, relative affordability
and the lack of existing workspace for creative media and
digital businesses makes it an attractive location for providers.
2) London’s creative economy is growing fast. The
evidence from providers backs the findings of recent reports
that the creative economy in London will grow by 5% per
annum for the next decade or so. There is real confidence in
the workspace sector that demand will continue to outstrip
supply.
3) Workspace providers are aware though that the offer to
creative businesses needs to be right. With the proliferation of
Wi-Fi and coffee shops across the capital there needs to be
added value to ensure that businesses(especially micro
businesses) will pay for desk space.
4) There is growing awareness that for innovation to really
flourish in the creative economy there needs to be the right
kind of infrastructure in place that supports connections with
Universities and businesses and that future developments will
see more connectivity of this sort.
5) There is also growing understanding the ‘gentrification’ – as
has been seen in Hackney and Shoreditch – is very different
to ‘regeneration’. For regeneration to work – driven in par by
the creative economy – requires that there is concerted effort
made to ensure that the wider community benefits through
nurturing and fostering of entrepreneurs and start-ups
tom fleming / creative consultancy /
2: Different models of incubator and
workspace that could work in the
Town Hall
tom fleming / creative consultancy /
Airport Lounges for start-ups: Central
Working
What it is:
“Central Working provide the ideal environment for growing
businesses. We offer you the support, infrastructure and tools
needed to create the connections, momentum and recognition that
will help you grow your businesses and develop your skills and
team.”
Three hubs in Whitechapel, Bloomsbury and Shoreditch. Founded in
2012 as a for profit start up. Central Working provides spaces for
businesses to grow – believing that a desk space is not the secret to
business success – but that a positive environment filled with
connections is. Hence their sites feature cafes. Flexible meeting
space, events spaces and breakout areas where ‘solopreneuers’
flourish next to teams of 50
“Central Working is liked LinkedIn for the real World” Kevin
Eyres, Founder MD LinkedIN Europe
Membership: Central Working offer a membership model. It ranges
from Club membership at £99 a month for 4 days a month access to
any club, back office services, access to events and discounts from
partners to Unlimited membership at £349 per person for 24 hour
access 365 days a year or Resident for £449 which gives you a
permanent desk and a locker.
Success: Central Working is looking to expand its model. It has
received considerable favourable press including winning start up
service business of the year in 2013. Its Shoreditch club was
launched with support from Barclays Bank. They are currently
exploring exporting the concept to China and America
tom fleming / creative consultancy /
Business with a mission: Impact Hubs
What it is: A global Network of hubs – each independently owned
and managed and operating to their own business model. Currently
54 Hubs in the global network with 7000 members. Impact Hubs are
committed to providing homes to created, compassionate and
committed individuals with a purpose beyond profit”
There are currently four in London – Islington, Westminster, Kings
Cross and Brixton.
“Impact Hubs are made by and for local entrepreneurs: start-ups,
innovators, creatives and social businesses, makers, doers and
dreamers. Part of a global network, Impact Hub Brixton will build a
pilot project at the Lambeth Town Hall and offer flexible co-working
space for however much you need each month”
The hubs in Brixton and Westminster are established a not for profits
in partnership with the local Council.
30 Hours a month - £140, Unlimited £475 (for start ups £115 and
£475
In Brixton the costs are much lower - £50 hours a month is £80 and
unlimited access is £250
Services: Key to the model is the provision of services – which
include events, networking – and the concept of hosting. Each hub
employs a number of staff members (in Westminster’s case 7) to
curate and service member needs. Last year Westminster Hub
hosted over 1500 events ranging from hackathons to fashion shows
Success: Brixton Hub signed up 60 members in its first month while
Westminster claims to have broken even after 8 months. Internal
research & evaluation found that 90% of social start-ups incubated
in Impact Hub were still operational after 3 years; 81% of members
have secured sales through Impact Hub; and that every new Impact
Hub member employs an average of 2.5 extra people within 12
months.
Size and scale: Westminster Hub is 12000 squre feet with 200 Hot
desking spaces. Brixton is around 2000 Sq. feet
Membership Model: Each hub operates its own model but
essentially it is a membership model based on a mobile phone type
tariff – you pay for how much time and space you want. It also
varies by whether you are a start-up or established. Example prices
in Westminster are:
tom fleming / creative consultancy /
Spaces to grow the Community Economy:
Open Works in West Norwood
What it is: Open Works is a Lambeth Council Initiative that has
grown over time. Located in West Norwood it provides space for
those with ideas and desire to develop new community services and
projects:
“Over the last 5 years we have seen an explosion of new citizen-led
hybrid experiments in Lambeth, throughout the UK and across the
world. Each new initiative adds to a body of imaginative ideas and
critical lessons of how we, as individuals, organisations and
government, can together create stronger local communities and
economies.
