185000 members across the UK

1
(No Transcript)
2
FEDERATION OF SMALL BUSINESSES
185000 members across the UK Over 25 000 members
in the South West
3
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

4
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

5
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
6
Age of Business
7
Business Age UK Comparison
0
5
10
15
20
25
30
35
31
SW 2004
UK 2004
SW 2000
UK 2000
21-30
11-20
6-10
4-5
0-3
8
Age of Owner
9
Where?
10
How?
0
10
20
30
40
50
60
70
80
Other
SW 2004
UK 2004
Franchise
Management buy out
Inherited
Bought going concern
Started from scratch
11
Business Structure
0
5
10
15
20
25
30
35
40
45
50
Sole Trader
Partnership
Limited Liability
Partnership
Limited Company
SW 2004
UK 2004
Franchised Operation
12
Change in Business Structure
0
5
10
15
20
25
30
35
40
45
50
Sole Trader
Partnership
Limited Liability
Partnership
Limited Company
Franchised Operation
SW 2004
UK 2004
SW 2002
UK 2002
13
Low Turnover vs UK
Less than 25000
25,001 to 50000
50,001 to100000
100,001 to 500,000
Over 500,001
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
0
5



















Scot
SW
NE
EE
Wales
SE
UK
WM
NW
London
EM
YH
NI
14
Low Turnover vs UK
under 25k
25k to 50k
50k to 100k
100k to 500k
Over 500k
100
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95

UK
Scot
SW
Cornwall
15
Where now?
0
10
20
30
40
50
60
To sell the business
To remain about the
same size
SW
UK
To hand on the business/
succession
To grow rapidly
To expand moderately
To downsize/ consolidate
the business
To close it down
16
Means
0
5
10
15
20
25
30
35
40
45
Improve Sales Marketing
Seek to reduce costs
Seek out new types of customers
Invest in new equipment/ machinery
Expansion in range of products/ services
Invest in IT
None ticked
Increase expenditure on staff training
Move to new premises
Greater collaboration with suppliers
Seek out new geographical markets
Open additional branches/ premises
Reduce environmental impact
Focus on narrower range of products/ services
Increase Exporting
SouthWest
UK
Greater collaboration with competitors
Increase RD spending
Start Exporting
Shift out of manufacturing and into services
Shift activities to lower cost overseas location
17
Means
0
5
10
15
20
25
30
35
40
45
Reduce environmental
impact
Urban
Rural
Invest in IT
Increase RD spending
Invest in new
equipment/machinery
Open additional
branches/premises
Move to new premises
18
Profit vs Sales Volume
0
5
10
15
20
25
30
35
40
Gone up
Gone up slightly
Stayed the same
Gone down slightly
SW 2004 Profitability
SW 2004 Sales Volume
Gone down
19
Changes in Finance
0
5
10
15
20
25
30
35
40
45
50
55
60
Bank Overdraft
Own Savings
Bank Loan
Retained profit
Credit card debt
Supplier Credit
Second Mortgage
Family
Pension
Other business/ employment
Inheritance
Grant
Friends
2002
2004
Loan guarantee scheme
Factoring
Venture Capital
Redundancy
Public sector low interest loan
20
Business Skills
21
Satisfaction index
2000
2002
2004
Marketing and Sales skills
Management Skills
60
50
40
30
20
10
0
22
Business Skills
Very Satisfied
Satisfied
Neutral
Dissatisfied
Very Dissatisfied
blank/missing
0
10
20
30
40
50
60
70
80
90
100
Access to Mkt Info
Access to new overseas
markets
Access to overseas
markets
Access to new UK
markets
No Customers
Understanding New
Technology
23
Satisfaction index
2000
2002
2004
Understanding
Access to
Access to new
New
Access to new
overseas
overseas
Access to Mkt
Technology
No Customers
UK markets
markets
markets
Info
40
35
30
25
20
15
10
5
0
-5
-10
24
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

25
Dissatisfaction with skills of Current staff
None ticked
Foreign languages
Sales and marketing
Customer service
Communication skills
Managerial skills
Technical skills
Advanced IT skills
Basic IT skills
Numeracy
Literacy
0
10
20
30
40
50
60
70
80
SW
UK
26
Recruitment Difficulties
Rural
SouthWest
Urban
UK
0
5
10
15
20
25
30
35
40
Unskilled
Skilled
27
Importance of qualifications in employment
decisions
Attitude/ Character
Experience
Industry related skills courses
University (Degrees)
College (BTEC, HND, HNC)
Vocational (NVQs, SVQs)
Traditional School (O-levels, A-
levels, GCSEs, Standard,
Higher etc)
0
10
20
30
40
50
60
70
80
90
100
Important
Neutral
Unimportant
Not Relevant
Not answered
28
Training within last 12 mths
0
5
10
15
20
25
30
35
40
45
blank/missing
Not at all
Occasionally
Regularly
29
Industry type
0
5
10
15
20
25
Other
Personal Services
Health Social Work
Education
SW
UK
Public Administration Defence
Business Services
Financial Services
Transport Communications
Hotels Restaurants
Retail, Wholesale Motor Trade
Construction
Energy Water
Manufacturing
Mining Quarrying
Agriculture, Forestry Fishing
Not ticked
30
Training by Industry type
31
Training by Industry type - weighted
0
1
2
3
4
5
6
7
8
9
10
11
12
Retail, Wholesale Motor Trade
Business Services
Other
Construction
Hotels Restaurants
Manufacturing
Transport Communications
Financial Services
Agriculture, Forestry Fishing
Health Social Work
Personal Services
Regularly
Occasionally
Not at all
Education
Energy Water
Mining Quarrying
Public Administration Defence
32
Barriers to training
0
10
20
30
40
50
60
None ticked
No barriers to training
Rural
SouthWest
Urban
UK
Fear of losing staff once trained
Lack of funding
Lack of enthusiasm from staff
Distance from place of training
Lost staff time
Courses offered not relevant to
business needs
Timing of courses
Cost of courses
33
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