0Cover Page
Research
Report
Bedford Business Survey
2012
Prepared for: Bedford Borough Council
Prepared for:
Prepared by: June Wiseman, Director, Linda Balodis, Account Manager, Emma Parry,
Account Manager, BMG Research
July 2017
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Table of Contents
1
Executive summary........................................................................................................ 4
1.1
Background............................................................................................................. 4
1.2
Profile of businesses ............................................................................................... 4
1.3
Employment, Skills and Training ............................................................................. 4
1.4
Apprenticeships and work experience ..................................................................... 5
1.5
Business Performance ............................................................................................ 5
1.6
Quality of Local Area............................................................................................... 6
1.7
Council Business Engagement ............................................................................... 6
1.8
Broadband and e-Business ..................................................................................... 6
1.9
Innovation ............................................................................................................... 6
1.10
Data over time ........................................................................................................ 7
2
Conclusions ................................................................................................................... 9
3
Background.................................................................................................................. 11
4
5
6
3.1
Introduction ........................................................................................................... 11
3.2
Methodology ......................................................................................................... 11
Employment, Skills and Training .................................................................................. 13
4.1
Working status ...................................................................................................... 13
4.2
Hard-to-fill vacancies ............................................................................................ 15
4.3
Staff training and development ............................................................................. 19
4.4
Skill shortages ...................................................................................................... 22
4.5
Skill gaps .............................................................................................................. 24
Apprenticeships and work experience .......................................................................... 28
5.1
Apprenticeships .................................................................................................... 28
5.2
Work experience placements ................................................................................ 31
Business Performance ................................................................................................. 34
6.1
Business performance in the last 12 months ......................................................... 34
6.2
Business forecast for the next 12 months ............................................................. 36
6.3
Constraints on business growth ............................................................................ 38
6.4
Opportunities for business growth ......................................................................... 40
6.5
Support activities that are important to businesses ............................................... 42
7
Quality of Local Area .................................................................................................... 43
7.1
Possible relocation ................................................................................................ 43
7.2
Ratings as a place to do business......................................................................... 45
8
Council Business Engagement .................................................................................... 46
8.1
Views on Council engagement with businesses .................................................... 46
8.2
Contact and satisfaction with council services....................................................... 49
9
Broadband and e-business .......................................................................................... 54
9.1
Broadband speed ................................................................................................. 54
9.2
Current and future use of specific ebusiness facilities ........................................... 57
10
10.1
11
Innovation................................................................................................................. 59
New products or processes................................................................................... 59
Profile of Organisations within Bedford ..................................................................... 62
11.1
Industry sector profile ............................................................................................ 62
11.2
Number of staff employed ..................................................................................... 63
11.3
Number of sites..................................................................................................... 63
11.4
Company status .................................................................................................... 64
11.5
Length of time established .................................................................................... 65
11.6
Business advice and support received on start up ................................................ 66
11.7
Annual turnover .................................................................................................... 66
11.8
Information that businesses would like to receive ................................................. 67
Appendix ............................................................................................................................. 68
Bedford Business Survey 2012
1 Executive summary
1.1 Background
The Bedford and Luton Business Survey 2012 was commissioned by Bedford Borough
and Luton Borough Council in February 2012. Fieldwork was conducted in March
2012.
Overall, 503 interviews were completed, with 251 of these completed in Bedford
Borough. The data was weighted to reflect the actual size and sector profile of
businesses in Bedford.
1.2 Profile of businesses
The highest concentration of businesses in Bedford is within the wholesale & retail
trade. This sector accounts for around a fifth of Bedford businesses. About one in
eight operates within the construction sector and the same proportion within the
professional, scientific and technical sector.
More than four-fifths of businesses employ fewer than 10 people.
twenty employ 25 or more at their site.
Around one in
More than three-quarters of local businesses do not have sites elsewhere. One in
twenty multi-site businesses are headquarters sites.
More than half the businesses in the borough are private limited companies, with a
third of all businesses operating as sole traders.
More than half of businesses have been established for 10 years or more.
Of the 21% of Bedford businesses that have been in operation for less than 5 years,
three in ten received some advice or support when setting up the business.
A half of businesses in the borough providing an estimate report a turnover of less
than £500,000 (50%).
1.3 Employment, Skills and Training
Seventy-one percent of the workforce in Bedford are employed on a full time basis.
Just under a half of businesses do not employ anyone on a part time basis, although
this is mainly small businesses.
Just 7% of businesses have had any vacancies in the last 12 months that they have
found hard-to-fill. The most difficult to fill vacancies are for other administrative
occupations.
The main causes of hard-to-fill vacancies centre on there being a low number of
applicants with the required skills (35% of those with hard-to-fill vacancies), a low
number of applicants with the required attitude (33%) and lack of work experience
(28%).
A slightly higher proportion to those recently experiencing hard-to-fill vacancies said
that they expect to have vacancies that will be hard-to-fill in the next 12 months (9%).
4
Executive summary
A third of businesses (33%) have funded or arranged any off-the-job training or
development in the past 12 months, whilst four in ten (40%) have funded or arranged
on-the-job training.
The incidence of funding or arranging any training increases with business size and is
particularly high in the finance & real estate sector, administration & support services,
education & health, construction and accommodation & food services.
A quarter of businesses (25%) report having skills which are difficult to obtain (skill
shortages). The only area mentioned by more than one in ten businesses is the need
for technical, practical or job specific skills (12% of all employers).
Three in ten businesses (30%) identify skill gaps, with no one area of skill standing out,
although 9% each mention advanced IT skills, and technical, practical or job specific
skills.
Skills that would be most likely to have a positive impact on business growth would be
mainly marketing skills/experience (5%) and IT skills (4%).
1.4 Apprenticeships and work experience
One in twenty businesses currently employ apprentices (5%). The main reasons for
this are that the business can train the individual to their specific needs (48% of those
currently employing apprentices) and apprentices represent an investment in the
business (44%).
Around one in eight businesses currently offer unpaid work experience placements
(13%), and among those who do not, more than a quarter would consider doing so
(26%).
1.5 Business Performance
A third of businesses (32%) report an improvement in their business performance in
the last 12 months. A fifth (21%) report some deterioration in that time. The
remainder report performance as being stable (47%).
There is some pessimism amongst local businesses. Whilst four in ten (39%)
anticipate an improvement, almost one in ten (8%) anticipate some deterioration in the
next 12 months. The remainder do not anticipate any change (47%).
There are a variety of factors which constrain business growth, particularly transport
costs (48%), high energy costs (42%), lack of demand (40%), increasing competition
(39%) and over regulation (38%).
Three quarters of respondents (74%) were able to cite factors that would allow for
further business growth. The most frequently cited was that of new/more customers
(including an improved customer base, more work, account, sales etc) (13% of all
respondents). In terms of important things local public sector organisations could do to
help businesses grow, this centres on lower business rates (18% mentioning this
spontaneously).
5
Bedford Business Survey 2012
1.6 Quality of Local Area
Just under one in five businesses (18%) envisage their business outgrowing or
relocating their current premises over the next two or three years. Four in ten of these
businesses would like to be contacted by their local Council for help in relocating
(40%).
More than two thirds of those providing a valid response (69%) rate their location as a
good place to do business. One in ten (9%) rate the area poor and 22% neither good
nor poor.
1.7 Council Business Engagement
When asked how well they feel Bedford Borough Council engages with business, local
businesses are more likely to be negative than positive (43% consider it poor; 16%
consider it good). The remainder rate it average (41%).
In order for their local Council to better engage with businesses, the biggest proportion
suggested more communication and engagement (31% of all businesses).
More than a half of businesses (53%) have contacted council services in the last 12
months. Environmental Health and Planning were the two main council services
contacted.
