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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