SME business owners are fed up with supply chain abuse and the fact that big businesses “hold all the aces” according to the results of a new survey by the Forum of Private Business (FPB).
The FPB poll of 4,000 UK SMEs suggests there is a crisis of trust between SMEs and their bigger partners. Just over half (51%) said they had experienced significant problems with late payment; 46% said they felt powerless to negotiate supplier terms; and 47% of SMEs said their partners had no interest in fostering a long-term relationship.
In addition, 52% of SMEs polled said that in the face of supply chain abuse from big businesses, they would be forced to broaden their client base to minimise disruption to their cash flow.
SME business owners singled out utilities firms (79%) and banks (69%) as the least likely to take responsibility for their actions. By contrast, 80% of SMEs said the UK’s larger private, family-owned firms are the most trustworthy enterprises.
Ahead of the election, the FPB has launched a Business Ethics Pledge, which calls on big business to commit to a five-point plan to protect and promote small British businesses.
Phil Orford, FPB chief executive, said: “Our latest poll confirms that the supply chain is fit to burst with hurdles and roadblocks that discriminate against small firms. 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.”
Business ethics need to be at the top of the political agenda in the run-up to the election, he said. “The chancellor has answered our member’s calls for punitive measures for those involved in abusive or excessive tax avoidance,” he added. “However, there is still a lot more that the Government should do.”