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14-091472-01 Oxford Business Survey Presentation FINAL INTERNAL USE ONLY © Ipsos MORI
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Oxford SME Business Survey 2015 Presentation of findings
This work was carried out in accordance with the requirements of the international quality standard for market research, ISO 20252:2006 and with the Ipsos MORI Terms and Conditions
14-091472-01 Oxford Business Survey Presentation FINAL INTERNAL USE ONLY © Ipsos MORI
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The brief
The process
• 386 SMEs took part between February and March 2015;
• 20 minute interviews with the most senior strategic decision maker on site; and
• Dunn & Bradstreet provided the sample frame.
To undertake a telephone survey of SMEs within the Oxford area.
To better understand:
− Priorities when locating in Oxford;
− Characteristics of their supply chain
− Growth ambitions; and
− Barriers to recruitment and retention of staff.
This will deliver robust evidence to support policy development over the next 5 – 10 years
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Coverage
© OpenStreetMap contributors, CC-BY-SA
14-091472-01 Oxford Business Survey Presentation FINAL INTERNAL USE ONLY © Ipsos MORI
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14%
11%
10%
9%
8%
7%
6%
6%
5%
4%
2%
2%
2%
1%
1%
10%
9%
12%
6%
11%
11%
12%
5%
9%
4%
4%
1%
2%
3%
3%
2%
6%
Retail
Accommodation & Food Service Activities
Construction
Professional, Scientific & Technical Activities
Human Health & Social Work Activities
Education
Manufacturing
Administrative & Support Service Activities
Information & Communication
Arts, Entertainment & Recreation
Transport
Agriculture, Forestry & Fishing
Real Estate Activities
Financial & Insurance Activities
Public Administration & Defence
Others
Businesses in Oxford
Interviews achieved
Breakdown of companies within Oxford against interviews achieved
Profile of participants…by sector
Base: All valid responses (386) Source: Ipsos MORI
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Breakdown of business in Oxford and interviews achieved
Profile of participants …by size
56%
15%
9%
10%
5%
4%
53%
18%
10%
8%
5%
5%
1-5 employees
6-10 employees
11-19 employees
20-49 employees
50-99 employees
100-249 employees
Businesses in Oxford
Interviews achieved
Base: All valid responses (386) Source: Ipsos MORI
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1 – 5 years
Q1. How long have you been operating in Oxford? Type of business
Seven in ten have been in the Oxford area for 11+years
Base: All valid responses (386) Source: Ipsos MORI
Less than
1 year
6 – 10 years
11 – 20 years
More than
20 years
68% 11+
years
Head office
Branch
Single site
Not stated
17%
16%
62%
5% 2
15%
15%
27%
41%
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Business location priorities
Familiarity with Oxford and the local
market are the two key drivers for
locating in the Oxford area – certain
sectors have other drivers specific to
their industry characteristics
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Q3. Why did you choose Oxford as a business location?
Familiarity is the main reason why businesses have chosen to
locate in the area – however, the local market is also important
60%
23%
12%
9%
7%
7%
6%
6%
5%
4%
4%
2%
2%
2%
2%
It is where I live
Best market opportunities for my products/service
Good links with academia
I know the market/area
A nice environment in which to work
Proximity to large cities/central location
Historical connection to the business
Good transport network within the city
Quality and choice of business premises
Cumulative attraction – similar organisations within my sector locate here
Good labour resource/right skillsets
Good technology, telecommunications infrastructure
Proximity to major airports
Links to the Council
Business is connected to the University
Base: All valid responses (380) Source: Ipsos MORI
2%+ mentions
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Q3. Why did you choose Oxford as a business location?
Business location priorities
65%
25%
13%
10%
4%
Familiarity
Market
Suppliers
Infrastructure
Labour
Base: All valid responses (380) Source: Ipsos MORI
Where I live /
Know the market
Best opportunities / Cumulative attraction /
Tourism / Affluence
Links with academia / Council
Business premises / telecoms / transport network
Skill set / Foreign language speakers
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Why Oxford? The key drivers for specific sectors
Base: All valid responses (386) Source: Ipsos MORI
Retail/Arts/
Accom/food Professional/
scientific/education
Info/comms/
estate/admin
Manufacturing/
construction/
transport
• Strong local
market/demand
• Knowledge and
understanding
of the trends
and local scene
• Strong links to
academia
• Traditional
ties/links to home
• Less likely to be
in Oxford due to
the strength of
the local market
• Local market
opportunities,
• Close proximity
to where they live
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The supply chain
Supplier location correlates with
customer location. Certain sectors rely
on a high quality road network whilst
others provide their good/services
online
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Q2. Are your customers based in… ?
