Leicester and Leicestershire Business Survey 2015

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Leicester and Leicestershire

Business Survey 2015

A Leicester and Leicestershire

Enterprise Partnership

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Prepared for: Leicester and Leicestershire Enterprise Partnership

Prepared by: June Wiseman, Research Director and Emma Parry, Associate Director, BMG Research Ltd

Date: April 2015

Produced by BMG Research

© Bostock Marketing Group Ltd, 2015 www.bmgresearch.co.uk

Project: 9556

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1 Executive Summary ... 1

1.1 Business population profile ... 1

1.2 Business Conditions ... 1

1.3 Business Support ... 3

1.4 Workforce and Recruitment ... 4

1.5 Skills and Training... 5

1.6 Transport ... 6

1.7 Environmental Issues ... 7

1.8 Regulatory Issues ... 7

1.9 Corporate Social Responsibility ... 8

1.10 Business Relocation ... 9 2 Background ... 10 2.1 Method ... 10 2.2 Note on reporting ... 12 3 Sample Profile ... 14 3.1 Business size ... 14 3.2 Industry sector ... 15 3.3 Number of sites ... 18 3.4 Exporting ... 19 4 Business Conditions ... 21 4.1 Key findings ... 21

4.2 Recent business performance ... 22

4.3 Aims for growth ... 23

4.4 Business planning ... 25

4.5 Expectations of business performance ... 26

4.6 Perceptions of general business conditions ... 29

4.7 Concerns and constraints to growth ... 30

5 Business Support ... 36

5.1 Key findings ... 36

5.2 Use of external advice and information ... 36

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5.4 Perceived usefulness of Business Gateway services ... 39

6 Workforce and Recruitment... 43

6.2 Recruitment ... 44

6.3 Recruitment difficulties ... 44

6.3.1 Causes of hard-to-fill vacancies ... 46

6.3.2 Skill shortage vacancies ... 48

6.4 Plans to recruit ... 49

6.5 Trainee opportunities within businesses ... 50

6.5.1 Apprenticeships ... 50

6.5.2 Traineeships ... 52

6.5.3 Work experience placements ... 54

6.5.4 Reasons for not offering training programme and placement opportunities .... 56

6.6 Dealings with educational establishments ... 57

7 Skills and Training ... 58

7.2 Training activity ... 58

7.3 Reasons for not delivering training ... 59

7.4 Use of external training providers ... 60

7.5 Finding appropriate training ... 62

7.6 Skill gaps ... 64

7.7 Plans to train or up-skill staff in the next 12 months ... 68

8 Transport ... 72

8.2 Improvements required ... 72

8.3 Impact of planned disruption ... 75

9 Environmental Issues ... 76

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10.3 Interaction with regulators ... 84

10.3.1 Perception of level of understanding amongst regulatory officers... 87

10.3.2 Levels of confidence in regulatory officers ... 88

10.4 Better Business for all ... 89

11 Corporate Social Responsibility ... 90

11.2 Businesses’ work with local charities and community projects ... 90

12 Business Relocation ... 92

12.2 Plans to relocate ... 92

12.3 Reasons for relocation ... 92

12.4 Type of premises sought ... 93

12.5 Destination ... 93

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1 Executive Summary

The 2015 Leicester and Leicestershire Business Survey was commissioned in October 2014 by the Leicester and Leicestershire Enterprise Partnership (LLEP). The survey has been conducted since 1994, providing a robust source of intelligence about the local economy. It is used by the LLEP and local business and other organisations to assess how the local economy is performing.

The main objective of the research is to provide the LLEP and partners with information from the business community to inform strategic planning, decision-making, evidence-based policy and information to help attract funding.

Between November 2014 and January 2015 (inclusive) 1,027 telephone interviews were conducted with employers across the LLEP area. The survey focuses on private sector employers (businesses without employees were not included in the sample) and the data reported is related to the establishment at which the respondent was based and not the business as a whole if there are sites elsewhere.

1.1 Business population profile

 75% of LLEP area employers employ fewer than 10 staff at their site; 45% employ fewer than 5 staff.

 One in twenty LLEP area employers employs 50 or more staff at their site.  The largest industry sector in terms of business units is that of the

wholesale/retail, motor vehicle repair trades (24%).  Manufacturing accounts for one in nine employers (11%).

 74% of LLEP area employers are single site organisations; 26% are multi-site organisations, with 4% of all employers in the area a headquarters establishment. This increases to 30% of businesses with 200+ employees.

 One in six LLEP area employers export goods or services, increasing to 34% of businesses with 50-199 employees; 50% of those with 200 or more employees and 45% of manufacturers.

1.2 Business Conditions

1.2.1 Business performance

More than half of LLEP area employers report increased sales turnover (55%) and profits (54%) in the last 12 months. This positive trend is expected to continue, with three-quarters of employers anticipating increased sales turnover and profit in the next 12 months (each 76%).

Staff headcount has increased in a third of businesses (35%) over the last 12 months, while a similar proportion (38%) anticipates an increase in staff headcount in the next 12 months. Manufacturing businesses are particularly strong in this respect (42% in the last 12 months; 53% in the next 12 months).

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Around two-fifths of employers report increased capital investment (37%) and have started offering new products or services in the last 12 months (39%). Employers are more optimistic about these aspects of business performance in the next 12 months; 43% anticipating increased capital investment and 45% anticipating offering new products or services.

Again, manufacturing businesses are particularly likely to report positive trends in these respects; 52% reported increased capital investment; 49% reported having started offering new products or services and 55% and 56% anticipated increased capital investment and the introduction of new products or services respectively in the next 12 months.

1.2.2 Growth plans

The majority of LLEP area employers (71%) are aiming for growth, with most having aspirations for steady rather than rapid growth (64% and 7% respectively). The propensity to aim for growth increases with business size, with 22% of businesses with 200 or more employees aiming for rapid growth.

A quarter of employers (24%) plan to remain at their present size; 27% in micro businesses (2-9 employees) and 15% in larger businesses (10+ employees).

1.2.3 Business plans

Half of all employers (50%) have a business plan and most (82% of those with a business plan; 41% of all employers) report that it is kept up to date. Of all employers, 29% reported that they do not have a formal or informal business plan. This is most common in micro businesses (35% of those with 2-9 employees).

1.2.4 Business outlook

Nearly two-fifths of employers (38%) expect general business conditions in the area to improve in the next 12 months, but a higher proportion (42%) do not anticipate change. Around one in ten (9%) believe conditions will deteriorate.

