Enterprise Support Service Client Survey 2012Small Business Startups in South Kerry 2008-2010

Background

• South Kerry Development Partnership Limited Strategic Plan 2011 – 2013

• Goal 3: Develop and sustain strategies to increase local self employment prospects

• Enterprise Support Service• Business Advice• Business Planning• BTWEA• Enterprise Training• Mentoring Support• Networking• Partnership

Aim of Survey

• How are the small businesses that were set up in 2008, 2009 and 2010 doing in the current market place

• How useful / relevant was the Enterprise Support Service provided by South Kerry Development Partnership

• What can we learn from the experiences of these small businesses – current market place role of South Kerry Development Partnership

Methodology

Telephone Survey

254 enterprises contacted in total

159 completed surveys

Response rate = 63%

Non-respondents

• Non-contactable: Each enterprise called 3 times before being declared ‘non-respondent’

• Declined to participate

Gender

Male82%

Female18%

Gender Profile of Survey Respondents n=159

Year Back to Work Enterprise Allowance received?

2008 2009 2010

20

40

60

6%

35%

59%

n=159

Short-term Allowance or Long Term Allowance?

Short-Term19%

Long-Term81%

n=159

Are you still trading?

Yes78%

No22%

Are you still trading? n=159

Business Sectors• Arts

• Mechanics• Construction / Trades• Environmental Services• Professional Services• Food & Catering• Hair & Beauty• Healthcare

• Manufacturing• Retail

• Transport• Alternative Therapies• Alternative Energies

• Equine• Fish Farming• Entertainment• Tourism

In last year of trading, was your annual turnover…

Under €10,000 Between €10,000 and €20,000

Between €20,001 and €30,000

Over €30,000

20

40

60

59%

21%12%

8%

Turnover in last year of trading. n= 159

Staff Employed?

Yes10%

No90%

Number of Staff Employed?

• 11 businesses employ 1 staff member each

• 4 businesses employ 2 staff members each

• 1 business employs 19 staff members

• Mixtures of part-time and full time staff

How is your business doing today?

Struggling a lot Struggling a little Getting by Performing reasonably well

Performing extremely well

10%

28%

48%

10%

3%

Responses from businesses still trading (124 in total)

Perception of business sector?

Declining Stagnant Growing

10

20

30

40

50

36%

48%

16%

Perception of Business Sector n=124

Critical factors for a successful business

Factor Ranking

Accessing finance for day to day activities 1

Having relevant knowledge about the sector 2

Having prior experience 3

Having sufficient sales/income to cover costs 4

Having relevant enterprise training 5

Cost of supplies/materials 6

Finding time to develop a strategy for our enterprise 7

Sourcing good suppliers 8

Accessing finance for capital expenditure 9

Recruiting the right employees 10

Dealing with bureaucracy/paperwork 11

Do you plan to expand your business in the next two years? N=124

Yes40%

No56%

Do not know5%

Reasons for planning to expand?

• Believe business is working

• Demand for business

• Optimise growth and income opportunities

Reasons why not?

• Not enough demand

• Lack of investment income

Have you received support in these areas?

Support Received No of Respondents %Developing a Business Plan 122 98

Accessing Capital Finance 36 29

Applying for BTWEA 121 98Enterprise Training Finance 4 3General advice and information about setting up a business 121 98Mentor Support 121 98

Rating of how useful support was?

Developing a business

plan

Accessi

ng capita

l finance

Applying for t

he back to

work

enterp

rise allo

wances

Training finance

s

General a

dvice and in

form

ation about setti

ng up a business

Mento

r supports

0

20

40

60

80

100

100%

20%

100%

6%

100% 97%

0%

80%

0%

94%

0% 3%

not applicablenot at all usefula little usefulextremely useful

Are there other areas you would have liked to have received support in?

Yes28%

No72%

N = 124

Areas for further support mentioned

• As business is being set up

– More grants (accessing finance)– More 1-2-1 support– Regular mentoring support– Advertising and insurance help

Areas of support required now?

Yes52%

No48%

Those still in business. N=124

Supports required now mentioned (those still in business)

• Accessing finance and grants• Advertising support• Mentoring• Help with Accounts, tax etc• Extension of scheme

Businesses no longer in Operation

Approximately how many months were you trading?

5 Months 7 Months 9 Months 12 Months 15 Months 16 Months 18 Months 21 Months 24 Months 36 Months

10

20

30

40

50

3% 3%6%

9% 9%

3%

20%

3%

43%

3%

Approximately how many months were you trading? Total businesses no longer in operation = 35

Reasons for no longer trading

• No demand

• Economic downturn

• Personal reasons

• High operating costs

Are there any supports that you feel would have helped your business to succeed if you’d been able to access them?

Yes No Do not know

20

40

60

80

26%

71%

3%

Total = 35

Current employment status

Employed full-time Employed part-time Unemployed Self Employed Full-time education/training

20

40

60

80

9%17%

66%

6%3%

What is your current employment status? Total = 35

Would you consider self-employment again?

Yes77%

No23%

Would you consider self-employment again? Total = 35

Concluding Points

• Findings are positive

• Over three-quaters still in business – Despite recession

• Knowing your sector is critical to the success of the business

• Access to finance for day-to-day activities is critical

• Reasons for no longer trading – no demand or economic downturn

• 77% would go back into self employment

• Majority of respondents found support from South Kerry Development Partnership Ltd to be extremely useful

• Further/ongoing support in relation to accessing finance/managing accounts and liaising with enterprise officer and mentor identified as important