Among businesses which have contacted specific council services, satisfaction varies
widely, from 80% being satisfied (very or fairly satisfied) with Economic
Development/Invest in Bedford to 31% being satisfied with Business rates.
1.8 Broadband and e-Business
Nearly half of businesses in Bedford said their current broadband speed was standard
(47%). 20% said it was slow and 11% superfast. However, 10% did not have access
to broadband at that site.
More than a half of businesses overall (58%), have plans to access broadband or
increase its speed in the next 3 years. Among these, 71% will access superfast speed
and 21% will access standard speed.
When asked which of a list of ebusiness facilities businesses use now or plan to use in
the next three years, about two thirds currently have a company website for promotion
(66%), with more than one in ten planning to do so in the next 2 years (16%).
Four in ten businesses currently use social media (40%) and just under this proportion
use web based management information systems (37%). Around a quarter each use
remote access to networks & teleworking (28%) and eCommerce (24%). Only 10%
don’t use or plan to use any of these facilities.
1.9 Innovation
More than a third of businesses in Bedford have innovated in some way in the last 12
months, with one in five businesses (19%) having introduced a new service, 18% a
new product and 15% a significantly improved process in the last 12 months. The
larger the business, the more likely they are to innovate.
6
Executive summary
Innovation is set to be about the same in the next 12 months. Just over a third of
businesses expect to introduce a new product, service or process in the next 12
months (35%).
1.10 Data over time
The following table shows the key indicators for Bedford over time, comparing the
2012 figures with 2011 and 2010 where applicable. Those figures significantly higher
are shown in bold.
Whilst a lot of indicators have not changed significantly between 2011 and 2012, there
are some important changes demonstrating a negative shift in attitudes and
performance:



12% fall (since 2011) reporting business improvement in the last 12 months;
18% fall expecting business improvement in the next 12 months;
7% fall rating council engagement good.
The only indicator which has risen significantly between 2011 and 2012 is:

37% rise wanting to access broadband/faster broadband in the next 3 years.
Figure 1: Key indicators over time
Indicator
2010
2011
2012
% with hard-to-fill vacancies in the last 12
months
7%
6%
7%
% funding off-the-job training in the past
12 months
44%
30%
33%
% funding on-the-job training in the past
12 months
43%
42%
40%
% finding skills difficult to obtain (skill
shortages)
27%
27%
25%
% with skill gaps in the existing workforce
27%
25%
30%
% employing apprentices currently
na
5%
5%
% currently offering unpaid work
experience placements
na
19%
13%
% who would consider offering unpaid
work experience placements
na
28%
26%
% reporting an improvement in the past 12
months
36%
44%
32%
% reporting stability in the past 12 months
43%
39%
47%
Employment, skills and training
Apprenticeships and work experience
Business performance
7
Bedford Business Survey 2012
Indicator
2010
2011
2012
% reporting deterioration in the past 12
months
21%
16%
21%
% expecting an improvement in the next
12 months
54%
57%
39%
% expecting stability in the next 12 months
33%
35%
47%
% expecting deterioration in the next 12
months
7%
5%
8%
% envisaging outgrowing/relocating over
the next two or three years
12%
21%
18%
% rating their location good as a place to
do business
62%
67%
69%
% rating their location poor
8%
10%
9%
% rating their council good at engaging
with businesses
17%
23%
16%
% rating their council poor at engaging
with businesses
55%
42%
43%
na
53%
53%
% currently with no broadband
na
7%
10%
% currently with slow broadband speed
na
18%
20%
% currently with standard broadband
speed
na
47%
47%
% currently with superfast broadband
speed
na
10%
11%
% wanting to access broadband/faster
broadband in the next 3 years
na
21%
58%
% introducing a new product, service or
significantly improved process in the past
12 months
34%
29%
35%
% expecting to introduce a new product,
service or process innovation in the next
12 months
34%
33%
35%
Unweighted sample bases
280
274
251
Quality of local area
Council business engagement
% contacting council services in the last 12
months
Broadband and e-Business
Innovation
8
Conclusions
2 Conclusions
Key economic trends
The UK economy continues to show limited and erratic signs of growth and is now
technically in recession again, having had two consecutive Quarters (Quarter 4 in 2011
and Quarter 1 in 2012) of negative growth measured by GDP. Despite the recent fall
in the level of unemployment and a rise in retail sales volumes, inflation is also falling
more slowly than predicted.
The base interest rate remains at a record low of 0.5%, but the rate of inflation which
was 3.5% (Consumer Price Index) in March 2012, is still above the Bank of England’s
2% target. Raising interest rates is seen as an effective policy tool in combating
inflation, although the Bank of England considers that inflation has risen mainly due to
temporary, external factors such as rising oil and food costs.
The Government is still hoping that the private sector will drive the recovery at a time
when the public sector is likely to shrink further.
“The challenges facing the labour market cannot be overlooked. As the
deficit-cutting plan forces the government to reduce employment, it is likely
that the unemployment total will increase over the next year. Every effort must
be made to reduce the regulatory burden on businesses and increase the
flow of lending to credit worthy firms so the private sector can create new
jobs.” 1
The effect of low interest rates and relatively high inflation on discretionary spending
continues to be significant. Many workers have had no pay rises for several years but
the threat of high levels of unemployment is inhibiting moves between jobs. The result
is that customers continue to be cautious and are cutting back in on non-essential
spending.
The economic statistics show intermittently positive as well as negative trends. The
balance between the Government’s austerity measures and encouraging growth has
never been more difficult to gauge. Furthermore, economists disagree as to the
measures that need to be undertaken to ensure growth. Elections in France and
important political debates in other Euro Zone countries continue to fuel pessimism
and have a detrimental impact on confidence in business and amongst consumers
across Europe.
Focus on Bedford businesses
The survey statistics for Bedford reflect the stalling in the UK economy; having seen
some evidence of optimism in 2011, attitudes are now returning to more negative
views.
There has been a significant fall in businesses locally reporting an
improvement in business performance in the last 12 months and also expectations of
the next 12 months.
1
David Kern, Chief Economist at British Chambers of Commerce, April 2012
9
Bedford Business Survey 2012
Rising transport and energy costs continue to be significant issues in terms of
constraining business growth. Businesses in Bedford are also likely to cite increasing
competition, lack of customer demand and over regulation as limitations to growth. In
the wider economic context, businesses are competing over shrinking markets,
resulting from lower levels of consumer confidence, more cautious spending and,
where customers are public sector organisations, significant cuts to public spending.
The importance of focusing on increasing demand for products and services is obvious
in terms of the success of a business and, in terms of opportunities for business
growth is the most significant factor.
Training and skills
Whilst hard-to-fill vacancies remain a limited problem, it affects those industries (ie
manufacturing and accommodation & food services), which are critical to the economic
recovery in any area. Furthermore, at least a quarter of businesses continue to
experience skills shortages and skills gaps, and the fall in funding off-the-job training
(since 2010) also does not help this situation. While there are other solutions available
to businesses, such as recruiting from outside the district and providing training to the
existing workforce it is in the interests of the local economy to identify and supply these
skill needs locally.
IT infrastructure
Broadband is available to most businesses, if not all, however, there is still a large
minority of businesses (one in ten) who do not have access to it. Furthermore, the
proportion aware that they need to have access (at all and at a faster speed) has
increased to more than a half of all businesses.
Awareness among businesses is also now much greater in terms of the need to adopt
ebusiness measures, with now only one in ten businesses not using or planning to use
such facilities in the next two to three years.
Council business engagement
In assessing how well Bedford businesses feel the Council engages with local
businesses, views are more likely to be negative than positive. Indeed, the proportion
rating council engagement ‘good’ has fallen significantly in the last year. Suggestions
of improvement in council engagement continue to focus on more
communication/engagement, but also better understanding of individual business
needs and providing information on developments and opportunities. This is also
reflected in the increased proportion of businesses who would like help from the
Council when considering relocation.