Eight in ten have customers based in Oxfordshire, four in ten are
international
81%
55%
40%
…Oxfordshire
…Elsewhere in the UK
…Internationally
Base: All valid responses (386) Source: Ipsos MORI
Info & communication / financial /
real estate / admin / public admin
(67%)
Professional & scientific /
education (57%)
11+ employees (50%)
Only one in five of the UK’s small and
medium-sized businesses currently
export. However, businesses are 11%
more likely to survive if they export
CBI
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47
92
39
41
39
55
39
38
Q6. How do you deliver your product or service?
Businesses tend to deliver from fixed premises although majority
of transport/manufacturing/construction is delivered by road
60%
32%
26%
18%
10%
4%
2%
From my premises
By lorry, vanor courier
Online
By car
On foot
By air
By rail
Base: All valid responses (386) Source: Ipsos MORI
% By road
All
1-5 employees
6-10 employees
11+ employees
Sector
Size
Transport / manufacturing / construction
Retail / arts / accommodation & food
Info & comms / financial / real estate / admin / public admin
Professional & scientific / education
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60
60
57
59
68
55
64
65
Q4. In the main, where are your suppliers located?
Majority of businesses have suppliers locally and also elsewhere
in the UK – one in five have international suppliers
60%
61%
20%
Oxfordshire
Elsewhere in the UK
Internationally
Base: All valid responses (386) Source: Ipsos MORI Source: Ipsos MORI
% Oxfordshire
All
1-5 employees
6-10 employees
11+ employees
Sector
Size
Transport / manufacturing / construction
Retail / arts / accommodation & food
Info & comms / financial / estate / admin
Professional & scientific / education
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84
90
95
68
76
78
89
92
81%
25%
12%
11%
4%
2%
By lorry, vanor courier
Online
By car
On foot
By air
By rail
Q5. Generally, how do your suppliers deliver your goods to you?
Businesses rely on a good road network for goods delivery,
whilst a quarter use the internet to trade
Base: All valid responses (386) Source: Ipsos MORI Source: Ipsos MORI
% By road
Sector
Size
Transport / manufacturing / construction
Retail / arts / accommodation & food
Info & communication / financial / real estate / admin / public admin
Professional & scientific / education
1-5 employees
6-10 employees
11+ employees
All
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Growth ambitions
Majority of companies in Oxford plan to
grow and believe they will be in Oxford
in 5 years time. Two-thirds of
companies leave the area due to factors
outside of the Council’s control
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58
60
54
76
57
55
53
67
Q7. Would you say that your business is likely to expand within the Oxford area within the next 5 years?
Oxford businesses are ambitious with the majority planning to
expand within 5 years in the Oxford area
Base: All valid responses (386) Source: Ipsos MORI
% yes
All
1-5 employees
6-10 employees
11+ employees
Yes, definitely
Yes, maybe
No
Don’t know/not sure
58% Yes
Transport / manufacturing / construction
Retail / arts / accommodation & food
Info & communication / financial / real estate / admin / public admin
Professional & scientific / education
Sector
Size
27%
31%
38%
4
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6
10
16
19
Yes,
definitely
Q8. Do you think you will still be based in the Oxford area in 5 years’ time?
The vast majority of businesses are content with their location
and plan to remain in Oxford for at least the next 5 years
Base: All valid responses (386) Source: Ipsos MORI
% no
All
Yes,
maybe No
Don’t know
6% No
1-5 employees
Over 50% travel from outside the area
75% travel from outside the area
79%
11% 6% 3
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Q9. What external factors might result in you leaving the Oxford area?
How many of these external factors can be influenced?
21%
19%
17%
13%
13%
13%
12%
8%
8%
8%
6%
4%
4%
4%
2%
Business rates are too expensive
Not generating sufficient revenue
Housing costs
Access to customers/footfall issues (e.g. car parking problems)
Transport/commuting costs for employees
Traffic/transport/parking difficulties (non cost related)
A lack of suitable premises for expansion
Competitors taking business away
Business expanding/changing/evolving
High rent/cheaper elsewhere
Technological developments
Business termination/lack of business
The Government
Redevelopment of current premises
Cannot secure financial backing/problems accessing finance
Base: All valid responses who will not definitely be based in the Oxford area in 5 years’ time : (52); Source: Ipsos MORI
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Affordable housing and traffic congestion are priorities also
reflected in the Oxford residents’ survey
Base: All valid responses Q7 (961) / Q8 (914) Source: Ipsos MORI
Level of crime Health services
Affordable decent housing
Public transport
Clean streets
Parks/open spaces Education
Access to nature Cultural facilities
Level traffic congestion
Wage levels/cost of living
Job prospects Shopping
Road/pavement repairs
People get on
Level of pollution Sports/leisure facilities
Activities for teenagers
Facilities – young children
Community activities/events
0
10
20
30
40
50
60
70
80
90
100
0 20 40 60 80 100
Pe
rfo
rma
nce
Importance
Needs improving Oxford Comparator
Council
Affordable living 46% 19%
Traffic congestion 62% 15%
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Q10. How do you expect to access finance in the next 2-3 years?
