As part of a series of surveys of small firms conducted by the centre for the study of small tourism and hospitality firms at Leeds Metropolitan University, this publication seeks to investigate the variety, scope and dynamics of the UK small firms operating within the events sector. The key areas analysed include organisational characteristics and event activity; performance during 2001 and expectations of 2002; marketing; employment and training; quality management; and finance.
This report is the first to analyse small firms within the UK events sector. It is estimated that small firms comprise 85 per cent of the events industry. The report writers were particularly concerned with understanding the dynamics of small firms within this sector and investigated both their current and their likely future business practices and approaches.
The sampling strategy was designed to capture as wide a cohort of small firms as possible in what is a very diverse sector. The sample was obtained from the business database of Yell. From this base only small firms (i.e. those with less than 50 employees) ranging from non‐profit organisations to those offering a full events service were selected. Having thus narrowed the sampling frame, the researchers then obtained a randomly selected stratification of the sample. Of 4,000 questionnaires sent out, they received 597 usable responses. Hence, a respectable response rate of 15 per cent was achieved. In addition, the researchers felt that the respondents provided their analysis with a representative cross‐section of firms within the events sector.
With respect to organisational characteristics, it was discovered that the sector was mostly represented by entertainment (26 per cent), followed by private and social clubs (16 per cent). Consequently, the type of events organised clearly mirrored these percentages. Given the government and the small business service emphasis upon the promotion of growth‐oriented small firms, it was interesting to note that nearly 18 per cent of the sample fell within the category of growing small firms.
The survey identified several factors as inhibiting growth prospects within this sector. Familiar concerns of small firms such as competition from larger players, skill shortages, and difficulties in raising their customer base were significant factors in this.
The researchers also found that the split in marketing strategies within the sample was a three‐way split between tightly focused niches, a wider differentiated approach, and those pursuing a very broad‐based marketing strategy. Not surprisingly, the promotional tactics favoured by the firms emphasise small‐scale activities such as local advertising, sales literature, the internet and personal selling.
Recruitment difficulties included inexperience, skill shortages, inflexibility, and inappropriate attitudes on the part of potential employees. It was interesting to note that the level of training provided for employees within this sector was significantly higher than that typically experienced by small firms in other sectors.
The section on quality management indicates that the most common quality management approach within this sector is continuous improvement and formal customer feedback. However, only 3 per cent of organisations were ISO 9000 registered, mainly those representing the entertainment sector. The results also indicate that the majority of organisations adopt an informal approach to quality management although they do consider this issue important.
Finally, the researchers found that profits and investments, followed by own savings are currently the major sources of finance within the events sector. Less than 20 per cent of firms representing the events sector use government grants.
In the space of this review, it is impossible to do justice to the range of interesting results and implications provided by this comprehensive study. The authors have fulfilled their essential objective of providing useful and meaningful insights into this sector admirably. Indeed, this report is an essential source for researchers, policy‐makers and advisors interested in the current and future trends within this growing sector.