Businesses are most likely to be in contact with the Council about Environmental
Health, Planning, Trading Standards or Business rates. These are areas in which
there is most likely to be contention and that is likely to colour views of the Council’s
dealings with businesses.
10
Background
3 Background
3.1 Introduction
In February 2012, Bedford Borough Council and Luton Borough Council commissioned
BMG Research to undertake a survey of businesses across Bedford and Luton.
This survey will build on work undertaken by BMG on behalf of the Councils in 2011
and 2010. The main objective of the research is to identify the economic challenges
and opportunities facing businesses in the area and inform the councils’ approach to
the development and delivery of economic development activities.
3.2 Methodology
There are some 6,300 employing establishments in Bedford and some 5,300 in Luton
(source: Office for National Statistics). The survey sample was restricted to private
sector businesses but included sole traders as well as businesses with employees. It
also included Social Enterprises. Survey responses were establishment based; which
is to say that they were based on activities and practices at that site only.
In total, 503 telephone interviews were conducted with local businesses.
interview took between 15-20 minutes depending on the answers given.
Each
The table below shows the range of sampling error given by different sizes of
population. The target number of interviews in each district was 250 businesses,
providing robust data when analysed at borough level.
Size of sample
on which
survey result is
based
Range of sampling error for percent responses at or
near these levels
10% or 90%
30% or 70%
50%
+/-
+/-
+/-
100
6
9
10
200
4
6
7
250
4
6
6
300
3
5
6
400
3
4
5
500
3
4
4
A quota for interviewing was set based on location, with the aim of distributing
interviews evenly across the two Council areas. Within each Council area quotas were
set by organisation size (number of employees at the site) and industry sector. During
data preparation the data was weighted to reflect the actual size and sector profile of
the business populations within each Council area.
The table in the Appendix summarises the population profile of Bedford Borough
Council area, the number of interviews and the sample bases following weighting of
the data by size and sector.
11
Bedford Business Survey 2012
This report summarises the main findings of the business survey within Bedford
Borough Council area, ie 251 interviews. These findings are compared with those
collated in Bedford in 2010 and 2011 where appropriate.
12
Employment, Skills and Training
4 Employment, Skills and Training
Respondents were asked a series of questions about their workforce including their
status (full or part time), recruitment issues, skill needs and whether the business
funds or arranges training.
4.1 Working status
About seven in ten employees (71%) within all the businesses participating in the
survey in Bedford work on a full time basis. Whilst there are no significant differences
over time, the data suggests the trend is downward; 74% in 2011 and 78% in 2010.
Full time employment forms a significantly larger proportion of the workforce within
businesses employing 50+ staff than within smaller businesses, as the graph below
shows.
Working status varies considerably by industry sector. There are high levels of part
time employment within the sectors of accommodation & food services, and to a lesser
extent in arts & recreation, administration & support services, education & health and
the wholesale & retail trade.
13
Bedford Business Survey 2012
Figure 2: Working status profile by sector (all employees) (QB1)
Figures in parentheses denote unweighted employee numbers
Overall, 47% of all businesses in Bedford do not employ anyone part time. This is
lower than the proportions reported in 2011 (52%) and 2010 (52%). This proportion
declines to just 15% of businesses with 50+ employees, although part time workers
account for a smaller proportion of the total workforce in these larger businesses.
14
Employment, Skills and Training
4.2 Hard-to-fill vacancies
Respondents were asked if they have had any vacancies in the last 12 months that
they have found hard-to-fill.
About one in fourteen (7%) businesses reported having had hard-to-fill vacancies in
the last 12 months. This is similar to the results in 2011 (6%) and 2010 (7%).
The propensity to have had hard-to-fill vacancies increases with business size, from
4% of those with 1-9 employees to 16% with 10-24, 29% with 25-49 and 34% with 50+
employees. This reflects the fact that larger organisations are more likely to have
recruited any staff as a result of employing a larger number of people in a wider range
of jobs.
Hard-to-fill vacancies are most likely to have been experienced by businesses in
manufacturing (20%) and accommodation & food services (19%). In contrast, no
businesses within finance & real estate and just 1% of businesses within construction
have experienced recruitment difficulties.
Businesses who have introduced new products, services or processes (11%) are most
likely to have experienced hard-to-fill vacancies than those who have not (4%). Those
undertaking training are also more likely to have done so (11%) compared to those
who have not (3%).
15
Bedford Business Survey 2012
The occupations in which hard-to-fill vacancies have been experienced are wideranging and are summarised in the figure below. Hard-to-fill vacancies are mainly
found within other administrative occupations, and to a lesser extent metal machining
& instrument making and plant & machine operatives.
Figure 3: Occupations in which hard-to-fill vacancies have been experienced,
unprompted, multiple response (where have had hard-to-fill vacancies in the last 12
months) (QB3)
Unweighted base = 27
16
Employment, Skills and Training
The main causes of hard-to-fill vacancies include a low number of applicants with the
required skills, low number of applicants with the required attitude and lack of work
experience.
The causes of hard-to-fill vacancies are summarised in the figure below.
Figure 4: Causes of hard-to-fill vacancies, unprompted, multiple response (where
have had hard-to-fill vacancies in the last 12 months) (QB4)
Unweighted sample base = 27
17
Bedford Business Survey 2012
When asked if they expected to have any vacancies that will be hard-to-fill in the next
12 months, 9% of businesses said that they expected them. This compares to 7% in
2011 and 9% in 2010.
The proportion expecting hard-to-fill vacancies in the next 12 months varies by size of
business, from 6% of those with 1-9 employees to 24% of those with 50+ employees.
There are few other differences across sub groups, except that those who have
contacted council services in the last 12 months are more likely to expect hard-to-fill
vacancies (14%) compared to 3% of those who have not contacted council services.
The occupations in which hard-to-fill vacancies are anticipated include:
Sales Assistants and Retail Cashiers
Road Transport Drivers
Sales, Marketing and Related Associate Professionals
Other Administrative Occupations
Administrative Occupations: Finance
Other Elementary Service Occupations
Engineering Professionals
Construction Operatives
Health Professionals
Sports and Fitness Occupations
Metal Machining, Fitting and Instrument Making Trades
Childcare and Related Personal Services
Caring Personal Services
Assemblers and Routine Operatives
Elementary Cleaning Occupations
Nursing and Midwifery Professionals
Business, Research and Administrative Professionals
Vehicle Trades
Food Preparation and Hospitality Trades
Sales Supervisors
Production Managers and Directors
Natural and Social Science Professionals
Draughtspersons and Related Architectural Technicians
Electrical and Electronic Trades
Sales Related Occupations
Mobile Machine Drivers and Operatives
Elementary Agricultural Occupations
18
15%
12%
9%
9%
8%
7%
6%
6%
4%
4%
4%
4%
4%
4%
4%
2%
2%
2%
2%
2%
1%
1%
1%
1%
1%
1%
1%
Employment, Skills and Training
4.3 Staff training and development
Respondents were asked if their business over the past 12 months has funded or
arranged any off-the-job training or development for employees at that site. Off-the-job
training was defined as training away from the individual’s immediate work position,
whether on their premises or elsewhere.
A third of businesses (33%) have funded or arranged any off-the-job training or
development in the past 12 months. This compares with 30% in 2011 and 44% in
2010, which suggests that training levels have not yet returned to their 2010 level.
The propensity to fund or arrange off-the-job training increases with business size (see
figure below). It is highest in construction and administration & support, and lowest in
agriculture & mining. It is also higher within multi-site businesses than those operating
from one site only (54%, compared with 27%), reflecting the fact that multi-site
businesses tend to be part of a larger organisation which is likely to have structured
training systems and facilities in place.
