Survey results - biggest small business concerns in 2010

Source: EnterQuest (29 Apr 2010)

Last month EnterQuest carried out its latest subscriber survey of small business owners to identify the issues that are causing the most concern in the year ahead, irrespective of which party will form a new government. We also asked for views about business owners' own abilities and weaknesses, where they might require support, and who they preferred to turn to for help and advice.

Survey participants were mainly service-based enterprises with between one and nine employees in a wide range of sectors and professions ranging from design, consultancy, tourism, cleaning, training, crafts, security, advertising, childcare, IT, complementary therapy, catering and retail.

The headline results reveal that business owners are most concerned about tax, business rates, red tape and business costs - with 80% of respondents saying they were quite concerned or very concerned about each of those particular issues. Respondents were least concerned about finding skilled/qualified staff and IT/technology issues. The weakest reported skill was in sales and marketing, with one in three business owners saying they were quite weak or very weak in this area.

In descending order the ten business issues that survey respondents reported they were fairly concerned or very concerned about are as follows:

Area of concern	Reported as concerned
1) Tax and business rates	81% (with 53% very concerned)
2) Red tape and admin	80% (with 49% very concerned)
3) Business costs	79% (with 48% very concerned)
4) Consumer spending	65%
5) Support from bank	64%
6) Access to credit	61%
7) Competitors	54%
8) Employment regulations	48%
9) Finding skilled staff	26%
10) IT and technology	25%

When asked to rate their own or their business partners' levels of ability and weaknesses in five key business disciplines, respondents generally reported themselves to be more competent, rather than weak, in each of the five areas questioned. Their responses are as follows:

Business skill	Reported as a weakness
1) Sales and marketing	33%
2) Managing/dealing with staff	27%
3) IT and Internet	20%
4) Managing cash and finance	18%
5) Business administration	15%

It is interesting and significant to note that while 80% of respondents claimed that red tape and business admin were of concern, only 15% reported this as an area of weakness, hence the majority claimed that dealing with business admin was a strength or an area of competence, despite their concerns.

Survey participants were also asked who they preferred to turn to for help, support and advice when they needed it. Their responses are as follows:

Source of advice or support	Frequently or sometimes turned to
1) Business colleagues and partners (including other business owners)	80%
2) Contacts in business networks (including online networks)	72%
3) Accountant	57%
4) Business Link	56%
5) Family and friends	54%
6) Government dept/agency (eg HMRC, HSE)	47%
7) Professional advisers and associations	40%
8) Independent adviser/consultant/coach/mentor	37%
9) Local enterprise agency/support agency	36%
10) Local business library	28%
11) Chamber of Commerce	22%
12) Bank manager or adviser	15%

In two similar surveys conducted in 2005 and 2007, Business Link was rated bottom of the list of advice sources in 2005 but had improved to fifth in the list in the 2007 survey. Our latest survey confirms that Business Link has continued to improve its reach and relevance, at least among EnterQuest subscribers.

Number one on the list of preferred sources of advice in all three of the 2010, 2007 and 2005 surveys was business colleagues and partners (including other business owners). Banks were rated bottom of the list in both this survey and the one in 2007.

While it is significant to note the relatively high current standing of Business Link among smaller businesses in 2010, it is equally significant but disappointing to note that local enterprise agencies have comparatively fallen in favour over the last couple of years.

To comment on the results of this survey you can do so below.

Add a comment:

Name:

Website (optional):

Comment:

3 comments so far:

Chris Gilkes (24 May 2010)

Really interesting results. How amny in the survey and what area. It certainly matches the trend for wanting help from trusted people that we know. Was there anything to suggest how effective this support was to the business as well as psychologically. Personal experience of 2 enterprise agencies has been hugely different. One have been great and the other is impossible to break into!

Ruth Dolby (24 May 2010)

Thank you for sharing this. I would be interested as to where a] the advisors get their information & b] What are the advisors main concerns. We carried out that further piece of research at London University in regards to nutrition advice quite a few years ago - it was a real eye opener and lead to some serious & effective interventions

Business DevelopmentServices (North West Essex) Ltd (11 May 2010)

BDS is an Enterprise Agency, and therefore hit by Grant cuts by the Govt/Bus Link, which are to be further cut this year. The % for Enterprise Agencies will undoubtedly fall further as Bus Link are making few onward referals, as they attempt to move towards online help as the main way of helping new start-ups, rather than the face to face one-to-one advice, given by Enterprise Agencies. This tried and tested, experienced group is under threat

TODAY: 5 February 2012