KEY FINDINGS ANNEX SCOTLAND THE FSB VOICE OF SMALL BUSINESS MEMBER SURVEY

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1 KEY FINDINGS ANNEX SCOTLAND THE FSB VOICE OF SMALL BUSINESS MEMBER SURVEY 1

2 Research by Design This report was prepared on behalf of the FSB by: Research by Design Ltd White House 111 New Street Birmingham B2 4EU 2

3 THE FSB VOICE OF SMALL BUSINESS MEMBER SURVEY SCOTLAND CONTENTS Annex 1 - Business Profile Number of businesses owned Legal status and gender of business owners Years of ownership VAT registration Business premises Business sector Education Age profile Annex 2 - Employment, skills and training Current workforce Staffing level changes Flexible working Training offered Providers of training Annex 3 - Finance Rates of borrowing Financial performance sales volume change Customers Payment terms Annex 4 - Growth and innovation Business growth over the past 12 months Growth aspirations over the next 12 months Internet access Innovation Intellectual property Exporting Getting support

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5 THE FSB VOICE OF SMALL BUSINESS MEMBER SURVEY SCOTLAND ANNEX 1 BUSINESS PROFILE 5

6 ANNEX 1 FSB BUSINESS PROFILE ANNEX 1 BUSINESS PROFILE 1.1 NUMBER OF BUSINESSES OWNED 78% of Scottish FSB members either own, co-own or manage one business, compared to 7 in the UK. Since the 2011 survey, single business ownership has risen by 4% in Scotland. How many businesses do you own, co-own or manage? 78% 16% 5% UK: 7 UK: 20% UK: 5% UK: 2% or more Base: All members Base: LEGAL STATUS AND GENDER OF BUSINESS OWNERS 47% of Scottish member businesses are limited companies 1 fewer than the UK and one third are sole traders. The difference between micro and small businesses is significant with 40% of micro businesses operating as sole traders compared to just 4% of small businesses. What is the legal status of your main business? Limited company Sole trader/ sole proprietorship Partnership SCOTLAND 47% 34% 16% UK 58% 29% 12% Base: All members Scotland UK Base: 8,713 (UK) 927 (Scotland) 6

7 THE FSB VOICE OF SMALL BUSINESS MEMBER SURVEY SCOTLAND Legal status of main business: Limited company Sole trader/ proprietor Partnership Base: Sector % of total: 47% 34% 16% 927 Manufacturing 65% 24% 1 56 Construction 62% 26% 10% 113 Business services 57% 3 10% 109 Retailing 40% 40% 18% 172 Agriculture, forestry, fishing 39% 30% 27% 62 Creative services 35% 54% 7% 59 Tourism 35% 36% 27% 229 Leisure 34% *Significant differences from the totals have been highlighted. 44% of Scottish FSB businesses are solely or mainly owned by men. One third are equally male and female owned, and the remaining 2 are mainly or solely female owned. Majority male operations in Scotland tend to be small businesses and operating in the manufacturing, construction and business services sectors. By comparison, proportionately more solely female owned businesses are micros. How many owners (including partners and directors) are male and female? Solely male Male majority Equal male and female Female majority Solely female 27% 17% 34% 5% 16% 28% 15% 38% 4% 15% Base: All members Base: 922 (2013) 1,124 (2011) 7

8 ANNEX 1 FSB BUSINESS PROFILE 1.3 YEARS OF OWNERSHIP On average, members have owned their business for 13 years. A higher proportion of small business owners (as opposed to micro owners) have run their business for more than 20 years. How many years have you owned or co-owned your main business? 2 years or less 3 to 5 years 6 to 10 years 11 to 15 years 16 to 20 years 21 to 30 years More than 30 years Base: All members 10% 16% 26% 16% 1 14% 6% Base: VAT REGISTRATION Just fewer than seven in 10 firms are VAT registered businesses, rising to 92% among small businesses. Proportionately more men and those owning the business for more than 10 years are VAT registered. A significantly greater proportion of Scottish members operating in agriculture, construction, manufacturing and retail sectors are VAT registered BUSINESS PREMISES 36% of Scottish FSB members own the premises from which they operate, 10% more than the UK as a whole. Proportionately more premises owners run small firms and have owned their business for in excess of six years. At a sector level, significantly more businesses in the agriculture, forestry, fishing, leisure and tourism sectors operate from owned premises. Over one fifth of Scottish businesses operate from home, with significantly more micro businesses working in this way (25% versus 4% of small businesses). Proportionately more of those operating in the business and creative services sectors also work from home. Do you own or rent your main business premises? Own Rent Not applicable - I have no business premises e.g. mobilebusiness/tradesperson Not applicable - I work from home 36% 39% 4% 22% 38% 39% 2 Base: All members Base: 928 (2013) 1,134 (2011) 8

