Business management in equine businesses

Transcription

1 Business management in equine businesses Pack 1 The equine sector Pack Code: EBM1 This pack you will help you to: Explain the importance of the equine sector. Outline the role of some key organisations in the equine sector.

2 About this pack Objectives This pack will help you to: Explain the importance of the equine sector. Outline the role of some key organisations in the equine sector. This pack is relevant to the level 3 unit Business management in the landbased sector, and in particular the following outcome: Outcome 1: Know the breadth and importance of an industry in the environmental and land-based sector. Links to other packs This is one in a series of learning packs, each tackling an important aspect of managing equine businesses. They are: EBM1: The equine sector EBM2: Types of business EBM3: Job roles EBM4: The marketplace EBM5: Record keeping EBM6: Recording income and expenditure EBM7: Profit and loss and balance sheets EBM8: Depreciation EBM9: Business improvement EBM10: Marketing and promotion Management in equine businesses 2

3 Introduction The land-based and environmental sector accounts for 9% of businesses in the UK and provides work for 1.2 million people 4% of the workforce. UK agriculture alone contributes 6 billion to the UK economy 0.5% of gross domestic product (GDP). The sector includes a wide range of industries, summarised as follows: Land management and production Animal health and welfare Environmental industries Agriculture Animal care Environmental conservation Aquaculture Animal technology Fisheries management Fencing Equine Game and wildlife management Floristry Farriery Horticulture, landscaping and sports turf Land-based engineering Veterinary activities Production horticulture Trees and timber Land use The land-based and environmental sector is responsible for four fifths of the land in the country. This pie chart (based on Defra data) shows overall agricultural land use in the UK in Over 500,000 hectares may be used for maintaining and producing horses. Management in equine businesses 3

4 The equine sector The equine sector includes: riding schools livery yards competition and racing yards farriers clubs and hunts trainers trekking and riding holiday centres equine studs. The economic importance of the equine sector Statistics about the equine sector are not always reliable. The National Equine Survey carried out by the British Equestrian Trade Association estimates that: 3.5 million people rode in Great Britain during ,000 people own horses there are 1.3 million horses in the country the industry contributes 6.8 billion to UK GDP of which 4.3 billion is non-racing related and 2.5 billion is horse racing related The European Horse Network estimates that across Europe the impact of the horse industry may be: 100 billion euros a year in economic terms the equivalent of full time jobs provided by the sector 6 million or more horses in Europe 6 million hectares of permanent grassland given over to horse grazing the number of horse riders growing by 5% a year. Employment in the equine sector The National Equine Survey carried out by the British Equestrian Trade Association also estimates that: there are over 19,000 equine businesses employing up to 250,000 people of whom 67,000 people work full time in the industry, and at least another 100,000 work in related industries in addition a large number of people work in the sector on a voluntary basis. Management in equine businesses 4

5 Other statistics from Lantra suggest lower figures for direct employment with 3,450 organisations employing 20,700 workers. Research from the National Guidance Research Forum suggests that: The industry is made up of small businesses 97.5% of businesses in the sector employ fewer than 10 people A majority of the workforce is female two thirds of staff, and just over a half of proprietors The workforce is young three quarters are under 35 Social benefits of the equine sector The equine sector also has important social benefits. These include: the importance of the horse industry to rural communities equine businesses provide activities for rural people, and bring in visitors from towns; they also support a range of other rural businesses the role of horses as companion animals the use of horses in equine therapy, especially for young people the health benefits for people of riding and looking after horses the British Horse Society recently published research (The Health Benefits of Riding in the UK) that underlines both the physical and psychological benefits of horse riding: Management in equine businesses 5

6 Activity 1 How many people are employed in the land-based and environmental sector today? a) 800,000 b) 1,000,000 c) 1,200,000 d) 1,500,000 2 How much does agriculture contribute to the UK economy? a) 0.5% b) 5% c) 10% d) 50% 3 How many equine businesses are there in the UK according to the National Equine Survey? a) 6,500 b) 12,500 c) 19,000 d) 22,500 4 How many people ride each year in the UK according to the National Equine Survey? a) 0.5 million b) 1.3 million c) 2 million d) 3.5 million 5 How many horses are there estimated to be in the UK according to the National Equine Survey? a) 0.5 million b) 1.3 million c) 2 million d) 3.5 million Check your answers with the feedback at the end of this pack. Management in equine businesses 6

