South East Cornwall

Business Survey
2009

Saltash
24th February 2010
Contents

Introduction
Methodology
Sample profile
Findings:
Staffing & recruitment
Skills & training
Innovation, inc. ICT
Business growth
Premises
Constraints on business
Business support

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Introduction

To identify the current and future needs of

businesses located within South East Cornwall…

… as a means to facilitate the development of

strategies to enable business support programmes to
effectively respond to the needs of local businesses
both now and in the future.

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Methodology

• 400+ telephone interviews (CATI - Computer Assisted Telephone

Interviews) and in-depth face-to-face interviews.

– Respondents: Key decision-makers or designated responsibility.

– Face-to-face interviews drawn from telephone survey respondents and

others.

• In total, 1918 businesses approached to achieve the target number of 400

completed interviews (response rate of 21%.)

• 112 “referrals” to Business Link

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Sample Profile (1)

• Geographical location: • Business Sector:

21% Liskeard 21% Retail and wholesale
21% Looe 17% Hotels and restaurants
21% Saltash
13% Real estate, renting and business activities
20% Calstock, Gunnislake and Callington
18% Torpoint and the Rame Peninsula 11% Other community, social and personal
services

54% Rural business 10% Agriculture, forestry and fishing

46% Urban business 7% Construction
7% Manufacturing
5% Transport, storage and communications
• Legal Status:
Self-employed/Sole trader (42%) 5% Health and care sector
Private Limited Company (32%) 5% Other business sectors
Partnership (21%)
Other legal status (6%)

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Sample Profile (2)

• Age of Business: • Company Size:

18% Less than 2 years 26% No employees
14% 3 to 5 years 58% 1 – 9 employees
14% 6 to 10 years
11% 10 – 24 employees
54% 10 years or longer
5% 25 employees and over

• Turnover: • 11% have increased and 16% reduced

the number of employees during the
19% < £100k
last 12 months
16% £100k - £499k
3% £500k - £1m
5% £1m and over • 19% intend to increase and 3% to
58% could not (or would not) say
decrease employee numbers over the
next 12 months

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 Key Findings

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Staffing and Recruitment: Methods Used and Groups Considered

Do not employ staff 36% Returnees to the labour market 51%

School leavers 39%

Word of mouth 27%
People with disability 38%
Local newspaper 25%
Overseas migrants 33%
Jobcentre Plus 21%
Graduates 33%
Recruitment Agency 4% No employees/No recent experience 32%

Internet 3% Apprenticeships 31%

National newspaper 1% Relevant qualifications/skills 3%

Other groups 3%
Other sources 11%
0% 10% 20% 30% 40% 50% 60%
0% 10% 20% 30% 40%

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Staffing and Recruitment: Recruitment Difficulties
General workforce 64% Lack of motivation to work 43%

Skilled workforce Shortage of experienced people 35%

36%
(e.g. guild training)
Shortage of necessary skills /
30%
qualifications
Administration 8%
People not interested in the industry 17%

Management 6%
Poor level of education 14%

Other area 9% Other difficulty 16%

0% 10% 20% 30% 40% 50% 60% 70% 0% 10% 20% 30% 40% 50%
Base: Often/sometimes experience difficulties

Q. Does your company experience difficulties recruiting staff in general? 19% of Saltash businesses
‘sometimes’ or ‘often’ have
• 33% no need;
• 48% ‘never’ experienced recruitment difficulties;
difficulties recruiting
• 14% ‘sometimes’ experienced difficulties;
• 5% ‘often’ experienced difficulties recruiting.

• 75% of those experiencing recruitment difficulties did so ‘all of the time’.

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Awareness
Staffing andand
Recruitment:
Usage Graduate Opportunities

100% Q. In what ways have you given opportunities to

89% 88% graduates?
90%
80% • 78% ‘work placements’
• 16% ‘management training schemes’
70%
60%
50% Q. For what reasons does your company not
provide opportunities for graduates?
40%
30% • 43% ‘no graduate level jobs’ (56% for Saltash)
• 11% ‘cannot afford to offer graduate opportunities’
20% • 7% ‘cannot find suitable graduates’
11% 12%
• 7% ‘had in the past but it was not a success’
10%
0%
Yes No Yes No
Currently Offers Would Consider Offering

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Skills and Training: Training Needs Assessments

Conducted a Training Needs Analysis

Q. Why not?

No, 72% • 37% ‘no need’

• 36% ‘do not have employee’
• 10% ‘not thought about it/not my responsibility’
• 9% ‘don’t know what a TNA is’.

Yes, 28%

37% in Saltash
Would Like Help Conducting a TNA

No, 89%
Q. Which organisation helped you to carry out your TNA?

• 71% undertook their Training Needs Analysis ‘internally’;

• 6% used ‘Business Link / Train to Gain’;
• 4% used ‘Cornwall College’.

Yes, 11%

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Skills and Training: Use and Needs
Has Higher Skill Training Needs Supported Qualification Based Training

No, 88%
No, 83%

Yes, 17%
Yes, 12%

Was Staff Training Funded?

