Small and medium enterprise owners are more likely to survive the downturn if they have good business relationships, new research suggests.
A new survey from HSBC, the ‘Value of Relationships’ report, found that over 90% of small businesses believe that good supplier relationships are critical in times of economic hardship.
Some 50% of small business owners feel suppliers can help them because the know their company so well. Another 31% think their suppliers could save them money, while 11% said suppliers could give useful advice when times were tough.
In addition, 63% of businesses said that having good relationships with their solicitors, accountants, banks, utility company and goods suppliers is vital to business success.
Noel Quinn, head of commercial banking in the UK at HSBC, said: “Our research found that businesses want, and benefit from, close relationships with their suppliers. SMEs recognise that good relationships with suppliers are vital to help them navigate through testing economic waters.”
According to the research, family and friends are classed as the primary advisers for 39% of small businesses. Accountants are most relied upon by some 22% followed by solicitors at 12%.
The research, undertaken by the Next Big Thing, found that just 4% of businesses disregard the value of good relationships.
© Crimson Business Ltd, 2009