Large (51% of those with 200 or more employees) and construction (46%) businesses are particularly likely to be optimistic and expect conditions to improve.

Employers based in Hinckley and Bosworth (49% expect improvement) and Leicester City (43%) are most positive. Those in Melton (32%) and North West Leicestershire (33%) are least positive.

1.2.5 Business concerns

Competition in the market is at the forefront of potential issues when employers are asked about any business concerns they have (13%). The top five also includes: access to finance; cash flow; skills shortages/finding staff; economy/recession (all

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Manufacturers are particularly likely to be concerned about skill shortages/finding staff (51% rate it as a significant or great concern1), while employers in the transport/retail/accommodation/distribution (TRAD) sectors are particularly concerned about energy costs.

Employers in Melton are significantly more likely than average to be concerned with broadband speeds (44% rating this as a significant or of great concern). In fact, businesses in rural areas in general are significantly more likely to be concerned with broadband speeds than those in urban areas (39%, compared with 29%).

1.3 Business Support

1.3.1 Advice or information sought

Thirty-six per cent of LLEP area employers have sought external advice or information on matters affecting their business in the last 12 months. This increases to 45% within businesses with 50 or more employees.

Professional services, which include banks, accountants and law firms, are a key source for businesses that have sought external advice or information (79%). These are followed by family or friends (44%) and private sector business advisor, coach, mentor or consultant (40%).

One in four employers (24%) has sought advice and information from their local council.

Businesses with 50 or more employees are more likely to have consulted their local council (40%), as well as obtaining advice or information from government schemes (45%), trade associations (50%) and colleges/universities (50%).

1.3.2 Preferences for accessing business support

Face to face and through a website are preferred ways of accessing business support (38% and 33% of all employers respectively), although telephone contact comes to the fore as a second preference (22%).

1.3.3 Business Gateway services

Employers were asked how useful they would find assistance from a Business Gateway in a number of areas. They were asked to use a 10-point scale, where 1 is not at all useful and 10 is extremely useful or essential. The proportion of employers giving a score of 7 or above to each is as follows (in descending order):

 Selling and marketing their products and services useful (31%):  Finding suitable training for staff (24%);

 Website development/social media (24%);  Recruitment (22%);

 Accessing finance (21%);

 General advice about how to grow their business (20%);  Developing local supply chains (19%);

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 The opportunity to speak with an advisor and discuss business plans and issues (18%);

 Research and development (14%);  How to work with universities (14%);  Developing a business plan (14%);  Finding new premises (12%); and  Export advice (7%).

There was a particularly high level of interest in many of the areas amongst businesses with 50 to 199 employees. Furthermore, manufacturing and transport, retail and distribution (TRAD) businesses tended to be more likely than average to rate most service areas as useful.

1.4 Workforce and Recruitment

1.4.1 Recruitment difficulties

Fifty per cent of LLEP area employers have recruited staff in the last 12 months. This proportion increases to 99% of businesses with 50 or more staff.

A quarter of all employers (25%) have experienced difficulties in recruiting staff in the last 12 months (39% of those that have recruited any staff during this period). Around a quarter of those experiencing difficulties (23%) have not recruited in the last 12 months, suggesting that for these employers, difficulties have not been resolved. Recruitment difficulties are most likely to have been experienced in skilled trade occupations. These account for around one in five of all hard to fill vacancies (19%). Process, plant and machine operatives, personal service and elementary occupations, each account for one in six/seven hard to fill vacancies.

1.4.2 Skills shortage vacancies

A lack of the right skills in applicants is the most common cause of recruitment difficulties (39% of those experiencing recruitment difficulties), with a lack of the required character traits and/or work experience next most frequently cited (24% and 22% respectively).

Overall, 15% of all employers report skills shortage vacancies. This increases to 30% of businesses with 10-49 employees and 43% of businesses with 200+ employees. It is higher than average in manufacturing (22%, compared with 15%).

1.4.3 Plans to recruit

Two-fifths of employers (42%) are planning to recruit in the next 12 months. This proportion is higher than average in manufacturing (51%).

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Three in five LLEP area employers (61%) are aware of Traineeships, but just 4% (7% of those aware of them) have staff undertaking them.

A third of all employers (32%) report it likely that they will offer Apprenticeships in the future and the proportion is lower with regard to Traineeships (25%).

More than a third of employers (36%) offer work experience placement opportunities at their site and this increases to 48% of businesses with 10-49 employees and 59% of those with 50 or more employees.

Two-fifths of all employers (40%) indicate that they are likely to offer work experience placements in the future. This is only a slightly higher proportion than already do so. With regard to all three training opportunities i.e. Apprenticeships, Traineeships and work experience placements; employers are more likely to indicate it unlikely that they will provide such opportunities than indicate that it is something they might do.

Reasons for not offering these opportunities revolve around lack of need for trainees or an extra pair of hands, no time to train or support the individual and that the business is not a suitable training ground and that staff need to be fully trained.

1.4.5 Dealings with educational establishments

Half of employers (50%) have had some dealings with educational establishments. Around one in five have had dealings with schools (22%), FE colleges (23%) or private training providers (20%).

1.5 Skills and Training

1.5.1 Training provision

Nearly half of all employers (47%) have arranged or funded training for employees in the last 12 months. A third of all employers (31%) have arranged or funded off-the-job training, while a higher proportion than this (37%) have arranged or funded on-the-job or informal training.

The propensity to provide training increases with business size to 69% of businesses with 10 to 49 employees; 79% of those with 50-199 employees and 97% of those with 200 or more employees. It is higher than average in other services sectors (55%). The majority of employers that have not trained cite a lack of need amongst their staff. Nearly three-quarters of employers (72%) have used external training providers; private training providers mainly (63%), with around a quarter having used FE colleges (22%) and just 7% having used HE establishments.

1.5.2 Sourcing training

Nearly three-quarters of employers providing a response (73%) found it easy to find training last time they sought it. Just 10% did not. The proportion of employers that found it easy to find training increases alongside business size to 86% of businesses with 200+ employees. Those that have funded or arranged any training in the last 12 months are significantly more likely than those who have not to find it easy to find appropriate training (87% found it quite/very easy, compared with 69%).

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Difficulties experienced in finding training tend to revolve around a (perceived) lack of trainers/providers of relevant training courses.

