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The results of a new survey have
shown Axis for Business that one in five small business have faced ‘supply
chain bullying’ in the last two years.
A Symbiotic Relationship
As an energy and telecoms
supplier that strives to deliver value for money to small businesses in the UK,
Axis for Business understands the
symbiotic relationship many SMEs have with larger firms.
For many small businesses, a
significant portion of their revenue stream relies on the trade they receive
from supplying their larger equivalents. That’s why it’s so worrying that
according to Smallbusiness.co.uk, nearly a fifth of SMEs feel they have been
subjected to one form of ‘supply chain bullying’ or another in the past two
years.
17% of Small Businesses Face ‘Supply Chain Bullying.’
In a poll of 2,500 members of the
Federation of Small Businesses (FSB), 17% (almost one in five) admitted to
facing pressure from a larger company that they supply.
Furthermore, the survey found
that this goes beyond pay to stay, where larger companies’ demands a supplier
pays a fee to continue to do business. It indicated a serious deterioration of
payment practises, with issues such as exceeding payment agreements, prompt
payment discounts and excessively long payment terms highlighted by SMEs.
“Small Businesses Are Fast Approaching Breaking Point”
Speaking out on the results of
the survey, FSB’s national chairman, John Allan, said: “The government has
indicated that they are prepared to do more to improve the culture of payment
practices in the UK and they are right to do so.
“The sense I get from talking to
our members is that small businesses are fast approaching the breaking point.
They are no longer prepared to put up with these sharp practices. Brands that
think they can continue to squeeze their suppliers with impunity may get a
nasty shock when what they are doing comes to the attention of their
consumers.”
Protect Your Small Business from Supply Chain Bullying
If you don’t want to reach that
breaking point, ensure you protect your small business from the prospect of
‘supply chain bullying.’ That way, you’ll be able to ensure you are able to
generate the capital you need to stay in the red.
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