Unlocking Untapped Potential – A
market segmentation approach for
enterprise promotion
Jane Walton and
Amisha Miller
16th November 2009
Enterprise UK
increases entrepreneurship in the
UK through four programmes
Make Your Mark
prepares the next
generation of
enterprising Brits
Enterprising
Britain celebrates
and inspires
enterprising places
Entrepreneurship
Now stimulates
enterprise to help us
out of the recession
Global
entrepreneurship
gives enterprising Brits
global ambition
Make Your Mark prepares the next generation of enterprising Brits.
It equips and inspires young people to be entrepreneurial through brilliant
enterprise experiences and role models.
Entrepreneurship Now reframes the recession as a time of
entrepreneurial opportunity.
It moves people who are closer to start-up or under-represented in
enterprise into being entrepreneurial now.
Enterprising Britain helps more places to become enterprising more
quickly.
It promotes and shares innovative ideas and effective practice through
Enterprising Places and the Enterprising Britain competition.
Global Entrepreneurship builds momentum around Global
Entrepreneurship Week to give enterprising people in the UK a global
perspective, ambition and contacts.
Entrepreneurship Now
Learning from activity to date to engage…
those under-represented in enterprise (women, BME & older audiences)
those at risk of unemployment & newly unemployed (e.g. skilled; 18-24yr olds)
…through their enterprise needs
Entrepreneurship and the
economic climate
•
The UK economy needs entrepreneurs now more than ever. Fresh thinkers,
who spot opportunities, apply their entrepreneurial talents and overcome
obstacles to create new jobs and growing businesses.
•
But market failures persist in the field of enterprise promotion and support.
•
Increasing pressures are being placed on public spending.
•
It is in this context that an alternative approach has been developed by
Enterprise UK to understand and connect with people based on their
enterprising attitudes and entrepreneurial behaviours.
•
This offers a radically different approach for the promotion of enterprise
activity with segments that transcend across various audience groups – i.e.
enterprise characteristics that cut across gender, ethnicity and age.
•
This research aims to help make an immediate impact on improving the
accessibility and relevance of advice, inspiration and support in these harsh
economic times.
Project context
Builds on previous segmentation research:
• the 2005 GfK NOP segmentation of 14 – 30 year olds (tracker survey)
• the 2008 Futures Company (Henley Centre) qualitative study of the
over 50s, women and BME groups
The key objectives of the 2009 research were to:
• test the robustness of the qualitative research and understand the
level of untapped potential in the general population
•segment the general population on the basis of their attitudes
towards enterprise and entrepreneurial behaviour
• use the resulting profiling information to inform Enterprise UK’s
marketing and communications strategy and the promotion and
development of enterprise
Methodology
Methodology:
• 12.5 minute telephone survey conducted by GfK NOP
• Fieldwork conducted between 5th and 24th May 2009
• 1587 adults surveyed (aged 16+) across England
• Weighted to match the profile of adults in England
•Factor analysis undertaken – 7 factors created, and 7 clusters (segments)
Factors:
• Potential (e.g. enjoy creativity, like sharing ideas)
• Knowledge (e.g. know who to talk to about setting up a business, have
necessary business skills)
• Low confidence (e.g. fear of failure, uncertainty about what to do with life)
• Caution (e.g. prefer to stick with what they know, no interest in setting up a
business)
• Opportunity (e.g. make quick decisions, believe in big risks for big rewards)
• Structure (e.g. structure important, prefer to plan for future)
• Individualism (e.g. like to be left to own devices, choose own path)
Overview of Segments
High
enterprising
behaviour
7%
13%
10%
INDEPENDENCE
SEEKERS
UNCERTAIN
ENTHUSIASTS
SELF STARTERS
18%
CREATIVE
TEAM PLAYERS
Low
enterprising
belief
High
enterprising
belief
18%
16%
STRUCTURED
PLANNERS
18%
RISK AVOIDERS
CAUTIOUS
AVOIDERS
Low enterprising
behaviour
Self Starter
Self Starters possess the attitudes, skills and knowledge to
take an enterprise forward; they are confident, driven,
ambitious, and like a challenge.
Self Starters take risks and are individualistic. They see
themselves as entrepreneurial by nature and may have been on
a number of enterprise journeys.
This segment is male dominated and older than average.
