FSB MEMBERSHIP PROFILE

Transcription

1 FSB MEMBERSHIP PROFILE Published: January fsb.org.uk

2 FSB Membership Profile CONTENTS 1. Summary Background and Methodology Demographic Profile Business Profile Comparison to

3 1. SUMMARY FSB MEMBERSHIP PROFILE fsb.org.uk 3 WOMEN 68% MEN Average age of FSB members 3 28% 1 Average number of years members have owned their business 83% 11% 0. Limited Liability Sole trader / proprietorship Private company limited by guarantee Partnership Limited Liability Partnership Public Limited Unlimited Other Number of personnel in business (including yourself) 4% 1 23% Average business size 84% 1 to to to % personnel 3

4 FSB Membership Profile 2. BACKGROUND AND METHODOLOGY This report has been put together to understand the national profile of FSB members. An online quantitative survey was designed to provide a robust and representative profile of FSB membership. All members for who a valid address was held and who agreed to be contacted by the FSB were invited to participate in an online survey. 126,778 members were sent an invitation containing a link to the survey. Subsequently, non-responding members were reminded to participate through two targeted correspondences. Number of completes: We received 3,102 survey responses. This represented a robust and reliable sample size for the purpose of this analysis and research. Fieldwork dates: The survey was available over a three week period (19 October to 9 November) to ensure members had plenty of opportunity to participate. Representation of FSB members and weighting: The survey data has been weighted to match the FSB membership base on region. The regional profile of the survey data is highly consistent with the regional profile of the FSB membership. Therefore only small weights were required to balance the survey sample and weighting efficiency was high at 9. Confidence intervals: As surveys by their very nature typically represent the views of a sample population, sampling error must be considered when evaluating the findings. This is measured by the confidence level and interval of the data. Most commonly, market research studies require a 9 confidence level, indicating that we can be 9 confident that the estimate has not been arrived at by chance. The confidence interval shows the variation that may exist in the findings drawn from a sample. For example, this survey shows that 77% of those interviewed own or manage one business. However, due to the intrinsic characteristics of sampling, this will be surrounded by a confidence interval, in this case ± 1.. This indicates that the real figure (the true figure if the whole population were surveyed) lies somewhere between 75. and 78.. The table below gives the confidence intervals for those findings that centre around or 90%, 30% or 70% and 50% given the total study sample size of 3,102 (these assume a 9 confidence level using random sampling). Confidence intervals Size of sample Split on question (% s responding) 3,102 or 90% 30% or 70% 50% ±1.1 ±1.6 ±1.8 4

5 fsb.org.uk Statistical significance: All significance testing in this report has been conducted at the 9 confidence level using the binomial proportion test. When comparing the results within a sub-group (e.g. comparing business types or regions), the differences in results are tested for statistical significance. This way we know whether the differences are real or whether they could have occurred by chance. The test reflects the size of the samples, the percentage giving a certain answer and the degree of confidence chosen. Assuming a 9 confidence level, the differences between the results of the two groups must be equal or greater than the values given in the table below to be statistically significant. Percentage difference required before the results may be considered statistically significant Size of sample or 90% ± 30% or 70% ± 50% ± 500 versus ,000 versus 1, ,000 versus 2, Where statistically significant differences between sub-groups exist, details have been outlined within this report. Where base figures are less than 50, these have typically been omitted from tabular comparisons. Within the main body of the report, where percentages do not sum to 100%, this is due to rounding (or multiple type questions). 5

6 FSB Membership Profile 3. DEMOGRAPHIC PROFILE 3.1 Nation and Region FSB has representation across all devolved nations, with the majority of members located in England. The South has the highest proportion of FSB members in England (41.3%; 21. South East, 19.8% South West). 1 Figure 1: Nation and Region England 83% East Midlands East of England Scotland London North East 4% 3% Northern Ireland North West South East 18% Wales South West West Midlands 1 8% Yorkshire and The Humber 7% Source: FSB SBI/Annual Review, 19 October 9 November 2015; C3. Please tell us the postcode for the address of your main business. If you operate from more than one site, please tell us the postcode of your head office.base: FSB members (3,102), England (2,521). 3.2 Age and Gender of FSB members Currently only one in three FSB members is a female business owner. This is largely in line with previous results from Figure 2: Gender Male Female 3 68% Source: FSB SBI/Annual Review, 19 October 9 November 2015; B1. Are you...? Base: FSB members (3,102). 1 FSB SBI/Annual Review, 19 October 9 November 2015; C3. Please tell us the postcode for the address of your main business. If you operate from more than one site, please tell us the postcode of your head office. Base: FSB members (3,102), England (2,521) 2 FSB SBI/Annual Review, 19 October 9 November 2015 ; B2. In what year were you born? Base: FSB members (3,102), Male (2,105), Female (997). 6