Q. What types of training does you business need?

No, 52%
• 73% either ‘did not have’ or had ‘already catered for’
their business training needs; (65% in Saltash)
• 10% required ‘industry specific training’;
• 5% needed ‘manual skills training’.

Yes, 48%

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Skills and Training: Benefits Gained and Barriers Experienced
Helped staff development / attain new skills 51%

Increased staff morale / motivation 46%

Helped employees work better 38%

Increased efficiency 33%

Added value to the product / service 22%

Increased profitability / turnover 10%

Helped grow the business 9%

Increased customer satisfaction 6%

Highlighted other training needs 3%

Other benefits 28%

0% 10% 20% 30% 40% 50% 60%

Q. What barriers do you experience that prevent you from supporting staff with training leading to a recognised
qualification?

• 35% ‘did not have a need’ for qualification based training’; (26% for Saltash)
• 28% ‘did not experience any barriers’;
• 7% said ‘no such training is available locally’;
• 7% said ‘training is too expensive’;
• 7% said there was ‘no funding available’.

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Booking andImportance
Innovation: Payment of ICT and the World Wide Web
Importance of Computers and Other ICT Importance of the Internet and www

Essential 52% Essential 42%

Fairly important 13% Fairly important 19%

Neither 8% Neither 9%

Not very Not very

10% 12%
important important

Not at all Not at all

18% 18%
important important

0% 10% 20% 30% 40% 50% 60% 0% 10% 20% 30% 40% 50%

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Booking andInternet
Innovation: Paymentand the World Wide Web
World Wide Web Presence

Yes - own web

site
53% Future World Wide Web Presence

Yes - dedicated Yes dedicated

page on other 13% page on other Yes own web
web site web site site
5% 21%
Yes - other
2%
presence

Not at all 38%

0% 10% 20% 30% 40% 50% 60% Not at all

74%

Q. Which of the following features are included or are true of your web sites?

• 95% of those with a web site included their ‘full contact details’;
• 41% said their web site ‘had been optimised for search engines’;
• 19% had provided ‘an online catalogue for people to place orders’;
• 10% contained an ‘online payments facility’;
• 10% had a website that had ‘a content management system or an integrated blog’.

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Booking andSupport
Innovation: Paymentfor Innovation

Areas Where Support for Innovation is Required

Is Able to Access Support for
Innovation None 72%

Finance 15%
No, 48%

Sales or marketing 12%

Technology 11%

Training / Skills 7%
Yes, 52%
Collaborations /
5%
knowledge sharing

Staffing 4%

Other area 2%
• 45% looking to innovate in at
least one area. 0% 10% 20% 30% 40% 50% 60% 70% 80%

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Innovation: Need and Capability to Innovate
45%
43%

40% 38%

35%

30%
30%
28%

25% 23%

20%

15% 13%
11%
10% 9%

5% 3% 3%

0%
No need Not much Neither Fair need Essential Not at all Not very Neither Fairly Very
at all need capable capable capable capable
Need to Innovate Capability to Innovate

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Business Growth: Aspirations
5%
Q. In what ways are your looking to grow
the business?
Grow substantially
10% • 79% Increased turnover/sales;
• 28% Via existing product/market mix;
58% • 26% Introduce new products/services;
Grow moderately • 23% Enter into new markets;
62% • 17% Bigger Internet presence/ online store.

34%
Stay the same Q. Why are you not looking to grow the
21% business?

• 53% Happy with current size;

1% • 30% Want to remain independent;
Become Smaller • 26% Looking to retire/sell the business;
1% • 7% Too complicated to take on staff;
• 7% Would cost too much/go into debt.
2%
Sell the business
and/or retire
6%

0% 10% 20% 30% 40% 50% 60% 70%

5 year objective Next 12 months

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Business Growth: Requirements

Requirements for Growth

Take on (more) staff 42% 51% for Saltash

Buy more capital

31%
equipment

Seek external funding

20%
/ borrowing

Expand premises /
more sites
Train / up-skill staff
Other requirement
19%
• 17% stated that they ‘did not know’ what was required
to enable them to grow their business in the short to
19% medium term.
• 12% simply indicated that they ‘did not require any of
the listed options’
2%

0% 10% 20% 30% 40% 50%

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Business Growth: Funding

Preferred Source for Funding Growth

Internal finance 65%

Grant funding 19%

Commercial loan from

12%
current bank

Other source of
4%
commercial loan

Family / friends 3%
• 12% stated that they ‘did not know’ how they would
Private investors (excl. fund their growth aspirations.
3%
family/friends)

Other funding option 5%

0% 10% 20% 30% 40% 50% 60% 70%

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Business Growth: Planning
Produced/updated a 17%
short - medium term
business plan 18%

Produced/updated a 13%
formal marketing plan
14%

Used external 6%
business support
agencies 7%

Employed external 4%
business/marketing
consultants 7%

74%
None of the above
70%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Next 12 months Past 12 months

