About the respondents
The UK Business Barometer surveys the people running small and medium size businesses. In the May 2006 survey 136 respondents were drawn with the following population characteristics:
| Sector |
| Production & Manufacturing |
Distribution |
Services |
Total |
| 25.7% |
7.4% |
66.9% |
100.0% |
| Turnover (£) |
| < 1 M |
1M-3M |
>3M |
Total |
| 69.1% |
16.9% |
14.0% |
100.0% |
| Number of Full-time Employees |
| 1-10 |
11-20 |
21-50 |
51-100 |
100+ |
Grand Total |
| 62.5% |
22.1% |
7.4% |
3.7% |
4.4% |
100.0% |
Survey Findings
Low interest rates were considered to be the most important factor for stimulating business by 33% of the respondents to the May UKBB survey. The second most popular choice, a low burden of administration, attracted 29% of respondents with third place going to good financial/taxation incentives for investment (26%). In May last year the UKBB survey found that investment incentives came out top with 37% of respondents and R&D tax credits was favourite for 6% in 2005, but this year only 2% place them first.
The parallel survey of business advisers, the UKBAB, put the same question and responses reinforced the BB opinions since low interest rates and low administration burden emerged in the joint top place, each with a 34% response.
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 UKBB and the UKBAB surveys included questions about business and personal online purchasing and these were repeated in the latest surveys.
34% of UKBB and 32% of UKBAB respondents make purchases for their businesses online to a high or relatively high extent, both slightly down on 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. 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.
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.
The results of the May 2006 UKBB survey show that 68% of applicable UKBB respondents offer flexible working hours to their employees, and 77% of applicable UKBB respondents find that flexible working hours are beneficial to their businesses in terms of productivity.
These results are especially heartening when comparing with the responses to a UKBB question from August 2002, when panellists were asked whether they agreed that Government plans to encourage flexible working hours will be damaging for small business. At that time 43% agreed either highly or reasonably highly.
The parallel advisers' survey, the UKBAB, found that 87% of respondents expressing an opinion consider that flexible working hours are good for business productivity.
The May 2006 UKBB survey included three questions about businesses' experiences when using consultants. The term 'consultant' was left undefined, only excluding auditing and normal accounting, and under this minimal constraint 57% of respondents own to having employed some kind of consultant. 76% of these consider that their consultant was good value for money. After adjusting for those responding 'not applicable', 52% say they are likely to employ a consultant in the future.
Recently economic crime, including rapid growth in identity fraud, has been receiving media attention. The May 2006 UKBB survey, and the parallel May 2006 survey of business advisers, the UKBAB, addressed this topic. 20% of UKBB respondents and 15% of UKBAB respondents have been the victim of economic crime.
Trade shows and exhibitions are available for nearly every type of business activity and 63% of UKBB respondents have both exhibited at and attended them. 54% of UKBAB respondents have also exhibited and attended.
For UKBB respondents, making good business contacts is the most frequently chosen objective, and gaining new business for the medium - long term is also nearly as important. New business ideas came next. However, not all respondents are positive about potential outcomes - 7% said they had nothing to gain.
The business advisers were in broad agreement with the businesses. Respondents to the UKBAB chose the same objectives as their top three, although not in the same order, and 15% said they had nothing to gain from trade shows or exhibitions.
In a month in which much media coverage has been given to workers who have moved to the UK from the new EU accession countries, we asked whether our panellists currently have any employees from any of these countries. For 21% this was not an applicable question but of the rest, 17% gave a positive response.
Listed below are extracts from feedback received in Survey
BB96 May 2006.
Comments are listed under sector headings.
Views expressed are those of individual panellists and may not represent those
of the University.
Business Services
We employ many consultants for many purposes. Some offer good value for money others court prosecution under the trades descriptions act.
Production & Manufacturing
I see the "partial open borders" policy with regard to the new EU members from the East as highly beneficial to the UK economy and good for helping to encourage liberal economic policies in the former communist states.