Businesses who have contacted council services (41%), those who have introduced
new products & services (41%) and private limited companies (40%) are significantly
more likely than others to have funded or arranged any off-the-job training or
development for employees.
19
Bedford Business Survey 2012
Figure 5: Proportion of businesses that have funded or arranged any off-the-job
training or development for employees at that site in the last 12 months, by size,
sector, no. of sites and business performance (all respondents) (QB8)
Unweighted sample bases in parentheses
Respondents were then asked about on-the-job and informal training and development
their business has funded or arranged in the last 12 months. This was defined as
activities that would be recognised as training by staff but not the sort of learning by
experience which could take place all the time.
Four in ten businesses (40%) have funded or arranged on-the-job training, which is
similar to the proportions in 2011 (42%) and 2010 (43%).
Businesses with 10 or more employees are significantly more likely to have funded or
arranged on-the-job training in the last 12 months than those with fewer employees, as
the graph below shows.
The following graph summarises the provision of on-the-job training and development
by business size and sector, but also compares the figures with those for off-the-job
training.
20
Employment, Skills and Training
Figure 6: Proportion of businesses that have funded or arranged any on-the-job or
off-the-job training or development for employees at that site in the last 12 months, by
size, sector, no. of sites and business performance (all respondents) (QB8 and QB9)
U
nweighted sample bases in parentheses
Unlike off-the-job training, there are no significant differences in terms of the
propensity to provide on-the-job training by sector.
Two thirds of businesses that provide off-the-job training (65%) have funded or
arranged on-the-job training, while just over a half of businesses that provide on-thejob training (54%) have funded or arranged off-the-job training. Provision of one is
positively correlated with provision of the other.
21
Bedford Business Survey 2012
The propensity to fund or arrange any training is higher amongst businesses with
certain other positive characteristics such as:




Those with more than one location (54% have undertaken off-the-job training and
60% on-the-job training);
Those who have introduced new products or services (41% and 60%);
Those who have contacted council services (41% and 51%);
Private limited companies (40% and 50%).
4.4 Skill shortages
All respondents were asked about the skills that they have found difficult to obtain. A
quarter of businesses (25%) reported any. This is slightly lower than the figures
reported in 2011 (27%) and 2010 (27%).
The proportion increases with business size, from 23% of 1-9 employers to 35% of 50+
employers, but it is also significantly higher amongst 10-24 employers (43%),
compared with those employing fewer than 10 staff. It is also significantly higher in the
wholesale & retail trade (25%) than in construction (7%).
Other types of businesses that are more likely to have experienced any skills
shortages are:




Those who have introduced new products or services (42%);
Those who have undertaken training (34%);
Those who have experienced improved (32%) or stable (27%) business
performance;
Those who have contacted council services (31%).
The link with business size reflects the fact that there is a greater demand for staff
across a range of skill areas in larger businesses. However, the types of skills that are
identified as difficult to obtain will vary by the type of industrial activity businesses are
involved in. This is summarised in the table below.
The only significant difference across sectors is that businesses in the wholesale &
retail trade are particularly likely to find sales and marketing skills difficult to obtain.
22
Employment, Skills and Training
Figure 7: Skills that businesses have found difficult to obtain, unprompted, multiple
response (all respondents) (QB5)
11%
0%
17%
18%
2%
Problem solving skills
8%
0%
10%
4%
10%
11%
10%
5%
0%
14%
18%
0%
Advanced IT skills
7%
35%
9%
2%
7%
10%
0%
0%
8%
16%
24%
0%
Technical skills
7%
0%
13%
1%
10%
2%
0%
6%
0%
11%
24%
2%
Communication skills
7%
5%
21%
2%
11%
21%
0%
1%
0%
10%
13%
0%
Literacy
6%
5%
9%
2%
7%
19%
0%
0%
0%
17%
13%
0%
Numeracy
6%
5%
9%
1%
6%
19%
0%
0%
0%
23%
13%
0%
Foreign Languages
6%
5%
2%
*%
4%
0%
10%
1%
0%
26%
7%
13%
Basic IT skills
5%
35%
0%
*%
10%
0%
0%
4%
0%
11%
13%
5%
Customer Service
skills
5%
0%
1%
2%
11%
11%
1%
1%
8%
14%
7%
0%
Sales and Marketing
5%
0%
0%
*%
12%
0%
1%
5%
0%
17%
7%
0%
Knowledge of English
among non-native
speakers
5%
0%
3%
1%
7%
0%
10%
0%
0%
23%
7%
5%
Team working skills
5%
0%
0%
4%
11%
10%
0%
2%
0%
9%
13%
0%
Managerial Skills
4%
5%
0%
1%
8%
10%
0%
2%
0%
5%
18%
0%
Other
2%
30%
0%
0%
0%
10%
0%
0%
0%
2%
0%
5%
Any skills
25%
70%
35%
7%
25%
35%
21%
19%
16%
56%
24%
22%
None
75%
30%
65%
93%
75%
65%
79%
81%
84%
44%
76%
78%
Unweighted sample
bases
251
5
22
34
69
16
12
32
15
19
15
12
Arts, recreation & other
services
11%
Education & health
16%
Admin & support
services
13%
Finance & real estate
5%
Prof, scientific and
technical activities
Wholesale & retail trade
Transport, information &
communications
Construction
23%
Accommodation & food
services
Manufacturing
10%
Agriculture, mining &
utilities
12%
Total
Technical, practical or
job specific skills
*% indicates figures of <0.5%
23
Bedford Business Survey 2012
4.5 Skill gaps
While skill shortages involve skills that are difficult to obtain from outside the
organisation, skill gaps are those that are lacking in the existing workforce.
Respondents were asked if they could identify any of a range of skill gaps within their
existing workforce that restrict their business performance.
Three in ten businesses (30%) identify any such skill gaps. A comparison with the
previous two years, suggests the problem is now slightly worse (although not
significantly so); the figure was 25% in 2011 and 27% in 2010.
The proportion of businesses with skills gaps increases with business size from 28% of
businesses with fewer than 10 employees to 39% of those with 10-24 employees and
38% with 25-49 employees. The figure falls again among the 50+ size band to 26%.
By sector, the proportion with skill gaps in their existing workforce is particularly high
within manufacturing (62%). These businesses are particularly likely to cite the lack of
technical skills (31%) within their organisation.
There are few significant differences across other sub groups, although those
businesses who have introduced new products or services (46%) are much more likely
to report skills gaps than those who have not (21%).
The skill gaps identified (from a list) are as follows (as a percentage of all
respondents):
Advanced IT skills
Technical, practical or job specific skills
Basic IT skills
Sales and Marketing
Problem solving skills
Numeracy
Technical skills
Foreign Languages
Literacy
Team working skills
Managerial Skills
Communication skills
Knowledge of English among non-native speakers
Customer Service skills
24
9%
9%
8%
8%
8%
7%
7%
7%
6%
6%
5%
5%
5%
4%
Employment, Skills and Training
Skill gaps by sector are presented in the table below.