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Premises: Satisfaction

Extremely 48%
satisfied 44%

35%
Fairly satisfied Reasons for dissatisfaction with premises:
33%
“We are an office based organisation and we are on an
industrial site.”
6%
Neither “Not practical to move but the layout is all wrong.”
10%
“Would like more space really if my business does
manage to grow.”
7%
Not very satisfied “I am unable to expand the premises because of the
9% blocks East Cornwall Planning Department put on me.
I have to pay to have a feasibility study carried out,
when they know the answers already and so do I.”
Not at all 3%
“I need larger premises; require more space for
satisfied 4% workshop”

0% 10% 20% 30% 40% 50%

Future plans Current needs

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Premises: Requirement for Additional Premises
Requires Additional Premises

No, 86%

Type of Premises Required

Office 25%

Workshop 22%

Warehouse 16%

Yes, 14% Hospitality 11%

Retail 11%

Land to develop 11%

Land 5%

Showrooms 5%

Live/work 2%

Hybrid office/workshops 2%

Other requirement 11%

0% 5% 10% 15% 20% 25% 30%

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Premises: Additional Premises Preferences
Desired Size Preferred Location
Less than 50 Liskeard area 29%
40%
sqm
Saltash area 25%
50 to 100 sqm 35%
Looe area 16%

100 to 200 sqm 13% Torpoint area 16%

More than 200 Callington area 13%

13%
sqm
Other Location 27%
0% 10% 20% 30% 40% 50%
0% 5% 10% 15% 20% 25% 30%
Preferred Tenure
No Required facilities Percentage
preference,
Good road access 73%
36%
Wide broadband 36%
Visual presence 29%
Public transport links 25%

Leasehold, Access to labour market 15%

22% Water frontage 13%
Freehold, 42% Other facilities 15%

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Constraints: Constraints on S.E. Cornwall Businesses
State of the UK economy 66%

High fuel and energy costs 48%

Lack of customers 30%

Top 5 Perceived Constraints
Level of business taxation 29%

Increased competition 25%

State of the UK economy 33%

High fuel and energy costs 28%

Level of business taxation 14%

Top 5 Constraints Experienced

Lack of customers 14% • 26% stated that their were ‘no constraints’ on the ability of their
business to develop and grow in the foreseeable future – but
Environmental legislation/waste
10% only 18% of Saltash businesses
disposal costs

0% 10% 20% 30% 40% 50% 60% 70%

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Constraints: Current Issues Faced
Heating and fuel costs 41%

Uniform Business Rates 32%

Quality of the road network 19%

Traffic congestion 19%

Public transport 17%

Relevant business support 16%

Car parking provision 14%

Access to customers 14%

A good internet connection 13%

Access to experienced/skilled staff 12%

Available land/buildings for expansion 8%

Access to external training facilities 8%

Access to workforce 8%
Current business location 7%

Access to supplies/suppliers 5%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

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Business Support Services: Availability and Required Need
Where Business Support Could Help

Finance and grants 21%

Business growth 12%

Business Support Services Available
Sales and marketing 12%
No, 36%
Innovation 7%

Health & safety, premises 7%

IT & eCommerce 6%

Environment & efficiency 4%

Taxes, returns and payroll 4%

Yes, 64%
International trade 4%
72% in Saltash
Other 11%

0% 5% 10% 15% 20% 25%

• 59% were of the view that businesses support services would not have been able to
provide them with help or assistance in any of the listed areas.

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Business Support Services: Awareness and Usage

Top 6 Aware Top 6 Used Top 6 First Port of Call

Organisation Percentage Organisation Percentage Organisation Percentage

Business Link 34% Business Link 13% Business Link 13%

Federation of Small
12% Accountant 6% Accountant 11%
Businesses
Federation of Small
Trade association 12% 5% Bank 6%
Businesses

Accountant 12% Consultants 5% Trade association 5%

Federation of Small
Bank 10% Trade association 4% 5%
Businesses

Family / friend 5% Bank 4% Family / friend 5%

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Thoughts in Conclusions
5%
Grow substantially
10%
• Most (63%) planning growth over 12 months
58%
Grow moderately
62%

34%
• Two thirds employ Stay the same
21%

• 1 in 5 predicting increase in staffing Become Smaller

1%

1%

• 1 in 5 have difficulties recruiting 2%

Sell the business
– General workforce & skilled staff and/or retire
6%

– Motivation & experience 0% 10% 20% 30% 40% 50% 60% 70%

5 year objective Next 12 months

• Most recognise need to be innovative

• Few graduate opportunities?

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Challenges

• Many do not recognise a need for business support

• Many do not recognise need for training

• Three quarters don’t have a business plan

• Majority satisfied with premises….

– but a significant few have greater needs

• ‘State of the economy’ worry for many

– Energy costs
– Business rates
– Legislation

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Thank you

Download full report from

www.pfa-research.com/blog

Or email
robert.rush@pfa-research.com

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