The McCannics e-survey, month just ended February 1999

The latest McCannics e-survey reveals that a majority (52%) of internet-connected businesses in the UK think that the recent Budget will have no significant effect on their business. However, those expecting a positive effect (24%) outnumber those (14%) which think that it will have a negative effect on their business (see chart, right). Comments from respondents...

"Do you think that yesterday's Budget will have a significant positive or negative effect on your business?"

Sales and Prices

Despite better economic news from some quarters, the e-businesses taking part in this survey continue to report an inexorable worsening in the business climate. Only 45 per cent of firms reported higher sales in February 1999 than February 1998, while 31 per cent said that their sales were lower than last year. The balance (proportion saying higher minus proportion saying lower) of +14 per cent is only slightly lower than the +15 per cent recorded in January 1999, but is, nevertheless, the lowest balance since the e-survey began, in July 1997 (see chart). However, these firms report an increase in their selling prices in February. Some 39 per cent said that their prices were higher than in 1998, while only 12 per cent said that they were lower.

"Was your sales turnover in the month just ended higher, about the same, or lower than in the same month last year?" Note: Chart shows percentage balances (percentage saying higher minus percentage saying lower). Earlier surveys include late responses and so may differ from figures published elsewhere.

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Number of Employees

Number of people employed by business (i.e. not including self-employed proprietors or partners) Source: Economy: SME Statistics for the UK, 1997, DTI.

In the January 1999 survey, respondents were asked whether they have any employees (i.e. not including self-employed proprietors or partners) and if so, how many. The chart (left) shows that, although there are larger firms which sometimes take part in the e-survey, on this occasion all respondents had fewer than 50 employees. Some 30 per cent of responses come from sole proprietorships or partnerships with no employees. These smallest firms are estimated by the DTI to account for over two-thirds of the UK's 3.7m businesses.

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The nineteenth survey questionnaire was sent out on 19th February 1999 and by 1st March responses had been received from 47 businesses across the UK. The twentieth questionnaire was sent out on 10th March 1999 and by 17th March responses had been received from 51 businesses.

The e-survey has been operating on a pilot scale for well over a year and is now ready to show its full potential. Organisations which would like to collaborate and can encourage a significant number of UK internet-connected businesses to volunteer to take part in the survey should contact McCannics. Individual UK-based businesses which would like to take part in the survey should send a blank e-mail to volunteer@mccannics.demon.co.uk.

All individual replies will be kept strictly confidential. Only anonymised results will be published, and your e-mail address will not be passed on to any third party.

E-mail us with comments, queries or suggestions for future topical questions at: esurvey@mccannics.co.uk