Small Business Survey 2012 Focus on mentoring Survey details - - PowerPoint PPT Presentation

Small Business Survey 2012

Focus on mentoring

Survey details

• Small Business Survey 2012

– 5,723 CATI interviews with SME business owner/managers, June to September 2012 – Sampled and weighted to 2012 BPE – Main report is based on SME employers only

• Themed analyses

– No employees (report/presentation) – Wales, Northern Ireland (reports) – Exporting (report) – Social enterprises (report) – Credit risk analysis (report) – Family businesses (report/presentation) – Business support (presentation) – Access to finance (presentation) – Growth (report/presentation) – Start-ups (report/presentation) – Mentors (presentation) – Technical (report)

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3

Whether have a business mentor

4

Whether used a business mentor in the last 12 months

12% 13% 7% 5% 6% 15% 15% 10% 6% 7%

Medium Small Micro No employees All SMEs

2012 2010

Base: All SMEs (4580/5723). K15

5

Whether using or interested in using a mentor - by employment size

6% 5% 7% 13% 12% 21% 20% 24% 21% 17% 70% 72% 65% 61% 66% 4% 4% 4% 5% 5% All SMEs No employees Micro Small Medium Using Interested Not interested Don't know

Base: All SMEs (5723). K15/K16

6

Whether using or interested in using a mentor - by age of business

6% 4% 10% 10% 6% 7% 4% 21% 38% 25% 22% 27% 19% 15% 70% 57% 59% 64% 63% 71% 77% 4% 1% 5% 5% 4% 3% 4% All SMEs 0‐1 years 2‐3 years 4‐5 years 6‐10 years 11‐20 years Over 20 years Using Interested Not interested Don't know

Base: All SMEs (5723). K15/K16

7

Whether using or interested in using a mentor – by sector

6% 3% 9% 3% 4% 12% 7% 5% 7% 21% 8% 19% 14% 21% 35% 17% 23% 26% 70% 85% 69% 77% 70% 49% 73% 67% 66% 4% 4% 3% 5% 6% 4% 3% 4% 1% All SMEs Primary Manufacturing Construction TRAD Infocomms. Business services

• Admin. services

Other services

Using Interested Not interested Don't know Base: All SMEs (5723). K15/K16

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Whether using or interested in using a mentor – by age of respondent*

6% 6% 10% 8% 9% 7% 3% 3% 21% 22% 23% 29% 24% 25% 18% 10% 70% 69% 64% 58% 63% 64% 75% 84% 4% 3% 3% 4% 4% 4% 4% 3% All SMEs Under 25 25‐34 35‐44 45‐49 50‐54 55‐64 65+

Using Interested Not interested Don't know Base: All SMEs (5723). K15/K16 * NB: Respondent may not be business

• wner or

leader

9

Whether using or interested in using a mentor – by gender and age*

6% 5% 9% 8% 4% 11% 9% 21% 20% 23% 28% 18% 26% 23% 70% 72% 64% 60% 76% 60% 64% 4% 3% 4% 4% 3% 3% 5% All SMEs Male Female Male under 45 Male 45+ Female under 45 Female 45+

Using Interested Not interested Don't know Base: All SMEs (5723). K15/K16 * NB: Respondent may not be business

• wner or

leader

10

Whether using or interested in using a mentor – qualification level*

6% 3% 4% 9% 6% 10% 21% 11% 16% 28% 25% 23% 70% 83% 76% 58% 65% 63% 4% 3% 5% 5% 4% 4% All SMEs No quals Level 2 Level 3 Level 4 Level 5

Using Interested Not interested Don't know

Base: All SMEs (5723). K15/K16 * NB: Respondent may not be business

• wner or

leader

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Whether using or interested in using a mentor – by ethnicity*

6% 6% 6% 24% 21% 20% 33% 22% 70% 71% 56% 29% 4% 3% 6% 25% All SMEs All white (n= 5408) Any Asian (n = 211) Any Black (n=58)

Using Interested Not interested Don't know Base: All SMEs (5723). K15/K16 * NB: Any director/ partner from ethnic group

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Type of business mentor used – by size

21% 37% 17% 57% 16% 32% 23% 58% 9% 30% 36% 46% 12% 45% 30% 45% 12% 40% 31% 46% Investor etc. Accountant/other professional Friend or peer Specialist mentor Medium Small Micro No Employees All SMEs

Base: All SMEs that used a business mentor in the last 12 months (599). K17

13

Specialist business mentor used – by sector

47% 78% 47% 37% 46% 19% 63% 56% 46% Specialist mentor Other service Admin services Business service Infocomms TRAD Construction Manufacture Primary All SMEs

Base: All SMEs that used a business mentor in the last 12 months (599). K17

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Specialist business mentor used – by sector

