UK Business Barometer

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The January survey sought views on general business expectations, Business Adviser private practices, community of interest companies, employment law, home-based businesses, the 'terrorist threat', whether Britain is becoming more entrepreneurial, women starting a business, the sterling/dollar exchange rate and productivity growth. The question on 'why women are less likely to start a business than men' asked for a free-form response, and the summary and analysis of the findings from this question will be published separately from this report and a later date.

General business expectations for the coming year were felt to be more, or much more, optimistic by 48% of respondents to the UK Business Advisers Barometer Survey (UKBAB). Respondents to the parallel UK Business Barometer Survey (UKBB) were more divided in opinion on this, with 54% being more, or much more optimistic. Few felt more pessimistic about the outlook, only 11% of UKBAB, compared to 19% of UKBB respondents.

In November 2002 the UKBAB survey found that over half of respondents thought that the establishment of Business Adviser Private Practices/surgeries (similar to Doctors' surgeries) is a model for the future of business support services. This month, the Survey followed up by asking whether this model has become more or less tenable over the past year. Nearly a quarter of respondents think that it has, although half think there has been no change, and 12% think it has become less tenable.

The Community Interest Company (CIC) will be a new type of company, designed for social enterprises who want to use their profits and assets for the public good. A Bill including proposals to create the Community Interest Company was published on 4 December. At this stage only 65 of Advisers feel they know enough to be able to make recommendations to clients on whether this would benefit them, and 59% have not received any information.

Many advisers feel that their clients' levels of awareness of their responsibilities on anti-discrimination is rather low, with 36% of advisers thinking that a quarter of less of their clients are sufficiently aware, and 26% believing that between a quarter and a half of their clients are aware.

55% of respondents have up to a quarter of clients who are home-based businesses and a further 23% have between a quarter and a half. This is a small increase percentage-wise on the situation at December 2002, when the question was last put.

Most home-based businesses are not prepared to accept employees into their homes: 12% not at all and 52% very reluctantly. Only 10% are highly or relatively highly prepared to accept employees into their homes. On ambitions for growth amongst home-based businesses, it emerged that 24% of Advisers have only a quarter or less of their clients with ambitions for growth, although 36% have over 50% of home-based clients who are aiming to grow.

Amid continuing public concern about potential terrorist attack on the UK, any impact on smaller businesses has yet to emerge in any detail. Respondents to both the UKBAB and the UKBB do not appear to be unduly worried as 51% of UKBAB respondents and 54% of UKBB do not take it into account in their decision taking. 41% of business advisers and 25% of businesses only include the potential threat to a small extent, but 3% of UKBAB and 9% of UKBB are highly or relatively highly inclusive of the 'terrorist threat' factor.

The majority of respondents agree with the findings of the Global Entrepreneurship Monitor, that Britain is becoming more entrepreneurial. 59% said they think Britain is becoming more, or much more entrepreneurial while only 7% said they think Britain is becoming less entrepreneurial.

The proportion of clients affected by significant movements in the sterling/dollar exchange rate is relatively low, since 75% of respondents report that a quarter or less of their clients are affected and 16% say that between a quarter and half their clients are impacted by such changes. Only 1½% of advisers say that more than 50% of their clients would be significantly affected.

From the choices provided, nearly half of UKBAB respondents, 49%, think that reform of the regulatory burden on enterprise would be the most important contribution to promoting productivity. The second choice by 27% of respondents, was for overcoming barriers to raising finance for small business.

Businesses answering the same question in the UKBB survey this month, have similar priorities, but with 56% selecting reform of the regulatory burden on enterprise and 19% choosing overcoming barriers to raising finance.

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

I had great difficulty completing question 12 because whilst local authorities should be the right answer, they are too political and despite their "Loud Hailers" stating otherwise, too few seem to actually support local enterprises.

Re Q12

The Chancellors Pre Budget statement highlighted various areas of activity to promote productivity growth. Which of those listed below do you feel is the most important?

a) reform of the regulatory burden on enterprise

b) overcoming barriers to raising finance for small business

c) measures to promote regional growth by local authorities

d) promoting entrepreneurial skills in young people

 

When will governments realise that the best they can do is leave well alone. Regional attempts to attract businesses merely cause ill feeling between regions and at no benefit to UK plc (this has happened to me recently)?

My client base is almost exclusively farmers - hence the high numbers on home-based. The Euro/£ exchange rate is much more important than the $/£ exchange rate for my client base.

Excessive anti discrimination policies and political correctness help to stifle business initiative and free speech. Add to that Health & Safety the DRB and the Data Protection Act and it is little wonder that 500,000 more Civil servants have been employed in 7 years, leaving less incentive for people to undertake sometimes risky business initiatives.