7 fsb.org.uk Female FSB business owners tend to be significantly younger with over half (53%) aged under Figure 3: Age by gender 16 to to to 54 3% Female under 54 years old: 53% Male under 54 years old: 37% 55 to 64 40% % 11% Source: FSB SBI/Annual Review, 19 October 9 November 2015 ; B2. In what year were you born? Base: FSB members (3,102), Male (2,105), Female (997). Figure 4: Age profile comparison 16 to 34 3% 4% to 44 11% 1 45 to % 55 to Source: FSB SBI/Annual Review, 19 October 9 November 2015 ; B2. In what year were you born? Base: FSB members (3102). FSB membership survey 7 29 November 2013, FSB members (8,477). 3 Source: FSB SBI/Annual Review, 19 October 9 November 2015; B2. In what year were you born? Base: FSB members (3,102), Male (2,105), Female (997). 7

8 FSB Membership Profile 4. BUSINESS PROFILE 4.1 Number of business owned Nearly a quarter of businesses (23.3%) own more than one business with 76.7 per cent of firms owning or managing one business. This is largely in line with the previous membership survey results. Figure 5: Number of businesses owned 77% 17% Source: FSB SBI/Annual Review, 19 October 9 November 2015; B7. How many businesses do you own or manage? Base: FSB members (3,102). 4.2 Legal status Over half (53.) of FSB members interviewed are limited companies, followed by nearly a third (28.1%) who are sole traders or proprietorships and just over one in 10 registered as partnership (11.4%) (Figure 6). These results are in line with the previous results from 2013 and Figure 6: Legal status Limited Liability [LLC] Sole trader / proprietorship Private company limited by guarantee Partnership Limited Liability Partnership [LLP] Public Limited [PLC] Unlimited company [Unltd.] Other 3 28% 1 11% 0. Limited company: 53% Source: FSB SBI/Annual Review, 19 October 9 November 2015; B7. First, could you confirm the legal form of your main business? Base: FSB members excluding don t know/ rather not say (3,044). 8

9 fsb.org.uk We can observe differences in company legal status between different age groups and business sizes. As highlighted in figure 7 below, years old are most likely to register as sole traders/proprietorships (37.), while 45+ are more likely to run Limited Liability Companies (33.1%). 4 Figure 7: Legal status by age of owner Total Age Limited Liability (LLC) % % 34.4% Sole trader/ proprietorship 28.1% % 28.0% 31.3% Private company limited by guarantee % Partnership 11.4% % 12.0% 11.3% 13. Limited Liability Partnership (LLP) % 1.4% 2.0% 2.3% 2. Public Limited (PLC) 2.0% 0% 1.8% % Unlimited company % 0.3% % Other 5.1 % % 5.0% 5.1% 3. Source: FSB SBI/Annual Review, 19 October 9 November 2015 ;B7. First, could you confirm the legal form of your main business? Base: FSB members excluding don t know/ rather not say (3,044), (292), (136), 51+ (50). There are significant differences among different business sizes, 27.1% of micro businesses (<10 persons) operate as sole traders or proprietorships compared to of small business (11+ persons) on average, who tend to register as limited liability companies or private companies limited by guarantee. 5 Figure 8: Legal status by business size Total Business size Up to Limited Liability (LLC) % 47.4% 47.0% 41.3% Sole trader/ proprietorship 28.1% 27.1% % Private company limited by guarantee % 27.1% Partnership 11.4% % 6.1% 10. Limited Liability Partnership (LLP) % 2.0% 1.8% Public Limited (PLC) 2.0% 2.3% Unlimited company % 0.8% 0.0% Other 5.1 % % 11.0% Source: FSB SBI/Annual Review, 19 October 9 November 2015 ; B7. First, could you confirm the legal form of your main business? Base: FSB members excluding don t know/ rather not say (3,044), Business size: Up to 10 (2,569), (292), (136), 51+ (50). 4 FSB SBI/Annual Review, 19 October 9 November 2015 ; B7. First, could you confirm the legal form of your main business? Base: FSB members excluding don t know/ rather not say (3,044), (73), (319), (870), (1,196), 65+ (586). 5 Source: FSB SBI/Annual Review, 19 October 9 November 2015 ; B7. First, could you confirm the legal form of your main business? Base: FSB members excluding don t know/ rather not say (3,044), Business size: Up to 10 (2,569) (292), (136), 51+ (50). 9