1.5.3 Skill gaps

Overall, 66% of all employers identified at least one area in which staff need to improve their skills. They are most likely to identify a need for marketing or sales skills (31%) and technical, practical or job specific skills (29%). When asked to cite the most significant skill gaps within their business, employers are most likely to select either of these two skill areas; marketing or sales skills (12%) and technical, practical or job specific skills (10%).

There is long and diverse list of specific technical, practical or job specific skills mentioned by employers. The five most frequently mentioned disciplines include engineering, IT, care, building and farming.

1.5.4 Plans to train

More than half of all employers (57%) plan to train or up-skill their staff in the next 12 months. This proportion increases with business size and includes all businesses with 200+ employees. The skills concerned are most likely to be technical, practical or job specific skills; the three most frequently mentioned being machine operators, legal/compliance posts and IT.

1.6 Transport

1.6.1 Benefits of local transport measures

When asked how beneficial to their business a range of local transport measures would be, the proportions of LLEP area employers indicating significant benefits for each (a rating of 5 on a scale of 1 to 5, where 1 is no difference and 5 is significant benefits) are as follows:

 Reducing traffic congestion (37%);  More access to car parking (31%);

 Improving access for customers travelling by car (26%);  Improving access for employees travelling by car (22%);

 Improving access for customers travelling by sustainable modes (18%);  Improving access for employees travelling by sustainable modes (17%);  Improving access for suppliers (17%).

1.6.2 Impact of disruption

More than two-fifths of employers (43%) report some impact of planned disruption and this includes 28% that report a financial impact. Just 3% of all employers have sought

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1.7 Environmental Issues

1.7.1 Environmental policy

Fifty-three per cent of LLEP area employers have an environmental policy or similar. All businesses with 200 or more employees have one.

1.7.2 Actions taken

Fifty-seven per cent of employers have done something to improve their energy efficiency in the last 2 years. This increases to four-fifths of businesses with 50 or more employees (79%).

Employers were asked about specific environmental actions they have taken in the last two years. The proportions of employers that have undertaken these are as follows:

 Reduced waste or increased recycling (75%);  Reduced energy consumption (58%);

 Reduced carbon emissions (40%); and/or  Reduced packaging (39%);

 Reduced mains water use (32%).

Overall, 86% of all employers have undertaken at least one of these activities. 1.7.3 Environmental concerns

With respect to environmental and climate change concerns, employers are most likely to be concerned about energy security (i.e. having an uninterrupted supply) and extreme weather events. The majority of employers are not concerned about flood risk, heat wave or drought. The proportions of employers rating these concerns as 4 or 5 on a scale of 1 to 5, where 1 is not a concern at all and 5 is a very great concern are as follows:

 Energy security (48%);

 Extreme weather events (39%);

 Management of business waste (23%);  Flood risk (22%);

 Heatwave (17%);  Drought (14%).

Employers located in Leicester City are significantly more likely than average to be concerned with energy security (59%) or management of business waste (30%), while those in Melton are particularly likely to be concerned about extreme weather events (53%).

1.8 Regulatory Issues

1.8.1 Relevant regulatory issues

The majority of employers consider health and safety (87%) and fire safety (76%) as relevant regulatory issues to their business.

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Fewer employers consider environmental protection as being relevant to them (57%), while those that consider consumer protection (48%), food safety (33%), licensing of alcohol, taxis, gambling, entertainment or security personnel (17%) are in the minority. 1.8.2 Local council visits and inspections

Just over half of all employers (52%) report having been visited by their local council. Twenty-nine per cent of all employers report having been inspected by their local council in the last year.

Regulators are seen as courteous and professional by the vast majority of employers in the LLEP area (94% of those providing a response2) and a similar proportion (92%) agree that regulators always explain the reasons for their visits to businesses. Fewer, but still the majority agree that regulators enforce the law in a way that is fair and proportionate (81%); that the business has a good relationship with regulatory officers (80%); that regulators encourage the business to seek advice on how to comply with the law that affects their business (78%); and that regulators are consistent in the advice they provide and the way they enforce the law (74%).

Two-thirds of employers agree that it is easy to make contact with the right official in their local council (66%) and that services are co-ordinated to minimise unnecessary overlaps and duplication (64%).

1.8.3 Views about regulators

Employers are least positive when it comes to reflecting on the extent to which they feel they are consulted by regulators when they are developing policies, plans, procedures and service standards (49% agree).

Views are mixed with regard to the extent to which regulators understand the pressures faced by businesses: 46% of employers perceive regulators’ understanding as good; 54% perceive it as limited or non-existent.

The majority of employers (71%) feel confident in seeking advice and assistance from regulators on regulatory matters.

One in six employers (18%) are aware of Better Business for all. This proportion varies little by business size.

1.9 Corporate Social Responsibility

1.9.1 Work with local charities or local community projects

Forty-six per cent of LLEP area employers have worked with local charities or local community projects in the last 12 months. This increases to 71% of businesses with 200 or more employees.

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Working with local charities or local community projects is most likely to have involved fundraising (73%), with nearly half of those that have done so (46%) providing resources. Just over a quarter of employers that have worked with local charities or local community projects have provided skills and expertise (28%) and/or provided volunteers from their staff (27%). Just one in six have provided mentoring services (16%).

1.10 Business Relocation

1.10.1 Plans to relocate

Eight per cent of LLEP area employers are looking to relocate; the majority within the area (79%) and more than half (57%) within the district in which they are currently based.

Growth is a significant driver of the need to relocate. More space is the most frequently mentioned reason for relocation.

The majority of those planning to relocate expect it to be difficult to find new premises or space in the LLEP area.

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2 Background

The 2015 Leicester and Leicestershire Business Survey was commissioned in October 2014 by the Leicester and Leicestershire Enterprise Partnership (LLEP).

The Leicester and Leicestershire Business Survey has been conducted since 1994, providing a robust source of intelligence about the local economy. It has been used by the LLEP and local business and other organisations to assess how the local economy is performing.

The main objective of the research is to provide the LLEP and partners with information from the business community to inform strategic planning, decision-making, evidence-based policy and information to help attract funding. It collects robust, timely and reliable data on:

 business performance  exporting

 investment  business support  finance

 employment and skills  innovation, and

 research and development.

The survey is also designed to provide a vehicle for consultation with the business community, as well as providing a snapshot of business conditions. It also provides intelligence relating to those industries identified by the LLEP as key to sub-regional economic growth. Specifically, the research was designed to:

 Measure key indicators of economic performance and identify issues requiring agency intervention.

 Provide detailed information that is not available through other published sources.  Provide contextual information to support future funding bids.

