Small Business Start-ups in Limerick City : The Experiences of PAUL Partnership Clients 2008-2009

Small Business Start-ups in Limerick City :The Experiences of PAUL Partnership Clients 2008-2009

BackgroundPAUL Partnership Strategic plan 2011 – 2013Objective 3.3 - To increase enterprise

development by individuals in Limerick City by 2013.

Enterprise Support ServiceBusiness AdviceBusiness PlanningBTWEAEnterprise TrainingMentoring SupportNetworkingPartnership

Numbers of New Businesses 2008 - 2011

Year Number who accessed Service

Number of New Businesses via BTWEA

Number of New Businesses without BTWEA

TOTAL

2008 303 23 8 31

2009 390 37 14 51

2010 610 120 3 123

2011 450 154 2 156

Total 1,753 334 27 361

Aim of Survey

How are the small businesses that were set up in 2008 and 2009 doing in the current market place?

How useful/relevant was the Enterprise Support Service provided by PAUL Partnership?

What can we learn from the experiences of these small businesses – current market place; role of PAUL Partnership

Methodology

Telephone Survey:60 enterprises contacted in total35 completed surveysResponse rate = 58%

Non-respondents: ◦ Non-contactable: each enterprise called

three times before being declared ‘non-respondent’

◦ Declined to participate

Male74%

Female26%

Gender Profile of Survey Respondents (n=35)

Yes71%

No29%

Still Trading? (n=35)

Business SectorsArtsMechanicsConstruction/TradesEnvironmental ServicesFinancial ServicesFood and CateringHair & BeautyHealthcareManufacturingRetailTransport

Under €10,000

€10,000 - €20,000

€20,001 - €30,000

Over €30,000

Did not answer

0%

5%

10%

15%

20%

25%

30%

35%

23%26%

3%

14%

34%Turnover 2010 (n =35)

Yes23%

No77%

Staff Employed?

Number of Staff Employed?4 businesses employ 2 staff

members each

3 businesses employ 1 staff member each

1 business employs 3 staff member

All part-time staff

Responses from businesses still trading (25 in total)

Perfo

rmin

g ex

trem

ely

wel

l

Perfo

rmin

g re

ason

ably

wel

l

Get

ting

by

Stru

gglin

g a

little

Stru

gglin

g a

lot

0%

10%

20%

30%

40%

50%

0%

20%

48%

20%12%

How is your business doing today?

Critical factors for a successful businessFactor Ranking

Having relevant knowledge about the sector

1

Accessing finance for day to day activities

2

Having prior experience 3

Having finance for capital expenditure 4

Having sufficient sales/income to cover costs

5

Costs of supplies/materials 6

Having relevant enterprise training 7

Recruiting the right employees 8

Dealing with bureaucracy/paperwork 9

Sourcing good suppliers 10

Finding time to develop a strategy for the enterprise

11

Growing Declining Stagnant Do not know

0%

5%

10%

15%

20%

25%

30%

35%

40%

24%

32%36%

8%

Perception of business sector? (n=25)

Yes56%

No36%

Do not know8%

Do you plan to expand business within next 2 years? (n=25)

Reasons for planning to expand?

Believe business is workingDemand for businessPlans to move to new/bigger

premises (3 respondents)

Reasons why not?Not enough demand

Responses from businesses no longer trading (n=10)

Period of time in business:

5 businesses stopped trading within first year

4 businesses stopped trading within 2 years

1 business stopped trading after 2.5 years

Reasons for no longer trading“Downturn in market”“Underpriced by competition”“No work”“Not enough business”“Not enough clients”“Personal reasons” x 2“Recession” x 2

Sector

ConstructionEnvironmental ServicesFinancial ServicesFood and cateringHealthcareInformation TechnologyRetailOther

Growing Declining Stagnant0%

10%

20%

30%

40%

50%

60%

10%

60%

30%

Perception of Business Sector (n=10)

Critical factors for a successful businessFactor Ranking

Accessing finance for day to day activities

1

Having sufficient sales/income to cover costs

2

Accessing finance for capital expenditure

3

Having relevant knowledge about the sector

4

Having prior experience 5

Dealing with bureaucracy/paperwork 6

Cost of supplies/materials 7

Sourcing good suppliers 8

Having relevant enterprise training 8

Recruiting the right employees 9

Finding time to develop a strategy for enterprise

9

Employed full-time

20%

Full-time education

and training10%

Unemployed60%

Other10%

Current employment status (n=10)

Yes60%

No30%

Did not answer10%

Would you consider self-employment again? (n = 10)

Devel

opin

g a

busin

ess p

lan

Acces

sing

fina

nce

Apply

ing

for B

TWEA

Ente

rpris

e tra

inin

g

Gener

al a

dvice

and

info

rmat

ion

abou

t set

ting

up a

bus

ines

s

Mento

r sup

port

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Enterprise Service Feedback

Extremely UsefulVery usefulReasonably usefulA little usefulNot at all useful

Areas for further support?

As business is being set up:Accessing financeSupport with accounts, revenueMore 1-2-1 supportInformation about the market and the

businessNetworking“Understanding the consequences if

business fails and more support if business fails”

Supports that may have helped business to success if they had access to them?

(question to those no longer in business)

Access to Funding/GrantsNetworking supportMentor support

Support required now? (to those still in business)

Accessing finance and grantsHelp with accounts, taxes, rates,

revenue

Also:Advertising“How to deal with recession – where

to get help when struggling”“More support when enterprise

allowance gone”

Concluding PointsFindings are positiveAlmost three-quarters still in business

◦Despite recession◦More than half of those planning to expand◦Almost a quarter currently providing

employmentSmall business start ups primarily

operating in service industriesKnowing your sector is critical to the

success of the business

Access to finance for day-to-day activities critical

Access to finance/having sufficient income identified as key factors for those no longer trading

Reasons for no longer trading – no enough demand/income

60% would go back into self-employment

Majority of respondents found support from PAUL Partnership to be useful

Further/ongoing support in relation to accessing finance and managing accounts identified as important