1. Title: GM Business Survey – Key findings
Presentation to: Manchester Business Survey Seminar
Andrew Graves, Managing Director, TBR
13th December 2016

2. Overview Key survey findings for GM Business growth themes: Summary
Recent high performers
Workforce/skills
Internationalisation
Business Support
Innovation
Summary
NB. This summary compares key findings from 2016 with the previous study (2014). Data from 2016 is marked in dark blue, whilst comparable data from 2014 is represented with light blue text.

3. Key findings for GM (1) Business Outlook
Looking back - business confidence has been relatively strong
Employment growth higher than previous years (31% of firms vs 26%)
Strongest sectors
Turnover growth higher than previous years (50% of firms vs. 43%)
Looking forward - confidence in growth prospects higher than last year
Over one third expect employment to grow (35% vs 30%)
Most optimistic sectors
See Key on slide 14

4. Key findings for GM (2) Growth drivers Growth barriers
Products and services (47% vs 57%)
Workforce/skills (45% vs 48%)
Business location (26% vs 27%)
Growth barriers
Top three barriers are:
Lack of staff or skills (30% vs 24%)
Access to markets or sales opportunities (27% vs 24%)
Accessing finance (stable at 22%)
Fewer firms identify low productivity and poor business location
Persistent top two

5. Recent high performers
Definition
firms with >20% growth in either employment or turnover in last 12 months
More likely to
operate in
invest in training their workforce (84% vs 70%)
trade internationally (30% vs 22%)
access business support (53% vs 38%)
to be involved in a range of innovation activities (90% vs 78%)

6. Workforce/Skills A key business driver
For whole GM economy but especially firms >50 employees
Hard to fill vacancies affect 14% of businesses (stable through time)
Most affected sectors:
73% provide some form of training
Training delivery mix changing over time
Apprenticeships rising slowly (22% vs 20%)
Apprenticeships most prevalent in
One fifth of firms offer paid work experience/internships
One quarter offer unpaid work experience/internships
One quarter have IiP or are working towards

7. Profiling skills active businesses
Definition
provided staff training in past 12 months; having a staff training plan/budget and offering work placements/internships
Less likely to be in
More likely to:
have IiP and offer apprenticeships
experience hard to fill vacancies
identify skills as a growth barrier
have innovated in last 3 years
want to develop trade links
accessed business support and plan to do so in future

8. Exporting An increasing exporter base (20% vs 12%) Key sectors:
Comparable with national picture (19%)
Key sectors:
Markets

9. Profiling exporters Employment nor age impact likelihood of exporting
Key export locations:
Exporters;
Expect continual growth in turnover and employment.
Are more likely to
report previous and to expect future employment growth in excess of 50%
view continued EU membership as being critical to their business (35% against 17% of non-exporters)
be innovative
Are less likely to have faced business challenges
Are committed to seeking further opportunities to improve their business performance

10. Business Support Awareness of Business Growth Hub higher (43% vs 31%)
Sectors most likely to use GH
Two-fifths accessed some form of business support
Some observed changes in the business support mix (more from accountants/lawyers and banks)
Key drivers of business support;
Increase sales through marketing
General business growth and advice
Developing or expanding workforce
A rise in use of mentoring (20% vs 9% in 2012)
Three quarters of firms report increasing costs
17% sought finance in prior 12 months – though more are now seeking it for growth than working capital
More than one third experienced difficulties raising finance

11. Profiling business support users
Business support users are:
Over-represented in
Are more likely to:
Grow in turnover terms
both in last 12 months and expected over next 12 months
Provide staff training
Offer apprenticeships
Trade internationally
Undertake innovation activities

12. Innovation
Four in five GM businesses undertake some form of innovation (80% vs 66%)
Low levels of understanding and take up of tax incentives
Two thirds said they do not understand R&D tax incentives
10% said they understand and use them
Further insight into innovators:
Those accessing knowledge through Unis
18% of GM businesses and on the increase
Are more likely to employ >50 and to export
Are more likely to be in
Those making major changes to structures/processes
Over one third of businesses up from 22%
More likely to seek business support
More likely to be in

13. Summary Most prevalent innovation activities:
Confidence is relatively buoyant and prospects good
Impact of Brexit risk/uncertainty needs to be considered
Many indicators of positive trends
Higher proportion of firms exporting, innovating, training, using business support
But an ongoing need to confirm them
Some persistent barriers to growth – skills/staff and access to markets
Evidence of some interesting changes of behaviour
Examination of key themes delivers greater insight
Characteristics of growth businesses: they are more likely to export, develop staff, innovate and take advice
Most prevalent innovation activities:
investing in plant, product/services development, innovation training

14. Key to sector symbols Business, Finance and Professional Services
Construction
Creative & Digital
Health & Social Care and Health Innovation
IT & Telecommunications
Logistics and Transport
Manufacturing
Retail and Wholesale

15. And finally… Thanks for listening Further information
Andrew Graves, Managing Director, TBR
@tbr_online