In the battle between the haves and the have nots, new research has uncovered that rural SMEs are significantly disadvantaged, in comparison with their urban counterparts.
In a survey of over 900 UK SMEs – conducted by the British Chamber of Commerce (BCC) and the business accounting platform, Xero – respondents were asked for feedback on an array of topics, including public transport provisions, internet connectivity and the labour market.
The results put into focus the clear disparity between the local trading environments in rural and urban areas of the UK.
“Our research highlights the rural-urban divide that continues to exist between firms across the UK, with rural businesses generally reporting higher levels of dissatisfaction with the quality and availability of local resources” said Alex Veitch, Director of Policy & Public Affairs at the BCC.
“High-quality public infrastructure and access to a skilled labour force are both key to the success of a business, in particular SMEs, and today’s findings indicate that rural businesses are at a significant disadvantage.
“Government must urgently prioritise the development of public infrastructure.
“Such investment will not only enable local and small businesses to adapt and thrive, it will also create jobs and inject money into local economies across the UK.”
Public Transport Woes for Rural SMEs
The differential between public transport provisions in rural and urban areas is perhaps the most notable, when examining the research results.
A significant proportion of respondents (58%) reported that SMEs in rural areas do not have access to reliable and well connected trains.
SMEs based in business, retail and industrial parks are similarly dissatisfied with public transport, with 51% reporting malcontent pertaining to their local rail network provisions.
Moreover, the level of dissatisfaction rose exponentially when respondents were asked about buses and trams.
In this, over three quarters (79%) of SMEs in rural or countryside areas do not believe their business benefits from reliable access to buses and trams.
By comparison, only 42% of SMEs in towns, villages and highstreets echoed similar sentiments.
Moreover, the rural-urban divide for UK SMEs becomes even more pronounced once regional disparities have been factored in.
SMEs in the Midlands (51%) and in the North of England (52%) reported poor access to reliable and well-connected trains, compared to only 36% of SMEs in the South.
The Labour Market for Rural SMEs
Access to skilled workers plummeted following Brexit; an issue that was compounded by the Great Resignation, sparked by changing working habits and preferences post-COVID.
Almost two-thirds (64%) of SME respondents do not believe that their local area has a high supply of relevant, skilled labour.
Interestingly, the research highlighted that companies based in business, retail or industrial parks struggle most acutely – when it comes to attracting skilled workers – with almost three quarters (72%) of SMEs unhappy with their access to labour.
The issue remains prevalent across urban areas as well, with 56% of firms dissatisfied by their local labourforce.
Internet Connectivity for Rural SMEs
Unsurprisingly, SMEs based within urban areas have greater access to reliable broadband than their rural counterparts.
The majority of those based in urban areas (82%) are satisfied with the quality and reliability of their internet connectivity.
By comparison, just over half (56%) of SMEs based in rural areas believe they have access to reliable broadband.
“Small businesses are the backbone of our economy, and that means their roots are all around the country” said Jo Copestake, Director of Small Business at Xero.
“We must create an equitable trading environment, where each and every business can access the digital know-how, connectivity and infrastructure required to build a healthy business.”
Small businesses access unsecured, fast funding from Got Capital. As an alternative lender, Got Capital offers financing solutions specifically designed for and catered to the needs of SMEs.
