Britains poor roads and railways are costing small business dear

British small business believes the countryís poor transport infrastructure is costing them a total of 755million a year in lost productivity and profits, according to new research* from leading business cashflow provider Bibby Financial Services.

More than a third (38%) of businesses who responded to the survey estimate they are losing up to 10,000 a year because Britainís roads and railways are simply not good enough.

Seventeen per cent of owners and managers believe the poor road and rail network costs them up to 1,000 a year, while a further 17% believe their businesses lose between 1,000 and 5,000 a year. Another four per cent, however, say they have to absorb in excess of 5,000 each year.

But it is the countryís transport businesses that suffer the most as more than half (55%) estimate their productivity and profits are dragged down to the tune of 5,000 every year.

Top of the transport trauma list is traffic congestion, which according to 37% of owners and managers, has the single biggest negative effect on their businesses.

Other major issues caused by Britainís poor transport infrastructure include lost production time due to staff lateness, customer frustration caused by the inability to deliver on time and missing important business meetings. All of these are named by two out of 10 business owners and managers as having a negative impact on the day-to-day running of their businesses.

Federation of Small Businesses Transport Chairman, Steve Collie, said: Transport is an essential tool of the trade for small firms. They are heavily dependent on their cars, vans and the railways to get their goods and services to customers easily, quickly and cheaply. But transport problems, such as traffic jams, railway cancellations, and never-ending roadworks, severely handicap small businesses.

ìA package of measures is what is needed to tackle the long standing transport problems - a combination of long term strategy and short term initiatives. Joined-up thinking is vital - local and central government must work together and both must view the transport infrastructure as a whole.

David Robertson, chief executive of Bibby Financial Services, said: ìBritain ís small businesses already have plenty on their plates, but it is clear that the countryís roads and railways are causing no end of problems, many of which have a direct effect on the bottomline.

ìWhen you are a small business owner or manager you have all the pressure of managing cash flow, meeting sales targets, dealing with red tape, recruiting skilled staff, keeping up with the competition and juggling the work/life balance. This is just one more complication that small business could well do without.

ìThe effects of the countryís poor transport infrastructure are being felt right across the board. Every business sector seems to suffer as a result, but naturally those involved directly in transport have had to bear the brunt of the nationís travel nightmares.î