SMEs “throw away” £2bn

A study from AXA Business Insurance uncovers how little adjustments to running their business could add up to some big savings for the UK’s growing number of SMEs. AXA, which insures around 20 per cent of these businesses, calculates that some companies could save themselves up to £1,435 per year if they were to make some small changes. On this basis, AXA calculates that SME UK as a whole could be throwing away a massive £2billion. 

To calculate the figures, the company identified some of the small but significant fundamental expenses that apply to most small businesses and asked their owners about their attitude and approach to dealing with them. Results were then compared to what is available to them and illustrated that by simply shopping around, switching suppliers or negotiating discounts, savings can run to hundreds of pounds. 
The research focused on a sample of three hundred business owners of micro SMEs (businesses with less than ten employees), of which there are 4.6 million in the UK, comprising 96 per cent of all businesses in the UK. 
Darrell Sansom, Managing Director of AXA Business Insurance said: “Some businesses are clearly very savvy and these figures certainly do not reflect how every SME in the country operates – but what is very clear is that a huge number of companies make small changes which would result in significant savings. 
“While the areas we analysed focus on aspects of business which require additional administration and common sense, it is also instructive that only a little over a third of the businesses to which we spoke take any form of financial advice. With some professional advice, there are certainly even more savings that could be made.”
See table for calculations.

Source: Little Things Mean a lot: SMEs "throw away" £2bn, posted in Business Insurance

ITEM Savings per sme

total saving for sme's

Energy £399 £532,266,000
Cash £118.19 £173,975,680
Office Supplies £384 £459,264,000
Broadband £249 £274,896,000
Mobile £242 £278,300,000
Petrol £13 £37,674,000
Bus Insurance £16.40 £211,232,000
Car/Van Insurance £13.20 £6,679,200
TOTAL £1,424.79 £1,974,286,880