One in five businesses will require bank loans in the short term
17%
7%
4%
3%
3%
2%
1%
1%
1%
69%
Bank loans
Research & Development Funding
Personal savings, credit card
Family, friends
Venture capital
Business angels
European Growth funds
Pump priming
Business rate relief
We will not need to
Base: All valid responses (386) Source: Ipsos MORI
13% for Professional & scientific / education sector
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Recruitment & Retention
A quarter of Oxford businesses are
currently recruiting.
A lack of candidate skills or experience
are the two main barriers to recruitment
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28
15
35
24
30
10
27
63
Q13. Which of the following statements best describes your recruitment intentions?
Over a quarter of Oxford businesses are currently recruiting
Base: All valid responses (386) Source: Ipsos MORI
Currently
recruiting
No plans
In the next
2 – 3 years
63% Currently/
planning to
recruit
% currently recruiting
Sector
Size
Transport /manufacturing/construction construct
Retail / arts / accom & food
Info & comm/finance/real estate /admin / public admin
Professional & scientific / educ
1-5
6-10
11+ employees
All
28%
35%
37%
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Q14. What kind of positions are you looking/will you be looking to fill within your business?
Businesses are planning to fill a range of positions across all
levels of their businesses
47%
36%
24%
19%
15%
14%
10%
7%
1%
1%
Professional Individual contributors/Non-management
Unskilled Individual contributors/Non-management
Administrative staff
Trainees/apprentices
Graduates
Middle management
Junior management
Senior management/director level
Depends on requirements
Other
Base: All valid responses who are currently recruiting or will have a need to recruit in the 2 to 3 years (245) Source: Ipsos MORI
25% for Professional & scientific
/ education sector
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54
67
56
53
48
49
59
61
Q15. In your experience, how easy or difficult is it to recruit the right people for your business?
Recruiting the right people is considered difficult by over half of
Oxford’s businesses, less so by micro businesses
Base: All valid responses (386) Source: Ipsos MORI
Very easy
Quite
easy Quite
difficult
Very difficult
Q15. In your experience, how easy or difficult is it to recruit the right people for your business?
54% difficult
% difficult
Sector
Size
Transport / manufacturing / construction
Retail / arts / accommodation & food
Info & comm / financial / real estate / admin
Professional & scientific / education
1-5 employees
6-10 employees
11+ employees
All
19%
35%
32%
14%
35% have at least one
vacancy that is proving
hard to fill
UKCES Employer Skills
Survey 2013
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Q16. You say it is difficult, why is that?
Prospective employees tend to lack either the right skill set or
relevant experience (or both)
53%
37%
22%
19%
17%
14%
13%
12%
11%
10%
4%
4%
3%
2%
2%
2%
2%
Not the right skill set
Not the right experience
Insufficient affordable housing in Oxford area
Not the right qualifications
Expensive to travel into Oxford area
Not based in the locality
It is hard to encourage people to relocate to Oxford
The roads make commuting difficult
Attitude/reliability of employees
Not enough applicants
Infrequent trains into the Oxford area
Low wages
Competition
Nature of work is too difficult
Lack of funding / money available for staff
Not the right standard / calibre
Traffic / transport / parking issues
Base: All valid responses who say it is difficult to recruit the right people (205) Source: Ipsos MORI
2%+ mentions
Top 2 reasons
skill set 43%
Experience 26%
Remote
location/public
transport 7%
UKCES Employer
Skills Survey 2013
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Q14. What kind of positions are you looking/will you be looking to fill within your business?
Q17. Are there particular job positions which you find difficult to fill?
The biggest challenge seems to be in filling professional roles
47%
36%
24%
19%
15%
14%
10%
7%
1%
1%
*%
*%
40%
21%
11%
11%
5%
6%
6%
4%
1%
*%
25%
Professional/Non-management
Unskilled/Non-management
Administrative staff
Trainees/apprentices
Graduates
Middle management
Junior management
Senior management/director level
Depends on requirements
Other
Don't know
No answer
No positions difficult to fill
Positions looking to fill
Positions difficult to fill
Base: All valid responses who are currently recruiting or will have a need to recruit in the 2 to 3 years (245) Source: Ipsos MORI
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18
15
16
13
18
9
23
30
Q11. Do you have a problem retaining key employees?
One fifth of Oxford businesses have retention issues within their
organisation
Base: All valid responses (386) Source: Ipsos MORI
% yes
All
Yes
No
18% Yes
Sector
Size
Transport / manufacturing / construction
Retail / arts / accommodation & food
Info & communication / financial / real estate / admin / public admin
Professional & scientific / education
1-5 employees
6-10 employees
11+ employees
18%
82%
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Q12. What are the external barriers to retaining key employees?
