Daily Research News Online no. 2093 - Property Problems for Small Businesses

Property Problems for Small Businesses

January 8 2003

Nearly a third of small and medium-sized enterprises (SMEs) in the UK have reported problems in finding suitable accommodation for their business - a significant increase over the past 12 months. The findings come in the Spacia Small Business Property Monitor 2003.

Collated from research conducted exclusively for Spacia by Taylor Nelson Sofres (TNS), the Monitor is the third in an annual survey of small business property needs.

The Monitor's index of 'Property Search Confidence' shows that 29% of small businesses interviewed had experienced difficulty in finding accommodation - a substantial increase from 18% in 2002.

Ian Campbell, Director of Spacia, commented 'Record numbers of small businesses - 68% - are calling for more flexible lease terms from landlords and there has been a doubling, to 48%, in the proportion of businesses having difficulty finding property suitable for their future expansion'.

The Monitor's findings come shortly after the Confederation of British Industry reported (November 2002) that SMEs in the manufacturing sector have seen orders and output falling at an increased rate and that small businesses are now less confident about the overall economic outlook.

The Spacia Small Business Property Monitor 2003 also reveals:

A record high 63% of businesses who have had difficulties saying that finding a property at the right budget is a problem
A rise in SMEs wanting landlords to provide better security for their property - one in eight now cite this as the most important way in which their landlord could improve their relationship with them, compared with one in 12 last year
A consistently high level of businesses - around two thirds - wanting more information on property from sources such as the Internet or Business Links.

Ian Campbell added 'It is worrying that the number of small businesses experiencing difficulties has risen so much in just a year. Not enough landlords appear to be offering property with the right lease terms within an appropriate budget. It is up to the property industry to work with tenants to help them achieve their goals.'

Taylor Nelson Sofres interviewed financial decision makers in 1,099 small businesses (those with less than 50 employees and with an annual turnover of £1 million or less) across the country during autumn 2002.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.