Start ups lose out
Discrimination is rife among customers, research claims, as they opt for more established competitors
Surviving: Start ups are not getting the customer support needed to survive, Creditsafe claims
The survival chances of the 25,000 firms that launch in the UK IT and communications sector each year are being hindered by “startup discrimination”, research has suggested.
According to credit management firm Creditsafe, almost one in 10 firms questioned (nine per cent) said they would avoid trading with a business if it were less than a year old.
Nearly one in eight (12 per cent) said they would not trade with a company if it did not have a web site.
David Knowles, business development director at Creditsafe, said: “There is a danger we could choke the fledging economic recovery if companies refuse to trade with startups purely on the basis that they are a new company.
“Businesses must ensure that they take sensible steps to establish the financial health and credit worthiness of trading partners rather than relying solely on gut instinct or preconceptions,” he added.