UK Business Barometer

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The March survey sought views on the latest marketing "must do's", guiding RDA business support strategies, raising the value of the Business Adviser Barometer experience, online tax returns, monitoring competitors' prices, dealing with suppliers plus the quarterly trends questions. The trends charts from the responses to the regular quarterly questions can be found on the project's website www.ukbab.ac

In total 171 Business Advisers responded to this Survey.

Survey Findings

References and recommendations to include the use of Business Blogs and Podcasts, with RSS as a means of delivery, in business marketing strategies are burgeoning on internet websites. With the rapid growth of access to broadband internet connections, more complex communication technologies are worth considering but demand a time commitment to use and to evaluate effectiveness. UKBAB panellists were asked whether they feel sufficiently well informed to be able to

It might be that panellists in the parallel survey of smaller businesses, the UK Business Barometer (UKBB) would wish to seek advice from a business adviser on their use so we asked panellists of that survey whether they felt sufficiently well informed to be able to benefit from using Blogs, Podcasts or RSS in their marketing activities.

After adjusting for those responding 'not applicable', 74% of UKBAB and 74% of UKBB respondents said that they didn't feel sufficiently well informed on these issues. Of the 23% of UKBAB respondents that are confident to advise on using them, Blogs are far more familiar than Podcasts and RSS. A similar proportion of respondents to the Business survey are confident to use them, with Blogs and Podcasts being twice as familiar as RSS.

A recent CBI survey recommended that Regional Development Agencies should have a stronger input from local businesses to help guide their business support strategies. 78% of advisers responding to the survey feel highly or relatively highly that their local RDA needs more guidance from local businesses in directing business support. Very few respondents disagreed.

A second question on this topic focused on a possible way of providing this type of guidance. 66% of respondents feel, highly or relatively highly, that increased business representation and advice to RDAs is the best way to improve business support. There were quite a few disagreeing- 12% chose 'not at all' or category 4, 'not very much'.

The same question was asked in the parallel survey of Businesses, the UKBB. Amongst these respondents there was a lesser level of support - 45% feel, highly or relatively highly, that increased business representation and advice to RDAs is the best way to improve business support. There was also a more sizeable measure of disagreement - 25% chose 'not at all' or category 4, 'not very much'.

The UKBAB has been running for just over three and a half years. As higher speed connections become more widespread, there is more opportunity to broaden the range of what the Survey website offers. It is important not to lose responses from groups of respondents who may not have or need sophisticated IT equipment, but it would be good for the site to be able to provide facilities of value to panellists as one way of thanking them for the time they spend each month in providing responses.

The most popular of the three options we put to panellists was the facility for a panellist-only online forum allowing panellists to air views and discuss business issues. 51% of respondents opted for this, with 47% choosing a search facility of past questions and results and 32% were in favour of a links page.

Government is offering incentives of tax free payments to employers with fewer than 50 employees to those who fill in tax returns online in advance of the date when online returns become compulsory (for tax year 2009/10). Business advisers were asked to what extent they advise clients to take advantage of the online facility and the finding was that 67% of respondents offer this advice to a high or relatively high extent.

The UK Business Barometer survey asked which returns panellists have completed online. Although 39% have not yet participated in this, 44% already make the annual PAYE returns online and 25% have filed VAT returns online.

Benchmarking the prices charged by competitors is a standard business practice. Price changes can give indications on rival companies' strategy and prosperity, whether the business activity is in manufacturing, distribution or the service sector. Business Advisers were asked which options they would recommend to clients as being useful ways of monitoring. After adjusting for 5% answering 'not applicable', 91% ticked websites, 71% recommended making telephone enquiries and 69% suggested requesting brochures. On average UKBAB respondents ticked 4.5 choices.

UKBB respondents were asked how they monitor competitors' prices. Although 19% of respondents say they do not monitor competitors' prices, but the most frequent way amongst those that do was via websites, used by 75% of respondents. Trade journals were the second most favoured approach, by 45%. On average UKBB respondents, other than those who don't monitor competitors' prices, ticked 2.4 options.

Unlike big business, smaller businesses may have little influence over their suppliers. The March survey asked panellists what they thought were the most important factor in their clients' dealings with suppliers. Quality of product or service was preferred by 35% of respondents, but the second most frequently chosen option was the relationship with suppliers (23%) very closely followed by reliability (22%).

UKBB panellists were asked what the most important factor was when dealing with suppliers. In this case quality of product or service was chosen by 49% of respondents. Price (18%) and reliability (15%) were in second and third place, all after adjusting for the 4% selecting 'not applicable'.

Trends Questions

The average number of clients seeking business advice continued to increase in the March quarter with the number of advisers experiencing increases in enquiries outpacing the number experiencing decreases in enquiries.

Respondents to the March survey witnessed an overall increase in the number wanting to start a business in the first quarter of 2006, although not as strong an increase as during the December 2005 quarter.

The ability to gain access to finance increased slightly compared to the December quarter. This indicator is showing very small variations quarter on quarter - a very nearly static situation suggesting no overall improvement for small businesses in gaining access to finance.

The index of the number of Advisers' clients finding that there is a shortage of skilled labour increased by 3% on average during the March quarter. The improvement was spread unevenly across the range of respondents.

In the March quarter, Advisers were on average slightly more pessimistic about the continuance of their clients trading over the next year. Although 11% of Advisers consider that none of their clients will close over the next year, compared with 14% in December, 75% thought that up to 10% of their clients might cease trading compared with 74% in the December 05 quarter and there was an increase in expectations of higher numbers of business cessations: 14% in March, compared with 13% in December.