 Monitor businesses’ opinions of the local economy and concerns about the future.

2.1 Method

Telephone interviews, with an average interview length of about 25 minutes, were conducted with 1,027 employers across the LLEP area in November, December 2014 and January 2015. Respondents included directors or proprietors or other senior

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A quota sample was designed, based on the local economy’s sectors (SIC 2007), its distribution of workplaces of different sizes (in terms of their employment), and Local Authority Districts (LADs). The quotas for sector, size and LAD were interlocking. The survey data has been weighted using information about the local economy from the Office for National Statistics – Inter-Departmental Business Register (IDBR)3_{as at} March 2013 (the latest available at the time of the survey). This is so that the findings are fully representative of the LLEP area employers.

The structure of the unweighted sample achieved by the survey and its weighted profile by sector, size and district are summarised in the following table. Sector definitions are based on Standard Industry Classification 2007; a full explanation for which is available in Appendix 1.

Table 2.1: Sample profile

Achieved interviews no. Unweighted sample % Weighted interviews no. Weighted sample % Standard error at 10%/90% Standard error at 50%/50% ABDE4 Primary 31 3 58 6 +/-10.6 +/-17.6 C Manufacturing 127 12 97 9 +/-5.2 +/-8.7 F Construction 59 6 93 9 +/-7.7 +/-12.8 GHI TRAD

Transport, retail and distribution 410 40 370 36 +/-2.9 +/-4.8 JKLMNPQRS Other services 400 39 409 40 +/-2.9 +/-4.9 2-9 employees 556 54 776 75 +/-2.5 +/-4.2 10-49 employees 365 36 207 20 +/-3.1 +/-5.1 50-199 employees 79 8 37 4 +/-6.6 +/-11.0 200+ employees 27 3 7 1 +/-11.3 +/-18.9 Blaby 104 10 96 9 +/-5.8 +/-9.6 Charnwood 103 10 166 16 +/-5.8 +/-9.7 3

The IDBR consists of all UK registered businesses and is compiled from the following sources:

 HMRC traders registered for VAT purposes

 HMRC employers operating a PAYE scheme

 Incorporated businesses registered at Companies House

 Department for Environment, Food and Rural Affairs (Defra) registered farms

 Department of Finance and Personnel, Northern Ireland (DFPNI) registered businesses

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Achieved interviews no. Unweighted sample % Weighted interviews no. Weighted sample % Standard error at 10%/90% Standard error at 50%/50% Harborough 105 10 127 12 +/-5.7 +/-9.6 Hinckley and Bosworth 102 10 115 11 +/-5.8 +/-9.7 Melton 101 10 67 7 +/-5.9 +/-9.8 North West Leicestershire 102 10 115 11 +/-5.8 +/-9.7

Oadby and Wigston 101 10 43 4 +/-5.9 +/-9.8

Leicester City 309 30 298 29 +/-3.4 +/-5.6

Leicestershire (excl.

City) 718 70 729 71 +/2.2 +/-3.7

Total 1027 100 1027 100 +/-1.8 +/-3.1

Results from the total sample may be presumed accurate (with a 95% confidence level) within a maximum sample error of +/-3.1%. The margin of error on sub-sets of the total sample increases as the unweighted number of respondents in that sub-set decreases, while the margin of error decreases the closer to 100% or zero that the statistic moves. The sample error for each of the given sub-samples and the total sample is included in table 2.1. It is given for a statistic of 10% or 90% as well as for 50% (the level at which the sample error is at its highest).

2.2 Note on reporting

The report references differences by business size, industry sector and LAD for most questions where they are significant and noteworthy.

Significant differences by other variables are also discussed.

The data is compared to the Small Business Survey (SBS) 2014, where possible or appropriate. This survey is undertaken by the Department for Business, Innovation and Skills (BIS) on a bi-annual basis and was last undertaken between July and October 2014. It is a UK-wide survey of businesses with up to 249 employees (including businesses with no employees). These are known as SMEs (Small and Medium Enterprises). It should be noted that the LLEP Business Survey differs in terms of its’ sample structure, as it does not include businesses without employees and respondents are asked to respond on the basis of the site at which they are based only. Consequently, comparisons between the LLEP Business Survey 2014 and SBS

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Statistics within charts and tables that are statistically significantly higher than average are indicated by the use of bold font.

Exceptions to reporting of statistically significant differences: In some instances consistent trends by key variables, mainly business size and industry sector, are noted even though they may not represent statistically significant differences between the sub-samples.

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3 Sample Profile

The description of the sample profile that follows reflects the employer profile across the LLEP area5. This is due to the application of weighting factors that have been used to adjust for deliberate over-sampling in some sectors and in larger employer size bands. Over-sampling compared with representation within the employer population enables more robust analysis of these sub-samples that would otherwise not be possible.

3.1 Business size

Three-quarters of employers (75%) employ fewer than 10 staff at their site. This includes nearly half of all employers (45%) that employ fewer than 5 staff. In contrast, just 5% of employers employ 50+ staff at their site.

Figure 3.1: Business size (all employers)

Unweighted sample base = 1027

Q4. Including you and any working proprietors, how many people are on the payroll at this location?

45%

30%

16%

4%

*%

2-4 employees

5-9 employees

10-24 employees

25-49 employees

50-199 employees

200-249 employees

250+ employees

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The following figure highlights variances in business size by sector. There are a particularly high proportion of employers with fewer than 10 staff within agriculture/fishing (86%) and construction (87%), while only 59% of employers in manufacturing have fewer than 10 staff at that site. The manufacturing sector has a higher than average proportion of medium-sized businesses (50-199 employees) (8%).

Table 3.2: Business size, by sector (all employers) ~ caution: small sample bases

Row percentages Unweighted bases

2-9 employees % 10-49 employees % 50-199 employees % 200+ employees % ABDE Primary 31~ 86 10 0 0 C Manufacturing 127 59 32 8 1 F Construction 59 87 12 1 *

GHI TRAD Transport, retail, accommodation and distribution 410 73 23 3 1 JKLMNPQR Other services 400 77 19 4 1 All employers 1027 75 20 4 1

Q4. Including you and any working proprietors, how many people are on the payroll at this location? Bold font signifies a statistically significantly higher figure compared with the average minus the sub-group tested; percentages in italics signify a statistically significantly lower figure than average minus the sub-group tested

3.2 Industry sector

The industry profile of employers across the LLEP area is summarised in the figure below.

