Department of State GrowthSmall Business Research 2017Presentation to Small Business Forums

Barriers & Constraints for Small Businesses

Business Profile

Key Opportunities for Small Businesses

Programs and Services Needed

Information and Resources Sought by Small Businesses

Preferred Methods of Communication

Objectives

Research Objectives

2

n=420 clients of the Department of State Growth’s programs and services; and n=380 non-clients drawn from EMRS’ own database of small businesses.

Using a qualitative approach, we facilitated one focus group with 13 small business stakeholders to gain insights into the small business sector from the perspective of those in the industry.

Who We Spoke to

3

Using a quantitative approach (i.e. telephone interviewing), we surveyed 800 small businesses located across all of the 7 Enterprise Centres Tasmania regions.

To ensure the sample was representative of the number of small businesses in each of the Enterprise Centres Tasmania regions, the data was weighted.

The total sample of 800 gives answers that will fall within ± 3.43 percentage points at the 95% confidence level.

For the purposes of this research, a small business is defined as a business employing less than 20 people.

21%10 to 19

years

37%20 years or

more

5%Less than

1 year

3%Not yet

operating

14%5 to 9 years

20%1 to 4 years

Length of Time in Operation of Business

4Q. Approximately how long has your business been in operation?

10%Starting up

40%In growth

49%Mature

Stage of Business Growth

5Q. At what stage of growth is your business at? Would you say…

Business Structure

14%Trust

17%Partnership

32%Sole trader

37%Company

Business Type

3%Franchise

4%Agency

21%Home based

4%Company

57%Family based

Business Structure & Business Type

6

Q. I’m now going to read you a list of business structures. Can you please tell me which best describes your business.

Q. I’m now going to read you a list of business types. Can you please tell me which best describes your business.

67%confirmed they

had paid employees

81%in total

had full-time employees

of these

of these

96%reported hiring their employees

directly only

33%confirmed

they are non-employingbusinesses

Number of Employees

79%in total

had part-time/casual employees

7

• 34% - Micro business (1 - 5 FTE employees)• 65% - Other small business (6 – 20 FTE employees)

Q. Apart from you, does your business have any paid employees?

Q. Apart from you, how many people does your business employ full-time and/or part-time or casual basis?

17%in total had less

employees

26%in total

had moreemployees

55%in total

had no change

Change in Employee Numbers – Past & Future

8

Change in Employee Numbers Compared to 2 Years Ago Plans to Change Employee Numbers in the Next 2 Years

43%had plans to change their

employee numbers

of these

92%were planning

to increase their employee numbers

6%were planning

to decrease their employee numbers

Q. Compared to 2 financial years ago, would you say that your business now has more or less employees?

Q. In the next 2 financial years, do you have plans to change the number of your employees? Are you planning to increase/ decrease the number of employees?

4%Went to overseas

customers

15%went to

interstate customers

Over the Last 2 Years

80%of reported sales

went to Tasmaniancustomers

In the Next 2 Years

28%had plans to change their interstate/

overseas sales

of these

94%were planning

to increase their interstate sales

50%were planning

to increase their overseas sales

Tasmanian, Interstate & Overseas Customer Sales – Past & Future

9

Q. Over the last 2 financial years, roughly what percentage of your sales went to Tasmanian customers/ interstate customers/ overseas customers?

Q. In the next 2 financial years, are you planning to change your volume of sales to interstate or overseas customers? Q. Are you planning to…

New Products, Services or Business Processes – Past & Future

22%said

“none”

In the Last 2 Years

43%developed

new or improved products

44%developed

new or improved services

53%introduced

new or improved business

processes

The majority of businesses had been

innovating

28%said

“none”

In the Next 2 Years

44%had plans to develop new or improved

business processes

45%had plans to develop new or improved

products

45%had plans to develop new or improved

services

The majority of businesses have plans

for innovation

10Q. In the last 2 financial years, which of the following have you done?Q. Are you planning to develop any new or improved products, services or business processes in the next 2 years?

Staff Training – Past & Future

28%said they had not

Training in the Last 2 Years

Training in the Next 2 Years

72%said they or

their staff had participated in

training

66%said they or

their staff had plans to

participate in training

28%said they had not

11Q. Have you or any of your staff participated in training in the last 2 years?Q. Are you or your staff planning to participate in any training in the next 2 years?