There is a renewed sense of civic participation that is changing some
of our most fundamental local structures that can have an impact
how we live everyday. In food systems people are inventing new
ways to grow, sell, make, and eat food - outside of existing
consumer-orientated production.
We are seeing citizen-led system innovations in energy creation,
distribution and surplus use; in monetary mechanisms through credit
unions and local currencies; in the physical making
of houses, furniture, and clothing. People are taking part in more
initiatives that make, fix and repair – often close to home – and in
new types of shared spaces that are fit for their purposes.”
Size and scale: Currently space is provide through a temporary
location at Portico Gallery. Members get free access to functional
spaces such as co-working, workshops,, kitchen and maker spaces.
Businesses and individuals get support and advice including training
and access to a network including Council members
Successes: Projects currently running from the site include:
Batch Cooking
Growing specialist Trade School including urban composting
and seedbombs
Craftworkshop in collaboration with Makerhood and L'Arche
Bringing young people together to start ideas and ventures
Teenage fashion label
Makerspace
Parent participation nursery and parent friendly co-working
Living Room days - a place to meet and share
Upcycling secondhand clothe
Urban edible and high street gardens
Park kiosks
Film and young people
Model: Open Works is run as Council project along not for profit
lines. Membership is free for residents but members contribute back
to co-building the project
tom fleming / creative consultancy /
3: Spectrum for the Town Hall:
Lessons from other places, strengths
and weaknesses, potential outcomes
tom fleming / creative consultancy /
Lessons from other incubation spaces in
London – which can be applied In Catford…
Incubation space in the Capital has come a long way in the
past three years and is continuing to evolve. There are some
clear lessons emerging which are applicable to Catford.
- Hybrid-space is in demand: Spaces which bring together
radically different types of business and not just those from a
narrow definition of a sector are in vogue and make the most
of the potential for collaboration and networking
takes into account local factors
Partnership and collaboration: Partnerships between
developers and the private or public sector are common
and provide the missing piece that developers require.
-
- Tech and digital start-ups are here to stay: This is not
froth like the dotcom bubble of the late 90s. These are startup companies with realistic hopes “disrupting a market by
creating major change in a way that can be scaled globally.”
- Market failure exists in providing start-up space:
While there is demand for start-up space across the Capital,
‘cold spots’ for new economy start-ups which haven’t yet taken
off require a push (as was the case in Kings Cross,
Westminster and Brixton)
- There is no one size fits model: No developer or provider
of incubation or workspace applies a universal model – each
site and area requires a nuanced and balanced approach that
tom fleming / creative consultancy /
The extent of development underway in Lewisham
– especially in town centres – and its relatively
‘undiscovered nature’ from the perspective of the
knowledge economy is its biggest opportunity and
challenge. Without a project of significant scale to
kick start new perceptions and private sector
workspace development it make miss the current
economic cycle of start-ups.
Strengths and Weaknesses of Catford Town
Hall as a location for business incubation
Strengths
Weaknesses
The building and space – 900 sq. meters provides the right
level of space for scale and sustainability. Hub Westminster is
1200 sq. meters. Hub Brixton – which is acknowledge as too
small is only 210 Sq. meters
Space not on ground floor – while not a deal breaker it lowers
visibility
Connections – Catford is extremely well connected by train and
road and is a city centre location
Building is secure, managed and comes serviced – meaning
that any potential tenant can concentrate on delivering their
offer
Lack of competition in the Borough – no comparable incubation
or workspace currently exists
Potential to connect with HE/FE – especially Goldsmiths
Catford is not a hot spot or buzzy location – it lacks the culture
or nightlife that brings with it creative people
3-5 Year lease – again not a deal breaker but will put off some
potential operators
Brand and association – Catford is not yet associated with
creativity or tech or cool – meaning the hub will have to work
doubly hard to attract
Lack of an obvious local partner – beyond the potential
operators – in terms of an arts organisation, HE or FE
institution seeking to expand or develop
Outer-London – As the East becomes more expensive – real
potential to exploit the areas regeneration
Funding availability – Catford and Lewisham will qualify for LEP
funding targeted at workspace
tom fleming / creative consultancy /
4: Incubator models and potential of
the Town Hall
tom fleming / creative consultancy /
Town Hall: A hybrid incubation and start-up
space
The Town Hall Incubation Space should draw on the lessons
learned from other workspaces in the Capital in combination
with the unique circumstances of Catford and Lewisham. This
means that:
- The space cannot be an expensive high-end incubation
space aimed purely at high-growth potential tech businesses.
