The great British business ‘jolly’ is alive and well and racking up costs for the UK’s small businesses, as a new survey shows that firms still believe in giving their clients a taste of the highlife in order to close deals.
A third of staff expenses are made entertaining clients highlighting the importance of the jolly in business, a new survey suggests.
The survey, carried out by American Express, shows that 82% of small businesses owners believe that client entertainment helps to achieve objectives.
Also, 72% of small businesses ‘actively encourage’ employees to entertain clients, countering suggestions that firms might be keen to tighten the purse strings for ‘non-essential’ practices.
The survey’s authors maintain that the corporate jolly is here to stay as expenses have risen for more than half of the companies surveyed and have fallen for just five percent.
Karen Penney, head of account development of American Express, said: “Relationships have always been key to British small businesses and it's clear that the personal touch is still valued when it comes to signing on the dotted line.
“While technology, such as teleconferencing, provides an increasing number of ways to do business remotely, face to face meetings are still vital to British business, which is why small businesses are still willing to make this crucial expenditure.”
© Crimson Businesses Ltd 2006
