UK Business Barometer

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The June UK Business Adviser Barometer survey questionnaire received 159 responses. The June survey was asking for views on likely influences on the future Euro Referendum vote, Director's pay, corporate social responsibility, business 'clusters' and labour market flexibility. The quarterly 'trend questions were also included this time.

The May Survey showed that over 50% of respondents were in favour of the UK adopting the Euro. This month we asked whether the results of the five tests being used as a determinant by government would influence individual business people in their opinions. Respondents to the Business Adviser Barometer (UKBAB) were divided, with only 25% being highly or moderately highly affected by them, and 28% not affected at all. The June Business Barometer (UKBB) respondents were more sensitive to the tests - although 33% would be highly or moderately highly affected by the tests, 24% would still not be affected at all.

Company directors' pay and bonuses have been regularly receiving press attention regularly. Business advisers were asked for their views, and 70% do not feel that Government should legislate to control pay.

With the EU mounting a corporate social responsibility campaign and big businesses increasingly reporting on environmental and social issues, business advisers were asked if they would be able to advise clients on the practicalities. 50% gave an unequivocal 'yes', while 21% don't know:

'Clusters' can take a number of forms, for example geographic concentrations of interconnected companies and/or service providers, or companies in related industries, and associated institutions (for example, universities, standards agencies, and trade associations) in related fields. Over half of respondents (53%) have 25% or less clients belonging to a Cluster.

The business advisers responding to the Business Advisers Survey (UKBAB) were not widely convinced that clients gained much from Clusters, with only 14% of advisers believing that their clients benefit either very significantly or significantly, although only 1% believed that no benefit is gained. This contrasted with the opinions of the respondents to the Business Barometer (UKBB), where most of those who belong to a Cluster find it beneficial to some degree, with 25% of all respondents finding membership of very significant or significant benefit.

The potential benefits of Cluster-like communication and collaboration are well recognised both among respondents to the UKBAB and to the UKBB, with close correlation between the results of the two surveys:

	UKBB	UKBAB
1. Highly & 2 (moderately highly)	54%	55%
3 (Somewhat) & 4 (slightly)	39%	40%
5. Not at all	7%	5%

There was broad correspondence between the results of the two surveys on the topic of labour market flexibility. 57% of UKBAB respondents believe that it has become more, or significantly more, flexible over the last 5 years, compared to 47% of UKBB respondents. However, 32% of UKBB respondents feel it has become less, or significantly less, flexible, compared to 19% from the UKBAB:

In March we reported overall increases in numbers seeking business advice for the first quarter. The second quarter to June has seen fewer advisers, in percentage terms, reporting increases, more reporting no change and more reporting decreases:

The percentage of responding advisers who have experienced increases in those wanting to start a business has dropped in the last three months from a total of 44% in March to a total of 38% in June, while the percentage who have experienced decreases in numbers of potential business start-ups has increased from 14% to 20%.

There has been a decline in the percentage of advisers experience of their clients access to finance between the two quarters. Those whose clients ability to gain access to finance has worsened increased from 14% to 19%.

Compared to the January to March period in the labour market, many Advisers have noticed that a lower proportion of their clients are finding a shortage of appropriately skilled labour. 20% of Advisers know of 51% - 75% of clients in this situation compared to 29% in March, and 36% have between 25% or less clients in this position compared to 26% in March.

Overall the future trading profile looks very slightly brighter in June than in March.

Views expressed are those of individual panellists and may not represent those of the IBA or the University of Nottingham.

I would like to see more questions about the extent to which additional bureaucracy is driving SMEs out of business and deterring them from employing staff.

It is not just the Euro, but the overall effect the EU is having on regulation on the UK that will affect any vote. Our identity and systems are under threat.

The inclusion of more questions relevant to support of the micro business, specifically one person sole trader status, might be useful; these clients form a solid base for most enterprise agencies and training providers and the issues which affect them are more of a survival nature than growth, employee or environmental aspects. Obviously, one is encouraging growth strategies, however, on a day to day basis it's marketing/sales, cash flow and compliance with commercial legislation which tends to be discussed more often with clients. Hope that helps!

Regarding the question on cooperation between companies in same area or trade, to restrict this to purchasing or going for large contracts is wrong. If they can break down their natural reluctance to just talk to each other about problems and trends that worry them all, they will all benefit.

Getting Finance is more difficult because two of the big four seem to be applying stricter criteria to loan giving.

I find the results thought provoking and like the easy, user friendly, format.

since I have been completing the survey, I have also started to use the results. e.g. I was asked to support a bid for funding recently, the information in the survey helped state my case.

With both the political and public opinion arguments so firmly against joining the Euro, or any further erosion of our sovereignty whatsoever, let's not was more valuable business time debating this non issue.