9 THE FSB VOICE OF SMALL BUSINESS MEMBER SURVEY SCOTLAND 1.6 BUSINESS SECTOR The sector profile of Scottish FSB member businesses is again dominated by those operating in retail, leisure, business services and construction. Those operating in business services have seen a increase since 2011 while there has been a 2% increase in the leisure sector. Overall, one quarter of Scottish members classify their business as operating in the tourism sector; 12% higher than in the UK as a whole. Most notably, FSB Scotland has proportionally more members who operate in leisure and business services in comparison with the UK. In which sector of industry does your business(s) primarily operate? Retailing Hotels, catering, leisure Business services Construction Agriculture, forestry, fishing Manufacturing Creative services Real estate Engineering Personal services Transport Health and social work Education Sale, maintenance of motor vehicles Financial services Wholesale Digital and telecoms Energy, water, environmental Research and development Renting of machinery and equipment Post and courier Other SCOTLAND 18% 18% 12% 12% 7% 6% 6% 4% 4% 4% 4% 2% 2% 2% 6% UK 15% 1 18% 1 4% 7% 6% 5% 5% 4% 4% 4% 4% 2% 0% 8% Base: All members Base: 8,737 (UK) 928 (Scotland) 9

10 ANNEX 1 FSB BUSINESS PROFILE Female owners have a stronger tendency to manage retailing, tourism and leisure sector businesses. The gap analysis below shows the differences in the proportions of small and micro businesses that operate in each of the listed sectors. For example, 14% more small businesses primarily operate in construction compared with micro businesses. Conversely, 1 more micros have a retailing focus. Construction Manufacturing Hotels, catering, leisure Education Business services Creative services Tourism Retailing Micro businesses Small businesses 14% 6% 2% 2% 6% 6% 7% 1 Micro: 776 Base: Small:

11 THE FSB VOICE OF SMALL BUSINESS MEMBER SURVEY SCOTLAND 1.7 EDUCATION Around four in 10 members (39%) are educated to at least degree level, a increase on results recorded in the previous survey. Which of the following is the highest level of education that you have attained so far? Bachelor Degree or equivalent professional or other qualification 24% HNC/HND 15% Vocational qualifications e.g. City & Guilds, NVQs and SVQs, BTEC Diplomas, RSA, QCF GCSE/O-level/ igcse/ English Baccalaureate or CSE or equivalent qualification Master's Degree, MBA, equivalent professional qualification AS/ A-level or equivalent professional qualification or Baccalaureate A Doctorate or equivalent professional qualification 14% 1 12% 8% Foundation degree Base: All members Base: 906 Significantly more female owners (46%) are educated to at least degree level compared to male owners (35%). 11

12 ANNEX 1 FSB BUSINESS PROFILE Equally, those who have owned their business for the shortest time are educated to the highest levels (as the chart below demonstrates). Educated to at least degree level Proportion with degree 50% 40% 30% 20% 10% 0% 2 years or less 3 to 5 years 6 to 10 years 11 to 15 years 16 to 20 years 21 to 30 years More than 30 years Age of business Base: 902 Analysis at a sector level reveals that there are proportionally more business owners educated to degree level that operate in the creative and business services sectors. Education status: At least degree level GCSE/ O level Vocational Qualifications Base: Sector % of total: 39% 1 14% 906 Creative services 6 7% 5% 59 Business services 57% 7% 7% 105 Manufacturing 40% 19% 12% 56 Retailing 38% 14% 8% 169 Agriculture, forestry, fishing 35% 15% 19% 60 Hotels, catering, leisure 35% 15% 15% 169 Construction 24% 17% 24% 111 *Significant differences from the totals have been highlighted. 12

