Over half of all British consumers would prefer to purchase goods or services from a local startup business than a large national company, a new survey by Lloyds TSB Business has revealed.
The research found that there was strong support amongst the public for smaller firms, with a quarter of those polled saying that it was important to help local startups.
Nearly a fifth of respondents said that they liked the more personal service offered by small businesses, while one in ten said that startups do a better job because they need to hold onto customers to avoid going bust.
Even more encouragingly, just eight per cent of those quizzed said that they would avoid small firms because of fears that they may fold, while a mere five per cent thought that larger companies provided better quality and value for money.
Perhaps surprisingly, despite the obsession with big name brands among UK consumers, just three per cent of those polled said that they would visit a large company over a startup because it was a well-known name.
Although studies have proved that support for entrepreneurship is strong in Britain, small stores have come under increasing pressure from large chains in recent years, forcing many out of business.
As reported by Startups.co.uk in December, a report by the New Economics Foundation warned that many high streets could resemble ‘ghost towns’ if small businesses continue to go bust as a result of large multiplex retail parks.
Stephen Pegge, of Lloyds TSB Business, said: “While Britain may no longer be a ‘nation of shopkeepers’ it is clear that people still identify with the entrepreneurial spirit, and are willing to support smaller local firms.
“This is a real vote of confidence and shows potential entrepreneurs that they can compete with the ‘big boys’ if they have a good product or service to offer.”