While it will attract elements of this – it is too large a leap to
go from the current situation to becoming a destination purely
for these types of businesses. The Hub itself will play a role in
changing perceptions but to start it must take a more mixed
and balanced approach.
- The space should built on the Borough’s current strengths –
which include small digital businesses as well as community
and social focussed start-ups. By combining the two – in the
way that Impact Hubs do – it can foster collaboration as well
as ensuring that it links to the community (and the broader
social priorities of the Council).
-
The Hub should be based on a flexible space model. It
should start with a mix of hot desk, meeting and event
space. Because of its size it should also offer office space
to growing businesses. It may be that the shared desk
environment fills up more quickly – while office space
grows fills over a longer period.
-
The Town Hall is the prime site – however the space at
the Lounge in particular – could become a satellite or
even alternative hub model. It is is important that the
two spaces connect together – sign-positing and
directing businesses between the two where appropriate.
The Lounge has more potential for attracting businesses
into the Borough – as its location is in an area that
already attracts people from across London due to its
mix of galleries and bars and the proximity to
Goldsmiths.
-
Design and layout are critical (for both the Town Hall
and the Lounge).Capital funding for converting spaces is
crucial. It is not about lavish expenditure – but producing
an environment which attracts quality businesses and
provides the right spaces for growing and developing a
business.
- The hub needs to offer a “space+” model: as well as
offering workspace it requires a mix of services and an added
value offer to both attract businesses and to ensure that it
provides the right environment for growth
tom fleming / creative consultancy /
Spectrum of possibility
Desired Outcome
Hub Properties required to deliver
Supporting knowledge economy start-ups
Flexible space – including hot desks, meeting and
event space, desks for individual businesses, ‘club
space’ for day members/reciprocal members
Increasing employment in the knowledge
economy
Support for businesses – including business
advice, networking, access to finance, access to
markets (through connecting to the wider
economy)
Providing opportunities for young people –
including training and progression routes
Encouraging businesses to relocate in the area
Supporting local social entrepreneurs and
building the community economy
Maximising the Borough’s diversity advantage
A hybrid
knowledge
economy
incubation
space
More networking and collaboration among
creative businesses within the Borough
Providing apprenticeships and paid internships –
through co-delivering schemes and connecting to
initiatives such as Digital Apprenticeships and Arts
Council England Schemes
A well designed and appealing space – offering a
quality environment to attract businesses
Affordability and opportunities for collaboration
and partnership including links to the Council
Developing relationships with local schools
24 Hour access
Events and networking for businesses
Wi-fi, telephone and fast broadband
Security on the entrance
Wi-fi and broad band are essential. Phone lines
and points in the office spaces
tom fleming / creative consultancy /
Potential space model for the Incubator
Space Type
Area
Notes
Open space with hot
desks for workers
1000 Sq. feet – growing to
3,000 sq.. feet
Networking and
event space
A large open area with space for hot disking. Should be based
on the Impact Hub model of large shared desks. This space
could be flexibly partitioned to begin with – to allow it to grow
without businesses feeling lost in a large space.
At least 800 sq.. Feet
An open area that can contain sofas and chairs – as well as
being configured for events.
Meeting rooms x 3
500 sq.. feet 3 differing types
of meeting room – board room,
2x quite room
For use by businesses but also providing additional rental for
external businesses wishing to hire space
Quiet areas – phone
cubicles
200 sq.. feet – cubicles for
making phone calls in quite
Semi-partitioned quite areas for phone calls
Office space – 3x to
8x
1,000 – 3,000 sq.. feet –
A range of offices for businesses ranging from space for 4-6 to
larger offices for 8-12
Café/Kitchen area
500 Sq. feet
Front desk/reception
300 Sq. feet
The current café space – can be developed as a community
business by a tenant – serving the Hub and the building as a
whole
A reception area with chairs
tom fleming / creative consultancy /