UK Business Barometer

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BAB42 February analysis

February's survey sought panellists' views on social enterprises, online trading and over 50's start ups.

In total 177 Advisers responded to this Survey.

Survey Findings

Social enterprises are businesses with a social purpose designed to deliver lasting social and environmental change. They incorporate social costs and benefits as well as financial ones in their accounts and often rely on an element of grant support and donation. The term social enterprise is relatively new but this type of business has existed for at least a century. Respondents to the February UK Business Advisers Survey varies widely in the degree of familiarity with the concept, such that although 50% were highly or relatively highly conversant with the concept of social enterprise, 27% had little or knowledge about it.

In terms of providing advice to social enterprise, 50% would feel highly or relatively highly confident, while 31% would feel little or no confidence in doing so.

A survey undertaken in 2004 for the Social Enterprise Unit of the DTI found that 1.2% of all UK enterprises are social enterprises. In the last 12 months 64% of responding advisers have worked with social enterprises at least once, and 33% have seen at least three social enterprise clients over that period. The range of support provided has included advice on business planning, revenue generation, legal structures and fesibility studies, but a substantial proportion was on other matters.

About 42% of respondents would very much like the opportunity to increase their understanding of social enterprise, although 30% are not very interested. The most interest was expressed by advisers who have been most involved with social enterprise over the last 12 months, and the least interest by those least engaged in advising social enterprises.

With the continuing growth in internet based buying and selling, more entrepreneurs are looking to add trading capability to their websites. 29% of respondents to the UKBAB February Survey are highly or reasonably highly familiar with what is involved in upgrading clients' websites so that they can sell online. About a third have some knowledge in this area, while 23% know a little about it and 16% have no familiarity with it at all.

The level of confidence felt by respondents about offering advice on upgrading for trading is consistent with the responses to the previous question. 7% are very confident and 29% are confident about the advice they could give, while the remaining 64% are either unsure or very unsure.

Although only 36% of respondents regard themselves as confident or very confident about website upgrading for trading, at least 57% have been asked about online trading by clients, and 11% have received enquiries from over 30% of their clients. Over the last two years 66% of advisers have seen enquiries on this increase, 9% would say substantially, while 33% have seen enquiries maintained at the same levels.

The reason that most respondents see as the main barrier to online selling is that businesses are unfamiliar with the technology (41%), but over one fifth think that problems of establishing it and the costs of maintaining the means of payment are the most important obstacle. Lack of confidence in internet security was the third most cited deterrent.

Some survey evidence suggests that increased numbers of over 50 year olds are seeking to establish new businesses. This is in accord with about half the respondents to the February Survey (excluding those answering 'not applicable'), although 46% think that numbers have stayed the same.

In terms of creating new jobs, only 17% believe that businesses started by older people are more likely to create new jobs, while 35% think the reverse - that such business are less likely to create new jobs than those of younger entrepreneurs.