Self Starter
Focused
Self-confident
Self-reliant
Flexible
Core
Characteristics
Open-minded
Driven
Determined
Achievers
Self Starters are very self-reliant and motivated individuals who enjoy a
challenge
Self Starter
Enterprise Triggers & Barriers
ENTERPRISE TRIGGERS
• Drive
• Focus
• Ambition
• Control
• Previous success
• Skills and experience
ENTERPRISE BARRIERS
• May get impatient and bored
• Could move on to something else
too quickly without maximising
potential of one idea
OPPORTUNITIES
• Connect with Business Link, other mainstream business support services
and entrepreneurs
• Provide easy to access, “just in time” information
• Inspire others
Overview of Segments
High
enterprising
behaviour
7%
13%
10%
INDEPENDENCE
SEEKERS
UNCERTAIN
ENTHUSIASTS
SELF STARTERS
18%
CREATIVE
TEAM PLAYERS
Low
enterprising
belief
High
enterprising
belief
18%
16%
STRUCTURED
PLANNERS
18%
RISK AVOIDERS
CAUTIOUS
AVOIDERS
Low enterprising
behaviour
Independence Seeker
Independence Seekers are one of the more entrepreneurial segments.
The vast majority of Independence Seekers have set up a business,
charity or have been self employed at some point in their lives.
They have strong entrepreneurial attitudes and have the knowledge
and ideas for setting up in business. This group are driven by the
desire for independence and being their own boss.
Independence Seekers are more likely to be male and middle aged.
Independence Seeker
Creative
Relatively
risk averse
Confident
Ambitious
Core
characteristics
Disciplined
Structured
Determined
Ambitious and driven but considered and pragmatic when
evaluating risk
Independence Seeker
Enterprise Triggers & Barriers
ENTERPRISE TRIGGERS
ENTERPRISE BARRIERS
•
•
•
•
•
•
•
Believe they could ‘do it for
themselves’
Believe the potential benefits
outweigh those offered by a
company
Frustrated or bored with their
current career progression
Outgrown the company
•
Risk
Job stability
Used to working within the
structure of a company
Tend to dislike making quick
decisions
OPPORTUNITIES
• Connect with Business Link, other mainstream business support
services and role models
• Link with other nascent entrepreneurs
• Provide easy to access, “just in time” information
Overview of Segments
High
enterprising
behaviour
7%
13%
10%
INDEPENDENCE
SEEKERS
UNCERTAIN
ENTHUSIASTS
SELF STARTERS
18%
CREATIVE
TEAM PLAYERS
Low
enterprising
belief
High
enterprising
belief
18%
16%
STRUCTURED
PLANNERS
18%
RISK AVOIDERS
CAUTIOUS
AVOIDERS
Low enterprising
behaviour
Creative Team Player
Creative Team Players display all the characteristics of
budding entrepreneurs – they are creative, confident,
driven, and like to be free from structure. They also prefer
the security of a team environment.
They are likely to be driven by an idea or a passion.
Creative Team Players are younger and a high proportion are
still in education
Creative Team Player
Live for the
present
Opportunistic
Flexible
Core
characteristics
Team Players
Creative
Individualistic
Confident
Like to be free
from structure
Creative, confident and flexible but tend to prefer working in teams
so may lack the drive to take ideas forward
Creative Team Player
Enterprise Triggers & Barriers
ENTERPRISE TRIGGERS
•
•
•
•
•
Driven by ideas or passions
May have a related hobby
Want to do more with their skills
and interests
Better work-life balance
Inspired by others’ successes
ENTERPRISE BARRIERS
•
•
May be unsure of how to get
started
Less likely to start up alone
OPPORTUNITIES
•
•
•
•
Partner with others
Provide them with an opportunity to dip toes in water
Encouragement via informal networks
Focus on promoting skills and passions
Overview of Segments
High
enterprising
behaviour
7%
13%
10%
INDEPENDENCE
SEEKERS
UNCERTAIN
ENTHUSIASTS
SELF STARTERS
18%
CREATIVE
TEAM PLAYERS
Low
enterprising
belief
High
enterprising
belief
18%
16%
STRUCTURED
PLANNERS
18%
RISK AVOIDERS
CAUTIOUS
AVOIDERS
Low enterprising
behaviour
Uncertain Enthusiast
Uncertain Enthusiasts display certain enterprising characteristics,
but are hampered by low confidence and a lack of direction.
Nonetheless, they possess many ideas for businesses but few have
acted upon them.
The Uncertain Enthusiasts are demographically similar to the
Creative Team Players in terms of their age profile (younger) and
possess some similar entrepreneurial traits, but differ in terms of
their lower confidence and relatively low drive and ambition.