7 Three sectors of the economy It is common to refer to three sectors of the economy: The primary sector The secondary sector The tertiary sector Produces raw materials Eg dairy farm produces milk Manufactures and processes raw materials into products Eg milk processor pasteurises milk and makes butter or yogurt Provides services such as retail, transport, banking, healthcare Eg supermarket sells milk, butter and yogurt Activity Which of these businesses work in which sector? Tick the appropriate boxes: Primary Secondary Tertiary Farm producing hay Pet food manufacturer Farrier Veterinary surgeon Horse box manufacturer Riding school Livery yard Limestone quarry Check your answers with those at the end of this pack. Management in equine businesses 7

8 Other organisations in the equine sector A number of other organisations play an important role in the sector, as regulators or representatives of the industry. Defra In England, the Department for Environment, Food and Rural Affairs (Defra) is the government department responsible for policy and regulations relevant to the sector. Defra regulates aspects of the sector including: Animal health and welfare The natural environment, biodiversity, plants and animals Environmental protection and pollution control Rural communities and issues. In other parts of the UK similar functions are carried out by the Welsh Assembly Government, the Scottish Executive Environment and Rural Affairs Department and the Department of Agriculture and Rural Affairs (Northern Ireland). A number of agencies help Defra in its work: Business Link provides on-line services for businesses. The Health and Safety Executive and local authorities enforce health and safety law. See pack EHS1: Managing health and safety. The British Horse Society The BHS is the largest equine membership association in the sector, with 71,000 members. It was founded in 1947 and is financed by members subscriptions. It aims to provide a strong voice for horses and people, to spread awareness through support, training and education and to promote the highest standards in all areas of equestrianism. Other representative organisations include: the Association of British Riding Schools the Thoroughbred Breeders Association the British Equestrian Trade Association represents equestrian manufacturing, wholesale and retail trade The next pack in the series, ACBM2: Types of business, looks at the range of organisations in greater detail. Management in equine businesses 8

9 Resources and further reading You will find a number of publications dealing with business management in the college library. You may find the following helpful: Equine Business Management, 2010, Julia Brega, Allen For Defra, see: For more on the British Horse Society see For the Association of British Riding Schools see For the Thoroughbred Breeders Association see For the British Equestrian Trade Association see Answers to activities Activity on page 6 1 How many people are employed in the land-based and environmental sector today? Answer c) 1,200,000 2 How much does agriculture contribute to the UK economy today? Answer a) 0.5% 3 How many equine businesses are there in the UK according to the National Equine Survey? Answer c) 19,000 4 How many people ride each year in the UK according to the National Equine Survey? Answer d) 3.5 million 5 How many horses are there estimated to be in the UK according to the National Equine Survey? Answer b) 1.3 million Activity on page 7 1 The farm producing hay and the limestone quarry are in the primary sector. 2 The horse feed manufacturer and horse box manufacturer are in the secondary sector. 3 The veterinary surgeon, farrier, riding school and livery yard are in the tertiary sector. Management in equine businesses 9

10 Knowledge quiz 1 What percentage of the UK workforce is employed in the land-based and environmental sector? a) 2% b) 4% c) 6% d) 8% 2 Give four examples of equine businesses: a) b) c) d) 3 Give three trends that affect the equine sector: a) b) c) 4 Give two examples of businesses in the primary sector: a) b) 5 Give two examples of businesses in the secondary sector: a) b) 6 Give two examples of businesses in the tertiary sector: a) b) Management in equine businesses 10

11 Acknowledgements This learning pack has been produced by the Land Based Colleges National Consortium Ltd. The LBCNC is a consortium of colleges working in the land-based sector which cooperate in the development and production of quality flexible learning materials which encourage independent learning. Developed and produced for LBCNC by Learners First Cover photograph: Steve Watson, Riseholme College, University of Lincoln Produced in November The Land Based Colleges National Consortium Ltd. All rights reserved. Permission to photocopy or adapt the material in this learning pack is granted to members of the Land Based Colleges National Consortium Ltd. only. For further information please contact the LBCNC project management team at 7 Tyne Road, Bishopston, Bristol BS7 8EE. Tel Management in equine businesses 11