10 FSB Membership Profile 4.3 Years of ownership On average, FSB members have owned their business for 15 years, in line with the results from the 2013 membership survey (13 years). 6 Figure 9: Years of ownership 0-2 years 3-5 years 13% 6-10 years years 20% years years years Source: FSB SBI/Annual Review, 19 October 9 November 2015; D1. And how many years have you owned or co-owned your main business? Base: FSB members (3102). Micro business (<10 persons) are significantly more likely to be run for less than 10 years (45.8%). Similarly, women are most likely to run business 10 years old or less (51. vs. 40.1% for men). 7 Figure 10: Years of ownership by gender and business size No of years Total Gender Business size Male Female Up to % 40.1% % 33.4% % 30.0% 30.1% % % % 21.4% 21.3% % 10.3% % % Source: FSB SBI/Annual Review, 19 October 9 November 2015; D1. And how many years have you owned or co-owned your main business? Base: FSB members (3,102), Male (2,105), Female (997), Business size: Up to 10 (2568) (308), (136), 51+ (51). 6 FSB SBI/Annual Review, 19 October 9 November 2015; D1. And how many years have you owned or co-owned your main business? Base: FSB members (3,102) FSB membership survey 7 29 November 2013, FSB members (8,684). 7 Source: FSB SBI/Annual Review, 19 October 9 November 2015; D1. And how many years have you owned or co-owned your main business? Base: FSB members (3,102), Male (2,105), Female (997), Business size: Up to 10 (2,568) (308), (136), 51+ (51). 10

11 fsb.org.uk 4.4 Size of business Vast majority (83.) of FSB memberships is represented by microbusiness (<10 persons), with a large proportion involving up to five people (66.). The proportion of microbusiness is in line with the results from 2013 membership survey (83%). On average, businesses have seven people involved in the business (full time or part time). 8 Figure 11: Size of business: number of personnel involved (including the owner) 4% 1 23% 84% 1 to to to % Source: FSB SBI/Annual Review, 19 October 9 November 2015; C4. Approximately how many employees work in your main business? Please include yourself. Please enter the number in digits? Base: FSB members (3,102), 8 FSB SBI/Annual Review, 19 October 9 November 2015 ; C4. Approximately how many employees work in your main business? Please include yourself. Base: FSB members (3,102). FSB membership survey 7 29 November 2013, FSB members (8,684). 11

12 FSB Membership Profile 4.5 Turnover The average value of turnover for FSB members surveyed is 462,283 (mean). Male business owners and those over 65 years old seem to achieve higher turnover 527,418 and 566,562 on average respectively. 9 Figure 12: Value of turnover Less than 15,000 15,001 to 25,000 25,001 to 50,000 50,001 to 75,000 75,001 to 100, ,001 to 150, ,001 to 200, ,001 to 250, ,001 to 300, ,000 to 400, ,001 to 500, ,001 to 750, ,001 to 1 million 1 million to 2 million 2 million to 3million 3 million to 4 million 4 million to 5 million More than 5 million 1% 1% 1% 4% 7% Source: FSB SBI/Annual Review, 19 October 9 November 2015; C8. What is the approximate annual turnover of your main business? Base: FSB members excluding don t know / rather not say (2,884). 9 Source: FSB SBI/Annual Review, 19 October 9 November 2015: C8. What is the approximate annual turnover of your main business? Base: FSB members excluding don t know / rather not say (2,884), Male (1,977), 65+ years old (544). 12

13 fsb.org.uk 4.6 SIC Code (Standard Industrial Classification) The majority of businesses operate in SIC Codes G, M & C, i.e: G - Wholesale and retail trade; repair of motor vehicles and motorcycles including all retail and wholesale trade and maintenance of motor vehicles M - Professional, scientific and technical activities including legal and accounting, advertising, architecture, market research and veterinary C - Manufacturing including electronic equipment, machinery, food and beverage, textiles, paper, media, chemicals and repairing equipment These account for 49.7% of businesses. Figure 13: SIC codes Wholesale and retail trade; repair of motor vehicles and motorcycles Professional, scientific and technical Manufacturing 12.4% % Accommodation and food service Information and communication Construction Administrative and support service Arts, entertainment and recreation Education Human health and social work Other Transportation and storage Agriculture, Forestry and Fishing Real estate % 5.4% % 3.0% % 2.7% 1.7% Financial and insurance Electricity, gas, steam and air conditioning supply Water supply, sewerage, waste management and remediation Activities of households as employers; undifferentiated goods- and services Public administration and defence; compulsory social Activities of extraterritorial organisations and bodies Mining and Quarrying 1.4% 0.7% 0.4% 0.3% % Source: FSB SBI/Annual Review, 19 October 9 November 2015; What is the principal activity of your main business? Base: FSB members (3,102). 13