Uncertain Enthusiast
Creative
Driven
Fear failure
Lots of ideas
Core
characteristics
Influenced
by others
Thinkers rather
than doers
Low
confidence
Ambitious
Lots of ideas, ambitious, driven and creative, but lack the
confidence to see their ideas through to fruition
Uncertain Enthusiast
Enterprise Triggers & Barriers
ENTERPRISE TRIGGERS
ENTERPRISE BARRIERS
•
•
•
•
Full of ideas which they would like
to see through
Comfortable with risk
Decisive and driven
•
•
Need for lots of support from
others
High fear of failure
Heavily influenced by others
OPPORTUNITIES
•
•
•
Support and advice from existing entrepreneurs
Provide taster-sessions to enable them to trial entrepreneurship
Peer to peer networking and support
Overview of Segments
High
enterprising
behaviour
7%
13%
10%
INDEPENDENCE
SEEKERS
UNCERTAIN
ENTHUSIASTS
SELF STARTERS
18%
CREATIVE
TEAM PLAYERS
Low
enterprising
belief
High
enterprising
belief
18%
16%
STRUCTURED
PLANNERS
18%
RISK AVOIDERS
CAUTIOUS
AVOIDERS
Low enterprising
behaviour
Structured Planner
Structured Planners are confident and desire a challenge, but
differ from others by their strong desire for structure, order and
discipline and an aversion towards risk.
They are younger than average, with a skew towards females
and the highest proportion of individuals from an Indian
background.
A higher than average proportion works full time.
Structured Planner
Confident
Disciplined
Risk averse
Core
characteristics
Plan ahead
Like a
challenge
Ambitious
Individualistic
Focused
Driven, focused and ambitious, but have low interest in setting up
and few business ideas
Structured Planner
Enterprise Triggers & Barriers
ENTERPRISE TRIGGERS
• Being own boss may be attractive
• Wanting to do more with their
skills
• Recent graduates may be
struggling to find work, so this
could present a good alternative
• More likely to start up if they think
will be a “success”
ENTERPRISE BARRIERS
• See setting up as too much of a
high risk
• Low interest in business so harder
to engage initially
• Current financial crisis more likely
to put this group off
OPPORTUNITIES
• Intrapreneurship, being entrepreneurial within the workplace
• Higher level of volunteering in this group presents an opportunity
• Business-focused networking opportunities
Overview of Segments
High
enterprising
behaviour
7%
13%
10%
INDEPENDENCE
SEEKERS
UNCERTAIN
ENTHUSIASTS
SELF STARTERS
18%
CREATIVE
TEAM PLAYERS
Low
enterprising
belief
High
enterprising
belief
18%
16%
STRUCTURED
PLANNERS
18%
RISK AVOIDERS
CAUTIOUS
AVOIDERS
Low enterprising
behaviour
Risk Avoider
Risk Avoiders are distinguishable from other segments by their
individualism coupled with a general lack of engagement
towards the concept of starting a business.
They are most likely to be driven to entrepreneurship by
necessity.
Risk Avoiders are notably older than average, with a skew
towards females. Just a fifth agreed that they were at the right
age to start a business.
Risk Avoider
Highly risk
averse
Lack
ambition
Individualistic
Core
characteristics
Few ideas
Low business
interest
Lack drive
Fear failure
See themselves
as too old to
start up
Extremely risk averse, with a low interest and few ideas for businesses,
but may be driven through necessity
Risk Avoider
Enterprise Triggers & Barriers
ENTERPRISE TRIGGERS
• Necessity
• Redundancy
• Need to top up pension
• A safety net
ENTERPRISE BARRIERS
• Risk averse
• Fear of failure
• Low levels of drive and ambition
• They perceive age to be a barrier
OPPORTUNITIES
• Focus messaging away from “enterprise” – not a compelling message
• Build on skills and experience
• Build outreach into other sources of support (less likely to go to traditional
support services)
Overview of Segments
High
enterprising
behaviour
7%
13%
10%
INDEPENDENCE
SEEKERS
UNCERTAIN
ENTHUSIASTS
SELF STARTERS
18%
CREATIVE
TEAM PLAYERS
Low
enterprising
belief
High
enterprising
belief
18%
16%
STRUCTURED
PLANNERS
18%
RISK AVOIDERS
CAUTIOUS
AVOIDERS
Low enterprising
behaviour
Cautious Avoider
Cautious Avoiders do not seem to exhibit any entrepreneurial
tendencies: they lack confidence, are risk averse and do not
like being creative or sharing ideas.
