185000 members across the uk over 25 000 members in the south west federation of small businesses

185000 members across the UK

Over 25 000 members in the South West

FEDERATION OF SMALL BUSINESSES

Profile by employment

• 91% of businesses employ 4 or less

• 7% of businesses employ 5 to 20

• Only 2% of businesses employ more than 21

Lifting the Barriers to survival and growth

• 3rd Survey 2000, 2002 and 2004

• Carried out by Strathclyde University

• 12.02% UK response

• 3224 SW responses

Barriers 3

Crime ICT usage Employment Training Business support NMW

Finance including bank account switching Impact of issues like legislation and the environment

More data on the businesses themselves including customers, competitive strengths and weaknesses and future ambitions

County data

Rural vs Urban split

Age of Business0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00

0-3

4-5

6-10

11-20

21-30

31+ SW 2004 SW 2002 SW 2000

Business Age – UK Comparison

0 5 10 15 20 25 30 35

0-3

4-5

6-10

11-20

21-30

31+SW 2004 UK 2004 SW 2000 UK 2000

Age of Owner0 5 10 15 20 25 30 35

Under 21

22 to 34

35 to 44

45 to 54

55 to 64

65+

SW 2004 UK 2004

Where?0 10 20 30 40 50 60 70

external premises

partly home, partlyexternal

your home

SW 2004 UK 2004

How?0 10 20 30 40 50 60 70 80

Started from scratch

Bought going concern

Inherited

Management buy out

Franchise

Other

SW 2004 UK 2004

Business Structure

0 5 10 15 20 25 30 35 40 45 50

Franchised Operation

Limited Company

Limited LiabilityPartnership

Partnership

Sole Trader

SW 2004 UK 2004

Change in Business Structure

0 5 10 15 20 25 30 35 40 45 50

Franchised Operation

Limited Company

Limited LiabilityPartnership

Partnership

Sole Trader

SW 2004 UK 2004 SW 2002 UK 2002

Low Turnover vs UK

0% 5%10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

NI

Y&H

EM

London

NW

WM

UK

SE

Wales

EE

NE

SW

Scot

Less than 25000 £25,001 to 50000£50,001 to100000£100,001 to £500,000Over £500,001

Low Turnover vs UK

0% 5% 10%15%20%25%30%35%40%45%50%55%60%65%70%75%80%85%90%95%100%

Cornwall

SW

Scot

UK

under 25k 25k to 50k 50k to 100k 100k to 500k Over 500k

Where now?0 10 20 30 40 50 60

To close it down

To downsize/ consolidatethe business

To expand moderately

To grow rapidly

To hand on the business/succession

To remain about thesame size

To sell the business

SW UK

Means

0 5 10 15 20 25 30 35 40 45

Shift activities to lower cost overseas location

Shift out of manufacturing and into services

Start Exporting

Increase R&D spending

Greater collaboration with competitors

Increase Exporting

Focus on narrower range of products/ services

Reduce environmental impact

Open additional branches/ premises

Seek out new geographical markets

Greater collaboration with suppliers

Move to new premises

Increase expenditure on staff training

None ticked

Invest in IT

Expansion in range of products/ services

Invest in new equipment/ machinery

Seek out new types of customers

Seek to reduce costs

Improve Sales & Marketing

SouthWest UK

Means0 5 10 15 20 25 30 35 40 45

Move to new premises

Open additionalbranches/premises

Invest in newequipment/machinery

Increase R&D spending

Invest in IT

Reduce environmentalimpact

Urban Rural

Profit vs Sales Volume0 5 10 15 20 25 30 35 40

Gone down

Gone down slightly

Stayed the same

Gone up slightly

Gone up

SW 2004 Profitability SW 2004 Sales Volume

Changes in Finance0 5 10 15 20 25 30 35 40 45 50 55 60

Public sector low interest loan

Redundancy

Venture Capital

Factoring

Loan guarantee scheme

Friends

Grant

Inheritance

Other business/ employment

Pension

Family

Second Mortgage

Supplier Credit

Credit card debt

Retained profit

Bank Loan

Own Savings

Bank Overdraft

2002 2004

Business Skills

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Marketing and Salesskills

Management Skills

Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied blank/missing

Satisfaction index

0

10

20

30

40

50

60

Marketing and Sales skills Management Skills

2000 2002 2004

Business Skills

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Understanding NewTechnology

No Customers

Access to new UKmarkets

Access to overseasmarkets

Access to new overseasmarkets

Access to Mkt Info

Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied blank/missing

Satisfaction index

-10

-5

0

5

10

15

20

25

30

35

40

UnderstandingNew

Technology No CustomersAccess to new

UK markets

Access tooverseasmarkets

Access to newoverseasmarkets

Access to MktInfo

2000 2002 2004

On Business Skills the FSB says:-

• Publicise what you are doing

• Relate the offer to Business Issues

• Modular, bitesized and timely

• Training Progression thru’ the life of a business

Dissatisfaction with skills of Current staff

0 10 20 30 40 50 60 70 80

Literacy

Numeracy

Basic IT skills

Advanced IT skills

Technical skills

Managerial skills

Communication skills

Customer service

Sales and marketing

Foreign languages

None ticked

SW UK

Recruitment Difficulties0 5 10 15 20 25 30 35 40

Skilled

Unskilled

Rural SouthWest Urban UK

Importance of qualifications in employment decisions

0 10 20 30 40 50 60 70 80 90 100

Traditional School (O-levels, A-levels, GCSEs, Standard,

Higher etc)

Vocational (NVQs, SVQs)

College (BTEC, HND, HNC)

University (Degrees)

Industry related skills courses

Experience

Attitude/ Character

Important Neutral Unimportant Not Relevant Not answered

Training within last 12 mths0 5 10 15 20 25 30 35 40 45

Regularly

Occasionally

Not at all

blank/missing

Industry type0 5 10 15 20 25

Not ticked

Agriculture, Forestry & Fishing

Mining & Quarrying

Manufacturing

Energy & Water

Construction

Retail, Wholesale & Motor Trade

Hotels & Restaurants

Transport & Communications

Financial Services

Business Services

Public Administration & Defence

Education

Health & Social Work

Personal Services

Other

SW UK

Training by Industry type0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Not ticked

Public Administration & Defence

Mining & Quarrying

Energy & Water

Education

Personal Services

Health & Social Work

Agriculture, Forestry & Fishing

Financial Services

Transport & Communications

Manufacturing

Hotels & Restaurants

Construction

Other

Business Services

Retail, Wholesale & Motor Trade

Regularly Occasionally Not at all blank/missing

Training by Industry type - weighted

0 1 2 3 4 5 6 7 8 9 10 11 12

Public Administration & Defence

Mining & Quarrying

Energy & Water

Education

Personal Services

Health & Social Work

Agriculture, Forestry & Fishing

Financial Services

Transport & Communications

Manufacturing

Hotels & Restaurants

Construction

Other

Business Services

Retail, Wholesale & Motor Trade

Regularly Occasionally Not at all

Barriers to training0 10 20 30 40 50 60

Cost of courses

Timing of courses

Courses offered not relevant tobusiness needs

Lost staff time

Distance from place of training

Lack of enthusiasm from staff

Lack of funding

Fear of losing staff once trained

No barriers to training

None ticked

Rural SouthWest Urban UK

On Education and Training the FSB says:-

• Publicise what you are doing

• Appreciation of wealth creation

• Demand led, meeting needs of local business community

• Modular, bitesized and timely

• Accessible