Figure 8: Skill gaps in their existing workforce that restrict their business
performance, prompted, multiple response (all respondents) (QB10)
Arts, recreation &
other services
Education & health
Admin & support
services
5%
19%
13%
10%
10%
10%
7%
8%
4%
10%
0%
Technical, practical
or job specific skills
9%
5%
19%
14%
7%
14%
0%
8%
8%
17%
7%
5%
Basic IT skills
8%
35%
12%
13%
12%
2%
0%
4%
0%
4%
16%
0%
Sales and Marketing
8%
0%
19%
5%
10%
0%
0%
16%
0%
5%
0%
16%
Problem solving
skills
8%
5%
10%
9%
8%
10%
10%
5%
0%
9%
18%
0%
Numeracy
7%
0%
12%
9%
6%
11%
0%
4%
0%
17%
16%
0%
Technical skills
7%
0%
31%
10%
7%
4%
0%
1%
0%
9%
12%
2%
Foreign Languages
7%
0%
2%
4%
5%
0%
10%
11%
0%
16%
5%
18%
Literacy
6%
5%
12%
9%
5%
2%
0%
4%
0%
19%
18%
0%
Team working skills
6%
0%
2%
9%
8%
10%
0%
6%
0%
9%
18%
0%
Managerial Skills
5%
0%
10%
9%
5%
10%
0%
1%
0%
5%
12%
0%
Communication
skills
5%
0%
12%
9%
3%
10%
0%
4%
0%
12%
7%
0%
Knowledge of
English among nonnative speakers
5%
0%
3%
0%
4%
0%
10%
7%
0%
24%
7%
0%
Customer Service
skills
4%
0%
11%
9%
4%
10%
0%
4%
0%
9%
0%
0%
Other
1%
0%
0%
4%
0%
0%
0%
0%
0%
0%
11%
0%
None
70%
60%
38%
78%
74%
75%
80%
68%
84%
65%
74%
64%
Unweighted row
251
5
22
34
69
16
12
32
15
19
15
12
Construction
Manufacturing
Finance & real
estate
Prof, scientific and
technical activities
Transport,
information &
communications
Accommodation &
food services
Wholesale & retail
trade
Agriculture, mining
& utilities
9%
Total
Advanced IT skills
25
Bedford Business Survey 2012
Respondents were then asked about specific skill requirements that they feel, if
fulfilled, would enable their business to grow. Around one in four (23%) mentioned at
least one skill (spontaneously), with more than three-quarters (77%) citing none. This
is the same proportion as in 2011 but continues to represent a slight increase since
2010 when 20% mentioned at least one skill.
Skills that would have a positive impact on business growth in 2012, mentioned by
respondents, included:
Marketing skills / experience
IT skills (inc. advanced IT / computer skills)
Sales skills
Managerial skills
Customer service skills
Technical skills (unspecified)
Advertising skills
Engineering skills / experience / qualifications / training
Foreign Language skills
Business coaching/ development skills
26
5%
4%
3%
2%
1%
1%
1%
1%
1%
1%
Employment, Skills and Training
4.6
27
Bedford Business Survey 2012
5 Apprenticeships and work experience
5.1 Apprenticeships
Businesses were asked if they employ anyone on a government approved
apprenticeship programme currently. An apprentice was defined as someone learning
the skills they need to do a particularly job by combining working in an organisation
with study either in the workplace or at a training centre and gaining a recognised
qualification.
One in twenty businesses currently employ apprentices (5%) which is the same
proportion as in 2011. This question was not asked in the 2010 survey.
28
Apprenticeships and work experience
The proportion currently employing apprentices increases among larger employers to
17% of 50+ employers. The proportion is also higher than average among businesses
in education & health and arts & recreation.
Figure 9: Proportion of businesses that employ apprentices currently, by size and
sector (all respondents) (QC1)
U
nweighted sample bases in parentheses
The only other significant difference across sub groups is that businesses who
undertake any training (9%) are also more likely to currently employ apprentices than
those who do not (1%).
29
Bedford Business Survey 2012
Among those currently employing or likely to take on apprentices, the main reasons for
this include the fact that the business can train the individual to their specific needs
and that apprentices represent an investment in the business.
Figure 10: Reasons why businesses would employ apprentices, unprompted, multiple
response (where currently employ/would consider employing an apprentice) (QC2)
Unweighted sample base = 20
30
Apprenticeships and work experience
5.2 Work experience placements
Around one in eight businesses currently offer unpaid work experience placements
(13%), and among those who do not, more than a quarter (26%) would consider doing
so. This is slightly lower than the figures in 2011 (19% and 28% respectively).
31
Bedford Business Survey 2012
The propensity to offer unpaid work experience currently and to consider doing so
increases with the size of the business as the graph below shows (% would consider
offering have been rebased on all respondents). Also, businesses in education and
accommodation & food services are particularly likely to do so currently, whilst
businesses in transport & communications, manufacturing, administration & support
services and construction are more likely to consider doing so.
32
Apprenticeships and work experience
Figure 11: Proportion of businesses that currently offer/would consider offering
unpaid work experience placements, by size and sector (all respondents) (QC3 and
QC4)
Unweighted sample bases in parentheses
33
Bedford Business Survey 2012
6 Business Performance
Businesses were asked about recent business performance and the factors impacting
on it and how they perceive their business developing in the near future. This section
also examines the prospects of physical growth of businesses and the need to
relocate.
6.1 Business performance in the last 12 months
Respondents were asked if their business performance in the last 12 months has
improved, remained stable or deteriorated. A third of respondents report an
improvement, with about one in five reporting deterioration and the remainder reporting
stability over the last year. As the graph below shows, a comparison of data over time
suggests some fluctuation.
Businesses reporting improvement in 2011 rose
significantly compared to 2010, but this proportion has now fallen below the 2010
figure.
Figure 12 : Business performance in the last 12 months, over time (all respondents)
(QD1)
Unweighted sample bases in parentheses:
34
Business Performance
Business performance has varied by sector (although not significantly so), with
improvement most apparent in agriculture & mining, finance & real estate and
accommodation & food services. Sectors with the greatest levels of reported
deterioration are education & health, construction, transport & information and the
wholesale & retail trade.
Figure 13: Business performance in the last 12 months, by sector (all respondents)
(QD1)
U
nweighted sample bases in parentheses
There are few significant differences across other sub groups, although businesses
which have introduced new products or services are more likely to report improvement
(44%) than those who have not (26%). Indeed, those who have not introduced new
products or services are significantly more likely to say their business performance has
deteriorated (26%). Furthermore, businesses who have not contacted council services
(29%) and those who rated Council engagement poor (29%) are more likely to report a
deterioration than their counterparts.
35
Bedford Business Survey 2012
6.2 Business forecast for the next 12 months
Respondents were then asked about their expectations with regard to business
performance in the next 12 months. Less than half anticipate an improvement; just
under one in ten anticipate some deterioration and the remainder expect no change in
the next year.
Compared to 12 months ago, businesses are now significantly less optimistic about
the economic outlook. The trend is shown in the graph below.
Figure 14: Business performance in next 12 months over time (all respondents) (QD2)
Unweighted sample bases in parentheses
36
Business Performance
Analysis by sector suggests that a lack of optimism for the future affects most sectors.
The only sectors more likely to forecast improvement (although not significantly so) are
finance & real estate and accommodation & food services.
Figure 15: Expectations of business performance in the next 12 months, by sector (all
respondents) (QD2)
Unweighted sample bases in parentheses
The survey evidences the link between past and future success. Those having
recently experienced an improvement in business performance in the last year are
significantly more likely to expect the positive trend to continue (75% compared with
20% of those who have reported stability and 24% of those that have experienced
deterioration).
One in four businesses who have experienced deterioration in business performance
in the last year expects it to continue (25%); this compares with just 7% of those
reporting stability and 4% of those reporting improvement.
37
Bedford Business Survey 2012
6.3 Constraints on business growth
Respondents were asked to consider a list of potential factors that could constrain
business growth and highlight those that apply to them.
Sizeable proportions of businesses mentioned transport costs, high energy costs, lack
of demand, increasing competition and over regulation.
Figure 16: Factors that are considered to be constraints on business growth,
prompted, multiple response (all respondents) (QD3)
U
nweighted sample base = 251
The constraints identified by respondents vary by sector. Businesses in the
construction industry are significantly more likely to mention transport costs, lack of
demand and lack of skilled labour. Those in the wholesale & retail trade are more likely
to mention the high cost of energy, business rates and lack of business support.