This segment are similar to the Risk Avoiders in terms of
demographic profile (slightly older and female) and their
general lack of engagement with enterprise.
Again, they are most likely to turn to enterprise through
necessity.
Cautious Avoider
Perceived lack
of enterprise skills
Very risk averse
Low drive
Structure very
important
Core
characteristics
Cautious
Low interest in
business
Not creative
Cautious Avoiders have low interest in setting up businesses and few
business ideas
Cautious Avoider
Enterprise Triggers & Barriers
ENTERPRISE TRIGGERS
• Necessity
• Redundancy
• Need to top up pension
• A safety net
ENTERPRISE BARRIERS
• Unwillingness to ask for help
• Risk averse
• Fear of failure
• Low levels of drive and ambition
OPPORTUNITIES
• Focus messaging away from “enterprise” – not a compelling message
• Build on skills and experience
• Build outreach into other sources of support (less likely to go to
traditional support services)
Overview of Segments
High
enterprising
behaviour
7%
13%
10%
INDEPENDENCE
SEEKERS
UNCERTAIN
ENTHUSIASTS
SELF STARTERS
18%
CREATIVE
TEAM PLAYERS
Low
enterprising
belief
High
enterprising
belief
18%
16%
STRUCTURED
PLANNERS
18%
RISK AVOIDERS
CAUTIOUS
AVOIDERS
Low enterprising
behaviour
Age Profile
Age profile
TOTAL
Structured
Planner
Risk Avoider
15
17
7 5 13
13
20
25
16
9 5
28
Cautious
Avoider
9 11
16-24
© 2009 GfK NOP
Base: 1,422
(all segmented respondents )
17
20
Creative Team
Player
Independence
Seeker
18
21
Uncertain
Enthusiast
Self Starter
12
45
20
20
24
14
21
24
25-34
18
17
18
13
12
41
16
9
26
13
16
23
26
15
35-44
20
45-54
13
16
14
13
22
25
55-64
65+
Age Profile
Age profile
Independence seeker 4
Cautious Avoider
96
9
91
Creative Team Player
28
Self Starter
72
9
91
25
Uncertain Enthusiast
Risk Avoider
75
7
Structured Planner
93
21
TOTAL
79
15
0
85
20
40
16-24
Base: 1,422
(all segmented respondents )
60
25+
80
100
Age 16-24, by segment
Cautious Avoider
10%
Self Starter
4%
Independence
Seeker
4%
Risk Avoider
7%
Creative Team Player
33%
Structured Planner
25%
Uncertain Enthusiast
17%
Base: 218
(all segmented respondents aged 16-24)
Gender Profile
Gender profile
TOTAL
49
Structured
Planner
42
58
Risk Avoider
42
58
Uncertain
Enthusiast
53
Creative Team
Player
Cautious Avoider
Independence
Seeker
Base: 1,422
(all segmented respondents )
47
63
Self Starter
© 2009 GfK NOP
51
37
51
49
39
61
61
39
Male
Female
Women, by segment
Cautious Avoider
21%
Self Starter
5%
Independence
Seeker
10%
Creative Team
Player
17%
Risk Avoider
18%
Uncertain
Enthusiast
9%
Structured Planner
20%
Base: 739
(all segmented women)
Men, by segment
Cautious Avoider
15%
Self Starter
9%
Independence Seeker
16%
Risk Avoider
14%
Creative Team Player
19%
Structured Planner
16%
Uncertain Enthusiast
11%
Base: 684
(all segmented men)
Ethnic Group
Ethnicity profile
TOTAL
Structured
Planner
Risk Avoider
Uncertain
Enthusiast
Self Starter
Creative Team
Player
12
83
17
98
2
89
11
95
5
89
11
Cautious
Avoider
93
7
Independence
Seeker
94
6
Base: 1,422
(all segmented respondents )
© 2009 GfK NOP
88
White
Non white
Note: proportions have been re-based on those answering
White respondents
Cautious Avoider
18%
Risk Avoider
18%
Structured Planner
17%
Base: 1,259
(all segmented white respondents)
Self Starter
7%
Independence Seeker
13%
Creative Team Player
18%
Uncertain Enthusiast
9%
BAME respondents
Cautious Avoider
13%
Self Starter
Independence Seeker
4%
9%
Risk Avoider
5%
Creative Team Player
23%
Structured Planner
33%
Uncertain Enthusiast
13%
Base: 128
(all segmented BME respondents)
Implications
• In the short term it may be a mistake to think about this in
terms of growing the size of segments
• So the focus should be on improving the business success of
different segments and different audiences within segments
• This has implications for communications approaches but also
policy work and enterprise support.
