According to new research from the Federation of Small Businesses (FSB), small companies are not reporting crimes against their business because they do not think it would lead to a successful prosecution (38%). The FSB findings call into question the accuracy of the current crime statistics and suggest low levels of trust in the ability of the police to deal with business crime among small businesses.
Nearly a quarter of smaller business owners (24%) do not report any crimes committed against their business. When asked why, most said they felt reporting it would not achieve anything positive (46%). This figure has not changed in six years, highlighting an ongoing lack of confidence in the authority's ability to address business crime over that period, despite the launch of Police and Crime Commissioners (PCC) in 2012.
Business crime acts as a barrier to growth for the UK's 5.4 million small businesses and in the worst cases, puts entrepreneurs out of business.
Mike Cherry, National Chairman at FSB said, "while the new definition of 'business crime' adopted by the police in April 2015 is a real step forward, there is still a long way to go in understanding and addressing the true extent of the problem. Crime affects all businesses, but it impacts smaller firms the hardest as they cannot absorb the unexpected costs. The fact that businesses are not reporting crimes shows a real breakdown in trust and confidence in the police."
Other statistics:
38% believe that police would not be able to find the criminals or achieve a successful prosecution
26% reporting crime was too time consuming
66% have been a victim of cyber crime in the last two years
48% have been a victim of non-cyber crime, and 53% have been a victim of both
With cyber crime becoming a main concern, the survey also showed that since 2010, businesses have improved their security with 41% having installed or upgraded a security system and a majority 80% of small firms protecting their IT systems with computer security software.
The FSB is acting on their research by issuing a manifesto to PCC candidates.
Mike Cherry added, "with the average cost of crime to a business now at £5,898, and instances of cyber crime on the rise, there is a real necessity to get a handle on this. FSB members call on candidates for PCCs standing in elections across England in May to make combating business crime a central theme in their long-term plans."