Survey results provide new insight into business activity

Press Release

17/06/2009

The results of the survey were unveiled at a business breakfast hosted by the borough's Chief Executive, Rob Whiteman and the Deputy Leader of the Council, Cllr Bob Little.

660 businesses across the borough took part in the survey conducted in February and March 2009 by independent researchers 'Step Ahead Research', on the behalf of the Council. In addition a number of detailed face-to-face interviews were held.

The aim of survey was to increase the Council's understanding of local business needs and using the findings as the basis for implementing change and providing on-going support to the business community.

Results from the survey suggest the business profile of Barking and Dagenham is focused in traditional industries such as manufacturing, and transport and distribution. Although the manufacturing industry is declining, it still accounts for 17 per cent of employment in the borough, compared to just four per cent across the rest of London.

There are some growth areas, namely start-up businesses, with the number of new businesses being 61 per cent of all businesses trading for less than ten years and 26 per cent trading for less than two years.

Despite the recession, the survey found that one in five companies, generally smaller ones, had plans to recruit staff over the next 12 months.

The survey found that eight out of ten local companies (78%) had invested in their business in some way over the last year. It also found that ownership of business is varied, with three in ten business owners (29%) being female and a similar number originating from overseas.

Most survey respondents had a positive view of Barking and Dagenham as a business location. They also highlighted a number of challenges, such as the cost of property and rent; and the cost of fuel and energy. In response to this, the study recommends additional support for start-up businesses, more information and access to public sector services and regular engagement from the Council.

Businesses were also affected by crime and anti-social behaviour; however on a positive note such criminal activity was not committed against individual businesses. Repeated low levels of crime were thought to be more annoying and time consuming to deal with and could deter more inward investment. However, the general picture painted by businesses was that the borough was a good place to do business, something confirmed by one of the businesses at the breakfast which said that they had taken a positive decision to move into the area.

To address this, the survey suggests an increase in security provision, such as the use of CCTV in areas where there is a high reporting of low level crime. The Council will also investigate the use of wider social initiatives and already has active Safer Neighbourhoods Team.

The business community also identified a major skills gap amongst the local workforce, with 44 per cent of residents equal to around 12,000 individuals in the borough not having a qualification above NVQ Level 2. While in the past employers were not so concerned about this, valuing experience more, they also said that they would expect new recruits to have some qualifications. This poses a challenge for residents hoping to find local work.

Steve Drury, Director, Building and Development, said: "The Rooff Group have already partly relocated to Dagenham due to the good public transport infrastructure on offer and affordable accommodation. We also see great potential for Barking and Dagenham as an emerging area for regeneration, hence our involvement with the London Thames Gateway Development Corporation and the Abbey Road Creative Industries Quarter. "

Cllr Little, in summing up the work said: "This survey provides us with a detailed snapshot of business vitality in the borough and the insights provided will be an essential tool in developing programmes and policies to support and encourage business growth."

Press Release Number: 11425

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Survey results provide new insight into business activity

Press Release

Press Release Number: 11425

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