Daily Research News Online no. 2852 - UK SMEs Struggle to Find Offices

UK SMEs Struggle to Find Offices

January 14 2004

Nearly half of small and medium-sized enterprises (SMEs) in the UK have trouble finding suitable business accommodation, according to research conducted by TNS for the Spacia Small Business Property Monitor 2004. This represents a major increase from a year ago.

Spacia is the largest provider of small and medium-sized business accommodation in the UK, and commissions the Monitor as an annual survey of small business property needs. This year, 47% of small businesses interviewed had experienced difficulty in finding accommodation - a substantial increase from 29% in 2003 and 18% in 2002.

Finding property at the right budget and in the right location are the most commonly mentioned problems, while the two biggest changes since the 2003 survey are 'Finding somewhere of quality which reflects the standards of my business' - a problem for 45% and 'Having time to find accommodation' - mentioned by 42% - both are up 7% on 2003 figures. (Percentages are based on all those saying they have problems difficulty finding accommodation).

63% of businesses that have had problems say they have outgrown their existing space but cannot afford to move and expand their business, and two-thirds would like to see more flexible lease terms and greater access to information on available property to help solve the issue. Another striking result is that over a third of businesses experiencing difficulties claim they face security problems sufficient to disrupt their business on a daily basis.

Which of these problems have you experienced? (% of those that have had problems):*
Outgrowing existing space but high costs prohibit moving to larger premises	63%
Disruption to daily business through security issues (eg break-ins, threats to staff)	35%
Disruption to daily business due to poor or inappropriate property	28%
An inability to attract staff because premises are inaccessible or in the wrong location	23%
A poor landlord relationship which has been to the detriment of the business	20%
Absenteeism as a result of poor premises	8%

* Question not asked in 2003

Ian Campbell, Director of Spacia, says that economic revival could be hindered by the lack of suitable property for SMEs. 'If SMEs cannot find accommodation where they need it, on appropriate terms, either there is insufficient property nationwide to meet current demand, or the property that is on offer for SMEs is not of the right calibre'. Campbell points out that the survey shows a seven point increase in businesses having trouble finding premises of the right quality. 'This is a concerning statistic - there is no excuse for the property industry failing to provide small businesses with accommodation of the right calibre'.

TNS conducted interviews across the UK in autumn 2003 with senior management in 1,001 small businesses - defined as having fewer than 50 employees.

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