Business Breakdowns Disrupt 1.8m SMEs a Year
On-site business emergencies are costing UK SMEs an estimated £598 million a year in lost earnings and repair costs.
A study from Home 3’s Business Emergency Assistance reveals that more than one in three (38%) small businesses has experienced problems on their premises in the last year, with power failures (41%), blocked drains (25%) and lighting failure (20%) the issues most likely to be reported.
Nearly a quarter (24%) of affected businesses suffered a loss of earnings as a result and almost a fifth (16%) had to close their premises. Almost one in ten (9%) has lost customers as a result of their business’ breakdown, and some (3%) believe it’s even affected their company’s reputation.
The biggest on-site problems affecting SME owners this year are:
- Power failure
- Blocked drains
- Lighting failure
- Burst or leaking water pipe
- Boiler/heating failure
- Damage to doors/windows
As a result, SME owners lost 17.4 million working hours in the past year (2) waiting for tradesmen to arrive – an average of 13.4 hours per incident. For some unfortunate SMEs, the hours have tallied up as they have suffered incidents more than three times in the past 12 months.
Despite generally relying on personal recommendation when choosing tradesmen, SME bosses are as vulnerable as consumers when it comes to repairs. One in ten of those affected by a business problem have been the victim of a cowboy tradesman’s botched repairs, while one in ten found they’d been overcharged.
Commenting on the report, Steve Narey, Product and marketing director, Home 3 said:
“In the current economic climate, small businesses are seeing their profit margins squeezed from every angle. Any interruption to business continuity costs a company dear but unexpected emergencies are a particular problem for SME owners. It’s imperative that SMEs put procedures in place to plan for business disruptions. While it’s impossible to plan for every eventuality, owners need to be prepared should the worst happen – from policies on communicating to customers, staffing issues if premises are closed, through to fulfilment contingencies.”
“In addition, Home 3’s Business Emergency Assistance provides confidence in service delivery with its team of vetted local tradesmen that will arrive on time as agreed. We aim to minimise disruption and enable companies to get trading again quickly and maintain that all important cash flow.”
In the event of emergencies, Business Emergency Assistance enables SMEs to access a 24-hour three-way claims helpline connecting them to an expert agent and an approved local tradesman. On the call, parties can arrange the most suitable time for call-out and are guaranteed service by the nearest available and approved tradesman.