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BAB-27 November 2004 Analysis
November's survey sought panellists' views on the suitability of clients to run a business. It also asked about satisfaction and stress in running businesses. Other topics covered were data back up, Internet banking, the New Company Law bill, continuing EU membership, whether Business Skills should be a compulsory subject in schools, the retirement age and advice for female owner managers compared to males.
187 Business Advisers responded to this Survey.
Survey Findings
This month's survey has some questions about suitability and motivation for business life. The Business Advisors who form the panel for the UKBAB are well placed to come to a judgement on individuals who approach them for professional advice. 20% of respondents think that less than 5% of their clients are not following their best vocation i.e. that over 95% of their clients are well suited to running businesses, but 27% of respondents believe that more than a quarter of their clients are in the wrong occupation.
There are many motivations that drive people to start up or run their own businesses, but having done so, have they made the right choice? We asked if running a business is a fulfilling and satisfying way of life, and 83% of panellists said they thought it was highly or reasonably highly satisfying. 72% of Businesses responding to the UKBB survey said the same. Only 3% of UKBAB respondents said they thought it was not at all satisfying or only slightly satisfying, compared to 10% of UKBB respondents.
64% of UKBAB respondents reckon that running a business is either more stressful or much more stressful than five years ago and 60% of UKBB respondents agree with them. Only 2% from each survey thought that stress had decreased.
Data security has the two aspects -firstly protecting it from unwelcome breaches by third parties, keeping it confidential, and secondly ensuring that it is preserved and insured against risk. The latter can be a very time consuming and expensive task but the costs of failure are high. Consequently 64% of UKBAB and 71% of the UK Business Barometer survey (UKBB) respondents back up either daily or weekly, and only 3% of UKBAB and 1% of UKBB respondents do not back up at all.
Doubts have been expressed recently that a concern about lack of security may be holding back the growth of online commerce, especially after a number of glitches in internet banks' systems. Despite this 73% of panellists for both this survey and for the UKBB use internet banking. Only a small difference in confidence in security between the two sets of panellists was revealed - 29% of UKBAB panellists think that internet banking is becoming more or much more secure, compared to 32% from the UKBB. 32% of UKBAB panellists think internet banking security is decreasing compared to 23% from the UKBB.
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The Enron scandal was a focus of attention in 2001 and added impetus to the Government move to review the Companies Act. A new companies bill is now being introduced to give auditors increased powers to compel companies to divulge information and give better access. While 42% of UKBAB panellists support this bill, 43% are against it. Amongst Business Barometer respondents, 34% support the bill but 44% are against it.
In June 1975 the Wilson government held a referendum, having renegotiated the original terms of the UK's entry into the then EEC in 1973. 67% of participants voted 'yes' to staying in. After 29 years following that referendum, 66% of respondents to the UKBAB see membership of the EU as affecting UK business positively or at least with some advantages, while 22% think it has some disadvantages or that it actually has a negative effect. Respondents to the UK Business Barometer are slightly less enthusiastic, with 61% seeing it as a positive opportunity or with some advantages although 23% think it has some disadvantages or has a negative effect.
With their experiences in, and advising other businesses, our panellists would be likely to have developed views on how ready and able school-leavers are to work in business and what should be taught to best equip them to do so. 71% of BAB respondents and 73% of UKBB respondents strongly or relatively strongly agree that business skills should be a compulsory subject at school.
Concerns of the state over the costs of providing adequately for the needs of an increasingly long-lived and aging population continues to fuel debate over the need to change the age of retirement. 62% of UKBAB respondents are against raising the statutory retirement age by five years, compared with 66% of UKBB respondents. Amongst UKBAB respondents, 39% would expect more reluctance to employ mature applicants, 62% would not, but UKBB respondents were more closely split on whether a higher retirement age would lead to a greater reluctance to employ mature applicants, with 47% thinking it would, 53% thinking not.
Survey respondents are far from unanimous in their opinions as to whether women owner managers are more receptive to advice than men. 57% think they are a bit or far more receptive, 34% think they are about the same, but 9% think they are either a bit or far less receptive.
Listed below are extracts from feedback into the November 2004 Survey BAB-27
Views expressed are those of individual panellists and may not represent those
of the University.
It is my view that the statutory retirement age should be lowered and not increased
On Q 8:. '29 years after the referendum on joining the EU, how, in your opinion, does our continuing membership affect UK business? '
Some industries get advantages from the EU, equally many have real problems, particularly in some of the regulation. Overall one probably balances the other.
On Q9. "Business Skills should be taught as a compulsory subject in schools."
Schools no longer educate, that is the problem. They are expected to train young people in specific skills before the students even know what they are going to do, in the meantime they are leaving school with inadequate reading, writing and arithmetic skills, and little general knowledge of the world, their own history, literature or languages. A young person who can read can master the basics of PC operation in a few days, a PC equipped illiterate is disadvantaged for life!
Although I believe women managers are more receptive to advice, in general terms there are so few in positions of real authority that those that have gained exulted positions are inclined to adopt the male mentality of not listening.
The surveys have been very useful tools in understanding the current trends and areas of business strengths and weaknesses.
Very worried about rumoured comments that banks will not be responsible in the future for frauds committed against internet bank accounts
I still witness tremendous levels of age discrimination in job vacancies where people 50+ could add value to the business but are considered by the owners to be too old. This attitude by business owners must be changed - UK SME's are shouting about a skill shortage but need constant persuading to consider the pool of 'grey' candidates that frequently have the skills and experience to not just adequately fill the vacancy but add real value to the business.
The question reference retirement age increase was set to low at 5+ years, its discriminatory, the market is needing a radical reform (abolishment) of compulsory retirement age and its association nonsensical financial/insurance services inability to provide products that match modern market dynamics and demographics.
Even SAGA need competition you know!!
More should be done at a national level to encourage small businesses/owners to engage in basic business research.
A very interesting range of questions.
