25th September 2008
Running costs for small businesses have increased at around twice the general rate of inflation over the last year, according to a new inflation report.
The quarterly Business Inflation Guide (BIG) has been produced by More Than Business and Warwick Business School. It looks at official data on the prices of goods and services, and weights its calculation according to their importance for small companies.
The first findings suggest that small business costs increased by 3.4% in the second quarter of 2008 - and by 9.9% over the last year - due in particular to hikes in petrol and energy prices.
According to the BIG, this is the highest inflation that small firms have faced since at least as far back as 2005, where its measurements began, and is more than twice that of the Consumer Price Index (CPI).
In addition, micro firms - those employing fewer than ten people - appear to have been the hardest hit, with a 10.0% increase over the past year.
The guide, which was developed in collaboration with Warwick Business School's Centre for Small and Medium-Sized Enterprises, includes 20 of the most important expenditure items for small firms, and features a breakdown of inflation for separate regions and sectors.
Head of More Than Business Mike Bowman said that a lack of existing data provided the spur for creating a purpose-built measure of small business inflation.
"Now we have a true picture of rising costs for small businesses, people will be asking the Government what realistic measures can be taken to support them, particularly in the current economic climate," he added.
Small business inflation 'running at almost 10%'
The quarterly Business Inflation Guide (BIG) has been produced by More Than Business and Warwick Business School. It looks at official data on the prices of goods and services, and weights its calculation according to their importance for small companies.
The first findings suggest that small business costs increased by 3.4% in the second quarter of 2008 - and by 9.9% over the last year - due in particular to hikes in petrol and energy prices.
According to the BIG, this is the highest inflation that small firms have faced since at least as far back as 2005, where its measurements began, and is more than twice that of the Consumer Price Index (CPI).
In addition, micro firms - those employing fewer than ten people - appear to have been the hardest hit, with a 10.0% increase over the past year.
The guide, which was developed in collaboration with Warwick Business School's Centre for Small and Medium-Sized Enterprises, includes 20 of the most important expenditure items for small firms, and features a breakdown of inflation for separate regions and sectors.
Head of More Than Business Mike Bowman said that a lack of existing data provided the spur for creating a purpose-built measure of small business inflation.
"Now we have a true picture of rising costs for small businesses, people will be asking the Government what realistic measures can be taken to support them, particularly in the current economic climate," he added.
Tags: Retail & Shop
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