47% 78% 47% 37% 46% 19% 63% 56% 46%

Other services (n=131) Admin. Services (n=34) Business services (n=96) Infocomms. (n=48) TRAD (n=127) Construction (n=45) Manufacturing (n=87) Primary (n=31) All SMEs

Base: All SMEs that used a business mentor in the last 12 months (599). K17

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Specialist business mentor used – by age of business

44% 44% 59% 46%

Over 10 years 4‐10 years 0‐3 years All SMEs Base: All SMEs that used a business mentor in the last 12 months (599). K17

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How business mentor has been used

20% 40% 45% 61% 64% 75% 16% 25% 51% 61% 49% 81%

Obtaining finance People management e.g. Recruitment Developing new products/processes Increasing sales/profit Enhancing management skills Business plans/strategy

SME employers All SMEs

Base: All SMEs that used a business mentor in the last 12 months (599). K18

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Reasons for not having sought a business mentor already (spontaneous)

7% 9% 15% 12% 12% 30% 11% 12% 12% 13% 15% 30%

Appropriate assistance does not exist Too expensive Do not know how to find one Lack of time Business is doing ok Haven't thought about it

Base: All SMEs that have not used a business mentor in the last 12 months but would be interested in doing so in future (1250). K19

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Effectiveness of mentoring

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Employment in last 12 months

5% 10% 4% 85% 81% 85% 10% 8% 10% All SMEs Has mentor No mentor Increased Same Decreased

Base = all SMEs trading for at least one year (5678). B2

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Employment in the next 12 months

12% 30% 11% 82% 63% 83% 5% 6% 5% All SMEs Has mentor No mentor Increase Same Decrease

Base = all SMEs (5723). B6

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Turnover in last 12 months

25% 44% 23% 37% 33% 37% 35% 22% 36% All SMEs Has mentor No mentor Increased Same Decreased

Base = all SMEs trading for at least two year (5605). P2

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Turnover in the next 12 months

31% 54% 30% 45% 34% 46% 18% 9% 18% 6% 4% 6% All SMEs Has mentor No mentor Increase Same Decrease Don't know

Base = all SMEs (5723). P7

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Recent and future employment growth

2% 5% 2% 3% 6% 3% 10% 25% 9% 85% 64% 86% All SMEs Has a mentor No mentor

Sustained growth Contained growth New growth No growth

Base = all SMEs (5723). B2/B6

The SBS growth segmentation

• Based upon employment or turnover growth in the last 12 months
• Growers = increased employment by 5%+ (minimum 3

employees) OR increased turnover by 5%+ (minimum £50k)

• Stable = same number of employees or increased/decreased by

1-2 AND turnover increased/decreased by less than £50k

• Shrinkers = decreased numbers employed by 5%+ (minimum 3

employees) OR decreased turnover by 5%+ (minimum £50k) AND not a grower

• A sub-set of the growers are the high growers
• High growers = increased employment by 20%+ (minimum 10

employees) OR increased turnover by 20%+ (minimum £250k)

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SBS Growth segmentation (SME employers only)

13% 26% 11% 57% 46% 57% 12% 14% 12% 18% 15% 19% All SME employers Has a mentor No mentor Growers Stable Shrinkers Incomplete data

Base = all SME employers (4768)

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Business capability

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Strong at tasks

16% 32% 44% 50% 48% 57% 57% 63% 14% 20% 31% 34% 35% 44% 46% 56%

Accessing finance New markets Innovation People mgmt. Business systems Business plan Operations Reg./tax decisions

Has a mentor All SMEs

Base: All SMEs (5723). F4

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Innovation

23% 31% 45% 69% 24% 33% Introduced new processes in L12m Introduced new products/services in L12m No mentor Has a mentor All SMEs

Base: All SMEs (half sample n=2821). J1/J3

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Exporting

13% 33% 14% Exported in L12m

No mentor Has a mentor All SMEs

Base: All SMEs (5723). C1

Of those not currently exporting, 7% of those with mentors plan to in the next 12m, compared to 3% of those without mentors

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Obstacles to success

25% 26% 28% 38% 60% 41% 57% 57% 81% 15% 20% 20% 30% 44% 45% 46% 54% 74%

Recruiting staff Suitable premises Skills shortage Finance Cash flow Regulations Taxation etc. Competition The economy

Have mentors All SMEs

Base: All SMEs (5723). G1

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Awareness of alternative types of finance

16% 37% 46% 46% 66% 13% 25% 29% 38% 54% Mezzanine P2P lending Business angels Asset finance Venture capitalists Has a mentor All SMEs

Base: All SMEs (5723). H2

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Whether sought finance in the previous 12 months

84% 4% 11% 15% 73% 9% 18% 27% 84% 5% 11% 16% None sought (more than once) (once) Any sought No mentor Has a mentor All SMEs

Base: All SMEs (5723). H4

33

Reason for seeking finance

6% 6% 7% 37% 44% 3% 6% 8% 24% 57% R&D Improve buildings Buy land/buildings Equipment/vehicles Working capital Has a mentor All SMEs

