Big business bullying tactics are hurting SMEs » SMEInsider

Big business bullying tactics are hurting SMEs

A new poll organised by the Forum of Private Business (FPB) has revealed that small business leaders feel they are being bullied by larger corporations.

The research, which involved over 4,000 small British businesses, shows how much the relationship between small and large firms has broken down. Nearly half of the SMEs involved in the poll indicated that they were no longer willing to do business or negotiate payment terms with larger companies.

The biggest reason small businesses are reluctant to do business with larger firms is late payment. Some 70 per cent of SMEs said that consistent late payment had been a problem in the last 12 months.

A severe lack of trust towards big businesses is also highlighted within the study. SMEs point the spotlight towards utility companies and banks, stating that they are the most likely firms to avoid taking responsibility for their mistakes.

It seems that the animosity towards big business is aimed at company executives in large corporates, as 80 per cent of SMEs believe that family owned firms are the most dependable form of big business.

The FPB’s January ComRes poll January found that 78 per cent of the general public agreed with small businesses, saying that big businesses are more likely to prioritise profits over high ethical standards. Some 74 per cent of Britons also believe that big businesses have no concern whatsoever for SMEs.

‘‘Big business has all the aces, and it is time for affirmative action from the next Government to crack down further on this ethical deficit that threatens to break the backbone of British business – small businesses,’’ said Phil Orford, Chief Executive of the Forum of Private Business