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185000 members across the UK
Over 25 000 members in the South West
FEDERATION OF SMALL BUSINESSES
Profile by employment
• 91% of businesses employ 4 or less
• 7% of businesses employ 5 to 20
• Only 2% of businesses employ more than 21
Lifting the Barriers to survival and growth
• 3rd Survey 2000, 2002 and 2004
• Carried out by Strathclyde University
• 12.02% UK response
• 3224 SW responses
Barriers 3
Crime ICT usage Employment Training Business support NMW
Finance including bank account switching Impact of issues like legislation and the environment
More data on the businesses themselves including customers, competitive strengths and weaknesses and future ambitions
County data
Rural vs Urban split
Age of Business0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00
0-3
4-5
6-10
11-20
21-30
31+ SW 2004 SW 2002 SW 2000
Business Age – UK Comparison
0 5 10 15 20 25 30 35
0-3
4-5
6-10
11-20
21-30
31+SW 2004 UK 2004 SW 2000 UK 2000
Age of Owner0 5 10 15 20 25 30 35
Under 21
22 to 34
35 to 44
45 to 54
55 to 64
65+
SW 2004 UK 2004
Where?0 10 20 30 40 50 60 70
external premises
partly home, partlyexternal
your home
SW 2004 UK 2004
How?0 10 20 30 40 50 60 70 80
Started from scratch
Bought going concern
Inherited
Management buy out
Franchise
Other
SW 2004 UK 2004
Business Structure
0 5 10 15 20 25 30 35 40 45 50
Franchised Operation
Limited Company
Limited LiabilityPartnership
Partnership
Sole Trader
SW 2004 UK 2004
Change in Business Structure
0 5 10 15 20 25 30 35 40 45 50
Franchised Operation
Limited Company
Limited LiabilityPartnership
Partnership
Sole Trader
SW 2004 UK 2004 SW 2002 UK 2002
Low Turnover vs UK
0% 5%10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
NI
Y&H
EM
London
NW
WM
UK
SE
Wales
EE
NE
SW
Scot
Less than 25000 £25,001 to 50000£50,001 to100000£100,001 to £500,000Over £500,001
Low Turnover vs UK
0% 5% 10%15%20%25%30%35%40%45%50%55%60%65%70%75%80%85%90%95%100%
Cornwall
SW
Scot
UK
under 25k 25k to 50k 50k to 100k 100k to 500k Over 500k
Where now?0 10 20 30 40 50 60
To close it down
To downsize/ consolidatethe business
To expand moderately
To grow rapidly
To hand on the business/succession
To remain about thesame size
To sell the business
SW UK
Means
0 5 10 15 20 25 30 35 40 45
Shift activities to lower cost overseas location
Shift out of manufacturing and into services
Start Exporting
Increase R&D spending
Greater collaboration with competitors
Increase Exporting
Focus on narrower range of products/ services
Reduce environmental impact
Open additional branches/ premises
Seek out new geographical markets
Greater collaboration with suppliers
Move to new premises
Increase expenditure on staff training
None ticked
Invest in IT
Expansion in range of products/ services
Invest in new equipment/ machinery
Seek out new types of customers
Seek to reduce costs
Improve Sales & Marketing
SouthWest UK
Means0 5 10 15 20 25 30 35 40 45
Move to new premises
Open additionalbranches/premises
Invest in newequipment/machinery
Increase R&D spending
Invest in IT
Reduce environmentalimpact
Urban Rural
Profit vs Sales Volume0 5 10 15 20 25 30 35 40
Gone down
Gone down slightly
Stayed the same
Gone up slightly
Gone up
SW 2004 Profitability SW 2004 Sales Volume
Changes in Finance0 5 10 15 20 25 30 35 40 45 50 55 60
Public sector low interest loan
Redundancy
Venture Capital
Factoring
Loan guarantee scheme
Friends
Grant
Inheritance
Other business/ employment
Pension
Family
Second Mortgage
Supplier Credit
Credit card debt
Retained profit
Bank Loan
Own Savings
Bank Overdraft
2002 2004
Business Skills
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Marketing and Salesskills
Management Skills
Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied blank/missing
Satisfaction index
0
10
20
30
40
50
60
Marketing and Sales skills Management Skills
2000 2002 2004
Business Skills
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Understanding NewTechnology
No Customers
Access to new UKmarkets
Access to overseasmarkets
Access to new overseasmarkets
Access to Mkt Info
Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied blank/missing
Satisfaction index
-10
-5
0
5
10
15
20
25
30
35
40
UnderstandingNew
Technology No CustomersAccess to new
UK markets
Access tooverseasmarkets
Access to newoverseasmarkets
Access to MktInfo
2000 2002 2004
On Business Skills the FSB says:-
• Publicise what you are doing
• Relate the offer to Business Issues
• Modular, bitesized and timely
• Training Progression thru’ the life of a business
Dissatisfaction with skills of Current staff
0 10 20 30 40 50 60 70 80
Literacy
Numeracy
Basic IT skills
Advanced IT skills
Technical skills
Managerial skills
Communication skills
Customer service
Sales and marketing
Foreign languages
None ticked
SW UK
Recruitment Difficulties0 5 10 15 20 25 30 35 40
Skilled
Unskilled
Rural SouthWest Urban UK
Importance of qualifications in employment decisions
0 10 20 30 40 50 60 70 80 90 100
Traditional School (O-levels, A-levels, GCSEs, Standard,
Higher etc)
Vocational (NVQs, SVQs)
College (BTEC, HND, HNC)
University (Degrees)
Industry related skills courses
Experience
Attitude/ Character
Important Neutral Unimportant Not Relevant Not answered
Training within last 12 mths0 5 10 15 20 25 30 35 40 45
Regularly
Occasionally
Not at all
blank/missing
Industry type0 5 10 15 20 25
Not ticked
Agriculture, Forestry & Fishing
Mining & Quarrying
Manufacturing
Energy & Water
Construction
Retail, Wholesale & Motor Trade
Hotels & Restaurants
Transport & Communications
Financial Services
Business Services
Public Administration & Defence
Education
Health & Social Work
Personal Services
Other
SW UK
Training by Industry type0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Not ticked
Public Administration & Defence
Mining & Quarrying
Energy & Water
Education
Personal Services
Health & Social Work
Agriculture, Forestry & Fishing
Financial Services
Transport & Communications
Manufacturing
Hotels & Restaurants
Construction
Other
Business Services
Retail, Wholesale & Motor Trade
Regularly Occasionally Not at all blank/missing
Training by Industry type - weighted
0 1 2 3 4 5 6 7 8 9 10 11 12
Public Administration & Defence
Mining & Quarrying
Energy & Water
Education
Personal Services
Health & Social Work
Agriculture, Forestry & Fishing
Financial Services
Transport & Communications
Manufacturing
Hotels & Restaurants
Construction
Other
Business Services
Retail, Wholesale & Motor Trade
Regularly Occasionally Not at all
Barriers to training0 10 20 30 40 50 60
Cost of courses
Timing of courses
Courses offered not relevant tobusiness needs
Lost staff time
Distance from place of training
Lack of enthusiasm from staff
Lack of funding
Fear of losing staff once trained
No barriers to training
None ticked
Rural SouthWest Urban UK
On Education and Training the FSB says:-
• Publicise what you are doing
• Appreciation of wealth creation
• Demand led, meeting needs of local business community
• Modular, bitesized and timely
• Accessible
