The States could continue putting taxpayers’ money into the Digital Greenhouse even after handing its operation to a private organisation.

Economic Development (ED) announced last month it was withdrawing funding from the innovation hub, prompting concern from businesses and entrepreneurs who warned the decision had been made without a clear replacement in place.

The committee had said the £450,000-a-year facility should either close or see some or all of its services moved into the private or voluntary sector.

Now, however, ED says several businesses and private organisations have expressed an interest in taking it on – and that grant funding could be available from the States for some of the services.

Public money could continue

The committee said it was now “confident” the service would continue in some form.

It plans to continue discussions with interested parties throughout September before publishing a formal bid document in October.

The successful organisation could receive grant funding to provide some of the services currently offered by the Digital Greenhouse, particularly support for new businesses.

The committee has not yet said how much grant funding could be available, whether it would come from the existing £450,000 Digital Greenhouse budget or how much it expects to save overall.

It has also not disclosed the identity of the organisations which have expressed an interest, or exactly what they have proposed.

The possibility of continued public funding comes after the original announcement prompted criticism that withdrawing the £450,000 budget could leave a gap in support for businesses outside the finance sector.

The Chamber of Commerce warned that closing the Greenhouse without a replacement would not remove the need for the services it provided, while entrepreneurs also expressed concern about the uncertainty.

‘Turbo-charged’ support

Deputy Marc Laine, Vice-President of ED, said the committee had been “really pleased” by the interest received so far.

“We have already been listening to these interested parties who have come forward, which is helping us put together the formal bid process,” he said.

He said the move was not a decision to abandon support for entrepreneurs.

“I don’t want there to be any ambiguity about this: the Committee is wholly dedicated to ensuring that Guernsey has world class support for entrepreneurs and real growth potential for innovation in every industry,” he said.

“It simply feels that there is only so much that a government-run incubator can do, and while the offering at the moment has value, it can be even more effective if led by the private sector: more dynamism, more agility and lived experience.”

He said the aim was to “turbo-charge” the support available to entrepreneurs and drive innovation and economic growth.

Susan Watson, Chair of the Innovate Guernsey Board, said the early interest was “encouraging”.

She said the opportunity was to create an “independently run, commercially sustainable organisation” while retaining support valued by the island’s innovation community.

Formal bids in October

The Digital Greenhouse opened in 2016 as a States-backed hub supporting Guernsey’s digital and creative sectors.

Economic Development previously said the sector had grown significantly over the past decade and that innovation and digital development was now better led by the private or voluntary sectors.

The committee has said some services currently provided by the Digital Greenhouse, as well as other innovation projects, could continue to receive government support if they are considered economically beneficial.

The formal bidding process is expected to begin in October.