Oxford SME Business Survey 2015€¦ · © Ipsos MORI 14-091472-01 Oxford Business Survey...

14-091472-01 Oxford Business Survey Presentation FINAL INTERNAL USE ONLY © Ipsos MORI

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Oxford SME Business Survey 2015 Presentation of findings

This work was carried out in accordance with the requirements of the international quality standard for market research, ISO 20252:2006 and with the Ipsos MORI Terms and Conditions


2

The brief

The process

• 386 SMEs took part between February and March 2015;

• 20 minute interviews with the most senior strategic decision maker on site; and

• Dunn & Bradstreet provided the sample frame.

To undertake a telephone survey of SMEs within the Oxford area.

To better understand:

− Priorities when locating in Oxford;

− Characteristics of their supply chain

− Growth ambitions; and

− Barriers to recruitment and retention of staff.

This will deliver robust evidence to support policy development over the next 5 – 10 years


3

Coverage

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4

14%

11%

10%

9%

8%

7%

6%

6%

5%

4%

2%

2%

2%

1%

1%

10%

9%

12%

6%

11%

11%

12%

5%

9%

4%

4%

1%

2%

3%

3%

2%

6%

Retail

Accommodation & Food Service Activities

Construction

Professional, Scientific & Technical Activities

Human Health & Social Work Activities

Education

Manufacturing

Administrative & Support Service Activities

Information & Communication

Arts, Entertainment & Recreation

Transport

Agriculture, Forestry & Fishing

Real Estate Activities

Financial & Insurance Activities

Public Administration & Defence

Others

Businesses in Oxford

Interviews achieved

Breakdown of companies within Oxford against interviews achieved

Profile of participants…by sector

Base: All valid responses (386) Source: Ipsos MORI


5

Breakdown of business in Oxford and interviews achieved

Profile of participants …by size

56%

15%

9%

10%

5%

4%

53%

18%

10%

8%

5%

5%

1-5 employees

6-10 employees

11-19 employees

20-49 employees

50-99 employees

100-249 employees

Businesses in Oxford

Interviews achieved



6

1 – 5 years

Q1. How long have you been operating in Oxford? Type of business

Seven in ten have been in the Oxford area for 11+years


Less than

1 year

6 – 10 years

11 – 20 years

More than

20 years

68% 11+

years

Head office

Branch

Single site

Not stated

17%

16%

62%

5% 2

15%

15%

27%

41%


7

Business location priorities

Familiarity with Oxford and the local

market are the two key drivers for

locating in the Oxford area – certain

sectors have other drivers specific to

their industry characteristics


8

Q3. Why did you choose Oxford as a business location?

Familiarity is the main reason why businesses have chosen to

locate in the area – however, the local market is also important

60%

23%

12%

9%

7%

7%

6%

6%

5%

4%

4%

2%

2%

2%

2%

It is where I live

Best market opportunities for my products/service

Good links with academia

I know the market/area

A nice environment in which to work

Proximity to large cities/central location

Historical connection to the business

Good transport network within the city

Quality and choice of business premises

Cumulative attraction – similar organisations within my sector locate here

Good labour resource/right skillsets

Good technology, telecommunications infrastructure

Proximity to major airports

Links to the Council

Business is connected to the University


2%+ mentions


9

Q3. Why did you choose Oxford as a business location?

Business location priorities

65%

25%

13%

10%

4%

Familiarity

Market

Suppliers

Infrastructure

Labour


Where I live /

Know the market

Best opportunities / Cumulative attraction /

Tourism / Affluence

Links with academia / Council

Business premises / telecoms / transport network

Skill set / Foreign language speakers


10

Why Oxford? The key drivers for specific sectors


Retail/Arts/

Accom/food Professional/

scientific/education

Info/comms/

estate/admin

Manufacturing/

construction/

transport

• Strong local

market/demand

• Knowledge and

understanding

of the trends

and local scene

• Strong links to

academia

• Traditional

ties/links to home

• Less likely to be

in Oxford due to

the strength of

the local market

• Local market

opportunities,

• Close proximity

to where they live


11

The supply chain

Supplier location correlates with

customer location. Certain sectors rely

on a high quality road network whilst

others provide their good/services

online


12

Q2. Are your customers based in… ?

