Rising fuel costs have been named as the major business transport concern by nearly four out of 10 (38%) small business owners and managers, according to new research*.
The findings, from the annual transport survey carried out by specialist business cash flow provider Bibby Financial Servicesí, bring to life the seriousness of the situation highlighted in a recent report from the Centre for Economics and Business which claimed transport costs in the UK are double those of every other European country**.
But fuel costs are not the only concern for UK firms. More than one in five (21%) cite congestion on the UKís road networks as a key challenge, with other impacts of Britainís poor transport infrastructure including turning up late or even missing important business meetings (14%), and suffering high levels of staff lateness (12%). Nearly one in five (19%) businesses have also lost key members of staff or a major order due to transport issues.
In terms of future transport concerns, many owners and managers are worried about further hikes in fuel prices with over a third (35%) claiming this will remain a problem for years to come. And, although government plans to force motorists to address environmental concerns through toll roads, ëpay per mileí schemes and the introduction of more congestion charge zones, it is no surprise that nearly one in five (18%) owners and managers feel the introduction of such measures will have a negative effect on their businesses.
David Robertson, chief executive of Bibby Financial Services, said: ìMany small and medium sized firms will suffer the impact of any further increases in transport costs, with suppliers and couriers raising their prices to cover the extra cost. Owners and managers will be faced with the decision as to whether or not they accept the rising transport costs, or offset them to their customers and risk losing business to competitors who are able to maintain more competitive rates.
ìWith constant worries about the everyday business issues, such as maintaining a smooth cash flow, meeting targets and coping with ever increasing amounts of red tape, the importance of a reliable and effective transport infrastructure for the owners and managers of UK small businesses, should not be underestimated.î
* Bibby Financial Services annual transport survey, undertaken by Continental Research, January 2007
** Centre for Economics and Business Research, Transport report, January 2007
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Business owners struggling to survive rising fuel costs
Rising fuel costs have been named as the major business transport concern by nearly four out of 10 (38%) small business owners and managers, according to new research