One in four employers (24%) operates within the wholesale and retail sector. Manufacturing (11%), construction (9%), professional, scientific and technical (9%) and accommodation and food services (8%) each account for around one in ten employers. Overall, other services (a group represented by sectors JKLMNPQR) accounts for around two-fifths of all employers in the LLEP area (38%), while the next biggest group of sectors is that of transport/retail/accommodation/distribution (TRAD) (35%). Overall, service companies account for three-quarters of employers (74%) in the area; production/construction for 26%.

The figure below presents the industry profile of the LLEP area, as described by business population statistics sourced from IDBR6.

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Figure 3.3: Industry sector – 1 digit SIC 2007 (all employers)

Total business population, businesses with employees *denotes less than 0.5% Source: ONS UK IDBR Statistics October 2014

5% *% 11% *% *% 9% 24% 3% 8% 3% 2% 4% 9% 6% 2% 6% 2% 4%

A: Agriculture, forestry and fishing B: Mining, quarrying and utilities C: Manufacturing D: Electricity, gas, steam and air conditioning E: Water supply, sewerage, waste management F: Construction G: Wholesale and retail trade; motor repair H: Transport and storage I: Accommodation and food services J: Information and communication K: Finance and insurance L: Real estate activities M: Professional, scientific and technical N: Administrative and support services P: Education Q: Human health and social work R: Arts, entertainment and recreation S: Other service activities

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Based on grouped industry sector, there are few differences by business size, although manufacturing businesses account for a higher proportion of medium and large employers than average (as summarised in the table below).

Table 3.4: Industry sector, by business size (all employers) ~ caution: small sample bases All employers % 2-9 employees % 10-49 employees % 50-199 employees % 200+ employees~ % ABDE Primary 6 7 3 0 0 C Manufacturing 9 7 15 22 14 F Construction 9 10 5 3 6

GHI TRAD Transport, retail

and distribution 36 35 39 34 38

JKLMNPQR Other

services 40 40 38 41 42

Unweighted sample bases 1027 556 365 79 27~

Q3. What is the main business activity that you undertake? SIC 2007 (grouped)

Bold font signifies a statistically significantly higher figure compared with the average minus the sub-group tested

When focusing on the industry profile of Leicester City compared with the rest of the county (see Figure 3.5), there are few significant differences, although the proportion of accommodation and food services businesses is significantly higher in the City compared with the rest of the county.

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Figure 3.5: Industry sector: Leicester City versus the rest of Leicestershire county – 1 digit SIC 2007 (all employers)

Q3. What is the main business activity that you undertake? SIC 2007 (1-digit)

Bold font signifies a statistically significantly higher figure compared with the average minus the sub-group tested; percentages in italics signify a statistically significantly lower figure than average minus the sub-group tested

3.3 Number of sites

Two-thirds of employers (74%) are single site organisations. This proportion declines as business size increases. Three in ten 200+ employers (30%) are headquarters,

*% 10% 8% 22% 6% 13% 3% 3% 3% 8% 4% 6% 4% 3% 7% 8% 9% 10% 21% 5% 8% 4% 2% 3% 9% 4% 5% 3% 5% 5% ABDE - Primary C - Manufacturing F - Construction G - Wholesale and retail trade; motor repair H - Transportation and storage I - Accommodation and food service activities J - Information and communication K - Financial and insurance activities L - Real estate activities M - Professional, scientific and technical activities N - Administrative and support service activities P - Education Q - Human health and social work activities R - Arts, entertainment and recreation S - Other service activities

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Figure 3.4: No. of sites, by size and sector (all employers) ~ caution: small sample bases

Unweighted sample bases in parentheses

Q5. Does the business just operate from this site or does it have other sites?

3.4 Exporting

One in six LLEP area employers (18%) export products or services. This increases to 34% of businesses with 50-199 employees and 50% of those with 200+ employees. The overall figure of 18% amongst SME employers (businesses with 1-249 employees) in the LLEP area is in-line with the figure of 19% reported by the Small Business Survey 2014 (also based on SME employers) across the UK.

The propensity to export is significantly higher than average amongst manufacturers (45%). 74% 82% 53% 37% 26% 82% 83% 79% 67% 75% 22% 15% 41% 54% 44% 11% 13% 7% 31% 21% 4% 4% 6% 9% 30% 7% 4% 15% 2% 4% All employers (1027) 2-9 employees (556) 10-49 employees (365) 50-199 employees (79) 200+ employees~ (27) Primary~ (31) Manufacturing (127) Construction~ (59) TRAD (410) Other services (400)

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Figure 3.5: Exporting, by size and sector (all employers) ~ caution: small sample bases

Q8. Does your business export products or services outside the UK?

Bold font signifies a statistically significantly higher figure compared with the average minus the sub-group tested 18% 16% 22% 34% 50% 18% 45% 11% 16% 16% All employers (1027) 2-9 employees (556) 10-49 employees (365) 50-199 employees (79) 200+ employees~ (27) Primary~ (31) Manufacturing (127) Construction~ (59) TRAD (410) Other services (400)

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4 Business Conditions

4.1 Key findings

More than half of LLEP area employers report increased sales turnover (55%) and profits (54%) in the last 12 months. This positive trend is expected to continue, with three-quarters of employers anticipating increased sales turnover and profit in the next 12 months (each 76%).

Staff headcount has increased in a third of businesses (35%) over the last 12 months, while a similar proportion (38%) anticipates an increase in staff headcount in the next 12 months. Manufacturing businesses are particularly strong in this respect (42% in the last 12 months; 53% in the next 12 months).

Around two-fifths of employers report increased capital investment (37%) and having started offering new products or services in the last 12 months (39%). Employers are more optimistic about these aspects of business performance in the next 12 months; 43% anticipating increased capital investment and 45% anticipating offering new products or services. Again, manufacturing businesses are particularly likely to report positive trends in these respects.

The majority of LLEP area employers (71%) are aiming for growth, with most having aspirations for steady rather than rapid growth (64% and 7% respectively).

A quarter of employers (24%) plan to remain at their present size; 27% in micro businesses (2-9 employees) and 15% in larger businesses (10+ employees).

Half of all employers (50%) have a business plan and most (41% of all employers) report it kept up to date. Of all employers, 29% do not have a business plan at all, not even an informal one. This is most common in micro businesses (35%).

Nearly two-fifths of employers (38%) expect general business conditions in the area to improve in the next 12 months, but a higher proportion (42%) does not anticipate any change. Around one in ten (9%) believe conditions will deteriorate.