13 THE FSB VOICE OF SMALL BUSINESS MEMBER SURVEY SCOTLAND 1.8 AGE PROFILE Almost seven in 10 Scottish members are aged between 45 and 64. Proportionally more younger members (aged under 35) own businesses in the construction sector (12%), while more of those aged 55 to 64 operate in the business services sector (50%). Within which age band do you fall? 5% 15% 35% 34% 1 16 to to to to 64 Base: All members 65+ Base:

14 ANNEX 1 FSB BUSINESS PROFILE 14

15 THE FSB VOICE OF SMALL BUSINESS THE FSB VOICE MEMBER OF SURVEY SMALL BUSINESS SCOTLAND MEMBER ADDITIONAL SURVEY SURVEY SCOTLAND DATA ANNEX 2 EMPLOYMENT, SKILLS AND TRAINING 15

16 ANNEX 2 EMPLOYMENT, SKILLS AND TRAINING ANNEX 2 EMPLOYMENT, SKILLS AND TRAINING 2.1 CURRENT WORKFORCE The table below demonstrates employment levels by sector. Employing staff: Yes No Base: Sector % of total: 60% 40% 928 Manufacturing 75% 25% 56 Construction 7 29% 113 Leisure 65% 35% 174 Retailing 65% 35% 173 Agriculture, forestry, fishing 6 39% 62 Tourism 58% 42% 229 Business services 5 49% 109 Creative services 26% 74% 59 *Significant differences from the totals have been highlighted. 2.2 STAFFING LEVEL CHANGES Scottish FSB members report a net increase in staffing levels across most of the given staff types compared with 12 months ago. The largest net increase occurs for full and part time permanent employees and freelancers. How have your staffing levels changed compared to 12 months ago? Staff changes over past 12 months Increase Decrease Net difference Base: Full time permanent 19% 1 +6% 524 Part time permanent 17% 1 +4% 418 Freelance 10% +7% 263 Apprentices 8% +5% 246 Casual workers 6% 2% +4% 246 Staff on zero hours contracts 6% 0% +6% 250 Full time temporary employees 4% 4% = 240 Agency workers 4% Part time temporary employees +2% 241 Interns 2% 0% +2% 226 Base: Those employing staff 12 months ago 16

17 THE FSB VOICE OF SMALL BUSINESS MEMBER SURVEY SCOTLAND The table below illustrates staff changes over the next 12 months and projects particularly strong growth in full-time permanent staff (net increase of 14%). How do you expect your staffing levels to change over the next 12 months? Staff changes over next 12 months Increase Decrease Net difference Base: Full time permanent 17% +14% 840 Part time permanent 16% Freelance 15% 2% Apprentices 7% 0% +7% 537 Casual workers 7% +6% 544 Part time temporary employees 5% +4% 526 Staff on zero hours contracts 4% Interns 4% 0% +4% 512 Full time temporary employees 4% Agency workers = 510 Base: All members 17

18 ANNEX 2 EMPLOYMENT, SKILLS AND TRAINING 2.3 FLEXIBLE WORKING Among those Scottish FSB members employing staff, just under eight in 10 currently offer, or would consider offering, flexible working opportunities to their staff. Only of members claim to only accept flexible working requests from staff who currently enjoy the right to request flexible working. Which of the following statements best describes your attitude to employees working flexibly within your business? I offer a wide range of flexible working options to all of my staff Certain types of flexible working are currently offered to my staff I will consider flexible working requests from staff on an individual basis I will only permit flexible working by those who have a statutory right to request it (currently parents with a child under the age of 17 (18 if the child is disabled) and child and adult carers) I do not permit any flexible working even though I could probably accommodate it I do not permit any flexible working because it is not appropriate to my business Base: Those employing staff 24% % Base: 554 Interestingly, those operating micro businesses are more open to flexible working compared with their counterparts in small businesses. Proportionately more of the former offer a wide range of options (27%) versus small businesses (16%). Among those employing staff, seven in 10 have at least one member of staff currently working flexibly. 18

