Business Information - Slow off the starting block - UK businesses could miss out on £21 billion 2012 prize
16th September 2008 - Lloyds TSB
The Lloyds TSB Official Business Guide for London 2012 taps into business optimism
With just over four years to go and £21 billion worth of opportunities potentially up for grabs, British firms are yet to take full advantage of the commercial rewards associated with the London 2012 Olympic and Paralympic Games. New research from Lloyds TSB highlights that three quarters (73 per cent) of firms report that they have not yet looked into the opportunities around the Games.
The report, based on the responses of 800 UK firms, shows that eight out of ten (81 per cent) SMEs are yet to take action to tap into the commercial opportunities presented by the Games, compared to 58 per cent of larger firms. And these ‘economic blind-spots’ are across the UK.
Looking at business attitudes around the country:
- Eight out of ten (82 per cent) of businesses in Wales admit that they haven’t yet looked into the business benefits of the London 2012 Games
- Over three quarters (77 per cent) of businesses in the South West and 61 per cent of businesses in the West Midlands confessed that they have so far overlooked the Olympic business benefits
- Even businesses closest to the 2012 development zone have been slow off the mark, with 55 per cent of businesses in the South East and a third (33 per cent) of businesses in London yet to take advantage of the opportunities on offer
Even though many businesses have yet to investigate the 2012 opportunities, they remain upbeat about the Games, with 43 per cent of respondents feeling that they will have a positive economic benefit on their own business. Almost half (47 per cent) also feel the London 2012 Games will have a positive economic impact on their region and 56 per cent believe there will be a positive impact on the UK as a whole.
One in five firms (20 per cent) plan to capitalise on this optimism and start looking into the opportunities over the next 12 months, with the transport and communications industry (31 per cent), hotel, catering & leisure sector (26 per cent) and construction industry (25 per cent) leading the way.
The research also revealed that almost half (43 per cent) of respondents feel they need further support and guidance on how to take full advantage of the business benefits.
In response to this need for clear advice to businesses, the Lloyds TSB Official Business Guide for London 2012 was launched today. The guide has been designed to help companies of all sizes, from across the country, seize the enormous commercial opportunities being created by the London 2012 Olympic and Paralympic Games.
The guide offers advice on how to get ‘fit to supply’, explaining every aspect of the supply chain, including the unique procurement policies involved. It also covers useful sources of support such as the London 2012 Business Network as well as practical financial advice. The information contained in the Guide is based on interviews with dozens of experts, including officials from the Olympic Delivery Authority (ODA) and the London Organising Committee for the Olympic Games and Paralympic Games (LOCOG), Lloyds TSB, regional development agencies and businesses with Olympic and Paralympic Games supply chain experience.
Truett Tate, Group Executive Director of Wholesale & International Banking, Lloyds TSB said: “The London 2012 Games offers one of the biggest business opportunities this country has seen in 50 years. Regardless of industry or location, it provides a golden opportunity for UK businesses to expand, diversify and reach new audiences. Although the opening ceremony is four years away, we urge businesses to take action now in order to grab a piece of the pie.
“As the official banking and insurance partner of the London 2012 Olympic and Paralympic Games, Lloyds TSB is well placed to provide detailed advice on how to capitalise on the opportunities. Our official guide is an essential read for any company hoping to get themselves fit to tender for London 2012 Games work.”
Sebastian Coe, Chairman of LOCOG commented: “With over £6bn of contracts available, businesses need to act now to make the most of the opportunities available between now and 2012.
“London 2012 is already providing a unique opportunity for businesses throughout the UK to raise their profile and reputation on the global stage, and the amount of big sporting events coming to the UK could make this a ‘golden decade’ for major events in the UK and, therefore, British business.
“Delivering the Games is a massive logistical operation, requiring goods and services from a large number of firms. Businesses the length and breadth of the country will win contracts and gain a huge amount of experience of what it takes to stage and host big sporting events. This will lead to a new ‘export market’ for the UK, thus benefiting businesses right through to 2012 and beyond.”
The research also revealed some key misconceptions about the 2012 opportunities:
- Almost a quarter (21 per cent) of businesses feel it is too early to start looking into the opportunities: In fact, the ODA has already let contracts worth more than £1 billion
- One in five (20 per cent) don’t feel their business is large enough to compete: In fact, most of the contracts already let by the ODA have been won by SMEs
- A quarter (23 per cent) believe that because they are not based in London the opportunities are not open to them: In fact, approximately half of the contracts already let have been won by businesses outside London
Other key findings:
- Of those firms that do feel their business will benefit from the Games, 46 per cent believe the Games will lead to new business opportunities for their company
- Over a third (38 per cent) of those firms also said it will provide new business in new markets
- 44 per cent feel it will widen their customer base
- Over a quarter (29 per cent) said the Games will provide a great opportunity to promote their business to an international market.
For further information on the Lloyds TSB Official Business Guide for London 2012, visit http://www.lloydstsb.com/london2012business or talk to your Lloyds TSB relationship manager.
Top tips for businesses
Take action today: The best piece of advice for businesses is to act now. Start thinking about your own products and services and where you might get involved with the Games. Four years may seem like a long way off, but you may need to invest, prepare and capture the opportunity before competitors get there first.
Check out local support: Look into available support from national and regional agencies. Attend one of the many Olympic related events and seminars which are being hosted by different bodies across the country.
Sign up to business alerts: Sign up for e-business alerts and the e-tender service to help keep informed of major developments - visit http://www.london2012.com/business.
Think outside the box: If you look at the big picture and devote some time to thinking about the implications and likely impact of the Games, there are thousands of different opportunities out there.
Network: Build relationships with key suppliers, organising bodies and external influencers.
Consider collaboration: partner with other companies to widen your skill-sets and increase business capacity.
Fine-tune your business: Tighten up your finances – seek financial advice and support. Refresh your project management skills, in particular scheduling.
Harness the 2012 effect! Get your staff involved and motivated.