Base: All SMEs that sought finance in the last 12 months (1542). H5

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Type of finance sought

4% 13% 12% 15% 11% 23% 39% 3% 3% 3% 4% 9% 33% 49% Any equity Credit card Asset finance Grant Leasing/HP Bank overdraft Bank loan Has a mentor All SMEs

Base: All SMEs that sought finance in the last 12 months (1542). H5

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Any difficulty obtaining finance from first source approached

49% 55% 48% 8% 5% 8% 4% 2% 4% 38% 37% 38% 2% 2% 2% All that applied Has a mentor No mentor

No difficulty Obtained all, but with problems Obtained some, not all Obtained none DK/Still pending

Base: All SMEs that sought finance in the last 12 months (1542). H9

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Overall outcome of application for finance

57% 60% 57% 13% 13% 13% 5% 5% 5% 23% 20% 23% 3% 2% 3% All that applied Has a mentor No mentor

All from 1st source All from other source Some only None obtained DK/Still pending

Base: All SMEs that sought finance in the last 12 months (1542). H9

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Other business support

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Whether sought information or advice in the previous 12 months

34% 77% 37% 34% 82% 37%

No mentor Has a mentor All SMEs

2012 2010

Base: All SMEs (5723). K2

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Whether sought information or advice (England

and Wales only)

12% 17% 23% 48% 2% 26% 53% 19% 11% 18% 27% 44% Neither/don't know Information and advice Advice only Information only No mentor Has a mentor All SMEs

Base: All SMEs that sought information or advice in the last 12 months in England and Wales (2114). K3

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Reason for seeking advice (England and Wales

• nly)

7% 2% 0.3% 2% 13% 6% 18% 13% 35% 2% 4% 6% 8% 8% 11% 14% 24% 27% Business strategy Employment law Tax/NI Legal issues Technology Obtain finance Marketing General running of business Business growth Has a mentor All SMEs

Base: All SMEs that sought advice in the last 12 months in England and Wales (1107). K4

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Where sought advice (England and Wales only)

8% 6% 7% 5% 9% 7% 4% 8% 19% 31% 2% 4% 5% 6% 6% 6% 9% 11% 11% 38% Has a mentor All SMEs

Base: All SMEs that sought advice in the last 12 months in England and Wales (1107). K6

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Awareness of Business Link/UKTI/Mentorsme

9% 20% 54% 14% 38% 75% 9% 21% 55% Mentorsme UKTI Business Link website No mentor Has a mentor All SMEs

Base: All SMEs (5723). K1

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Determining what makes a business take a mentor

What makes a business grow?

• Cross-analysis of business characteristics by whether a

mentor is used or not gives some indication of who is more likely to use a business mentor, but does not explain which attributes/attitudes are more likely to make a business take on a mentor

• Regression analysis helps determine the influence of

individual factors on whether a business has a mentor, whilst the value of other factors are held constant

• Multinomial logistic model explains 32.6% of variance

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Regression analysis – factors most likely to result in a business having a mentor

Rank Factor Value (t) Significance 1

Has formal business plan 9.095

*** 2

Plans to grow business in next 2-3 years 6.476

*** 3

Exporter 6.263

*** 4

Employment size (larger more likely to have a mentor) (-) 5.895

*** 5

Social enterprise 5.784

***

6 Age of business (younger more likely to have a mentor) (-) 4.712

***

7 Information/Communication sector (J) 4.685

***

8 Sought finance in last 12 months 4.571

***

9 Introduced new/improved processes in last 12 months 4.323

***

10 Strong at taking decisions on regulations 4.255

***

11 Poor at accessing finance (-) 3.868

***

12 Introduced new/improved products/services in last 12 months 3.626

***

13 Strong at people management 2.982

**

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Regression analysis – factors most likely to result in being interested in having a business mentor (Based on

those currently without mentors)

Rank Factor Value (t) Significance 1

Plans to grow business in next 2-3 years 11.428

*** 2

Employment size (larger more likely to be interested) (-) 7.233

*** 3

Sought finance in last 12 months 4.916

*** 4

Has formal business plan 4.617

*** 5

Qualifications (higher qualified more likely to be interested) 4.456

***

6 NOT in the primary sector (-) 4.458

***

7 Information/communications sector 4.205

***

8 NOT in business services sector (-) 3.881

***

9 Introduced new/improved products/services in last 12 months 3.779

***

10 Introduced new/improved processes in last 12 months 3.752

***

11 NOT in construction sector (-) 3.636

***

12 Anticipates closure of business 3.117

**

13 Poor at accessing finance (-) 2.934

**

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Thank you

For further information contact: June Wiseman, Steve Lomax, Emma Parry BMG Research Ltd Tel: 0121 333 6006 www.bmgresearch.co.uk