14 FSB Membership Profile SIC code classification differs from business sector and was introduced as FSB s member classification method in A direct comparison to 2013 is therefore not feasible. We can observe variations in terms of business size, region and nation. Businesses with 3-9 people are more likely to operate in wholesale, retail and vehicle repair or professional, businesses with up to five are more likely to operate in scientific and technical activities while those with 11+ employees are most likely to operate in manufacturing industry. Figure 14: SIC Codes by business size SIC CODE TOTAL Number of employees Wholesale and retail trade; repair of motor vehicles and motorcycles Professional, scientific and technical activities 19.7% % 15.3% 14.3% 14.4% % 21.4% 17.0% 13.3% % Manufacturing 12.4% % 11.7% % Accommodation and food service activities Information and communication % % 10.1% 15.1% % % 5.8% % 4.8% % Construction 6.0% % 5.3% 9.8% 7.0% 7.3% % Administrative and support service activities Arts, entertainment and recreation 5.4% % % 6.7% 6.4% 17.7% % % 0.0% 5.4% % Education 3.8% 4.4% % % Human health and social work activities Transportation and storage Agriculture, Forestry and Fishing 3.0% 4.7% 1.7% % % 2.7% 2.8% 1.8% 3.0% 2.8% 4.3% % % 1.7% % 1.8% 3.7% % Real estate activities 1.7% 1.8% % 2.1% 0.0% 1.4% 0.0% 0.0% Other % % % % Source: FSB SBI/Annual Review, 19 October 9 November 2015; What is the principal activity of your main business? Base: FSB members (3,102), Business size: 1 (722), 2 (507), 3-5 (826), 6-9 (479), 10 (73), (308), (136), 51+ (51). Please note: SIC codes with base size under 50 have been excluded from the table. 14

15 fsb.org.uk When looking at the differences between the devolved nations, businesses in Scotland and Wales are more likely to operate in accommodation and food services, whilst businesses in England are more likely to offer professional, scientific and technical activities. Figure 15: SIC Codes by nation SIC CODE Wholesale and retail trade; repair of motor vehicles and motorcycles TOTAL England Scotland Nation Northern Ireland Wales 19.7% 19.7% 18.8% 16.4% 21.4% Professional, scientific and technical activities % 7.3% 15.7% Manufacturing 12.4% Accommodation and food service activities % % 17.0% Information and communication % % 5.0% Construction 6.0% 6.0% 7.4% 7.3% 2. Administrative and support service activities 5.4% 5.4% 5.7% % Arts, entertainment and recreation % % Education 3.8% 4.0% % Human health and social work activities 3.0% 2.8% 3.0% 7.3% 4.4% Transportation and storage 2.7% 2.8% 1.4% % Agriculture, Forestry and Fishing 2.7% 2.3% % Real estate activities 1.7% 1.8% 0.8% 1.8% 1. Other % Source: FSB SBI/Annual Review, 19 October 9 November 2015; What is the principal activity of your main business? Base: FSB members (3,102), England (2,521), Scotland (367), Northern Ireland (55), Wales (159). Please note: SIC codes with base size under 50 have been excluded from the table. 15

16 FSB Membership Profile The types of business also vary across regions. North West and Yorkshire are most likely to run businesses in wholesale, retail trade and vehicle repair, South East business are more likely to offer professional, scientific and technical activities, while business in the North East are more likely to operate in the accommodation and food service industry. Figure 16: SIC Codes by region Region SIC CODE TOTAL East Midlands Eastern London North East North West South East South West West Midlands Yorkshire and The Humber Wholesale and retail trade; repair of motor vehicles and motorcycles Professional, scientific and technical activities 20% 18.3% 20.8% 11.8% 11.3% 25.4% % % 17.8% 20.8% 24.3% 19.4% 14.3% % 21.3% 14. Manufacturing % 12.0% 6.3% % % 13.3% 16. Accommodation and food service activities Information and communication 8% % % % 7. 7% 7.7% % 0.0% % Construction 7.1% 5.4% 8.3% 8.1% % % 5.0% Administrative and support service activities Arts, entertainment and recreation % 9.7% % 4.7% 5.0% 4% 7.1% % % 3.7% 3.7% 3.3% Education 4% 3.0% % 4.0% 4.1% 7.0% 3.3% Human health and social work activities Transportation and storage Agriculture, Forestry and Fishing 3% % % 1.8% 3.7% 2.7% 2. 3% 2.4% 3.7% 1.4% % 2.7% % 1.1% 3% % 0.0% 2.4% 2.4% 2.7% 2.0% 2.8% Real estate activities % % 1.3% % 0. Financial and insurance activities Electricity, gas, steam and air conditioning supply 1% % 0.0% 0.0% 1.7% % 2. 1% % 1.4% 0.0% 0.0% % 1.0% 1.7% Other 3% 1.8% 2.1% % 3.0% 2.7% 2.0% 1.1% Source: FSB SBI/Annual Review, 19 October 9 November 2015; What is the principal activity of your main business? Base: FSB members (3,102), East Midlands (169), Eastern (241), London (144), North East (62), North West (287), South East (625), South West (511), West Midlands (301), Yorkshire and the Humber (181). Please note: SIC codes with base size under 50 have been excluded from the table. 16