Those working in construction are also more likely to mention a lack of business
support.
38
Business Performance
Figure 17: Factors that are considered by respondents to be constraints on the
growth of their business, prompted, multiple response (all respondents) (QD3)
Rural
48%
41%
24%
58%
37%
19%
46%
53%
High cost of
energy
65%
39%
37%
51%
73%
48%
20%
26%
56%
48%
25%
42%
44%
Lack of
customer
demand
5%
64%
49%
29%
22%
62%
35%
16%
48%
52%
26%
40%
40%
Increasing
competition
5%
70%
36%
42%
44%
48%
37%
8%
54%
23%
29%
40%
38%
Over
regulation/red
tape
70%
28%
52%
39%
56%
28%
39%
34%
15%
45%
20%
36%
42%
Cash flow
5%
41%
45%
40%
30%
41%
23%
10%
56%
35%
19%
34%
35%
Business rates
40%
29%
18%
40%
46%
38%
28%
28%
54%
31%
36%
35%
33%
Interest
rates/cost of
finance
5%
31%
30%
31%
33%
20%
19%
34%
26%
13%
42%
30%
20%
High cost of
labour
5%
44%
32%
20%
40%
28%
13%
8%
19%
29%
21%
27%
19%
Access to
finance
5%
24%
22%
17%
19%
20%
19%
34%
26%
34%
14%
24%
16%
Lack of capital
for investment
5%
14%
27%
20%
29%
20%
15%
16%
33%
35%
14%
22%
20%
Lack of
appropriate
business
support
0%
24%
18%
21%
10%
20%
0%
2%
21%
36%
11%
19%
9%
Transport
infrastructure
(road, rail and
sea)
35%
2%
16%
21%
29%
20%
11%
0%
11%
18%
13%
15%
15%
Constraints with
premises or
location
5%
22%
8%
17%
6%
31%
8%
0%
16%
21%
21%
10%
25%
IT
infrastructure/la
ck of Broadband
30%
37%
9%
12%
1%
20%
17%
10%
18%
5%
11%
12%
19%
Education & health
52%
Admin & support
services
46%
Finance & real estate
75%
Prof, scientific and
technical activities
Urban
Arts, recreation & other
services
Transport, information
& communications
Construction
49%
Accommodation &
food services
Manufacturing
100%
Wholesale & retail
trade
Agriculture, mining &
utilities
Transport costs
e.g. fuel etc
39
Bedford Business Survey 2012
Urban
Rural
Arts, recreation & other
services
Education & health
Admin & support
services
Finance & real estate
Prof, scientific and
technical activities
Transport, information
& communications
Accommodation &
food services
Construction
Wholesale & retail
trade
Manufacturing
Agriculture, mining &
utilities
Lack of skilled
labour
10%
23%
21%
7%
21%
11%
13%
8%
19%
5%
13%
13%
15%
Difficulties with
obtaining
planning
permission
35%
2%
9%
10%
11%
20%
7%
0%
14%
5%
16%
10%
12%
Lack of training
available locally
5%
2%
1%
9%
19%
0%
8%
8%
7%
22%
11%
6%
12%
Access to public
transport
30%
1%
4%
10%
19%
10%
0%
8%
0%
15%
0%
6%
10%
Other
30%
12%
0%
9%
18%
0%
4%
2%
9%
23%
21%
7%
12%
None
0%
0%
6%
9%
11%
10%
16%
38%
2%
11%
11%
10%
12%
Don't know
0%
0%
0%
4%
0%
0%
0%
0%
0%
0%
0%
1%
1%
5
22
34
69
16
12
32
15
19
15
12
173
78
Unweighted
sample bases
6.4 Opportunities for business growth
Respondents were asked about what they consider to be amongst the three greatest
opportunities for their business’ growth. Responses were unprompted.
Some three-quarters of respondents (74%) were able to cite something. The most
frequently cited was that of new/more customers (including an improved customer
base, more work, account, sales etc). However, just slightly fewer cited marketing.
40
Business Performance
Figure 18: Opportunities for business growth, unprompted, multiple response – up to
3 (all respondents) (QD4)
U
nweighted sample base = 251 (Mentioned by at least 2%)
41
Bedford Business Survey 2012
6.5 Support activities that are important to businesses
Respondents were asked to cite spontaneously the three most important things their
local Council and other public sector organisations should do to help them grow their
business.
Just under two-thirds of respondents (64%) had a view on this and they were most
likely to cite lower business rates. Other suggestions cited by at least 2% of
businesses are shown below.
Figure 19: Important things local public sector organisations, including the local
Council, should do to help businesses grow, unprompted, multiple response – up to 3
(all respondents) (QD5)
Unweighted sample base = 251(Mentioned by at least 2%)
42
Quality of Local Area
7 Quality of Local Area
This section covers issues of relocation and satisfaction with respondents’ location.
7.1 Possible relocation
Respondents were asked if they envisaged their business outgrowing or relocating
their current premises over the next two or three years.
Around one in five (18%) did, which is slightly lower than in 2011 (21%), when the
figure had risen significantly from the 12% the previous year.
There are no significant differences across sub groups, with the exception of
businesses who rated council engagement poor; 28% of these envisage outgrowing or
relocating their current premises compared to 13% of those who rated it good (and
13% of those who rated it average).
43
Bedford Business Survey 2012
When asked about the sort of alternative premises that the business would be looking
for, answers were varied. Just under a fifth each mentioned office type buildings,
within the Bedford/South Bedfordshire area, buildings with car parking, more
room/larger buildings, smaller buildings or an industrial unit.
Figure 20: Sort of premises that businesses would expect to be looking for,
unprompted, multiple response, unprompted (where envisage outgrowing/relocating
premises) (QD7)
Unweighted sample base = 42
44
Quality of Local Area
Four in ten businesses that envisage outgrowing or relocating their premises (40%)
would like to be contacted by their local Council about help with finding new premises,
leaving six in ten who would prefer not to be contacted by their local Council (60%).
The figure wishing to be contact by their Council has risen from 26% in 2011.
There are no significant differences across sub groups.
7.2 Ratings as a place to do business
Respondents were asked to rate their location as a place to do business. Based just
on those providing a valid response (excluding ‘don’t knows’), more than two thirds of
businesses based in Bedford (69%) rate the area as good. One in ten rate the area as
poor (9%) and 22% rate it as neither good nor poor.
The proportion rating the area good has risen slightly compared to previous surveys;
67% in 2011 and 62% in 2010.
Those businesses more likely to rate the area good are:



Those whose business performance has improved (79%) or remained stable
(69%);
Those providing off-the-job training in the last year (79%);
Those who have contacted council services (75%).
Those businesses more likely to rate the area poor are:


Those who have not introduced new products or services (12%);
Those with 1-9 employees (10%).
45
Bedford Business Survey 2012
8 Council Business Engagement
This section examines views on how well local businesses feel their local Council
engages with businesses and what services, if any council services have been used.
8.1 Views on Council engagement with businesses
Respondents were asked to indicate how well they feel that Bedford Borough Council
engages with businesses. Their views were more likely to be negative than positive
and, in fact, more than four in ten of those providing a valid response (43%)
considered engagement between the Council and businesses to be poor. This
contrasts with about one in six who consider it to be good (16%).
Figure 21: Rating of how well respondents feel that Bedford Borough Council
engages with businesses (all respondents, where provided a valid response) (F1)
Unweighted sample base = 219
There are few significant differences across sub groups, however, those businesses
that reported a deteriorated business performance were more likely to rate council
engagement poor (62%), as were those with 1-9 employees (47%).
46
Council Business Engagement
The proportion rating the Council good is about the same as in 2011. However, the
proportion rating the Council poor has fallen since 2011.
