Management
Growing demand for professional advice Print E-mail
Thursday, 18 October 2007
Britain’s smaller firms are actively seeking advice according to the first comprehensive survey of some 2,000 business support professionals.

More than half (53 per cent) of advisers reported an increase in clients over the past year and 60 per cent recorded improved business performance by their clients. However, the support professionals’ message to those in government is to value their contribution and to communicate with them more effectively.

The research was conducted between August and September 2007 by the Small Enterprise Research Team (SERTeam) at the Open University and the University of Nottingham Institute for Enterprise and Innovation (UNIEI) and was funded by Barclays Local Business.

Red tape

Clients’ positive business performance masks internal management issues of a lack of time and capacity (15 per cent) followed by regulation and red tape (12 per cent) and marketing problems (11 per cent).

Not surprisingly the majority of advisers responding to the survey (70 per cent) advocated the slashing of red tape, followed by a reduction in business taxation (45 per cent) if the government is serious about helping its small business base. For clients struggling under worsening business performance, the major problem areas lie in cash flow and bad debts (19 per cent) followed by the general economic climate (14 per cent).

Business support professionals cover a broad spectrum of expertise and knowledge; most are multi-functional represented by those who deliver Business Link and other government funded services, whilst others are drawn from broader consultancies and the accounting and financial sector.

The most pressing problems in their professional lives is the reluctance of their clients to follow advice (30 per cent), perhaps partly explained by a lack of leadership or vision in owner-managed firms cited by 45 per cent of the advisory respondents or perhaps reflecting some of the adviser-client communications problems that have been identified by other research in this field.

Positive impact 

Speaking on behalf of the research team, Professor Colin Gray, Chairman of SERTeam said that he was heartened by the level and quality of response.

"As well as revealing that, on balance, Britain's business advisers and consultants are having a much needed positive impact on small firm performance the survey has also revealed just how professional the respondents are in their concerns about their own field of work - a professionalism that is reflected, I am sure, in the quality and relevance of advice given to their business clients."

Dr Richard Roberts, Head of SME Market Analysis at Barclays, said that the results provide some key insights to the work and role of the business advisor community in the UK. 

"As we have seen in the proposals to reform CGT in the recent Pre-Budget Report, the business environment for SMEs can change very rapidly.  As this research shows, in line with Barclays thinking for some time, seeking advice from a professional source is one of the best things a firm can do to either make the most of a changing regulatory/tax environment or capitalise on ideas for growth.”

High levels of competence

A significant proportion of the respondents are members of the Institute of Business Consulting who leant their support to the survey work. Lynda Purser, Director of the Institute says: “In an environment which is constantly changing, clients are looking for innovative ways to enhance performance and this places responsibility on individual consultants and advisers to maintain high levels of competence.  It is important that they have a recognised development path, with certification which will provide an assurance of quality for the client community and a framework against which clients can select high quality advisers and consultants to ensure competitive advantage is maintained.”

Various other national organisations involved their members in the survey including Business Links, the Association of Certified Chartered Accountants (ACCA) and the National Federation of Enterprise Agencies (NFEA).

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