How important is design to UK businesses?

The headline

Rapidly growing businesses value design much more than others. Their enthusiasm and appreciation is sometimes as much as three times greater.

In comparison, businesses that have only grown moderately, stayed the same size or even shrunk all place less importance on design.

Our research indicates a positive relationship between valuing design and growing a business. We recommend The link between design and better business performance and Adding value through design for more information on the bottom line benefits of design. There are also a number of other information sources, particularly the Cox Review, that demonstrate the importance of design to UK businesses.

The details

How important is design to business success?

Almost half (47%) of the UK’s rapidly growing businesses see design as crucial to business success.
UK average 15%

In other words, a rapidly growing business is three times more likely to value design as a crucial business ingredient than other businesses.

The importance attributed to design also differs between sectors. Manufacturers are most likely to rank it as crucial (25%), followed by:

• Property, finance and business services: 16%
• Retail, wholesale and leisure services: 14%
• Primary industry, construction, utilities and communications: 5%.

How does design compare to other business success factors?

16% of UK businesses think design is the most important factor in their success. The bigger the business, the more likely they are to believe this is the case.

Again, there is a positive relationship between the size of business and appreciation of design’s role. 15% of small businesses put design first. This compares to 23% of medium-sized businesses, and 29% of large businesses. The difference is even more marked when it comes to turnover. Only 5% of businesses with a turnover of under £250,000 rank design first, in contrast to 23% of businesses with a turnover of over £2million.

Rapidly growing businesses and manufacturers are most likely to put design first. 47% and 25% of these businesses respectively rank design first.

*Most of those ranking design first made it joint first with other factors.

Overall, what role does design play in UK businesses?

Over a third (39%) of rapidly growing businesses see design as integral to their operations.
UK average 15%

On average, 15% of UK businesses consider that design plays an integral role in their business. A further 22% think it plays a significant role. However, rapidly growing businesses are trailblazing in this respect. They are more than twice as likely to consider design as an integral component of their business’s operations.

‘More successful outcomes tend to be generated where creativity and design are aligned with strategy.’

DTI Economics Paper 15: Creativity, Design and Business Performance, November 2005

Worryingly, design plays no part in a quarter of all businesses. Persuading them to see things differently is a challenge for the design industry.

Large businesses are more likely than average to see a role for design in their business. 32% of them rate it as integral, and only 6% feel it has no role.

Manufacturing is the most positive sector. 27% of manufacturers see design as integral to their business. And they’re by far the least likely to say it has no role (14%).

Opinions on the role of design in business also vary across the UK – see our regional reports.

What would have happened to businesses without design?

87% of businesses told us that they thought their business would be weaker without design.

Design plays a role in business success. The majority of businesses in our Added Value Research 2007 said that without design, their business would be worse off.

59% of businesses in which design is integral thought they’d be much weaker without it, compared to 17% of businesses in which design plays a significant role.

The impact of design is also felt strongly by manufacturing businesses. 45% of them say they’d be much weaker without design. Likewise, 48% of rapidly growing businesses also said they’d be much weaker without design.

Again, these figures highlight the importance of bringing design right into the heart of the business to see its full benefit.

Is design important to competitiveness?

Nearly half of all businesses (46%) think design has become more important over the past decade in helping them to compete. The majority (84%) of rapidly growing businesses agree.

Recognition of design’s contribution grows with the size of a business. 44% of small businesses, 56% of medium sized ones and 77% of large businesses feel design has continued to contribute more to their competitiveness over the past ten years.

Businesses in manufacturing are most positive (56%), followed by:

• Property, finance and business services: 51%
• Retail, wholesale and leisure services sector: 43%
• Primary industry, construction, utilities and communications: 30%.

Have businesses invested more in design?

A third (31%) of businesses have invested more in design over the past three years. But nearly half (43%) don’t invest at all.

While almost half of businesses say they think design has become more important to competitiveness over the past decade, only a third have actually increased their investment in design in the past three years. Closing this gap is a key challenge for UK businesses and for the design industry.

There are variations in the level of design investment depending on the profile of the business. For example, rapidly growing businesses are more than twice as likely to have increased their investment in design (70%). Large businesses are also more enthusiastic investors in design. 67% of these businesses have increased investment in the past three years.

In terms of sector investment in design, manufacturers again lead the way. 44% of manufacturers have increased their investment. They are followed by businesses in other sectors:

• 39% of businesses in the property, finance and business services sector.
• 24% of businesses in the retail, wholesale and leisure services sector
• 17% of businesses in the primary industry, construction, utilities and communications sector.

Investment also varies across the UK – see our regional reports.

How important is design to the UK economy?

Two thirds (65%) of UK businesses are convinced that design is integral to future economic performance.

The bigger the business, the more convinced it tends to be about the value of design.

For example, in businesses with more than 250 employees, at least eight out of ten agreed with all of the three statements above.

Which sector is most positive about design?

Manufacturers have the most positive view of design. Two thirds (69%) believe it’s worth investing in.
UK average 50%

There are large differences between sectors. Only one in three of those in the primary industry, construction, utilities and communications sector have this view.

How important is it that UK businesses have a reputation for design and innovation?

Almost all (93%) design alert businesses believe it’s important for UK businesses to have a reputation for design and innovation.