Business
To achieve the vision, the region needs to focus on seven key factors:
- Developing new Enterprise and growing existing companies
- Developing higher added-value activity in Regional Sectors
- Innovation to improve productivity in all companies and exploit the Higher Education base of the region
- Exploiting the Science/Research and Development base of the region
- Improving International Competitiveness
- Using ICT more effectively and efficiently
- Focusing on Sustainable Consumption and Production
Research Programme 2008/9
Access to Finance for SMEs
The original survey, the “UK survey of SME Finance 2004” to give it its full title, was produced by a unique consortium of SME representative organisations, government, banks and other finance providers, which was specially formed for the purpose off understanding access to finance for small firms. They appointed Warwick Business School to conduct the survey and produce a report looking specifically at SMEs and their availability of finance. The sorts of information we will acquire from this survey are as follows:
- The characteristics of SMEs, their owners and what sort of finance they use; and
- The problems faced by SMEs and their use of external advice; and
- The ethnicity and gender breakdowns of SMEs; and
- The frequency of rejection and discouragement from applying for external finance and the consequences thereof.
Cited by SMEs as a key barrier to business growth this study will give us a unique insight into the key financial barriers to growth for SMEs and their perception of financial products to over come these barriers.
Aim: Understand the access to finance market for SMEs
NW Sector Detail and Geography
This project aims to define the six RES priority sectors according to 2003 Standard Industrial Classification (SIC) codes plus an additional 11 sectors which together totalled the whole economy. The definitions were assigned according to four digit SIC codes and as far as possible each four digit code is assigned to just one sector. This sector definition has enabled the NWDA Research Team to work with the ONS Regional Presence to obtain data from the Inter-Departmental Business Register (IDBR) on the number of companies, number of employees, size of companies and turnover. This data and analysis covers the period 1998-2007 and is available by sector and where possible to sub-regional and local authority level. Data has also been collected for England and for the comparator regions of Yorkshire and the West Midlands.
Aim: Defining key sectors by economic indicators which allow us to consistently track their performance in the region.
Outputs:
The six 2006 RES priority sectors have been defined according to 2003 Standard Industrial Classification (SIC) codes plus an additional 11 sectors which together total 100% of the whole economy. Manufacturing and Sport have also been defined as cross cutting sectors. A list of 2003 SIC code definitions for each sector is available here.
There are a number of outputs available for this project. The final report is overarching report covering the methodology and presenting the headline findings.
The IDBR provides both Enterprise and Unit counts of data. A report for each sector is available for both the Enterprise and Unit counts of data. These reports can be downloaded via the links below.
A series of maps have also been produced for each sector where the data allows. The maps are available at both the Enterprise & Unit counts and show the number of companies, employees and turnover (Enterprise count only) for 2006 at local authority level together with the change between 1998 and 2006. These maps can be downloaded via the links below:-
Global Entrepreneurship Monitor (GEM) 2008
The Global Entrepreneurship Monitor (GEM) research program is an annual assessment of the national level of entrepreneurial activity and these results will build upon GEM 2007. The study looks at Total Early stage Entrepreneurial Activity (TEA) in the NW. The survey identifies challenges and barriers, attitudes and TEA by under-represented groups.
Aim: To understand the level of entrepreneurial activity within the region, attitudes by particular groups and constraints.
RDA Regional Survey of Economic Trends
This is a comprehensive report which captures business performance, identifies key constraints on their growth and predicts business optimism for the future, both at a national and regional level. Taking into account strategic issues, investment and competitiveness intentions as well as a whole host of other business indicators we are able to make concrete policy decisions to further improve the entrepreneurial climate for NW businesses.
Aim: To gauge business performance in the region, understand their barriers and predict future growth
Annual Small Business Survey 2007
This report sets out the key findings in the North West from the Annual Small Business Survey 2007 (ASBS07) and builds upon 2006 findings. The survey was a large-scale telephone survey conducted by IFF Research Ltd between November 2007 and March 2008.
