Date published: 01.09.08 - not release date

FAMILY PROVIDE MORE SUPPORT THAN BUSINESS ORGANISATIONS SAY UK SMALL BUSINESSES

Small companies feel they receive more support and practical advice from family members than their financial service provider or local business support organisation according to revealing new research from Brighter Business; the insurance provider created solely for servicing small businesses in the UK.

Britain’s Small Businesses Keep it in the Family

A poll of 1,000 small companies was carried out to gain an insight into their concerns and frustrations. Worryingly, the findings reveal that the needs of small business owners aren't being adequately met by the organisations set up to help them, making them turn to their families instead. The survey results reveal that when SMEs deal with big companies they don’t get the help they need.

Over half of small businesses felt their families were more supportive than business organisations, or their chosen Bank or IFA. SMEs with fewer than five employees rated business support organisations the least help (3 per cent), whereas SMEs with 51-100 employees citing their level of support higher (8 per cent). On the other hand, small businesses felt that their accountant offered a good level of service (40 per cent) yet only one in five small businesses were happy with the service of their independent financial advisor.

There were some significant regional differences with 20 per cent of small businesses in Northern Ireland being happy with their local business support organisation compared to those in Greater London (4 per cent). This suggests either that London based organisations have significant hurdles to overcome, or that London based SMEs expect a better level of support.

Robert Bartlett, founder and MD of Brighter Business, commented:
“It is shocking that small businesses feel that their families offer more support than the ‘so called’ professionals. Anyone who has started or run a small business knows how our families provide vital emotional and practical support however they cannot always be expected to offer in depth business expertise or advice.

“We should be concerned about these findings given that over 50% of us now work for ourselves or a small business. So why aren’t they better supported? Is Big Business just too distant from the requirements of this market and see small business needs as too difficult? Brighter Business believes that part of the answer is that organisations set up to help small companies need to understand what it’s like to start and run a small business and crucially they should specialise in working with small businesses only – as we do.

“Brighter Business has in depth understanding of the small business environment and our research has helped unearth more facts about what really makes them tick – from their frustrations to the worries they loose sleep over.”

Cash Flow Worries Keep Small Businesses Awake at Night

Of those surveyed, cash flow was the main cause of worry for small businesses (36 per cent) keeping them awake at night. Other factors included the competition (18 per cent), staffing (23 per cent), IT failure (18 per cent) and terrorism or natural disasters at a surprisingly low 3 per cent.

The findings also highlighted the differences in the types of concerns when it came to the size of the business. For example, small businesses with fewer than five employees reported their main concern as cash flow (43 per cent), followed by market forces (28 per cent), with their least being terrorism at 1 per cent. However, SMEs with 101-250 employees reported their main concern as staff (30 per cent), followed by IT systems failure (21 per cent), with a natural disaster bringing up the end with 3 per cent.

Again, there were significant regional differences with the Scottish (50 per cent) most concerned over cash flow, the South and South West worrying about their staff (31 per cent), and 29 per cent of Greater London worrying over IT problems.

Never Enough Time in the Day for Small Businesses

Overall, the poll revealed the largest frustration for small businesses is lack of time (40 per cent) with this factor being more prevalent for the smaller business (45 per cent) compared to that of the larger company (36 per cent).

Other factors highlighted were staff issues (19 per cent) which proved more problematical for the larger company (29 per cent) compared to the smaller (7 per cent). Surprisingly, IT issues were not a huge frustration coming in at a low 4 per cent. However, when it came to individual sectors, Financial, Business Services and Retail, Distribution or Transport rated lack of time as their main frustration with only Manufacturing citing staff issues (26 per cent).

Regionally again, results were varied with half of Northern Ireland small businesses citing staff issues being their largest frustration; whist Greater London complained of lack of time (44 per cent). However Wales found the lack of resources/capital (53 per cent) the most frustrating issue.

Dan Einzig, Designer, London

“When I started my brand design business eight years ago I didn’t get any real practical support, but then I didn’t really know who best to ask. You have to learn on your feet and I was lucky enough to have some great personal mentors who have been invaluable to my business. Small companies are totally overlooked, despite - judging by the number of small businesses out there - what must be a huge market for supplying services dedicated only to small-businesses.”

Roy Parker, Builder, Nottingham

“I’m a self-employed builder and when it came to getting advice on how to go about expanding my business the bank was no help at all. I talked my plans and concerns over with my brother who has his own business (he runs a carpet fitting company) and to be honest, I felt that he gave me better guidance and support than the business organisations I had been to for advice.”

-Ends-

Notes to Editors:

•A Small Business or SME is defined as a company with less than 250 employees

•The research was carried out on behalf of Brighter Business and surveyed a total of 1,000 respondents in December 2006

•Brighter Business is authorised and regulated by the Financial Services Authority

•Business insurance products are underwritten at Lloyd’s of London

•Brighter Business is backed by Catlin Group Limited, an international insurance and reinsurance group quoted on the London Stock Exchange and a member of the FTSE 250

•Catlin Group Limited manages the largest syndicate at Lloyd’s (Syndicate 2003) which underwrites Brighter Business general business insurance. Brighter Business also distributes products underwritten by other Lloyd’s syndicates

The Brighter Business Customer Offering:

•Low premiums because we only sell directly to small businesses

•Specialist products designed especially for small businesses

•A 7/24 claims service, extended opening hours and no forms to fill

•Savings of up to 30per cent on small business premiums

•No Claims Discounts as a standard feature

•Cover tailored to each specific business

•A named contact who can make decisions for customers on the spot

•Our Claims Guarantee ensures dedicated support, fast decisions and prompt payment

•Brighter Business covers business property, (buildings and contents) business interruption, legal expenses, money cover and goods in transit

•For a quote please call 0800 032 9054

•Please see the Brighter Business full Terms and Conditions at http://www.brighterbusiness.co.uk/pg.asp?terms

•Please visit www.brighterbusiness.co.uk for more information

For further media information, contact the Brighter Business Press Office at Mischief PR on 0207 553 4111