Maria Rose
With many of our company’s customers being small to medium sized enterprises, we were shocked to learn that many SMEs in the UK are being forced to pay up to three times more than larger businesses; all to the sum of a horrendously unreasonable £3.6 Billion. According to new research by huddlebuy.co.uk, this is threatening not only the survival hopes of an enterprise-led economic recovery, but the very existence of hundreds, if not thousands of companies.
A typical UK start-up faces an additional bill of £1,200 each year for each employee compared to established big businesses. With 396,000 new businesses created in the UK in the year to March 2011 alone young start-ups are being overcharged by £475 Million.
SMEs typically pay more than double what they should on a range of everyday services. In many cases they are missing out on discounts of 70 percent and more.
Saurav Chopra, CEO of Huddlebuy: “The results of this research are simply shocking. Small businesses fighting desperately to survive in harsh economic times are being ripped off by greedy suppliers, whilst big businesses enjoy huge savings from their favoured suppliers.”
Without the huge burden of higher costs, small businesses could employ an extra 138,000 people a year, something our company CEO, Andrew Pearce finds unbelievable “There is a mammoth demand for jobs in this country at present, and it’s simple greed on behalf of suppliers that is preventing many people in this country get back into the work place.”
The study also found sole traders, freelancers and consultants are being overcharged £2.17 Billiion, an average of £969 each per year.
Small businesses in the London and South East are particularly vulnerable being overcharged £1.3 Billion a year. Other regional rip-off hot-spots include the East of England (£390M) and the North West (£368M). Scottish businesses were overcharged by £222 Million.
Did you find this as shocking as we did?
Shaz Manelli