Eight in ten have customers based in Oxfordshire, four in ten are

international

81%

55%

40%

…Oxfordshire

…Elsewhere in the UK

…Internationally


Info & communication / financial /

real estate / admin / public admin

(67%)

Professional & scientific /

education (57%)

11+ employees (50%)

Only one in five of the UK’s small and

medium-sized businesses currently

export. However, businesses are 11%

more likely to survive if they export

CBI


13

47

92

39

41

39

55

39

38

Q6. How do you deliver your product or service?

Businesses tend to deliver from fixed premises although majority

of transport/manufacturing/construction is delivered by road

60%

32%

26%

18%

10%

4%

2%

From my premises

By lorry, vanor courier

Online

By car

On foot

By air

By rail


% By road

All

1-5 employees

6-10 employees

11+ employees

Sector

Size

Transport / manufacturing / construction

Retail / arts / accommodation & food

Info & comms / financial / real estate / admin / public admin

Professional & scientific / education


14

60

60

57

59

68

55

64

65

Q4. In the main, where are your suppliers located?

Majority of businesses have suppliers locally and also elsewhere

in the UK – one in five have international suppliers

60%

61%

20%

Oxfordshire

Elsewhere in the UK

Internationally

Base: All valid responses (386) Source: Ipsos MORI Source: Ipsos MORI

% Oxfordshire

All

1-5 employees

6-10 employees

11+ employees

Sector

Size



Info & comms / financial / estate / admin



15

84

90

95

68

76

78

89

92

81%

25%

12%

11%

4%

2%

By lorry, vanor courier

Online

By car

On foot

By air

By rail

Q5. Generally, how do your suppliers deliver your goods to you?

Businesses rely on a good road network for goods delivery,

whilst a quarter use the internet to trade

Base: All valid responses (386) Source: Ipsos MORI Source: Ipsos MORI

% By road

Sector

Size



Info & communication / financial / real estate / admin / public admin


1-5 employees

6-10 employees

11+ employees

All


16

Growth ambitions

Majority of companies in Oxford plan to

grow and believe they will be in Oxford

in 5 years time. Two-thirds of

companies leave the area due to factors

outside of the Council’s control


17

58

60

54

76

57

55

53

67

Q7. Would you say that your business is likely to expand within the Oxford area within the next 5 years?

Oxford businesses are ambitious with the majority planning to

expand within 5 years in the Oxford area


% yes

All

1-5 employees

6-10 employees

11+ employees

Yes, definitely

Yes, maybe

No

Don’t know/not sure

58% Yes





Sector

Size

27%

31%

38%

4


18

6

10

16

19

Yes,

definitely

Q8. Do you think you will still be based in the Oxford area in 5 years’ time?

The vast majority of businesses are content with their location

and plan to remain in Oxford for at least the next 5 years


% no

All

Yes,

maybe No

Don’t know

6% No

1-5 employees

Over 50% travel from outside the area

75% travel from outside the area

79%

11% 6% 3


19

Q9. What external factors might result in you leaving the Oxford area?

How many of these external factors can be influenced?

21%

19%

17%

13%

13%

13%

12%

8%

8%

8%

6%

4%

4%

4%

2%

Business rates are too expensive

Not generating sufficient revenue

Housing costs

Access to customers/footfall issues (e.g. car parking problems)

Transport/commuting costs for employees

Traffic/transport/parking difficulties (non cost related)

A lack of suitable premises for expansion

Competitors taking business away

Business expanding/changing/evolving

High rent/cheaper elsewhere

Technological developments

Business termination/lack of business

The Government

Redevelopment of current premises

Cannot secure financial backing/problems accessing finance

Base: All valid responses who will not definitely be based in the Oxford area in 5 years’ time : (52); Source: Ipsos MORI


20

Affordable housing and traffic congestion are priorities also

reflected in the Oxford residents’ survey

Base: All valid responses Q7 (961) / Q8 (914) Source: Ipsos MORI

Level of crime Health services

Affordable decent housing

Public transport

Clean streets

Parks/open spaces Education

Access to nature Cultural facilities

Level traffic congestion

Wage levels/cost of living

Job prospects Shopping

Road/pavement repairs

People get on

Level of pollution Sports/leisure facilities

Activities for teenagers

Facilities – young children

Community activities/events

0

10

20

30

40

50

60

70

80

90

100

0 20 40 60 80 100

Pe

rfo

rma

nce

Importance

Needs improving Oxford Comparator

Council

Affordable living 46% 19%

Traffic congestion 62% 15%


21

Q10. How do you expect to access finance in the next 2-3 years?

