OLYMPICS HOLD NO TORCH FOR SMALLER BUSINESSES

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Small business owners are remaining sceptical of the opportunities that may arise from the London 2012 Olympics, despite Team GB's success in Beijing, research has revealed.

According to the Tenon Forum, an independent think-tank made up of entrepreneurs from small and medium-sized businesses (SMEs), only one in 10 owners questioned as part of its biannual survey thought the Olympic Games would have a positive impact on their business. Almost three-quarters of the 1,010 respondents said they believed the Games would have no impact on their business whatsoever.

Many felt they had already lost out to London-based firms, explained Michaela Johns, director of business services at Tenon. “Some have decided not to go for Olympic contracts as they were worried about their reputations,” she added. “The tenders had gone out, they had looked at them and thought the job was not achievable in the timescale.”

Anecdotal evidence suggests this view is widespread, according to Duncan Cheatle, founder of the Supper Club, a networking group for high-growth established businesses. “People have raised this in our forums and at our round-table dinners, and – apart from the obvious beneficiariessuch as construction and related businesses – it does seem unclear who else is able to benefit,” he said. “If you happen to have a business based nearby, then the fallout may be good news, but for businesses trying to access contracts and based further away, it's unlikely to be of any benefit to all but a very tiny minority of our members.”

Tenon's research revealed many SMEs felt they were losing out to big businesses. Just under three-quarters said they felt the Games would only benefit larger firms with sponsorship deals. The Forum of Private Business also recently raised concerns about government proposals to force business-owners to report on gender and racial equality, as well as offer trade union membership to employees, to be able to tender for work.

Yet where some saw problems, others saw opportunities. Stuart Nicol, director of Octopus Intermediate Capital, a venture capital fund managed by Octopus Investments, was far more upbeat about the business potential. “The Olympics are going to be great for SMEs, especially the more entrepreneurial ones,” he said.