Interesting research - survey of 4000 London businesses

A decent survey with a decent sample (report here: http://www.lda.gov.uk/server/show/nav.001005005002)

Some interesting findings about business growth - turnover, profitability, jobs. Where they did some nice multivariate analysis.

Key messages:

• The London Annual Business Survey 2004 revealed that growth is more likely to occur in businesses that have one or more of the following characteristics of behaviours:
– employ at least 5 employees, are sole proprietorships or partnerships, or private or public limited companies;
– use business planning tools and formal management information systems;
– are expanding their markets in the UK or globally;
– have successfully gained external finance, and/or are investing in equipment;
– collaborate with other organisations, mostly other businesses;
– undertake R&D and innovation activities;
– adopt a range of competitiveness strategies such as adopting IT, launching of new products and services, expanding markets, and/or cutting production costs; and/or
– use Business Link and other public sources of business advice or information.

• High performing businesses perform well across most measures of performance – they tend to perform well in turnover growth, profitability growth and productivity growth at the same time.

• Businesses less than 10 years old; in financial services, business services or ICT activities; or with a mixed ethnic ownership were more likely than average to have experienced turnover growth.

• IT investment has high positive impacts, and many businesses are actively engaged in this. Most businesses use IT regularly.

• The most commonly cited methods for enhancing competitiveness were: to improve customer/client relations; advertising/marketing strategy; adopting IT; and launching new products and services.