19 THE FSB VOICE OF SMALL BUSINESS MEMBER SURVEY SCOTLAND The table below demonstrates the differences by business sector and business size. Wide range of flexible working Certain types of flexible working Will consider flexible working requests Do not permit/ Not applicable Base: Attitudes to flexible working Overall 24% % 554 Sector Business services 36% 2 28% 1 57 Construction 9% 12% 35% 40% 79 Hotels, catering, leisure 29% 26% 26% 17% 110 Retailing 2 26% 3 14% 111 Business size Micro businesses 27% 20% 3 20% 402 Small businesses 16% 25% 3 26% 152 *Significant differences from the totals have been highlighted. 19

20 ANNEX 2 EMPLOYMENT, SKILLS AND TRAINING On average, members operate two forms of flexible working practises. Among those, over six in 10 have staff working part time, 49% have staff working staggered hours 1 while 2 have staff working flexitime or flexi-hours 2. It is much less common to find staff in member businesses working on a job share basis (5%) or annualised hours 3 (4%). Which of the following types of flexible working do your staff work, if any? Part time working Staggered hours (Enabling employees in a workplace to have different start and finish times) Flexi-time /flexi-hours (Where an employee may be required to work within core times, but outside these times they may have flexibility in how and when they work their hours) Working from home Compressed working hours (Employees work their total agreed hours over fewer working days) Term-time working (Enabling an employee on a permanent contract to take paid or unpaid leave during school holidays) Job share (Where two employees share the work and the pay of one) Annualised hours (Employees work a certain number of hours over the year but they have some flexibility about when they work. There are sometimes core hours which employees regularly work each week, and they work the rest of their hours flexibly or when there s extra demand at work) Other flexible working (please specify) None of these Base: Those offering flexible working 62% 49% 2 22% 8% 7% 5% 4% 4% 9% Base: 424 Just over one in five have staff working from home, which is significantly fewer than the overall figure seen in the UK (30%). Those who own or co-own one business have significantly fewer staff working from home (19%) than those who own or co-own two or more businesses. Home working is also more prevalent among those offering business and creative services. Interestingly, flexible working is more readily accepted among newer businesses than those in operation for 20 years or more. 1 Enabling employees in a workplace to have different start and finish times 2 Where an employee may be required to work within core times, but outside these times they may have flexibility in how and when they work their hours 3 Employees work a certain number of hours over the year but they have some flexibility about when they work. There are sometimes core hours which employees regularly work each week, and they work the rest of their hours flexibly or when there s extra demand at work. 20

21 THE FSB VOICE OF SMALL BUSINESS MEMBER SURVEY SCOTLAND 2.4 TRAINING OFFERED Over seven in 10 Scottish FSB members offer informal on-the-job training that does not lead to an accredited qualification. Formal training is offered by 45% of businesses and 35% offer training that leads to accredited qualifications. Which types of training do you offer your staff, if any? 7 17% 35% 9% Informal on the job training that does not lead to accredited qualifications Formal/paid for training that does not lead to accredited qualifications Formal/paid for training that leads to accredited qualifications Other No training is offered Base: Those employing staff Base: 556 Of those offering informal or formal training that does not lead to accredited qualifications, over eight in 10 deliver new starter training. What type of informal/formal training that does not lead to accredited qualifications do you offer your staff? Initial training for new starters to familiarise them with the business Health and safety/fire Technical, job specific training for all staff Technical, job specific training for new starters Office administration IT/ software Employability skills training, e.g. problem solving, communication and customer care, business and commercial awareness Planning/organising Management/leadership Basic skills training e.g. numeracy, literacy Foreign language skills Other (please specify) 85% 57% 45% % 25% 19% 14% 8% Base: Those offering informal or formal training that does not lead to accredited qualifications Base:

22 ANNEX 2 EMPLOYMENT, SKILLS AND TRAINING 2.5 PROVIDERS OF TRAINING Of those offering formal training that leads to accredited qualifications, a larger proportion indicate that this is delivered by a private provider or training business. Who provides the formal training for your staff that leads to accredited qualifications, and where is it provided? Within the workplace 50% 14% 37% 10% Outside of the workplace 6 3 8% 7% E-learning/ distance learning 3 1 8% 8% 45% Private provider/ training business College University Internally provided Not applicable Base: Base: Those offering formal training that leads to accredited qualifications 22

