University of Nottingham (c)2005
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BAB-29 January 2005 Analysis

The first Barometer survey of 2005 enquired about growth aspirations for businesses, types of legislation as constraint or encouragement for growth, sources of advice by type, acquisition of work and, following recent headlines on the health and performance effects of caffeine, preferred beverage throughout the day.


182 Business Advisers responded to this Survey.


Survey Findings


The first part of the January 2005 UK Business Advisers Barometer (UKBAB) Survey asked questions on the theme of business growth. Panellists were first asked to identify with one of a selection of possible aspirations for the growth of their businesses. The same question was asked of the panel of the parallel UK Business Barometer Survey (UKBB). Results from the two panels were closely aligned, with the majority hoping for growth of up to 10% per annum.



The impact of regulation on economic growth is an area that causes concern to both government and businesses themselves. Business advisers were asked in the UKBAB survey if they have worked with businesses that decided not to grow because they did not wish to pass regulatory thresholds and 76% of respondents said that was the case. Nearly ΒΌ of respondents to the UKBB admitted that they have decided not grow their businesses because of having to deal with further regulation.



Business advisers were asked which areas of legislation they thought have led to smaller business not increasing their size, and the two areas advisers selected as being of greatest impact were employment legislation and VAT. In the UKBB survey, those businesses who had decided against growth because of further regulation were asked which, if any, of these areas of legislation had led them to that decision. Of the relevant 24% of respondents, nearly all attributed this to the impact of employment legislation.



The UKBAB survey also asked what types of business are most likely to choose not to increase their size as a result of regulation. 81% of respondents agree that micro businesses - those with less than 10 employees, are more sensitive to the impact of regulation in this way.



In previous editions of the UKBAB, panellists have been questioned as to the type of 'adviser' businesses prefer. The following set of 6 questions sought to break that down by type of advice sought. Each question was 'shadowed' in the UKBB by asking who respondents would first turn to for advice in each of the areas.


The first area was Finance and an accountant was the most popular choice in both surveys, with 65% of UKBAB responses and 52% of UKBB responses. The second choice of UKBAB respondents was banker, with 16% of responses and only 12% thought they would consult a business adviser.



The second area was technical advice. Clearly this covers vastly different issues according to the type of business, and could range from specialist precision instrumentation to IT systems or stand alone cash registers, giving rise to a wide dispersion of responses. 28% of UKBAB responses were in the Specialist category, followed by 22% expecting small businesses to turn to trade associations or representative groups.



In the area of legislation, 31% of UKBAB respondents would expect small businesses to consult a trade association or representative group, 26% a specialist and 20% a Business Adviser.



When advice on marketing is required, 63% of respondents to the UK Business Advisers survey would expect a typical small business to go to a business adviser for marketing advice In comparison, 33% of UK Business Barometer respondents say they would turn to a business adviser, while 29% would ask for advice from a specialist.



57% of UKBAB respondents said they would expect small businesses to consult business advisers, and 18% thought small firms would ask accountants. Amongst UKBB respondents the two most accepted standard sources of advice on management are business advisers, which attracted 48% of responses, and specialists, with 17% of responses, but 18% of UKBB respondents said that they would use other sources for this type of advice.



For legal advice, 68% of UKBAB respondents would expect small businesses to go to a specialist with 13% expecting them to contact a trade association or representative group. 78% of UKBB respondents would turn to a specialist, with 12% consulting their trade association or representative group on these matters.



Respondents to this survey have varied sources for clients, with 39% gaining clients because they work for business support organisations, 29% obtain clients through being recommended by other clients. A further 17% get the majority of their work through sources other than those specified in the question.



The final question in the January survey was a response to recent headlines on the health and performance effects of caffeine. For respondents to both the UKBAB and the UKBB surveys, coffee was the most frequently chosen beverage, followed by tea and then water.


Listed below are extracts from feedback into the January 2005 Survey BAB-29


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


I


No further growth often relates to the different thresholds. trading below vat compulsory level is a frequent reason, not taking on an employee earning over PAYE level is another.


I am a contractor not an employee to manage and be a business adviser on a successful business support programme to regenerate an area affected by steel capacity reduction. The project is fully funded and therefore free to users. It is difficult to answer questions about where a "typical" business would seek advice because they usually come to me! (I will refer them into my network when necessary).


In my experience small businesses do not ask for management advice - they know it all already!


If question 3 had allowed more than one answer, I would also have chosen VAT as well as Employment legislation. I have worked with many clients who have been "frightened off" by both of these legislative requirements.


It would be interesting to know whether small businesses feel that the proliferation of IT, the increasing capability of IT, and the increasing complexity of IT solutions is seen as saving or wasting time. This may also be linked to the nature of the individual businesses.


I'll only take on new clients who have been referred to me by current or past clients. My clients have to be able to take the 'blinkers' off and go out of their comfort zones. They have to be serious business owners who are focused on 'growing' their business.


Although it's good that we are given the opportunity to participate, to me the views that really matter are those of the business owners themselves and I usually answer the questions from that angle as I am a business owner in my own right


The questions including 'other' as a choice need space to complete the answer - eg Business Link or eEnterprise Agency etc.


Relevant questions that are easy and quick to answer.


Why the question 'what beverage do you drink throughout the day'? (Ed: Barometer panellists' views sought on recent research reporting on caffeine intake during working day)