The factor most frequently mentioned as a cause for concern by employers is competition in the market in which they operate (13%). The top five also includes: access to finance; cash flow; skills shortages/finding staff; economy/recession (all mentioned by 6%).

When asked to rate a list of issues in terms of the extent to which they are concern for their business, employers rate regulation and red tape highest, followed by: competition; energy costs; cash flow; finding new business and skills shortages/finding staff.

Manufacturers are particularly likely to be concerned about skill shortages/finding staff, while employers in the transport/retail/accommodation/distribution (TRAD) sectors are particularly concerned about energy costs.

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Employers in Melton are significantly more likely than average to be concerned with broadband speeds (44% rating this at 4 or 5 where 5 is a ‘great concern’). In fact, businesses in rural areas in general are significantly more likely to be concerned with broadband speeds than those in urban areas (39%, compared with 29%).

4.2 Recent business performance

When asked about performance across a range of business indicators, including staff headcount, sales turnover, profits, capital investment and innovation, employers across the LLEP area provided positive reports.

More than half of all employers reported increased sales turnover (55%) and profits (54%) in the last 12 months; while more than a third reported increased capital investment (37%), increased staff headcount (35%) and that they have started offering new products or services (39%).

Furthermore, 40% of exporters reported increasing the amount they export to other countries.

In contrast, just 15% of employers reported reduced sales turnover in the last year, while 11% reported a reduction in their staff headcount.

The table below highlights performance by sector and although there are no significant differences by sector, manufacturing businesses are slightly more likely than average to report positive trends, including increased sales turnover, capital investment and staff headcounts, while also, alongside transport, retail and distribution (TRAD) businesses, slightly more likely than average to have started offering new products or services. It is a more mixed picture with regard to TRAD sectors where reductions in staff headcount and sales turnover have been more common than average.

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Table 4.1: Business performance in the last 12 months, by sector (all employers) ~caution: low sample base

All employers % Primary~ % Manufacturing % Construction % TRAD % Other services % Increased the staff

headcount 35 22 42 36 33 38 Increased sales turnover 55 55 62 49 52 58 Increased profits 54 52 56 58 53 54 Increased capital investment 37 56 52 38 34 32

Started offering new

products or services 39 28 49 21 45 37 Reduced staff headcount 11 5 9 8 15 9 Reduced sales turnover 15 13 11 13 21 11 None of these 11 9 10 14 9 14

Unweighted sample bases 1027 31 127 59 410 400

Q9. In the last 12 months, has your business...?

Employers based in Leicester City are significantly more likely than those based elsewhere to have increased their staff headcount (40%, compared with 33%), but, conversely also more likely to have reduced their staff headcount (15%, compared with 9%) – although far fewer have seen their workforce shrink than increase.

Compared with the findings from SBS 20147, based on employers only, LLEP area employers are more likely to have increased headcount than SME employers UK-wide (35%, compared with 22%), while also more likely to have increased their sales turnover (55%, compared with 40%). Furthermore, LLEP area employers are less likely than SME employers across the UK to have reduced either their staff headcount (11%, compared with 16%) or their sales turnover (15%, compared with 18%).

LLEP area employers are on a par with SME employers UK-wide in terms of their propensity to have started offering new products or services in the last 12 months (39%, compared with 38% of UK SMEs).

4.3 Aims for growth

Looking ahead in the next 12 months, the majority of LLEP area employers (71%) are aiming for growth, although most of these (64% of all employers) are aiming for steady rather than rapid and aggressive growth (7% of all employers).

7

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Aims for growth across business size and sectors is summarised in the figure below. Just 2% of all employers plan to ‘shrink’, while just 1% plan to cease trading. These percentages are negligible and do not vary significantly by size and sector and thus have not been presented on the chart.

Figure 4.3: Aims for growth, by size and sector (all employers) ~ caution: small sample bases

Q7. Which of the following best describes your company’s aims for growth over the next 12 months? Would you say you are aiming for the company to...?

A quarter of all employers (24%) plan to remain as they are. This proportion is significantly higher within micro businesses (those with 2-9 employees) (27%) than in larger businesses (15%).

The proportion of UK SMEs8 that are aiming for growth in the next 2 to 3 years is similar to the proportion of LLEP area employers that are aiming for growth in the next 12 months (73% of UK SMEs, compared with 71% of LLEP area employers).

64% 63% 68% 70% 62% 61% 64% 68% 60% 68% 7% 5% 12% 13% 22% 2% 9% 1% 9% 7% All employers (1027) 2-9 employees (556) 10-49 employees (365) 50-199 employees (79) 200+ employees~ (27) Primary~ (31) Manufacturing (127) Construction (59) TRAD (410) Other services (400)

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4.4 Business planning

Half of all employers (50%) have a business plan and in most cases it is reported to be kept up to date (82% of those with a business plan; 41% of all employers).

Of the remainder, a proportion (16% of all employers) report having an informal business plan, which perhaps does not exist in a written form. A higher proportion (29% of all employers) does not have a business plan.

The propensity to have a business plan increases sharply with business size and as business size increases, the business becomes much more likely to keep it up to date.

Figure 4.4: Proportion of employers with business plans by size (all employers) ~ caution: small sample bases

Q14. Does your organisation have a formal written business plan?

5% 4% 8% 4% 6% 29% 35% 14% 6% 16% 19% 7% 2% 9% 10% 8% 2% 3% 41% 32% 62% 85% 90%

All employers (1027)

2-9 employees (556)

10-49 employees (365)

50-199 employees (79)

200+ employees~ (27)

Don't know No - no plan at all

No - have a business plan but it is informal/not written Yes - but not kept up to date Yes - kept up to date

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LLEP area employers are more likely to report having a business plan than SME employers UK-wide9 (50%, compared with 44%), although the inclusion of businesses with 250 or more employees in the LLEP Business Survey will explain the higher proportion locally, as these employers are most likely to have a business plan in place.

4.5 Expectations of business performance

Respondents were asked about their business’ anticipated performance over the next 12 months. This covered a range of business indicators including staff headcount, sales turnover, profits, capital investment and innovation. Employers across the LLEP area indicated a generally optimistic outlook.

More than three-quarter of all employers expect increased sales turnover (76%) and profits (76%) in the next 12 months; while around two-fifths expect an increase in capital investment (43%), staff headcount (38%) and that they will start offering new products or services (45%).

More than half of current exporters (54%) anticipate increasing the amount they export to other countries.