Barriers & Constraints for doing Business in Tasmania

15%felt there were not

of these

81%felt there were

barriers, challenges or constraints to

operating a business

successfully

“Compliance with government restrictions/ regulations/ red tape/ registration” (28%)

“High expense of freight/ inadequate freight equalisation/ transport costs within the state” (12%)

“Distribution/ transport logistics/ limited transport infrastructure” (10%)

“Poor access to markets/ limited markets for small businesses” (9%)

“Inability to find skilled staff/ retain staff” (9%)

“Competition/ competing with big business” (8%)

“Lack of population/ less disposable income/ lack of demand” (8%)

“Access to finance” (8%)

The most frequently reported challenges, barriers and constraints were:

12Q. What in your view are the key challenges, barriers or constraints for small businesses?

Key Opportunities for Small Businesses in Tasmania

21%felt there were not

67%felt there were

key opportunities

for small businesses

of these

“Opportunities in tourism” (25%)

“Finding new niche markets/ market gaps/ unique products” (10%)

“Always opportunities if you work hard/ you need confidence/ to have a go” (7%)

“More government support/ funding/ reduce red tape” (10%)

“Tasmanian food and wine” (7%)

The key opportunities reported by the respondents were:

13

Q. Do you see any key opportunities for small businesses in Tasmania to operate successfully?Q. What are these key opportunities?

Government Support Services & Programs

6%felt it

should not

89%felt the

government should provide support

services and programs

of these “Financial assistance/ funding/ grants/ loans” (25%)

“Training/ up-skilling courses/ staff training/ apprenticeship schemes” (16%)

“Advice/ assistance to set up a business” (14%)

“Mentoring/ coaching/ support/ advice” (12%)

“Financial advice/ help with taxes etc.” (8%)

The types of business support services and assistance programs reported most frequently were:

14

Q. Do you think the Tasmanian government should provide support services and assistance programs for small businesses in Tasmania to help them start, grow and/or overcome any barriers they face?

Knowledge and Business Skills Required

45%None or not applicable

11%Financial

management/ tax/ insurance

11%Computer skills/ IT/ technology/

developing business online

10%Marketing

and promotion

7%Business

planning/ development

15Q. Would you like to develop any particular knowledge or business skills in the next 12 months?

16

75%Growing & improving

your business 74%Grants,

funding & assistance

67%Getting or

maximisingyour

business online

61%Finances, tax & insurance

59%Employing

& managing people

54%Training

staff

46%Managing

customers & suppliers

44%Government

tendering

43%Obtaining relevant business licences

41%Exiting your

business

31%Preparing

your business for

natural disasters

23%Registering

your business

name

32%Starting a business

Information Businesses Need to Start & Grow

Q. I am now going to read you a list of some information topics often used by small businesses to help them start and grow. Please tell me which ones would assist your business.

67%Online/

websites (including Google)

21%Industry

association

18%Face-to-face interaction

8%Accountant

5%Industry

publications

17

How Businesses Find Information

Q. Where do you find the information you use for your business?

Preferred Information Delivery Methods

“Documents downloaded from a website” (62%)

Most Preferred Methods for Finding Information

“Small group training workshops” (49%)

“One-on-one training” (43%)

“Seminars, forums or conferences” (35%)

of these

Most Preferred Venues for One-on-One Training

Preferred Time Allocation for Business Information Sessions

of these

Preferred Time of Day for Business Information Sessions

42%At my

business

28%Off-site

28%Either/ no preference

54%Half-day sessions

21%Full-day sessions

7%Sessions

over several

days

“During work hours” (54%)

“After hours” (31%)

18

Additional Comments on Government Programs, Services & Communication

19

15%More

awareness/ promoting available resources

11%On the ground

contact/ talking to small

businesses

15%Financial

assistance/ funding/ grants

10%Better

communication with small

businesses/ feedback

9%Easier access

to information

9%Reducing red tape/ cost of compliance

6%Listen to

small operators/

the little people

Q. Finally, do you have any additional comments on how the Department of State Growth can improve its programs, services and communications in support of the small business sector in Tasmania?