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Laurence Duncan
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Productivity Gap for Small Businesses in Leicester


UK Wide Productivity Gap affects smaller businesses in the East Midlands



Jonty Bloom the BBC Business Correspondent says we have a UK wide Productivity gap so how is this affecting business owners in Leicestershire?


In a recent article for BBC News he says “Productivity growth since the credit crunch has been dreadful and that matters, because unless we make more and work more efficiently we cannot pay ourselves more and part of the reason for low productivity lies in Britain’s regions.”

Wales and Northern Ireland have productivity levels 19% below the national average and the only towns showing above average productivity are London, Aberdeen and Bristol, with Sheffield trailing behind at 19% less productive than the national average.

Current Economic Profile in Leicestershire

The Leicestershire Economy shows a mixed picture. Here are some of the statistics available here:

The key results for business owners in Leicestershire:

  • In 2015 there were 37,585 private sector enterprises in the LLEP area
  • From 2011 to 2015, small businesses in Leicestershire grew by 3,740 (or 15.9%).
  • In Leicestershire 46.7% of occupations are managers, directors and senior officials, in professional and technical occupations and growth in these occupations has been stronger in Leicestershire than nationally.
  • Between 2013 and 2014, business survival rates over three years grew in all areas of Leicestershire, with highest growth in North West Leicestershire, Oadby and Wigston. But in Melton, 3-year business survival rate fell by 9.1 percent.
  • In Leicester City, the 3-year business survival rate of 59% was below the national figure.

Family businesses are less efficient                   

Recent research by the ONS into the efficiency of family-owned and run manufacturing firms found that the management of family-run firms (more than half of all manufacturing companies) is generally awful.

Jonty Bloom said: “Even a small improvement in management would see a huge boost in productivity in such businesses and there is a fairly obvious explanation. What are the odds that the best-qualified and most competent person in the world to run a business just happens to be the son or daughter of the current boss?”

Business Success taught by Coaching

Laurence Duncan, Business Coach for Leicestershire equates this to choosing the children of the last Olympic medal winners for the next UK Olympic team, instead of choosing the best athletes. But with some excellent coaching, the children could be trained to be medal winners.



This means that when experienced business owners pass on the reigns of the business to their sons and daughters, they can easily be taught how to be successful managers that will increase turnover and boost profits.

Helping business in Leicestershire

Michael Charlesworth, a Liberal Democrat County Councilor for Wigston Bushloe, said: “The figures for Oadby and Wigston are due to the type of businesses predominant in the area. The businesses we do have are quite small and they will always struggle to pay a living wage,”


Chris Hobson, Director of Policy for the East Midlands’ Chamber, said: “This is a complex issue for employers and policymakers alike, which will have more of an impact in certain sectors than others. The figures should be looked at in a positive light, with 68% of workers in Wigston, and 63% in Melton being paid the living wage or above.”


Quotes Sourced from:


Laurence Duncan, ActionCOACH Loughborough says:

“I am concerned about the remaining 40% of small businesses in these areas who are clearly struggling to survive and offer any Leicestershire business owner a two-hour coaching session completely free of charge, and guarantee to give them at least three good ideas and a few wiser ways to increase their profits this year.”


If you would like to take up this offer, contact Laurence on any of the details below and quote this article! 


Laurence Duncan | Business Growth Specialist |ActionCOACH

Mobile: 07584 028105            Office: 01509 264054

Maple Suite, Beacon House, 10 Forest Road, Loughborough, LE11 3NP




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