One in five businesses will require bank loans in the short term

17%

7%

4%

3%

3%

2%

1%

1%

1%

69%

Bank loans

Research & Development Funding

Personal savings, credit card

Family, friends

Venture capital

Business angels

European Growth funds

Pump priming

Business rate relief

We will not need to


13% for Professional & scientific / education sector


22

Recruitment & Retention

A quarter of Oxford businesses are

currently recruiting.

A lack of candidate skills or experience

are the two main barriers to recruitment


23

28

15

35

24

30

10

27

63

Q13. Which of the following statements best describes your recruitment intentions?

Over a quarter of Oxford businesses are currently recruiting


Currently

recruiting

No plans

In the next

2 – 3 years

63% Currently/

planning to

recruit

% currently recruiting

Sector

Size

Transport /manufacturing/construction construct

Retail / arts / accom & food

Info & comm/finance/real estate /admin / public admin

Professional & scientific / educ

1-5

6-10

11+ employees

All

28%

35%

37%


24

Q14. What kind of positions are you looking/will you be looking to fill within your business?

Businesses are planning to fill a range of positions across all

levels of their businesses

47%

36%

24%

19%

15%

14%

10%

7%

1%

1%

Professional Individual contributors/Non-management

Unskilled Individual contributors/Non-management

Administrative staff

Trainees/apprentices

Graduates

Middle management

Junior management

Senior management/director level

Depends on requirements

Other

Base: All valid responses who are currently recruiting or will have a need to recruit in the 2 to 3 years (245) Source: Ipsos MORI

25% for Professional & scientific

/ education sector


25

54

67

56

53

48

49

59

61

Q15. In your experience, how easy or difficult is it to recruit the right people for your business?

Recruiting the right people is considered difficult by over half of

Oxford’s businesses, less so by micro businesses


Very easy

Quite

easy Quite

difficult

Very difficult

Q15. In your experience, how easy or difficult is it to recruit the right people for your business?

54% difficult

% difficult

Sector

Size



Info & comm / financial / real estate / admin


1-5 employees

6-10 employees

11+ employees

All

19%

35%

32%

14%

35% have at least one

vacancy that is proving

hard to fill

UKCES Employer Skills

Survey 2013


26

Q16. You say it is difficult, why is that?

Prospective employees tend to lack either the right skill set or

relevant experience (or both)

53%

37%

22%

19%

17%

14%

13%

12%

11%

10%

4%

4%

3%

2%

2%

2%

2%

Not the right skill set

Not the right experience

Insufficient affordable housing in Oxford area

Not the right qualifications

Expensive to travel into Oxford area

Not based in the locality

It is hard to encourage people to relocate to Oxford

The roads make commuting difficult

Attitude/reliability of employees

Not enough applicants

Infrequent trains into the Oxford area

Low wages

Competition

Nature of work is too difficult

Lack of funding / money available for staff

Not the right standard / calibre

Traffic / transport / parking issues

Base: All valid responses who say it is difficult to recruit the right people (205) Source: Ipsos MORI

2%+ mentions

Top 2 reasons

skill set 43%

Experience 26%

Remote

location/public

transport 7%

UKCES Employer

Skills Survey 2013


27

Q14. What kind of positions are you looking/will you be looking to fill within your business?

Q17. Are there particular job positions which you find difficult to fill?

The biggest challenge seems to be in filling professional roles

47%

36%

24%

19%

15%

14%

10%

7%

1%

1%

*%

*%

40%

21%

11%

11%

5%

6%

6%

4%

1%

*%

25%

Professional/Non-management

Unskilled/Non-management

Administrative staff

Trainees/apprentices

Graduates

Middle management

Junior management

Senior management/director level

Depends on requirements

Other

Don't know

No answer

No positions difficult to fill

Positions looking to fill

Positions difficult to fill

Base: All valid responses who are currently recruiting or will have a need to recruit in the 2 to 3 years (245) Source: Ipsos MORI


28

18

15

16

13

18

9

23

30

Q11. Do you have a problem retaining key employees?

One fifth of Oxford businesses have retention issues within their

organisation


% yes

All

Yes

No

18% Yes

Sector

Size





1-5 employees

6-10 employees

11+ employees

18%

82%


29

Q12. What are the external barriers to retaining key employees?

