Crime costs small businesses over £120m a year

CRIME costs small businesses over £120 million a year, according to a survey carried out by the Small Firms Association and the…

CRIME costs small businesses over £120 million a year, according to a survey carried out by the Small Firms Association and the Irish Security Industry Association.

Calling for immediate action to tackle "the appalling spiral" of crime against business, the SFA wants a three prong approach. It wants measures to tackle the drugs problem, more efficient use of Garda resources and an increase in the number of detention places.

It is unacceptable that small businesses should face extra costs because of "a breakdown of our system to control crime", according to SFA chairperson, Ms Lorraine Sweeney. Small businesses are already facing rapidly rising insurance costs because of the claims/compensation culture, she said.

The SFA survey of 221 small firms employing less than 50 people shows that 41 per cent of the companies were victims of crime in the 12 months preceding the survey. Some 32 per cent suffered crimes on more than one occasion in the period. The average cost per crime was £1,470 and the overall cost to small businesses was £124 million.

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Burglary was the most common crime against small business, accounting for 53 per cent of all the crimes committed and costing £2,290 per crime. But violent crime and vandalism cost small businesses the most. Vandalism accounted for 38 per cent of the crimes committed and cost £2,550 per crime. Violent crime accounted for just 3 per cent of incidents but cost small business about £3,000 per crime.

Shoplifting accounted for 29 per cent of the crimes committed and cost £400 per case, according to the survey, while some 15 per cent of crimes involved fraud and cost small businesses £1,000 per crime.

Some 42 per cent of the companies said crime against their businesses had increased over the period and 77 per cent said they had reviewed their security arrangements. Some 62 per cent improved security arrangements following the review, incurring additional costs of about £2,200 each.

Alarms were the most common - security equipment in use - 85 per cent of the companies had alarms. Other measures included window shutters (18 per cent), closed circuit televisions (7 per cent) and time lock safes (6 per cent). Only 12 per cent of the companies employed security staff at an average annual cost £13,575 per company.