In 2019, the Federation of Small Businesses (FSB) brought this issue to the forefront with its report: ‘Calling Time on Business Crime’, revealing the corrosive impact of criminal activities on small businesses throughout England and Wales.
The Escalating Threat
Fast forward to 2023 and FSB has this December released its follow up report on business crime, Cracking the Case: uncovering the cost of small business crime. The research paints a disconcerting picture, pointing to a surge in threatening behaviour, intimidation, and assaults over the past four years on B2C businesses.
Concurrently, reports of serious organised shop theft have seen a disturbing uptick, and the report says urgent attention is imperative to shield vulnerable small businesses and their frontline employees. While the government's Anti-Social Behaviour Action Plan is a step in the right direction, local policing efforts need to be intensified to safeguard small enterprises within their communities.
The Alarming Rise of Cybercrime
In the ever-evolving landscape of crime, fraud has emerged as the most prevalent offence in the UK, exacting a staggering cost of nearly £7 billion annually. Small business cybercrime incidents have tripled, underscoring the inadequacy of current preventive measures. Small enterprises find themselves increasingly abandoned and exposed, with fraud constituting 41% of offences in England and Wales. Astonishingly, a mere 1% of police resources are allocated to combating fraud, necessitating a paradigm shift in focus and resources.
The Unseen Toll on Small Businesses
Small businesses, cognizant of the looming threat, are implementing protective measures. However, given the severity of the damage they incur, these efforts prove insufficient. A collective effort from the government, law enforcement, and the broader industry is essential to combat business crime effectively. Reporting challenges and difficulties in calculating the impact of crime contribute to misdirected resources, highlighting the need for robust infrastructure to classify business crime accurately.
The Call for Collaborative Action
To tackle the multifaceted challenge of small business crime, greater collaboration between law enforcement agencies is imperative, the report concludes. National leads must provide comprehensive support, while data from Action Fraud should inform the allocation of police resources both locally and nationally. Additionally, online services must be held accountable through the implementation of enhanced security measures, contributing to a more secure business environment.
In summary – and what next?
Small business crime is not a victimless transgression; its impact extends far beyond the immediate financial losses. Business owners, staff, and local communities bear the brunt, posing a significant barrier to growth and innovation.
As we strive for economic prosperity at both the local and national levels, it is crucial to recognise and address the menace of business crime, ensuring the resilience and continued success of our small enterprises.
Our report ends calling for the following:
Metro mayor candidates should:
- Include business crime as a priority in their Police and Crime Plans and in manifestos for all those standing for election in May 2024 demonstrating commitments to business crime from the beginning to the end of their term.
Home Office should:
- Introduce a separate offence for violence against retail workers.
- Clarify that there is no £200 threshold for investigating organised shoplifting offences. There is currently an impression that shoplifters will not be arrested if they steal under £200 worth of goods.
For cybercrime and fraud
UK Government and National Cyber Security Centre should:
• Review the pricing of Cyber Essentials certification as well as costs associated with annual renewal in relation to the smallest businesses and explore whether lower tier pricing or a special reduced rate could be introduced.
Home Office should:
• Include the impact of fraud on small businesses in the next fraud strategy and consider a specific targeted approach with clear objectives.
On policing, FSB is calling on the Home Office to
- Introduce a mandatory recording process for business crime and add a ‘business crime’ section to the crime outcomes in England and Wales statistics so progress can be tracked, and targets set.
• Aim to increase the average number of police officers in England and Wales up to 335 per 100,000 population.
