Business survey 2018

Our 2018 business survey provides an update on business performance, challenges, confidence and support needs.

Business survey

Our 2018 business survey builds on our 2015 survey, providing an update on business performance, challenges, confidence and support needs. The research was commissioned by the Council's Economic Development Team and we use this information to learn more about our business community and inform services that relate to business. In 2008, we appointed Facts International to undertake this research for us. 

300 businesses in Richmond upon Thames were interviewed during February and March 2018 using an industry standard Computer Aided Telephone Interviewing (CATI) approach. This was supplemented by a small number of in-depth interviews to explore key points. The sample was designed to reflect the balance of enterprise sizes and sectors in the borough as closely as practical. 

Headline results

The top reasons for doing business in the borough are:

• Proximity to owners place of residence (62%)
• Availability of right premises (52%)
• Access to customers (48%)
• Transport links (37%)

Some of these factors contribute to the borough's desirability as a place to do business.

Performance

• 68% of businesses report that turnover has grown or been maintained in the last year.
• 35% report growth, but this turnover growth is not necessarily reflected in increased staffing levels.
• Many businesses report increasing costs including utilities (52%), rent (46%), staff (40%), and business rates (28%).
• 54% of respondents trade nationally, while 33% of respondents trade with the EU. 26% trade outside the EU.

Challenges

• Almost a quarter (23%) of businesses found it difficult to find the right premises.
• This increases to 30% for those looking for specialist premises (warehouse, studio, factory).
• 17% feel that their broadband speeds are not adequate for their business.
• 24% of businesses reported recruitment difficulties. Suitability and experience are more of a challenge than qualification.
• 11% reported retention issues, with salary competition and cost of living featuring, alongside personal reasons.
• 20% of businesses reported a skills gap, with the most common gaps being in specialist IT skills (25% of those reporting skills gaps).

Many of these challenges reflect similar responses and surveys in other boroughs or nationally. 

Business confidence

• 25% felt that the general business environment will improve a little or a lot over the next two years, with 36% feeling it will get a little or a lot worse.
• However, 43% felt that their own business will improve a little or a lot over that period, with only 16% feeling it will get worse.
• In the context of Brexit, a smaller proportion of respondents thought that the business environment would get a little or a lot better (17%), with 36% feeling it will get worse.
• Likewise, 12% of businesses felt their own business would get a little or a lot better as a result of Brexit, with 31% saying it will get a little or a lot worse. Concerns focus on turnover, profit and costs.
• 70% feel at least quite prepared to manage their business following Brexit, although 6/10 are as yet unable to say what support would help.

Future growth and support needs

• 68% of businesses plan to use new technology to improve business performance over the next two to three years - 63% plan to increase skills, 52% plan to exploit new markets and 52% plan to launch new products/services.
• External factors such as the economy, competition, Brexit and taxes are seen as the biggest barriers to growing their business. Internal factors such as time, skills, finances and premises are also reported as important, but less strongly.
• Preferred areas for business support include using IT and technology (46%), business and financial advice (41%) and legal/compliance advice (39%).

What we are doing with these findings

Learning from the survey is being shared with partner organisations and council services to inform service delivery. Key messages have shaped development of our business support programme, the Richmond Enterprise Challenge, commissioned to inspire and support businesses from start up stage, to those seeking to grow their existing business. 

View the full report.

View the headline messages infographic.

View the 2015 business survey report in full.