23 THE FSB VOICE OF SMALL BUSINESS MEMBER SURVEY SCOTLAND Most businesses offering formal training from an external provider are satisfied with the provision. Over three quarters are satisfied with qualifications offered and course content. Satisfaction with cost effectiveness is lower at 6. And how satisfied are you with your training provider on the following? (If you have used more than one provider, please refer to the one you have used most recently) The qualifications they offer Course content 34% 4 12% 2% 9% 32% 46% 14% 2% 5% Quality of trainers/tutors Quality of course materials The overall service they provide Cost effectiveness Engagement with your business 29% 45% 16% 2% 7% 28% 45% 18% 2% 7% 26% 48% 17% 5% 24% 39% 24% 6% 6% 24% 40% 17% 9% Very satisfied Neither satisfied nor dissatisfied Very dissatisfied Quite satisfied Quite dissatisfied Unsure/ Not applicable Base: Base: Those offering formal training with or without qualifications from an external provider 23

24 ANNEX 2 EMPLOYMENT, SKILLS AND TRAINING 24

25 THE FSB THE VOICE FSB OF VOICE SMALL OF BUSINESS SMALL BUSINESS MEMBER MEMBER SURVEY SURVEY SCOTLAND UK ANNEX 3 FINANCE 25

26 ANNEX 3 FINANCE ANNEX 3 FINANCE 3.1 RATES OF BORROWING 3 of Scottish members with a bank loan are paying an interest rate in excess of 6%. The average rate across all borrowers is 6.2%, 0.5% lower than the UK average. What interest rate are you paying on your main loan (taken out over the past 12 months)? 24% 3 14% 6% 14% 4% 7% Less than 4% 5% 6% 7% 8% 9% 10% or more Base: Those taking a loan Base: 58 Around four in 10 (38%) of those with an overdraft pay an interest rate above 6%. The average rate stands at 6.7%, 0.6% lower than in the UK. What interest rate are you paying on your main overdraft (taken out over the past 12 months)? 34% 17% 1 7% 12% 5% 4% 10% Less than 4% 5% 6% 7% 8% 9% 10% 10% or more Base: Those taking an overdraft Base: FINANCIAL PERFORMANCE - SALES VOLUME CHANGE Sales volume patterns are consistent with those reported for profitability this year. Over four in 10 highlight an increase in sales, similar to that reported in 2011, but encouragingly fewer than three in 10 identify a decrease. Compared with the 56% recording a profitability decrease in the previous survey, this is a significant improvement. How has your business s sales volume changed over the past financial year, if at all? 25% 18% 4 2% 1 Decreased by >50% Decreased by to 50% Stayed the same Increased by to 50% Increased by >50% Not applicable/ Rather not say Base: All members Base: 915 Reflecting on business size, significantly more small business owners record an increase in sales volume versus micro owners (5 versus 4). 26

27 THE FSB VOICE OF SMALL BUSINESS MEMBER SURVEY SCOTLAND 3.3 CUSTOMERS 55% of Scottish member businesses have supplied the private sector over the past 12 months. Much of this trade is with other small private sector firms while 34% is with larger private sector clients. Almost four in 10 supply goods and services to the public sector, highlighting the importance of public procurement processes for small businesses. Local authorities remain key customers with around a quarter of small firms selling to councils. To which of the following, if any, have you supplied goods and/ or services during the past 12 months? All Private Private sector (smaller businesses <50 employees) Base: All members All Public Private sector (larger businesses >50 employees) Local authorities/councils Schools/Universities/Colleges National Health Service (NHS) Government agencies/'quangos' Police 55% 50% 39% 34% 24% 2 1 6% 4% Base:

28 ANNEX 3 FINANCE 3.4 PAYMENT TERMS Payment in arrears is most common in the construction, business services and manufacturing sectors. It is least common within the retail sector, where payment upon delivery and payment in advance are more prevalent. What are your principle payment terms? Payment terms: In arrears Upon delivery In advance Base: Sector % of total: 45% 32% 15% 928 Construction 70% 15% 12% 113 Business services 6 20% 14% 109 Manufacturing 6 15% 18% 56 Agriculture, forestry, fishing 5 35% 7% 62 Creative services 47% 29% 14% 59 Retailing 25% 40% Hotels, catering, leisure 22% 56% 16% 174 Base: All members *Significant differences from the totals have been highlighted. 28

