back to list of analyses
BAB-30 February 2005 Analysis
The February survey sought views on late payment, switching banks, outsourcing, set ups by sector and externally provided training.
188 Business Advisers responded to this Survey.
Survey Findings
Legislation on late payment came into effect first in November 1998, introducing a statutory right for small businesses to claim interest on late payments due from large businesses. This was extended to payments due from other small businesses in November 2000, and then further extended by an amendment adding the right to claim reasonable costs of debt recovery and simplifying the calculation of statutory interest.
Business advisers assess that for 65% of their clients, late payment is an issue of concern to a significant or moderately significant extent. In the parallel monthly survey of businesses, the UK Business Barometer (UKBB), the question was directed at businesses and the results are shown for comparison with the UKBAB results. From the businesses responding to the UKBB, 52% say that late payment is an issue of concern to a significant or moderately significant extent.
70% of UKBAB and 55% of UKBB think there has been no change in the difficulty in switching banks over the last year, while 11% of UKBAB and 26% of UKBB think it is actually much more difficult or more difficult than a year ago, after adjusting for the 16% of respondents to the UKBAB and the 48% of UKBB respondents who don't know.
Three questions on outsourcing showed that amongst the advisers responding to this survey:
44% have 10% or less clients who outsource payroll, while 42% have 11% or more clients who outsource payroll
22% have 10% or less clients who outsource IT maintenance, while 65% have 11% or more clients who outsource IT Maintenance
33% have 10% or less clients who outsource bookkeeping, while 61% have 11% or more clients who outsource bookkeeping
There were three questions on the sectors that client businesses have been setting up in. 43% of advisers reported that over 50% of their clients who have set up in the last five years have been in the service sector, 39% of advisers reported that between 1% and 10% of their clients who have set up in the last five years have been in manufacturing and production, and 49% of advisers reported that between 1% and 20% of their clients who have set up in the last five years have been in the distribution sector.
The large majority of business advisers responding to the February survey felt that clients would benefit highly or relatively highly from external training, with a total of 77% responding in these two categories. The main areas from which most felt clients would benefit were equally placed by 38% of respondents as management, and sales and marketing.
A large majority of advisers also felt that they themselves would benefit from external training, with 66% responding in the highly and relatively highly categories. The main areas from which most felt they would benefit were sales and marketing, with 29% and IT with 28%, but 21% would like to focus on training in management.
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 deal with mainly 'one-man-bands' so there is a high percentage outsourcing to external providers for training, IT support and bookkeeping.
The questions about training are difficult because 50% of our income is earnt with training provision and we also devote a considerable amount on self development and training.
My client base highly knowledge based ITC companies, high level of service providers but all B2B and with very high levels of expertise. This skews the responses compared with a more general portfolio, for instance very few seem to have problems with cash collection.
Most of clients from the past two years have been overseas clients. I therefore have slightly different slant on the questions.
I advise most of my clients to outsource any area of their business where they don't possess the skills and where it's not a full time job within their business.
I found answering the questions on external training a little difficult because I totally believe in training providing it's followed through by both the provider and the business owner to ensure the knowledge is transferred to skills.
Unfortunately a lot of the training I witness daily falls down on adding real value and skills but is just a roll out of text book 'stuff' often delivered without passion and no follow up - in other words a waste of money. It doesn't have to be this way. Pay training companies or providers with a commitment fee and a % of value they have added through their training programme to the business concerned. This would liven thing up somewhat.
Why not rank the training needs in each question. it is unrealistic to select one only.
That is a continuing criticism I have of these surveys!
Could be interesting to survey the specific problems that any training would address. For example financial training because the business suffers from poor financial control/analysis or sales/marketing because the business is struggling to find sufficient sales.