High cost of living in Oxford is the overriding barrier to retaining

key employees - specifically housing and cost/time to commute

58%

32%

23%

23%

12%

11%

11%

9%

9%

5%

3%

3%

3%

3%

It is expensive to live in Oxford

Cannot afford to buy a property

It is expensive to commute

It is time-consuming to commute

Low pay / poor development opportunities

Part time / seasonal work / students

Not the required skills / experience

Finding committed / loyal / adaptable staff

Competition / more suitable job opportunities with other employers

Lack of funding / money available for staff

Staff are over qualified / moving on to their desired career

The need for training

Traffic / lack of employee parking

Nature of work is too difficult

Base: All valid responses who have a problem retaining key employees (66) Source: Ipsos MORI


30

Reasons why residents are dissatisfied

Insight into transportation issues

With the local bus service

• Expensive – acts as disincentive to stop using cars

• Poor routes / inter-connectedness of local areas – having to go into the

city centre and back out again to get to different areas

• Infrequent services / scheduling issues

• Punctuality / reliability problems

• Overcrowding on some services

With the local transport network

• Traffic congestion (especially at peak times / rush hour)

• Condition of road surfaces / potholes

• Disruption / road closures / roadworks

• Safety of cycling routes


31

42

38

39

36

53

25

51

69

Q19. What proportion of your employees would you say travel from outside of the Oxford area?

Two fifths of SMEs rely on employees living and travelling from

outside of Oxford


None

Up to 50%

More than

50%

Don’t know

% any

42% Any

Transport / manuf / construction

Retail / arts / accomm / food

Info & comm / finance / real estate / admin / public admin


1-5 employees

6-10 employees

11+ employees

All

Sector

Size

31%

11%

57%

1


32

Q20. Does your company support and permit…?

Majority of companies support flexible working, including working

from home where business operation permits


Yes

No

82% Yes

Yes No 48%

Yes

…flexible working

hours

…working from

home

82%

18%

Transport

– flexible hours (71%)

– working from home (33%)

Retail

– working from home (27%)

48% 52%

45% of

employees are

permitted to

work flexibly

Microsoft, 1,000 UK

SMEs 2015


33

In summary, there are some positive messages…

• There is high future growth projections, particularly in the information / communication /

financial / real estate and administrative sectors and among larger SMEs;

• Overall, businesses appear financially secure with two-thirds not needing access to short

term finance;

• Eight in ten say they will definitely be in the Oxford area in 5 years time;

• Almost two-thirds are currently or planning to recruit in the next 2 – 3 years; and

• SMEs are embracing flexible working practices.


34

But some clear challenges…

• Business rates, housing costs, transport and commuting costs and a lack of suitable

premises are all reasons cited for not being in the Oxford area in five years

• More than half of employers find it difficult to recruit the right people into their organisation

− A key reason is finding the right skill set and/or experience

− But also, a lack of local employees and transportation issues

• Whilst only one fifth of Oxford businesses have retention issues affordable living and

commuting issues are the main barriers

• Currently, two fifths of SMEs rely on employees living and travelling from outside of Oxford

• Companies with a high commuter workforce are more likely to be flexible about their future

business location


35

Key characteristics and drivers for specific sectors

…….to be found in the report


Retail/Arts/

Accom/food Professional/

scientific/education

Info/comms/

estate/admin

Manufacturing/

construction/

transport • More likely to be

embryonic businesses

• Rely on good road

network to receive

goods

• Strong local

market/demand

• Knowledge and

understanding of the

trends and local scene

• More likely to have

international customers

compared to other industries

• Most likely to deliver

goods/services online

• Located in Oxford because of

strong links to academia

• Likely to be micro

businesses (<5 employees)

and therefore acknowledge

importance of labour

market

• More likely to be online

businesses

• Located in Oxford because

of traditional ties/links to

home

• Less likely to be in Oxford

due to the strength of the

local market

• Aiming to expand within

the next 5 years

• Goods most likely to be

delivered by road and

therefore rely on a strong

road network

• Businesses in these

sectors are most attracted

by the local market

opportunities, more so

than any other sector

• However, business

location is also likely to be

in close proximity to where

they live

• The importance of a large

city catchment is also a

key consideration


36

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February 2015

© Ipsos MORI This work was carried out in accordance with the requirements of the international quality standard for market research, ISO 20252:2006 and with the Ipsos MORI Terms and Conditions which can be found here

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