First BNI survey reveals Shropshire SMEs ‘cautiously confident’ in 2013
Most small to medium-sized businesses in Shropshire are confident of growth in 2013 but remain nervous of making significant early investment, a survey carried out by Business Network International has found.
The confidence survey, the first of its kind carried out in the Staffordshire and Shropshire BNI region, also reveals the vital importance of business networking in winning new business.
A snapshot of findings were that:
• 80% of businesses expected better times in 2013 than in 2012
• 84% thought their businesses would grow in 2013
• But most businesses did not expect to invest significantly in the first half of the year
• The survey found that, on average, 30% of all new business leads obtained came from networking via BNI
The survey was conducted before the Office for National Statistics (ONS) announced, last week, that the UK’s economy shrank by 0.3% in the last three months of 2012, sparking concerns among some experts of a risk of a triple dip recession.
Carl Evans, BNI Director for Staffordshire and Shropshire, said: “Our findings indicate a broadly positive outlook for business opportunities in 2013. Many of our members are upbeat, but remain realistic.
“A significant number are also planning significant investment including taking on new staff. Since most of our members are SMEs, this is good news for UK Plc as it’s accepted that the SME sector will be the engine of economic recovery.
“However, members do appear to temper their optimism with some caution. This, perhaps, reflects sensible concern among SMEs not to over-reach themselves and play a waiting game to see how the economy develops in 2013.
“However, the mood among BNI members does not appear recessionary. The ONS figures are historical. Our members are looking forward with some confidence.”
BNI networking groups, or chapters, in Stoke-on-Trent, Leek, Stone, Stafford, Tamworth and Telford took part in the survey.
Their members are drawn from a wide range of professions and trades, including electrical and plumbing services, construction, manufacturing, marketing, retail, business support, finance and legal services.
Key findings were:
• When asked how confident they were that their businesses would grow in 2013, 42% said they were certain to grow and another 42% said they were likely to. Only 2% said they were very unlikely to.
• When asked: ‘how sure are you that 2013 will be a better year than 2012?’, 38% said it was certain to be and a further 42% said it was likely to be. Only 3% said it was very unlikely.
• 15% of respondents were certain to make a ‘significant’ investment in their business in the first six months of 2013 and 30% were likely to. Just under one in five respondents (19%) were very unlikely to.
• The largest proportion of respondents (46%) were very unlikely to take on extra staff in 2013, while a third (33%) were likely or certain to employ more people. However, 81% of businesses thought it ‘not likely at all’ that they would reduce their workforce.
• On average, one extra job per BNI business was expected to be created in every BNI business during 2013.
The survey was also used to identify how important networking will be in powering economic recovery.
Members were asked what proportion of new business leads were generated through being members of BNI. The average response was 30.1%, with answers ranging from 10% up to 80% in some cases.
Also, more than half respondents (56%) said networking would be essential to their marketing strategy in 2013, 38% said it would be important.
Carl Evans said: “What was telling was the consistency of these figures across the three main areas in our region – North Staffordshire, Mid and South Staffordshire and Shropshire.
“In all those areas, nearly one in three new business leads came through being members of BNI, which is a powerful argument in favour of networking in general and BNI’s performance-driven approach in particular. It is clear that businesses see the value of getting out and talking to each other and are getting results.”
A further breakdown of the figures reveals variations across the region.
• BNI members in North Staffordshire were most positive about business fortunes in 2013, with 88% expecting growth and 41% certain of it. They were a least likely to reduce their workforce (84% considered it not likely at all).
• Mid and South Staffordshire had the businesses certain to or most likely to make a significant investment in 2013 (50%, compared with a regional average of 43%).
• Shropshire was the region with businesses least likeliest to make a significant investment (28%) – but had the highest proportion of businesses that thought 2013 would be a better year than 2012 (83%).
• Mid and South Staffordshire recorded the highest proportion of new business leads from BNI networking (31%), but North Staffordshire and Shropshire were not far behind 30%.
• North Staffordshire businesses were most confident that they would create new jobs in 2013 (1.19 jobs per respondent), Shropshire the least confident (0.77 per respondent).
The Staffordshire and Shropshire BNI business confidence survey was carried out in December and January, and achieved a 78% response rate with 156 of the 200 business members completing the questionnaire.
BNI groups, or chapters, meet for breakfast every week and follow a structured agenda designed to achieve the best networking results. Only one representative of each profession or trade is allowed in each group at any one time.
