THE car’s the star as SMEs rule out public transport for efficiency with only a small minority – mainly in London – relying on bus, train, Tube or cab.

That’s according to research from Lex Autolease, in which just 26 per cent say their locations are well served by current services and that they provide a convenient option for business travel.

The study of more than a thousand UK SMEs, conducted by YouGov, found that vehicles are crucial for a high proportion of companies, with almost half (49 per cent) saying private transport is important to running their businesses and over a quarter (29 per cent) saying they could not operate without them.

More than one in five SMEs (22 per cent) said their business locations are poorly served by public transport links. When asked what would happen if they were forced to rely on public transport for day-to-day business travel, 44 per cent said they would be less efficient and 31 per cent said it would cost them more money.

London firms prefer public transport

The notable exception is London-based firms, two- thirds (66 per cent) of which said public transport was a convenient option for business travel in comparison to just 19 per cent of firms in the North and 12 per cent of companies based in the Midlands.

According to the research, being able to work on the move is seen as the main benefit of public transport, cited by 55 per cent of the businesses who said they preferred using it to private vehicles.

Vehicles at the heart of UK small businesses

The research shows that cars and vans remain the clear preference for many SMEs, with just over two thirds (67 per cent) stating that, if given the choice, they would rather use vehicles than public transport. Greater convenience (74 per cent) and reliability (50 per cent) were the most popular reasons for this.

This importance is reinforced by the fact that driving remains a key skill in the eyes of a high proportion of British businesses when recruiting new staff. According to the findings, 59 per cent of firms said holding a valid driving licence was an important attribute they looked for in new employees.

Simon Barter, head of SME Direct at Lex Autolease, commented: “Although an increasing amount of company activity can now be done remotely, travel remains a key part of business life, whether that’s to build key relationships through face-to-face client meetings, visiting customers or conducting site visits.

“Firms need a reliable, convenient mode of travel to handle those day-to-day demands and keep their workforce mobile. While public transport provides a suitable alternative to driving for London-based firms, who benefit from the country’s most sophisticated transport network, the majority of UK small businesses depend on their vehicles.

“It’s no surprise that, with a high proportion of SMEs preferring to use vehicles for business travel, we’re seeing a rise in the number of firms leasing their cars and vans rather than purchasing outright. By opting to lease, companies can drive away with vehicles they wouldn’t have been able to otherwise afford without having to pay a lump sum, freeing up funds to invest in growing the business.”