Member

SMEs are in a comparatively weak bargaining position when it comes to dealing with large companies. They do not have the same market power, financial power or even political power. They cannot come along, buy political parties or hand consultancies to legislators and say, “Please look after our interests”, whereas large companies can do that with considerable ease. If a small entity objects to an extra-long credit period demanded by a large company—for example, a large supermarket, phone, energy, water or other company—that large company can always find an alternative source of supply. There is nothing that small companies can do to stop them and they are inevitably blackmailed into accepting whatever the large companies impose on them.