Aim:
- Monitor key trends in the characteristics and perceptions of small business owners and managers
- Serve as a “listening exercise” among small businesses:
- Gauging their intentions / plans, needs, concerns and the barriers they face to fulfilling their potential
- Acting as a sounding board for possible Government actions and interventions to support and assist small businesses
Results from the 2006 survey can be found below.
Northwest Manufacturing Strategy and Action Plan (MSAP)
Manufacturing is a very important sector within the North West economy. Using traditional statistical measures of its importance, the sector employs around 400,000 people (which represents 12.0% of the total workforce) and produces 18.4% of the regions total GVA output. Productivity (GVA per worker) is £48,500 in manufacturing, compared to an average GVA per worker figure in the region of below £32,000 (Regional Economic Forecasting Panel – 2008). It is therefore a critically important sector in the North West for delivery of both RES outcome targets and the PSA 7 outcome target for Government. Indeed, manufacturing in the North West is the one sector where productivity in the region is higher than the same sector in the UK; supporting manufacturing provides a key means for the region to act on achievement of PSA 7 targets and to close the regions GVA gap. Although manufacturing has a greater representation within the North West economy compared to the national economy, the highly productive nature of manufacturing, and the location within the region of a number of key clusters/sectors, means that this manufacturing base is a real strength. Further, the region has shifted to recognising manufacturing in its modern sense, as “the full cycle of activities, from research, design, development, production, logistics, after sales service, maintenance/repair, to end of life management”; in this way, the Agency recognises the value that manufacturing production has within wider value chains.
The studies completed as part of the evidence base have shown the importance of the sector in the Northwest and has sought to show the weaknesses and opportunities in the sector going forward. Due to the complex nature of modern manufacturing, it was necessary to consider a wide range of evidence sources; it is the collective messages from all the sources of evidence that are important.
Aim: To provide a robust evidence base on modern manufacturing in the Northwest to inform future strategic direction.
Outputs
Volume 1.1 – The evidence base - document review
Volume 1.2 – The evidence base - statistical analysis
Volume 1.3 – The evidence base - econometric analysis
Volume 1.4 – The evidence base - business survey
Volume 1.5 – The evidence base - market failure
Research Programme 2007/8
Global Entrepreneurship Monitor (GEM) in conjunction with London Business School
The Global Entrepreneurship Monitor (GEM) research program is an annual assessment of the national level of entrepreneurial activity. The NWDA has been part of the GEM consortium for two years and relies on this data as an authoritative study into the Total Early stage Entrepreneurial Activity (TEA) in the NW. The survey identifies challenges and barriers, attitudes and TEA by under-represented groups. A key area of the Agency’s focus and the current RES, it acts as a valuable monitoring tool in measuring entrepreneurial intentions in the NW.
The 2007 Northwest report has now been published together with a summary report for the region and a final report for the UK. The presentation from the dissemination event in March shows the key findings to the Northwest region is also available to download.
Outputs from the 2006 GEM Survey are listed below
North West Summary
North West Full Report
UK Report
Aim: To understand the level of entrepreneurial activity within the region, attitudes by particular groups and constraints.
Annual Small Business Survey 2006
The Annual Small Business Survey is conducted by the Department for Business, Enterprise and Regulatory Reform (BERR). The main aims of the survey are to:
- Monitor key trends in the characteristics and perceptions of small business owners and managers
- Serve as a “listening exercise” among small businesses:
- Gauging their intentions / plans, needs, concerns and the barriers they face to fulfilling their potential
- Acting as a sounding board for possible Government actions and interventions to support and assist small businesses
The NWDA Research Team paid to boost the Northwest sample of the Annual Small Business Survey 2006 to allow for more detailed regional analysis and facilitate comparisons between other regions or national figures.
The Northwest Report is now available here and the national report can be downloaded from BERR http://www.berr.gov.uk/bbf/enterprise-smes/research-and-statistics/research-evaluation/business-surveys/page38370.html
Household Entrepreneurship Survey 2007
The Household Entrepreneurship Survey has been conducted every two years since 2001 by the Department for Business, Enterprise and Regulatory Reform (BERR). The main aims of the survey are to:-
- monitor, over time, the attitudes towards going into business
- establish the full range of entrepreneurial activity going on at present
- examine the motivations for, and barriers to, starting a business
- provide robust data on business activity actions and plans
- monitor key trends in the characteristics and perceptions of small business owners and managers
The NWDA Research Team paid to boost the Northwest sample of the Household Entrepreneurship Survey 2007 to allow for more detailed regional analysis and facilitate comparisons between other regions or national figures.