Figure 22: Rating of how well respondents feel that Bedford Borough Council
engages with businesses over time (all respondents, where provided a valid
response) (F1)
Unweighted sample bases in parentheses
47
Bedford Business Survey 2012
In terms of suggestions of how the Council could better engage with businesses, these
centre on more communication and engagement, with three in ten businesses
suggesting this on a spontaneous basis.
All suggestions made by at least 1% of respondents are listed below:
More communication / engagement (inc. meetings)
Better understanding of individual business needs and the market
Provide information of developments / changes / business
opportunities
Reduce rates / costs
More support for small businesses
Be more proactive
Networking conferences / seminars / forums
More help / support generally
More advertising / promotion of their business
Improve the area / more attractions / businesses
Make us aware of what is available / what they offer for
businesses
Better parking facilities (inc. free/ reduced rates)
Less red tape/ bureaucracy
More events/ open days/ workshops
More investment / grants / funding
Spend money wisely / stop wasting money
Improve the economy (inc. levels of employment)
Ease planning restrictions/ More support for planning
48
31%
7%
7%
7%
5%
5%
5%
5%
4%
3%
2%
2%
2%
2%
1%
1%
1%
1%
Council Business Engagement
8.2 Contact and satisfaction with council services
When asked whether businesses had contacted a list of council services within the last
12 months, just over a half (53%) answered in the affirmative. Environmental Health
has been contacted by one in five businesses, as has planning. Slightly fewer
businesses have been touch with the Council about Trading Standards and business
rates (where more than standard billing information).
Contact with services is at the same level as 2011, when 53% of businesses had
contacted any council services.
Figure 23: Council services which businesses have contacted in the last 12 months
(all respondents) (QF3a)
Unweighted sample base = 251
Those businesses most likely to have contacted at least one Council service are:



Those undertaking training (64%);
Those who have introduced new products or services (63%);
Those whose business has improved (59%) or remained stable (57%);
49
Bedford Business Survey 2012
The table below shows which Council services have been contacted by which size of
business. Whilst there are no significant differences the data suggests that 25-49
employee sizeband are less likely to contact council services than other sizebands.
Figure 24: Council services which businesses have contacted in the last 12 months,
by size (all respondents) (QF3a)
50
1-9
10-24
25-49
50+
Environmental Health
19%
22%
41%
29%
Planning
18%
17%
38%
35%
Trading Standards
14%
8%
10%
14%
Business rates (where more than
standard billing information)
12%
11%
22%
13%
Transport
8%
10%
20%
16%
Economic Development / Invest
in Regeneration
5%
10%
8%
2%
Other
6%
16%
21%
21%
None
49%
40%
17%
38%
Unweighted sample bases
153
48
28
22
Council Business Engagement
There are few significant differences by sector, although businesses in professional &
scientific activities are more likely to have contacted planning (28%) than those in the
wholesale & retail trade (12%). The table below shows the full breakdown by sector.
Figure 25: Council services which businesses have contacted in the last 12 months,
by size (all respondents) (QF3a)
Education & health
11%
11%
38%
17%
18%
37%
Planning
35%
11%
25%
12%
11%
1%
28%
16%
38%
18%
31%
Trading Standards
Business rates (where more than
standard billing information)
Transport
Economic Development / Invest
in Regeneration
Other
0%
28%
17%
7%
43%
10%
5%
16%
16%
11%
2%
35%
4%
8%
12%
13%
0%
13%
26%
23%
13%
21%
35%
2%
8%
10%
1%
0%
8%
24%
19%
9%
0%
0%
1%
5%
3%
2%
10%
7%
10%
9%
0%
5%
0%
0%
6%
7%
12%
0%
11%
40%
2%
14%
0%
30%
64%
45%
48%
14%
69%
54%
18%
37%
66%
37%
5
22
34
69
16
12
32
15
19
15
12
None
Unweighted sample bases
Arts, recreation &
other services
72%
Admin & support
services
Prof, scientific and
technical activities
12%
Finance & real
estate
Transport,
information &
communications
16%
Accommodation &
food services
Construction
12%
Wholesale & retail
trade
Manufacturing
5%
Agriculture,
mining & utilities
Environmental Health
51
Bedford Business Survey 2012
Businesses who had contacted specific Council services were asked to rate how
satisfied they were with the service provided. They were asked to use a 5 point scale,
where 1 indicated very dissatisfied and 5 indicated very satisfied.
Satisfaction varies widely. The highest level is expressed for Trading Standards,
where more than a half of businesses are very satisfied. Economic Development and
Environmental Health also score well. In contrast, about one in five of those
contacting Planning and Transport are very dissatisfied.
Figure 26: Satisfaction with Council services (where have contacted a Council service
in last 12 months) (F3b)
Unweighted sample bases in parentheses
52
Council Business Engagement
53
Bedford Business Survey 2012
9 Broadband and e-business
Respondents were asked about speed of broadband and whether they planned to
increase their speed in the future. They were also asked what e-business measures
they use now or plan to use in the future.
9.1 Broadband speed
Nearly a half of businesses said their current broadband speed was standard (2-24
MBPS), with a further one in five saying slow (0-2 MBPS). Just one in ten have
superfast broadband, whilst a similar proportion don’t have access to broadband at
their site. These proportions are similar to those collated in 2011.
The proportion without broadband rises to 17% among businesses based in rural
locations, 16% among sole traders and 13% among businesses in wholesale and
retail. The proportion with slow broadband also rises among rural businesses (36%
compared to 12% in urban businesses).
Figure 27: Current broadband speed at the business site (all respondents) (QG1)
Unweighted sample base = 251
54
Broadband and e-business
More than a half of businesses overall have plans to access broadband or increase its
speed in the next 3 years. This is much higher than the figure collated in 2011 (21%),
although the time frame for the question in 2011 was ‘in the next 2 years’.
Whilst there are no significant differences by size of business or sector, the data
suggests that those in education & health are least likely to plan to access/increase the
speed of broadband.
Figure 28: Proportion of businesses with plans to access broadband/increase the
speed in the next 3 years (all respondents) (QG2)
Unweighted sample bases in parentheses
Other groups which are more likely to access or increase the speed of broadband are:


Those who have introduced new products or services (67%);
Private limited companies (63%).
55
Bedford Business Survey 2012
Among those intending to access or increase their broadband speed, 71% will access
superfast speed, 21% will access standard speed and 1% will access slow speed. A
small proportion (7%) are not sure what speed it will be.
More businesses are now intending to increase their broadband speed to superfast or
standard than in 2011, when 65% said they intended to access superfast broadband,
8% standard broadband, 0% slow broadband (with 27% unable to respond).
56
Broadband and e-business
9.2 Current and future use of specific ebusiness facilities
Businesses were asked which of a list of activities they use now or plan to use in the
next 3 years.
Two thirds of businesses currently have a company website for promotion, with around
one in six planning to do so in the next 3 years.
Four in ten currently use social media and more than a third have web based
management information systems. Around a quarter each have remote access to
networks and eCommerce/online trading. One in ten businesses (10%) don’t use or
plan to use any of the ebusiness facilities listed.
The column in blue on the right hand side shows the proportions of businesses who
said they already had the specific ebusiness facilities in 2011. Higher proportions now
have most of the ebusiness facilities.
Figure 29: Current and future use of specific eCommerce facilities (all respondents)
(G4)
2011:
66%
34%
21%
23%
22%
13%
Unweighted sample base = 251
57
Bedford Business Survey 2012
In focusing on some of the key themes above, those businesses more likely to not
use/plan to use a company website for promotion are:


Sole traders (26%);
Those in the wholesale & retail trade (25%) and in construction (24%);
In contrast, the 10% who currently use video streaming or conferencing are more likely
to be:

58
Businesses in professional & scientific activities (18%).
Innovation
10 Innovation
This section explores new product or process development activity.
