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27 October 2011 |
Campaigners are calling for big business to learn
about good supplier relationships from the smallest firms because they are
better at tackling late payment.
The Forum ofPrivate Business and TheBusiness Woman's Network,
have joined forces to campaign for a ‘micro business day’ dedicated to
recognising the economic importance of UK firms employing fewer than 10 staff.
They are keen for larger companies to learn from small businesses’ relationships
with their suppliers.
While the average late payment time for UK firms
overall rose by almost one day to 26 days late in the third quarter of 2011,
businesses with one or two staff limited their late payment rise to half a day
- the smallest increase seen during the period.
According to research by Experian,
the average additional delay beyond agreed terms paid by firms with six to 10
staff was slightly less than a day.
Mandie Holgate, of The Business Woman’s Network, said: “Micro business owners aim to
respect their suppliers and customers, appreciating the critical impact cash
flow has on small businesses. They also aim to work in unison and source
locally, thereby supporting local economies and communities. This practice could
benefit from being copied on a larger scale, again showcasing the ways in which
micro businesses of the UK need to be turned to more as a resource for
practical business solutions to see us through these tough times.”
Jane Bennett, head of
campaigns at the FPB and an external representative on the House of Commons' All-Party ParliamentaryMicro Business Group, said:
“The jobs that will drive economic growth are expected to be created in micro
businesses so it is important that we place the political spotlight squarely on
them and make sure it stays there.”