29 THE FSB VOICE OF SMALL BUSINESS THE FSB VOICE MEMBER OF SURVEY SMALL BUSINESS SCOTLAND MEMBER ADDITIONAL SURVEY SURVEY SCOTLAND DATA ANNEX 4 GROWTH AND INNOVATION 29

30 ANNEX 4 GROWTH AND INNOVATION ANNEX 4 GROWTH AND INNOVATION 4.1 BUSINESS GROWTH OVER THE PAST 12 MONTHS The gap analysis chart below compares the objectives of micro and small businesses and shows that proportionally more small businesses have targeted growth over the past 12 months than their micro counterparts (4% more aimed for rapid growth). Micro businesses Small businesses To remain about the same size To grow moderately (up to 20% per annum) To grow rapidly in terms of turnover/sales (more than 20% per annum) Downsize/consolidate 4% Sell the business Hand on the business/succession Acquisition of another business 2% Base: Micro: 721 Small: 142 Positively, around two thirds of those setting growth as an objective have attained an increase in sales volumes. However, 15% have recorded falling sales. A significantly greater proportion of small businesses who targeted growth in the past 12 months saw an increase in their sales volume in comparison with micro businesses (77% versus 62%). What has been the main business objective over the past 12 months? How has your business's sales volume changed over the past financial year, if at all? Grow 65% 9% 15% 1 Maintain 28% 28% 35% 9% Downsize 15% 17% 69% Sales increase Maintain Sales decrease Not stated Base: All members Base:

31 THE FSB VOICE OF SMALL BUSINESS MEMBER SURVEY SCOTLAND 4.2 GROWTH ASPIRATIONS OVER THE NEXT 12 MONTHS Comparisons between micro and small businesses reveal again that small businesses are targeting moderate growth (6% more than micros) over the next 12 months; in addition, more of these companies are looking towards acquisition () in the coming year to bolster their business. Micro businesses Small businesses To remain about the same size To grow moderately (up to 20% per annum) Sell the business Acquisition of another business Start exporting Hand on the business/succession Downsize/consolidate Close the business 2% 6% Base: Micro: 715 Small:

32 ANNEX 4 GROWTH AND INNOVATION 4.3 INTERNET ACCESS Members access the internet through a variety of channels, though the majority access broadband through a wired connection (67%). Around one third connect through a local wireless network or mobile broadband. Access to high speed broadband remains more of an issue for Scottish firms than those in the rest of the UK (5% compared to 12%). In London, for example, one in five member businesses use high-speed broadband. Significantly more Scottish FSB members under the age of 44 utilise mobile broadband versus older members (40% versus 29%). Which one of the following does your business use to access the internet? Broadband through a wired connection Broadband through a local wireless network (private) Mobile broadband (3G/ 4G) e.g. Smartphone, tablet Wi-Fi network (public) USB dongle High speed broadband through a fibre optic connection Satellite/ Cable Dial-up connection None of these - my business is not connected to the internet SCOTLAND 67% 36% 3 12% 6% 5% 2% UK 65% 34% 35% 14% 7% 12% 2% 2% Base: All members Scotland UK Base: 8,704 (UK) 925 (Scotland) The majority of Scottish FSB members connected to the internet rate the reliability of fixed internet connections as very or quite reliable. Members experiences of mobile connections are clearly less positive. Overall 58% rate these as reliable in Scotland. In the devolved countries, reliability is variable (those rating as very or quite reliable): Northern Ireland (76%) England (6) Scotland (58%) Wales (54%) 32

33 THE FSB VOICE OF SMALL BUSINESS MEMBER SURVEY SCOTLAND Thinking specifically about the reliability of your business s internet connections. How reliable are each of the following types of connection? Fixed internet connections (e.g. broadband, fibre optic, dial up, etc) 34% 52% 8% 4% 2% Mobile connections (e.g. Wi-Fi, mobile broadband (3G/4G) 12% 46% 15% 1 16% Very reliable Quite reliable Quite unreliable Very unreliable Unsure/ Not applicable Base: Those connected to the internet Base: Unsurprisingly, the vast majority of Scottish FSB members anticipate an increase in their reliance on the internet in the next two and five year periods (72% and 76% respectively). Indeed, no member expects their reliance to decrease over the next five years. 4.4 INNOVATION A high percentage of member businesses have introduced new or improved products (6) and plan to do so in the next 12 months (57%). Have you introduced new or improved products/services (a) in the past 2 years, and (b) do you have plans to introduce new or improved products/services in the next 12 months? Past two years 6 3 6% Next 12 months 57% 28% 15% Base: All members Yes No Unsure Base:

