Small businesses sceptical of Olympic benefits

Small business across the UK are sceptical about the benefits of bringing the Olympics to London and even the capital’s firms are not getting too excited, a business think-tank claims.

The facts:

Research by the Tenon Forum, part of Tenon accountancy firm, shows that only one in 10 businesses think the Olympic Games will have a positive impact on them, compared with 15 per cent who think it will damage their business.

The surprising figures come as the government reaches out to small firms, promising that 30 per cent of Olympics contracts will go to small and medium-sized businesses across the country.

But even in London, where you’d expect the economic impact of the Games to be felt most profoundly, businesses were less than enthusiastic. Just 16 per cent thought small businesses were set to benefit compared to four in 10 who predict no benefit at all.

A whopping 70 per cent of respondents said only big multi-national firms with major sponsorship deals would benefit significantly.

They said:

Michaela Johns, director of business Services at Tenon, said: “The 2012 Olympic Games have the potential to generate a huge amount of revenue for the UK’s businesses and not just for the obvious targets, such as the leisure, tourism and hospitality trades, so we would urge entrepreneurs to start thinking creatively now about the potential for their businesses.

“Prior to the start of the Beijing Olympics, Chinese companies supplying a huge array of goods and services were using the Games as a chance to bolster their businesses, including suppliers of air-conditioning, washing machines and beer for the Olympic media village, as well as the more prominent big business sponsors and suppliers.

“Entrepreneurs should remain open to ideas and seek out more unusual business leads for their company to take advantage of any potential opportunities that may arise in the run-up.”

We say:

The people in charge of procurement for the 2012 Olympic Games have set themselves an arbitrary quota of tenders that must go to smaller businesses. This has levelled the playing field between small and big firms.

We’re spending nearly £10bn getting this event up and running on time, so there are plenty of opportunities out there. In the current economic climate you’d be foolish to dismiss them out of hand.

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By News Desk  on   Aug 21,2008

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Keywords

Olympics    tenders    sales    Tenon    accountancy    small business   

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