2005
(31/01/05) 136,000 Small Businesses could be victims of crime in 2005
According to new research1 from AXA Insurance, around 12%2 of small sized businesses3 - some 136,0004 companies in total — could suffer from some form of criminal activity during the next 12 months. The most frequent crime they will fall victim to will be theft, followed by malicious damage such as vandalism, and forcible entry to their premises.
AXA's findings reveal that a staggering 682,0005 small sized businesses, around 62% in total, claim to have suffered from crime over the past five years. Just over 300,000 (28%) have suffered from theft from their premises during working hours. Some 294,000 (27%) claim to have had stock stolen from their shops and offices outside working hours.
| Criminal activity | Percentage of small businesses that have suffered from criminal activity over the past five years | Number of small businesses3 that have suffered from criminal activity over the past five years |
|---|---|---|
| Theft or shoplifting from premises during working hours | 28% | 304,000 |
| Theft or shoplifting from premises outside working hours | 27% | 294,000 |
| Malicious damage e.g. vandalism | 22% | 242,000 |
| Forcible or violent entry/exit | 17% | 186,000 |
| Fraud or e-crime | 13% | 139,000 |
| Theft of goods in transit | 9% | 98,000 |
| Arson | 4% | 39,000 |
| Any other criminal activity | 7% | 80,000 |
Of the companies interviewed for AXA's research, the hotel and catering sector appears to have suffered the most from criminal activity over the past five years. 84% of companies interviewed in this sector claim to have been a victim of crime since 1999 and this is followed by 74% of construction companies and 71% of retailers.
| Sector | Percentage of companies that have suffered from criminal activity over the past five years |
|---|---|
| Hotel and catering | 84% |
| Construction | 74% |
| Retail | 71% |
| Business services | 50% |
| Manufacturing | 38% |
Neil Mercier, property insurance manager at AXA said: “Crime is a very serious problem affecting the business community and in extreme circumstances organisations can find it difficult to recover. The average crime related business claim settlement is £3,722, however in the case of arson, for example, the damage can run into hundreds of thousands of pounds.
“The good news is that businesses can dramatically reduce the chances of becoming a victim of crime by taking a few simple steps such as making sure that all windows have secure locks and that alarms are fitted and used.”
AXA offers a free crime prevention toolkit designed to help businesses protect themselves against criminal activity. The AXA Business Security Blueprint provides best practice advice on everything from securing windows and doors to CCTV and fire suppression systems. It can be downloaded free of charge from www.axa4business.co.uk.
1Market research company Continental research interviewed 300 Managing, Financial Directors and other senior managers of businesses with an annual turnover of between £50,000 and £ 1million. Interviews took place between 29th November 2004 and 3rd December 2004.
2Research from Continental research shows that 62% of small businesses have suffered from criminal activity over the past 5 years, this is an average of 12.4% per year. This means that around 12% of small sized businesses could suffer from some form of crime during 2005.
3Businesses with annual turnovers of between £50,000 and £1 million.
4Weighting was applied to the 300 companies interviewed by turnover, region and industry type to make the sample representative of the 1,095,000 companies with a turnover between £50k and £1 million as estimated by the DTI.
5According to the research findings, some 682,000 small sized businesses claim to have suffered from criminal activity over the past 5 years, which works out at around 136,000 per year. This means that around 136,000 small sized businesses could suffer from some form of crime during 2005.
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AXA is a worldwide leader in financial protection and wealth management, with major operations in Western Europe, North America and the Asia/Pacific area. AXA employs 117,000 staff and tied agents and, as of 30 June 2004, had €827 billion in assets under management. AXA reported total revenues for first half 2004 of €37 billion and underlying earnings of €1,436 million.
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