10.1 New products or processes
One in five businesses (19%) has introduced a new product, 18% a new service and
15% a significantly improved process in the last 12 months. This leaves 65% who have
undertaken none of these activities.
Those undertaking no such activities in 2011 was higher (71%).
59
Bedford Business Survey 2012
Thus in total, 35% of businesses in 2012 have introduced a new product, service or
process. The larger the business, the more likely they are to innovate. This is also
true of businesses in administration & support and finance & real estate.
Figure 30: Proportion of businesses that have introduced a new product, service or
significantly improved process in the last 12 months (all respondents) (QH1)
Unweighted sample bases in parentheses
Other types of businesses which are more likely to innovate are :




60
Those who have undertaken training (48%);
Those who have experienced improved performance (48%);
Those who have more than one location (46%);
Those who have contacted council services (42%).
Innovation
Innovation amongst businesses is set to be about the same in the next 12 months.
More than one in five businesses (22%) expects to introduce a new product in the next
12 months while a slightly lower proportion (18%) expects to introduce a new service
and one in ten (10%) a significantly improved process. This leaves 62% unlikely to
innovate.
This compares to similar figures in 2011; 24% expecting to introduce a new product,
20% a new service, 13% a new process.
In total, 35% expect to introduce a new product, service or process and the likelihood
of innovation will, once again, increase by business size. In terms of sectors,
accommodation & food services, finance & real estate and administration & support
services are most likely to anticipate innovation in the next 12 months.
Figure 31: Proportion of businesses that expect to introduce a new product, service
or significantly improve a process in the next 12 months (all respondents) (QH2)
U
nweighted sample bases in parentheses
61
Bedford Business Survey 2012
11 Profile of Organisations within Bedford
The sample data of 251 respondents within the Bedford Borough Council area was
weighted by establishment size and industry sector to ensure that the data is
representative of the business population within Bedford. Therefore, the sample
profile which will be reported on in this section will reflect the profile of businesses in
the borough.
11.1 Industry sector profile
The industry sector that accounts for the highest proportion of businesses in the
borough is the wholesale & retail trade. Construction and professional, scientific and
technical activities each account for more than one in ten of businesses in the
borough. The profile of businesses by industry is summarised in the figure below.
Figure 32: Industrial profile of businesses (all respondents) (QA4)
Unweighted sample base = 251
62
Profile of Organisations within Bedford
11.2 Number of staff employed
Larger organisations tend to be over-sampled in order to achieve robust sample sizes,
but because the data is weighted, the survey reflects the actual employer population
profile by organisation size.
Businesses with less than 10 employees account for the majority of respondents.
Businesses with 100+ employees account for just 1% of respondents.
Figure 33: Organisation size (all respondents) (A2)
Unweighted sample base = 251
At sector level, smaller businesses predominate to an even greater extent than the
average within professional & scientific activities (93% employ up to 9 staff), transport
& information (92%), construction (92%) and agriculture & mining (90%). A higher
proportion of businesses than average within education & health (6% employing 50+
staff), manufacturing (5%) and the wholesale & retail trade (4%) are among the largest
firms.
11.3 Number of sites
About eight in ten businesses (79%) do not have sites elsewhere. This proportion
declines as organisation size increases (from 85% of 1-9 employers to just 34% of 50+
employers). Multi-site businesses therefore account for 21% of all respondents.
The vast majority of businesses in arts & recreation (98%), manufacturing (96%),
agriculture & mining (95%) and construction (90%) all operate from a single site.
Finance and real estate (40%), wholesale and retail trade businesses (32%) and
accommodation & food services (32%) are more likely to operate from more than one
site.
About a quarter of multi-site businesses (26%) are headquarters at that site. This
equates to 6% of businesses in the borough.
63
Bedford Business Survey 2012
Amongst the branches and subsidiaries in the borough, most (93%) have a UK
headquarters. The remainder (7%) have headquarters based overseas (equates to
1% of all businesses in the borough).
11.4 Company status
Amongst businesses within the borough, more than half are private limited companies,
increasing to 92% of finance & real estate businesses and 73% of manufacturing
businesses.
A third of businesses are sole traders, with a particularly high proportion found in the
education and health sector (67%).
Figure 34: Company status (all respondents) (QA5)
U
nweighted sample base = 251
64
Profile of Organisations within Bedford
11.5 Length of time established
More than half the businesses in Bedford (61%) have been established for 10 years or
more.
There is a higher than average proportion of longer established businesses in
agriculture & mining (100% have been established for 10+ years) and manufacturing
(90%). Nearly all 25-49 employers (96%) and 50+ employers (93%) have been
established for more than 10 years.
One in ten (10%) has been established for less than 3 years.
There are a higher than average proportion of newer businesses amongst those in
accommodation & food services with 38% of these established for less than 3 years.
Figure 35: Length of time established (all respondents) (QI1)
U
nweighted sample base = 251
65
Bedford Business Survey 2012
11.6 Business advice and support received on start up
Around a fifth of Bedford businesses (21%) have been in operation for less than 5
years. Three in ten of these businesses (30%) received some advice or support when
setting up in business. This is a similar proportion to that in 2011 (27%), but lower
(though not significantly so) than in 2010 (47%).
Among those businesses receiving advice or support, the most important support
activities were Business Link services (19%), followed by receiving training (10%),
through the franchise (10%), financial advice (8%) and networking opportunities (6%).
In terms of advice that they would have liked to receive, business support/advice was
top of the list (11% of those that did not receive support). Other support that would
have been desirable included new business start-up advice (8%) and financial
support/funding (3%).
11.7 Annual turnover
More than a half of Bedford businesses surveyed provided an estimate of their gross
annual turnover at their site. A half of all businesses (50%) provided an estimate of
turnover of less than £500,000. Figures in blue on the right hand side of the graph are
the proportions based on valid responses only.
Figure 36: Gross Annual Turnover at that site (all respondents) (I5)
Valid
responses:
22%
15%
33%
12%
9%
5%
4%
U
nweighted sample base =251
66
Profile of Organisations within Bedford
11.8 Information that businesses would like to receive
Half the businesses (54%) would like to receive information. The main areas are:
Business Supports
Faster broadband
Introducing innovating products, services or processes
Reducing Your Carbon Footprint
Business Continuity Planning
Corporate Social Responsibility
32%
30%
21%
19%
18%
13%
The demand for faster broadband is particularly high among businesses in
professional & scientific activities (47%). However, the wholesale & retail trade are
more likely to say they do not want to receive any information (51%).
67
Bedford Business Survey 2012
Appendix
The following table summarises the population profile of Bedford Borough Council, the
number of interviews conducted and the sample bases following weighting of the data
by size and sector.
Population (n)
Population %
No. of
interviews
conducted
No. of cases
(weighted)
1-9
5385
85%
153
5385
10-24
575
9%
48
590
25 - 49
205
3%
28
190
50-99
90
1%
13
100
100+
75
1%
9
65
250
4%
4
144
365
6%
22
508
35
1%
1
8
795
13%
34
795
1190
19%
69
1190
220
3%
6
349
425
7%
16
425
455
7%
6
326
85
1%
8
206
230
4%
7
189
925
15%
32
847
455
7%
19
453
115
2%
5
182
330
5%
10
253
455
7%
12
456
6330
100%
251
6330
Organisation size
Industry sector
Agriculture, Forestry and
Fishing
Manufacturing
Water supply, sewerage,
waste management and
remediation activities
Construction
Wholesale and retail trade;
repair of motor vehicles and
motorcycles
Transportation and storage
Accommodation and food
service activities
Information and
communication
Financial and insurance
activities
Real estate activities
Professional, scientific and
technical activities
Administrative and support
service activities
Education
Human health and social work
activities
Arts, entertainment and other
activities
Total
68
Appendix
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69