UK Business Barometer

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The May survey invited views on stimulating business, online purchases, flexible working hours, , the government target for women in business, economic crime, marketing or finance - which of the two would you prioritise? , finance and the smaller business, and trade shows.

In total 199 Advisers responded to this Survey.

Survey Findings

Low interest rates and a low burden of administration were considered to be the most important factors for stimulating business by 34% of the respondents to the May UKBAB survey. The third most popular choice was good financial/taxation incentives for investment (24%). In May last year the UKBAB survey found that low administration burden came out top with 28% of respondents with good financial/taxation incentives second (26%) in 2005.

The parallel survey of businesses, the UKBB, put the same question, and responses broadly reinforced the BAB opinions since low interest rates (33%) and low administration burden (29%) emerged in the top two places and good financial/taxation incentives also came in third (26%).

Recent reports have continued to show that online purchasing by consumers is growing faster than store purchasing, and B2B sales websites are still proliferating. A year ago the UKBAB and the UKBB surveys included questions about business and personal online purchasing and these were repeated in the latest surveys.

32% of UKBAB and 34% of UKBB respondents make purchases for their businesses online to a high or relatively high extent, both slightly down on last year. A relatively larger decrease emerged from the UKBAB survey which showed that 41% of UKBAB respondents make personal purchases online to a high or relatively high extent compared to 51% last year. 49% of UKBB respondents make personal purchases online to a high or relatively high extent, showing a small increase compared to last year.

Britain is among Europe's leaders in terms of how it treats its labour force. New research from the EU shows UK employers come first in offering part-time working options and near the top in flexible working arrangements. This new study has revealed that on average flexible working time arrangements exist in 48% of establishments with 10 or more employees in Europe. 61% of managers surveyed for that report said that higher job satisfaction was one of the outcomes of flexible working.

Panellists of the UKBAB were asked what percentage of their clients offer flexible working to their employees. After adjusting for 'don't knows', results showed that for 44% of respondents less than 20% of clients offer flexible working, while only 13% of respondents have more than 50% of clients offering flexibility.

The survey, found that 87% of respondents expressing an opinion consider that flexible working hours are good for business productivity. The parallel UKBB survey asked businesses if they find the use of flexible working hours beneficial to their business in terms of productivity. 77% of businesses where this was an applicable question confirmed that it is beneficial.

This time last year, we asked for the panel's views on the government target that 20% of businesses, in 2006 should be run by women. Five months into 2006, we asked how realistic this target seems to our business adviser panel. The results were somewhat negative: 61% said 'not at all' or just above, while only 11% chose highly or relatively highly, all after adjusting for 'don't know' responses.

Recently economic crime, including rapid growth in identity fraud, has been receiving media attention. The May 2006 UKBAB survey, and the parallel May 2006 survey of businesses, the UKBB, addressed this topic. 15% of UKBAB respondents and 20% of UKBB respondents have been the victim of economic crime.

Trade shows and exhibitions are available for nearly every type of business activity and 54% of UKBAB respondents have both exhibited at and attended them. 63% of UKBB respondents have also exhibited and attended.

For UKBAB respondents, making good business contacts was the most frequently chosen objective and gaining new ideas was a close second. Gaining new business for the medium - long term came third. However, not all respondents are positive about potential outcomes and 15% said they had nothing to gain from trade shows or exhibitions.

The businesses were in broad agreement with the advisers. Respondents to the UKBB chose the same objectives as their top three, although not in the same order. 7% said they had nothing to gain.

It has been said that there is a significant need to train entrepreneurs/small business owners in the basics of marketing and finance. Panellists were asked in the May 2006 UKBAB survey to say which of the two they would prioritise. The result was close run - 55% said finance and 45% said marketing.

Three quarters of the business advisers responding to the May 2006 survey find that larger businesses are more methodical about finance than smaller ones, but three quarters also think that chances of business growth are enhanced if businesses have a good understanding of accounting and taxation.

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

My client base of female business owners has not increased significantly, as a target in its own right I can see no point in it.

Notwithstanding question twelve - most businesses need strong guidance on marketing and sales. The latter is a much neglected issue in the array of skills needed for business success.

Qu 7 I have prioritised finance over marketing because generally people are better at selling than getting paid. Whilst people understand the need to find customers it is frightening how many people don't understand the basics of finance - the importance of cash flow, the burden of working capital and offering extended credit and the financial impact on bottom line of discounting

Trade shows and exhibitions should achieve the objectives marked but, in truth, many of them are poorly attended by the general public but, in that case, actually enable more networking and new ideas.