17 fsb.org.uk 5. COMPARISON TO 2013 Gender 68% Male 70% Female 3 30% FSB SBI/Annual Review, 19 October 9 November 2015; B1. Are you...? Base: FSB members (3,102), FSB membership survey 7 29 November 2013, FSB members (8,704). Number of businesses owned Survey year Number of businesses % 16.8% 4.8% 1.7% % 20.0% 5.0% 2.0% Source: FSB SBI/Annual Review, 19 October 9 November 2015; B7. How many businesses do you own or manage? Base: FSB members (3,102). FSB membership survey 7 29 November 2013, FSB members (8,704). Legal status Legal status Survey year Limited % Sole trader / proprietorship 28.1% 29.0% Partnership 11.4% 12.0% Limited Liability Partnership (LLP) % Unlimited company 0. Other 5.1% Source: FSB SBI/Annual Review, 19 October 9 November 2015; B7. First, could you confirm the legal form of your main business? Base: FSB members excluding don t know/ rather not say (3,044), FSB membership survey 7 29 November 2013, FSB members (8,173). 17

18 FSB Membership Profile Years of ownership 0-2 years 11% 3-5 years 13% years years 20% years years 1 14% 31+ years Source: FSB SBI/Annual Review, 19 October 9 November 2015; D1. And how many years have you owned or co-owned your main business? Base: FSB members (3,102). FSB membership survey 7h 29 November 2013, FSB members (8,684). Turnover Less than 15,000 15,001 to 25,000 25,001 to 50,000 50,001 to 75,000 75,001 to 100, ,001 to 150, ,001 to 200, ,001 to 250, ,001 to 300, ,000 to 400, ,001 to 500, ,001 to 750, ,001 to 1 million 1 million to 2 million 2 million to 3million 3 million to 4 million 4 million to 5 million More than 5 million 1% 1% 1% 0% 1% 1% 4% 4% 4% Source: FSB SBI/Annual Review, 19 October 9 November 201 ; C8. What is the approximate annual turnover of your main business? Base: FSB members excluding don t know / rather not say (2,884). FSB membership survey 7 29 November 2013, FSB members (8,464). 7% 8% % 18

19 fsb.org.uk FSB MEMBERSHIP PROFILE PER NATION England WOMEN 68% MEN Average age of FSB members Average number of years members have owned their business 33% 27% 20% 0. Limited Liability Sole trader / proprietorship Private company limited by guarantee Partnership Limited Liability Partnership Public Limited Unlimited Other Number of personnel in business (including yourself) 4% 1 23% Average business size 84% 1 to to to % personnel 19

20 FSB Membership Profile Scotland % WOMEN 6 MEN Average age of FSB members Average number of years members have owned their business 2 33% 1 17% 3% 3% 3% 0.3% Limited Liability Sole trader / proprietorship Private company limited by guarantee Partnership Limited Liability Partnership Public Limited Unlimited Other Number of personnel in business (including yourself) 8% 4% 14% 4% 24% Average business size 8 1 to to to % personnel 20

21 fsb.org.uk Northern Ireland WOMEN 6 MEN Average age of FSB members Average number of years members have owned their business 27% 3 18% 1 0% 0% Limited Liability Sole trader / proprietorship Private company limited by guarantee Partnership Limited Liability Partnership Public Limited Unlimited Other Number of personnel in business (including yourself) 11% 20% 20% Average business size 80% 1 to to to % 14% personnel 21

22 FSB Membership Profile Wales WOMEN 71% MEN Average age of FSB members Average number of years members have owned their business 27% 33% 13% 18% 3% 0% 3% Limited Liability Sole trader / proprietorship Private company limited by guarantee Partnership Limited Liability Partnership Public Limited Unlimited Other Number of personnel in business (including yourself) 8% 1 1% 24% Average business size 8 1 to to to % personnel 22

23 Federation of Small Businesses fsb.org.uk 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