34 ANNEX 4 GROWTH AND INNOVATION 4.5. INTELLECTUAL PROPERTY One fifth of Scottish members use intellectual property to protect their work, 6% fewer than in the UK. Which of the following types of intellectual property, do you use to protect your business s 12% 6% 6% 80% Copyright Trademarks Design rights Database rights Patents None of these/ Not applicable Base: All members Base: 914 Unsurprisingly, significantly more Scottish FSB members in the creative sector are protecting their work using IP: 49% use copyrights and 16% use trademarks. Among those with IP, around one quarter have experienced infringement over the past 12 months. Just 14% of Scottish FSB members with IP have made an IP application within the past 12 months. 34

35 THE FSB VOICE OF SMALL BUSINESS MEMBER SURVEY SCOTLAND 4.6 EXPORTING More than half of member businesses in Scotland (64%) do not currently export or plan to do so in the future. Those firms more likely to export in the future, or to actively consider it, are operating in the creative services (2) and manufacturing (20%) sectors. Which one of the following best describes your business s current approach to exporting? Currently export goods and/or services 12% Previously exported goods and/or services 2% Actively considering exporting goods and/or services Likely to consider exporting goods and/ or services in the future Do not export and not considering exporting goods and/ or services Not applicable to my business 6% 1 64% Base: All members Base: of Scottish FSB members in the leisure sector indicate that exporting is not applicable to their business. Approximately what percentage of your sales turnover is from exported goods, products or services? 52% 20% 9% 20% Up to 10% 1 to 30% 3 to 50% 5 or More Base: Those exporting Base:

36 ANNEX 4 GROWTH AND INNOVATION 4.7 GETTING SUPPORT As the main report outlined, Scottish member businesses used a variety of support mechanisms. Analysis by business size reveals the increased usage of support services by small businesses compared to micros, which chimes with FSB research into these firms elsewhere. Informal sources of support (e.g. family/ friends) are clearly more popular with the smallest businesses. Micro businesses Small businesses Solicitor Consultant (compliance and regulation) Bank Other Trade Associations Accountant Government funded business support (e.g. Business Gateway) FSB Universities/Colleges Local Government funded business support Local Government funded help Suppliers Mentors EU funded help Informal Networks Family/friends Customers 16% 14% 12% 1 1 8% 6% 4% 2% 2% 8% 9% Micro: 773 Base: Small:

37 THE FSB VOICE OF SMALL BUSINESS MEMBER SURVEY SCOTLAND Among those members using support mechanisms, family/friends, customers, accountants, informal networks, mentors, suppliers and the FSB are highlighted as being most helpful, with more than nine in 10 extolling their helpfulness. Solicitors and consultants also clearly offer help that is beneficial to members. At the opposite end of the spectrum, two thirds of those Scottish businesses making use of support sources highlight banks and local government funded business support as very or quite helpful. During the past year, how helpful have each of the following sources of support been to the overall health of your business? Family/friends Customers Accountant Informal Networks Mentors Suppliers FSB Other Trade Associations Solicitor Consultant (compliance and regulation) Government funded business support (e.g. Business Gateway) Bank Local Government funded business support* Base: Those using business support and rating as 'quite' and 'very helpful' 94% 94% % 9 90% 86% 8 75% 66% 66% Base: * Local Government funded business support does not include figures from Local Government funded help. 37

38 SECTION ONE INTRODUCTION ISBN Number: Federation of Small Businesses If you require this document in an alternative format please All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission of the FSB. While every effort has been made to ensure the accuracy of the facts and data contained in this publication, no responsibility can be accepted by the FSB for errors or omissions or their consequences. Articles that appear in the report are written in general terms only. They are not intended to be a comprehensive statement of the issues raised and should not be relied upon for any specific purposes. Readers should seek appropriate professional advice regarding the application to their specific circumstances of the issues raised in any article. This report can be downloaded from the FSB website at Printed on recycled paper. Published March 2014.