• The question remains about the extent to which we should
support cautious and risk avoiders.
Benefits
• Cost-effective, evidence-based, mirrors best practice in
commercial sector advertising
• Applicable across different Departments and policy areas
• Enhances impact
• Avoid potential deadweight in marketing enterprise support to
self-starters
Taking this forward
• Entrepreneurship Now – trialling communications approaches
through “two calls to action” and access points to our website
• Developing simplified survey to help identify segments
• Working with our ambassadors to improve segment and
audience diversity, particularly in the North West
• Explore broader implications of work with BIS in a workshop?
• Exploring implications of regional booster research with three
RDAs and cross-RDA forum jointly with BIS
Discussion
•
•
•
•
•
Any questions?
Uses
Implications for your work
Comments and feedback
Which segment do you think you are?
More information
• For more information on the campaign in Yorkshire and
Humber please contact Jane Walton [email protected]
• For more information on the segmentation research, and
other evaluation that Enterprise UK is conducting, please
contact Amisha Miller [email protected]
Measuring the impact of
enterprise activities
Overview
•
•
•
•
•
•
Why evaluate?
Make Your Mark’s experience
Look at overall aims
How you could evaluate GEW
Methods
Further information
Why do Enterprise UK evaluate?
• To improve activities for participants and partners
• To demonstrate to stakeholders such as funders, government
and press that activities are making a difference.
Why entrepreneurship?
Enterprise UK’s aims
• Aim 1: To Increase Enterprise Culture - Attitudes,
Intent and Behaviour
• Aim 2: To Increase Enterprise Skills and Experiences
• Aim 3: To create a supportive environment for
entrepreneurship
Enterprise UK’s approach
Aim 1: To Increase
Enterprise Culture Attitudes, Intent and
Behaviour
Aim 2: To Increase
Enterprise Skills and
Experiences
Aim 3: To create a
supportive environment
for entrepreneurship
1A) More positive social attitudes
towards entrepreneurship
2A) Increased enterprise skills
among young people
3A) Increased embedding of
enterprise
1B) More positive individual
attitudes towards
entrepreneurship
2B) Participation in enterprise
experiences
3B) Increased capacity of partners
to support potential entrepreneurs
1C) Increased entrepreneurial
behaviour
2C) Interaction with entrepreneurs
3C) Improved ability of Enterprise
Insight to influence enterprise in
the UK and globally
To Increase Enterprise Culture - Attitudes, Intent and
Behaviour
Sub - Aim
Outcomes
Measurement
Entrepreneurship
has a greater and
more positive
presence in the
media
More positive media
coverage of
entrepreneurship in the
media
•Media monitoring
Improved perceptions of
entrepreneurs as a positive
force for social and
environmental change
•National data e.g.
Global Entrepreneurship
Monitor
•Focus groups and
interviews
•Case studies
Entrepreneurship
increasingly considered a
desirable and viable
career
To increase enterprise skills and experiences
Sub-Aim
Outcomes
Measurement
To increase enterprise skills
amongst individuals
1. Increased enterprise skills amongst
individuals
•Participant surveys
•Partner surveys
•Focus groups and interviews
•Case studies
To increase interaction with
entrepreneurs
2. More people meet entrepreneurs
Embedding enterprise across the year
Aim
Outcomes
Measurement
To improve ongoing
support for entrepreneurship throughout the year
1. More partners sustaining our work by
continuing projects
•Stakeholder analysis
•Partner registration and surveys
•Focus groups and interviews
•Case studies
•High impact criteria
2. Improved investment and resources
in enterprise
NEW for 2009- Measuring high impact events
• The event:
− The event inspires and motivates participants
− The event is internationally focused
− The event develops participants’ skills
− The event connects people and allows them to exchange ideas
in a meaningful way
− There are clear next steps taken by participants along their
enterprise journey after the event
− The event involves role models
− The event has practical advice and guidance that will help
someone to start or grow their business
− The event has scale - attendance of over 200 people
Further information
• A GEW evaluation brochure will be posted on
http://www.enterpriseuk.org/publications/all which covers
templates of all our surveys, along with guidance and advice
on how to use them.
• Email Amisha [email protected] if you want any more
information about our evaluation.