In contrast, just 4% of employers anticipated a reduction in sales turnover in the next year, while 3% anticipate a reduction in their staff headcount.

The table below highlights the outlook in each of these areas (except for exporting which was only asked of exporters) by sector. Again, the sectors of manufacturing and transport/retail/accommodation/distribution (TRAD) are most optimistic about the next 12 months, while primary sectors are least likely to be anticipating expansion and improvements in financial indicators.

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Table 4.5: Anticipated business performance in the next 12 months, by sector (all employers) ~caution: low sample base

All employers % Primary~ % Manufacturing % Construction % TRAD % Other services %

Increase in staff headcount 38 33 53 36 36 37

Increase in sales turnover 76 62 85 72 80 74

Increase in profits 76 60 85 73 78 75

Increase in capital

investment 43 36 55 39 41 45

Start offering new products

or services 45 19 56 30 55 40

Reduction in staff

headcount 3 2 3 3 3 2

Reduction in sales turnover 4 4 2 7 5 2

None of these 13 21 6 14 10 15

Q10. And in the next 12 months, do you expect your business to have...?

Employers based in Leicester City are significantly more likely than average to anticipate increases in staff headcount (41%) alongside being more likely than average to expect increases in sales turnover (80%) and profits (79%). Employers in Oadby and Wigston and Charnwood are also more likely than average to be expecting an improvement in these areas in the next 12 months, with more than half of employers in Oadby and Wigston expecting to start offering new products or services (56%).

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Table 4.6: Anticipated business performance in the next 12 months, by local authority district (all employers) ~caution: low sample base *denotes less than 0.5%

All employers % L eic es ter Cit y % L eic es ter shi re % Blaby % Ch ar n w o o d % Har b o ro u g h % Hin ck le y and Bo sw o rt h % Me lt o n % No rt h W e st L eic es te rshir e % O adb y and W igst o n % Increase in staff headcount 38 41 37 45 43 29 38 24 35 42

Increase in sales turnover 76 80 75 72 76 72 80 69 74 81

Increase in profits 76 79 75 71 77 71 80 67 75 80

Increase in capital

investment 43 44 43 42 49 43 42 33 41 48

Start offering new

products or services 45 47 44 41 49 41 47 31 43 56 Reduction in staff headcount 3 4 2 2 2 2 2 1 * 7 Reduction in sales turnover 4 4 4 4 1 5 1 4 6 5 None of these 13 9 14 12 14 19 13 15 12 9

Unweighted sample bases 1027 309 718 104 103 105 102 101 102 101 Q10. And in the next 12 months, do you expect your business to have...?

Compared with SME employers UK-wide, LLEP area employers are more likely to expect to increase their headcount in the next 12 months (38%, compared with 32%), and also more likely to expect to increase their sales turnover (76%, compared with 51%). A similar proportion of LLEP area and UK-wide SME employers expect to reduce their staff headcount in the next 12 months; these proportions both being very low (3% and 4% respectively), while there is a slightly larger gap between LLEP area and UK-wide SME employers with respect to the prospect of reducing turnover in the

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4.6 Perceptions of general business conditions

Following on from employers’ expectations in their own business performance over the next 12 months, they have a generally positive outlook with regard to business conditions across the LLEP area in the short term.

Nearly two-fifths (38%) expect general business conditions in the area to improve in the next 12 months; with a slightly higher proportion than this (42%) expecting conditions to remain unchanged. Just a minority (9%) believe that conditions will deteriorate, with a similar proportion (10%) not considering themselves able to provide an opinion.

Views by business size and sector are largely consistent, but businesses with 200 or more employees are more likely than average to expect conditions to improve (51%), while construction businesses are also more likely than average to hold this view (46%).

Businesses aiming for growth, particularly those aiming for rapid growth, are significantly more likely than other businesses to feel that general business conditions across the county will improve (43% of those aiming for steady growth; 61% of those aiming for rapid growth).

Employers based in the districts of Hinckley and Bosworth (49%) and Leicester City (43%) are the most positive in terms of their outlook for general business conditions, while those in Melton (32%) and North West Leicestershire (33%) are least likely to expect conditions to improve.

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Figure 4.7: Expectations regarding general business conditions across the LLEP area, by local authority district (all employers)

Q11. How do you think that general business conditions in Leicestershire will change over the next twelve months?

4.7 Concerns and constraints to growth

Respondents were asked about any factors that are currently a cause of concern for their business. Their responses were unprompted; that is spontaneous, and as such covered a wide range of issues. Responses are summarised in the following chart which shows only those factors cited by 2% or more of businesses.

10% 8% 11% 17% 11% 9% 7% 10% 10% 9% 12% 8% 4% 5% 9% 8% 10% 12% 42% 36% 45% 41% 50% 48% 35% 48% 45% 38% 43% 37% 37% 34% 34% 49% 32% 33% All employers (1027) Leicester City (309) Leicestershire (718) Blaby (104) Charnwood (103) Harborough (105) Hinckley and Bosworth (102) Melton (101) North West Leicestershire (102)

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Figure 4.8: Factors that are currently a cause of concern for businesses, unprompted, multiple responses (all employers)

Q12. What factors, if any, are currently a cause of concern for your business?

13% 6% 6% 6% 6% 5% 5% 4% 3% 3% 3% 2% 2% 2% 2% 2% 2% 2% 2%

Competition in your market Access to finance Cash flow Skills shortages / finding staff Economy/recession Regulation and red tape Public spending/lack of customers General costs inc products/goods/running/training Petrol or diesel costs Parking concerns Business/council costs Energy costs Finding new business Finding suitable premises Interest rates Road works/maintenance HMRC changes inc pensions Cuts in/lack of government/local authority spending/funding Election concerns

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Competition in their market stands out as a relatively important factor causing concern (13% of all employers) and is a particular concern for businesses in transport/retail/accommodation/distribution (TRAD) (23%).

Three in ten employers (30%) felt there are no factors currently causing concern for their business. This proportion is significantly higher than average in businesses with 10-49 employees (37%) and higher than average (although not significantly) in businesses with 200 or more employees (43%). It varies little by district on the whole, although businesses in North West Leicestershire are significantly more likely than average to say nothing is causing them concern (40%), while those in Melton are significantly less likely than average to report no concerns (17%).

