UK Business Barometer

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The April survey asked Advisers about which activities yield the greatest profits, public provision of business support, the number of women seeking their advice, environmental sustainability issues, formal presentations, approaches to obtaining business including from tendering and/or direct marketing plus a question on the depiction of business in programmes such as 'The Apprentice' and 'Dragon's Den'.

In total 199 Advisers responded to this Survey.

Survey Findings

Only one third of the Advisers responding to the April UKBAB survey have increased their charges over the past six months, and 61% have left charges at the same level while 6% have actually reduced their charges during the time. Asked which of their activities were the most profitable, 35% of respondents rated general business advice first, while 30% find that consultancy is most profitable for them. Mentoring yields the greatest profits for only 2% of respondents.

Government support for smaller business growth has changed emphasis frequently, both in terms of financial support and organisational support. Advisers are an aware community directly affected by these changes and they were asked to predict a single area of support that will grow in 2006/2007. The spread of responses show that there is a diversity of opinion with a top response of 42% for business advice to growing/existing firms, and business advice to start-ups coming in second with 24%.

When they were asked where they thought greater emphasis on business support should be placed, advice to growing/existing firms (55%) and to business start-ups(22%) gained the top two most frequent responses, but training gained only 6% of responses - fewer responses than mentoring with 8%.

One respondent commented that he/she thought that in London there is largely the correct vision for business support but the emphasis is wrong, with too much is spent on Information Diagnostics and Brokerage and on providing premises to a select few, while not enough is spent on start ups.

The number of women seeking advice from business advisers may be growing, as 27% of respondents have found that they are being consulted by more women and only 2% say they are advising fewer women.

We asked respondents whether environmental sustainability issues were of increasing concern for their clients, and the finding was that only 16% thought so significantly or reasonably significantly, while 52% said that their clients were not at all concerned, or not very much. The parallel UK Business Barometer April survey of small businesses (UKBB) found that only one out of three respondents regard environmental sustainability issues as becoming significantly or reasonably significantly more of a concern to their business, while 41% said that they were not at all concerned, or not very much.

The UK Business Adviser Barometer surveys different kinds of business adviser, including financial, accountancy and independent advisers. 75% of those responding to the April survey gain less than 25% of their business from tendering for business or direct marketing. But 54% are finding that they are having to be more, or much more proactive in their approach than was the case two years ago.

Individual respondents provided comments, one finding EU Funded projects now more difficult to obtain and that uncertainty problems with Business Links and their credibility with companies is making sub-contract business advisory services more difficult to secure. Others perceive a distinct downturn in government funding for Business Advice to start ups and SMEs and say that having to tender for contracts is driving down their income by too much.

Just over a third of respondents now find they are having to make more formal presentations in order to gain work, after adjusting for those responding 'not applicable'. Most respondents are confident of their presentation skills, with 19% rating their skills as excellent and 67% rating themselves as fair or good. Only 5% admit to doubts about their presentation skills.

Putting would-be entrepreneurs and managers into television competitions has proved very popular with the viewing public. However for most young people, watching these programmes may be the only experience of the world of business that they have come into contact with, and there is a potential for either encouragement or discouragement of future generations. Our respondents were asked for their view of the accuracy of that world as portrayed in the programmes. The same question was asked of respondents in the parallel UK Business Barometer (UKBB). Results were very close between the two surveys. After adjusting for those responding 'not applicable', 28% of UKBAB and 32% of UKBB respondents thought that the programmes' depictions were highly or reasonably highly consistent with their own experience. On the other hand, 41% of UKBB and 35% of UKBAB respondents thought the programmes' depictions were only slightly or not at all consistent with their experience.

One adviser commented "I think the 'Dragons Den' and 'Apprentice' shows set a terrible example - great TV but I wouldn't let a client of mine go on without better preparation". Amongst other comments: "Playing with people's lives is not amusing - most of my colleagues and peers refuse to watch them on the basis that 'reality business rage' would take over"/p>

Although a (very) few respondents feel highly that smaller business issues are covered adequately in the media, 81% of UKBAB respondents and 78% of UKBB respondents feel that the media does not cover smaller business issues at all adequately or barely adequately.

One respondent mentioned another television 'reality' series that has been screened recently, about a small business (The Armstrongs) , commenting that it might be good for ratings but does not fairly reflect most small businesses.

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

Small businesses continue to find ever increasing red tape and penalties, which on top of competition, are leading to their downfall. The feeling is that the government is extracting as much as possible from them financially and this is undermining initiative in the small business community.

I think the 'Dragons Den' and 'Apprentice' shows set a terrible example - great TV but I wouldn't let a client of mine go on without better preparation. And Alan Sugar is playing to the audience. I can't believe he does business with that attitude.

Having referred clients - by invitation - to participate in 'reality business' tv production companies on numerous occasions, I take the view that these programmes are more about what makes good television than what makes a good business. It seems the ones who are either ego-driven or else hopelessly ill advised are the ones chosen. Playing with people's lives is not amusing - most of my colleagues and peers refuse to watch them on the basis that 'reality business rage' would take over...

My work in an Enterprise Agency is for all callers and is free. We are shockingly busy mainly with start-ups. However, we are paid (when we are paid) under contracts gained by tender. These are harder and harder to get - the funds go to Business Link but they top-slice savagely allowing us less than cost. I wanted to comment on another response but cannot go back to the survey to read the question.

My answers reflect a local announcement of major job losses and therefore opportunities for start ups. Media coverage of a local business ("The Armstrongs") may be good television for the ratings but does not fairly reflect most small businesses.

Aggressive idiots make for good television; Sir Alan Sugar will recruit the idiot he deserves. I thought Dragons Den was about theft not business investment, only the desperate should grovel for their money. Unfortunately there are many that will take advantage of the unwary who sometimes deserve it.

There is a distinct downturn in government funding for Business Advice to start ups and SMEs. This is a bad policy and will result in a drop in new businesses and lack of support for existing ones. From my perspective, despite being a well regarded business advisor, I am finding it very hard to attract work and get a reasonable rate of pay.

The following is an extract from feedback submitted by one panellist. Please contact admin@ukbab.ac if you would like to see the full version.

I submitted the following re LDA strategy for business support in London.

Prioritise start up and high growth support. DWP have cut the support to the unemployed to help them become self-employed by 75% from July 2006, leaving some of the most disadvantaged people in London without proper help.

Free services are rarely properly valued by the beneficiaries and they have less incentive to implement suggestions they have not paid for.

.....a minimum of 25% contribution towards the cost of support (could be) paid by all those receiving help, except for those on JSA and other state benefits, who should be helped for free up to a value of £5,000.

.....why not conduct a pilot experiment of auctioning business support to potential customers. Set up a web site with providers and customers and get customers to state what help and advice they want and for providers to provide quotes for delivering the requirements. Also vice versa - suppliers to state what they can offer at what price and see what customers are prepared to pay.

.....where subsidised support is given to start ups, providers should be paid a fee for helping but not starting a business they think will fail. Historically provider payments have been solely geared to the number of businesses they start - starting some people in businesses that have a 90% probability of failure is not a sensible use of public money nor good economics.