BERR released the national report on Monday 15th July and the Northwest Report in August.
RDA Regional Survey of Economic Trends in conjunction with CBI
This is a comprehensive report which captures business performance, identifies key constraints on their growth and predicts business optimism for the future, both at a national and regional level. A relationship that has lasted over three years we see this annual study as robust evidence of business optimism in the region. Taking into account strategic issues, investment and competitiveness intentions as well as a whole host of other business indicators we are able to make concrete policy decisions to further improve the entrepreneurial climate for NW businesses. The Final Report is now available.
Aim: To gauge business performance in the region, understand their barriers and predict future growth.
Globalisation index (GI)
The Globalisation index ranks the Northwest based on a number of variables grouped into four categories: Economic, Travel and Tourism, Migration and Ethnicity. The Globalisation index stems from an annual Global Index study (Foreign Policy A.T. Kearney) that assesses the extent to which the world’s most populated nations are becoming more or less globally connected. The GI methodology is adapted and applied to the English regions and assess how globally connected the Northwest region is.
Aim: To assess how globally connected the Northwest region is.
Business Relocation
Businesses provide the backbone of the economy generating wealth and employing people. The NW is home to 240,000 businesses employing nearly 3 million people generating an economy worth £106 billion.
Promoting enterprise within the NW is integral to ensuring it prospers. The more businesses within a region the more employment opportunities exist stimulating investment and empowering the region to become more productive and ultimately better off.
It is of paramount importance that as a region we provide the entrepreneurial climate from which businesses can survive and thrive. It is important as an economic development agency we understand why businesses are attracted to the region and why some businesses decide to relocate outside of the region.
Aim: To understand the motivations behind businesses moving in and out and within the region.
Northwest ICT Adoption, Usage and Impact Survey
Information and Communication Technology (ICT) is increasingly recognised as a major driver of productivity growth. The extent to which the Northwest’s businesses adopt and exploit ICT effectively is – and will continue to be – a fundamental determinant of the region’s economic performance. In recognition of this the NWDA research team recently commissioned SQW consulting in conjunction with GfK NOP to perform a survey and report of 2,000 Northwest based businesses, and 200 ICT specific businesses to gain insight into levels of ICT adoption, usage and impact.
Aim: Identify the level of broadband take-up amongst businesses within the region and whether they are maximising this to its full potential.
Export Research
Full year export figures for 2006 in the Northwest show that total exports were valued at £23,705 million which was an increase of £4,398 million compared with 2005. This now represents 14% of England’s total export value and 10% of the UK’s. However, the number of exporters in the Northwest decreased from 7,148 to 7,130 during the same period. Such a significant shift in one year demonstrates that the price of the pound has bigger impacts on our region than other UK regions i.e. our vulnerability to shifts in exchange rates. To gain a better understanding of this variable on the region’s GVA we need to understand what lies behind this. The Initial Briefing was published in April 2008 and the Final Report has been published in October 2008.
Aim: Explore the vulnerability of the Northwest with regard to export value and the price of the pound. Particular focus needs to be placed on the percentage of exports accounted for by the top 100 exporters.
Business Start-Ups
High levels of business start-ups within a region signify economic prosperity. The greater the business stock the greater the opportunities, productivity and investment within the region leading to a better quality of life for everyone. The region tends to have less owner-managed businesses, partly due to the historic dominance of large manufacturing companies. Because of this it is important as a region we encourage people to start businesses including the under-performing groups of the region:
- Women, BME communities, Disabled Entrepreneurs and Social Enterprise
This study will identify the overall level of business start-ups in the region, their survivability and attitudes towards business support in the region.
Aim: Identify firm formation rate in the region broken down by the under-performing groups of the region as well as their survival rates and attitudes to business support.
Outputs published in April 2008