The figure that follows highlights the most common concerns for businesses within Leicester City and across the rest of the county. Although competition in the market is more likely to be mentioned by businesses in the City, compared with businesses located elsewhere in the county, the difference is not statistically significant (18%, compared with 12%). However, businesses in Leicester City are significantly more likely than those based elsewhere in the county to be concerned about parking (6%, compared with 2%), while those located outside of Leicester City are significantly more likely than those in the City to be concerned about access to finance (7%, compared with 3%); skill shortages/finding staff (7%, compared with 2%) and general costs (5%, compared with 2%).

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Figure 4.9: Factors that are currently a cause of concern for businesses: Leicester City, compared with the rest of the county - unprompted, multiple responses (all employers)

Q12. What factors, if any, are currently a cause of concern for your business?

Respondents were then asked to rate a number of factors in terms of the extent to which they are concerns for their business. A rating scale of 1 to 5 was used, where 1 is of no concern at all and 5 is of great concern. Of these factors, regulation and red tape is most likely to be rated as being of great concern (by 27% of all employers) and, combined with those rating it at 4, is top of the list of factors that are a concern for businesses (rated 4 or 5 by 45% of all employers).

Competition in their market is rated at 4 or 5 (as a concern) by 38% of all employers, whilst a similar proportion (37%) rate energy costs at 4 or 5.

18% 3% 2% 6% 7% 5% 4% 2% 1% 2% 3% 1% 2% 2% 6% 28% 12% 7% 7% 6% 6% 5% 5% 5% 3% 3% 3% 3% 2% 2% 2% 32% Competition in your market

Access to finance Skills shortages/finding staff Cash flow Economy/recession Regulation and red tape Public spending/lack of customers General costs

Interest rates Petrol or diesel costs Business/council costs Election concerns Energy costs Finding new business Parking concerns Nothing

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Figure 4.10: Extent to which respondents consider factors a concern for their business (all employers) – ‘don’t knows’ not shown

Q13. I am going to read you a list of factors. For each can you tell me how seriously you rate this as a concern for your business. Please indicate the extent to which you rate them as a concern on a scale of 1 to 5, where 1 is of no concern at all and 5 is of great concern.

The table below focuses on where factors are considered a concern at all and highlights differences by sector. Manufacturers are particularly likely to be concerned about skills shortages/finding staff, while businesses in TRAD sectors are most likely to be concerned with energy costs.

17% 15% 18% 23% 20% 33% 34% 28% 31% 40% 43% 67% 13% 18% 15% 20% 18% 17% 14% 17% 18% 18% 20% 7% 24% 29% 28% 21% 28% 17% 19% 25% 21% 19% 18% 9% 18% 19% 18% 14% 17% 18% 12% 12% 12% 8% 10% 6% 27% 18% 19% 20% 16% 15% 19% 16% 14% 10% 8% 8% Regulation and red tape

Competition in your market Energy costs Cash flow Finding new business Skills shortages/finding staff Broadband speed Petrol or diesel costs Interest rates Access to finance Staff retention Finding suitable premises

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Table 4.11: Proportion of employers rating factors 4 or 5 on a scale of 1 to 5 as a concern for the business, where 1 is of no concern at all and 5 is of great concern, by sector (all employers) ~caution: low sample base

All employers % Primary~ % Manufacturing % Construction~ % TRAD % Other services % Access to finance 18 25 21 21 17 17 Broadband speed 31 40 35 26 33 30 Cash flow 34 39 41 36 35 30 Competition in the market 38 16 34 33 47 34 Energy costs 37 38 38 24 47 31

Finding new business 33 22 34 29 38 31

Finding suitable

premises 14 7 18 7 17 12

Interest rates 26 31 27 32 28 22

Petrol or diesel costs 28 56 36 37 30 19

Regulation and red

tape 45 83 42 63 40 41

Skills shortages/finding

staff 33 25 51 40 30 31

Staff retention 18 19 21 11 19 18

Q13. I am going to read you a list of factors. For each can you tell me how seriously you rate this as a concern for your business. Please indicate the extent to which you rate them as a concern on a scale of 1 to 5 where 1 is of no concern at all and 5 is of great concern.

Employers in Melton are significantly more likely than those based elsewhere to be concerned about broadband speeds (44% rate this at 4 or 5). Compared with employers elsewhere, those in Leicester City are particularly likely to be concerned about competition (45% rate it at 4 or 5), finding new business (39%), staff retention (23%) and finding suitable premises (19%). Employers in Harborough are more likely than average to be concerned about skill shortages/finding staff (39%).

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5 Business Support

5.1 Key findings

Thirty-six per cent of LLEP area employers have sought external advice or information on matters affecting their business in the last 12 months. This increases to 45% within businesses with 50 or more employees.

Professional services, which include banks, accountants and law firms, are a key source for businesses that have sought external advice or information (79%).

One in four employers (24%) has sought advice and information from their local council.

Face to face and through a website are preferred ways of accessing business support, although telephone contact comes to the fore as a second preference.

In terms of Business Gateway services, employers are most likely to find assistance with selling and marketing their products and services useful (57%), followed by: finding suitable training for staff (50%); general advice about how to grow their business (50%); and website development/social media (49%).

5.2 Use of external advice and information

Just over a third of all LLEP area employers (36%) have sought external advice or information on matters affecting their business in the last 12 months. This compares with 44% of UK SMEs as reported in the Small Business Survey 2014.

The propensity to have sought advice or information externally increases to 45% of businesses with 50 or more employees. Primary sector businesses are more likely than those in other sectors to have sought external advice or information (65%). The likelihood of having done so is higher than average amongst exporters (48%) and businesses with skill gaps (43%).

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Figure 5.1: Proportion of employers that have sought external advice or information on matters affecting their business in the last 12 months, by size and sector (all employers) ~caution: low sample base

Q15. In the last 12 months have you sought external advice or information on matters affecting your business?

LLEP area employers are less likely than UK-wide SME employers10 to have sought external advice or information in the last 12 months (36%, compared with 44%).

In terms of where employers have sought external advice and information from, professional services, which includes, banks, accountants and law firms, are most frequently cited (79%). Family and friends are next most frequently cited (44%), above private sector business advisers/coaches/mentors/consultants (40%).

10

Source: SBS 2014, BIS (see Section 2.2: Notes on Reporting for further information)

36% 37% 33% 45% 46% 65% 36% 31% 31% 38% All employers (1027) 2-9 employees (556) 10-49 employees (365) 50-199 employees (79) 200+ employees~ (27) Primary~ (31) Manufacturing (127) Construction~ (59) TRAD (410) Other services (400)