High cost of living in Oxford is the overriding barrier to retaining
key employees - specifically housing and cost/time to commute
58%
32%
23%
23%
12%
11%
11%
9%
9%
5%
3%
3%
3%
3%
It is expensive to live in Oxford
Cannot afford to buy a property
It is expensive to commute
It is time-consuming to commute
Low pay / poor development opportunities
Part time / seasonal work / students
Not the required skills / experience
Finding committed / loyal / adaptable staff
Competition / more suitable job opportunities with other employers
Lack of funding / money available for staff
Staff are over qualified / moving on to their desired career
The need for training
Traffic / lack of employee parking
Nature of work is too difficult
Base: All valid responses who have a problem retaining key employees (66) Source: Ipsos MORI
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Reasons why residents are dissatisfied
Insight into transportation issues
With the local bus service
• Expensive – acts as disincentive to stop using cars
• Poor routes / inter-connectedness of local areas – having to go into the
city centre and back out again to get to different areas
• Infrequent services / scheduling issues
• Punctuality / reliability problems
• Overcrowding on some services
With the local transport network
• Traffic congestion (especially at peak times / rush hour)
• Condition of road surfaces / potholes
• Disruption / road closures / roadworks
• Safety of cycling routes
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42
38
39
36
53
25
51
69
Q19. What proportion of your employees would you say travel from outside of the Oxford area?
Two fifths of SMEs rely on employees living and travelling from
outside of Oxford
Base: All valid responses (386) Source: Ipsos MORI
None
Up to 50%
More than
50%
Don’t know
% any
42% Any
Transport / manuf / construction
Retail / arts / accomm / food
Info & comm / finance / real estate / admin / public admin
Professional & scientific / education
1-5 employees
6-10 employees
11+ employees
All
Sector
Size
31%
11%
57%
1
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Q20. Does your company support and permit…?
Majority of companies support flexible working, including working
from home where business operation permits
Base: All valid responses (386) Source: Ipsos MORI
Yes
No
82% Yes
Yes No 48%
Yes
…flexible working
hours
…working from
home
82%
18%
Transport
– flexible hours (71%)
– working from home (33%)
Retail
– working from home (27%)
48% 52%
45% of
employees are
permitted to
work flexibly
Microsoft, 1,000 UK
SMEs 2015
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In summary, there are some positive messages…
• There is high future growth projections, particularly in the information / communication /
financial / real estate and administrative sectors and among larger SMEs;
• Overall, businesses appear financially secure with two-thirds not needing access to short
term finance;
• Eight in ten say they will definitely be in the Oxford area in 5 years time;
• Almost two-thirds are currently or planning to recruit in the next 2 – 3 years; and
• SMEs are embracing flexible working practices.
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But some clear challenges…
• Business rates, housing costs, transport and commuting costs and a lack of suitable
premises are all reasons cited for not being in the Oxford area in five years
• More than half of employers find it difficult to recruit the right people into their organisation
− A key reason is finding the right skill set and/or experience
− But also, a lack of local employees and transportation issues
• Whilst only one fifth of Oxford businesses have retention issues affordable living and
commuting issues are the main barriers
• Currently, two fifths of SMEs rely on employees living and travelling from outside of Oxford
• Companies with a high commuter workforce are more likely to be flexible about their future
business location
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Key characteristics and drivers for specific sectors
…….to be found in the report
Base: All valid responses (386) Source: Ipsos MORI
Retail/Arts/
Accom/food Professional/
scientific/education
Info/comms/
estate/admin
Manufacturing/
construction/
transport • More likely to be
embryonic businesses
• Rely on good road
network to receive
goods
• Strong local
market/demand
• Knowledge and
understanding of the
trends and local scene
• More likely to have
international customers
compared to other industries
• Most likely to deliver
goods/services online
• Located in Oxford because of
strong links to academia
• Likely to be micro
businesses (<5 employees)
and therefore acknowledge
importance of labour
market
• More likely to be online
businesses
• Located in Oxford because
of traditional ties/links to
home
• Less likely to be in Oxford
due to the strength of the
local market
• Aiming to expand within
the next 5 years
• Goods most likely to be
delivered by road and
therefore rely on a strong
road network
• Businesses in these
sectors are most attracted
by the local market
opportunities, more so
than any other sector
• However, business
location is also likely to be
in close proximity to where
they live
• The importance of a large
city catchment is also a
key consideration
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Version FINAL | Internal Use Only
Paste co-
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here
Thank you [email protected] | 0161 826 9421
February 2015
© Ipsos MORI This work was carried out in accordance with the requirements of the international quality standard for market research, ISO 20252:2006 and with the Ipsos MORI Terms and Conditions which can be found here
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