A global survey by the UK-based Association of Chartered Certified Accountants (ACCA) highlights the impact of bribery and corruption on SMEs worldwide. It found that 59% of SMEs and their advisers believe that resisting bribery and corruption could lead to lost business opportunities.
While strong anti-bribery policies might result in lost trade, many respondents acknowledged that these policies are ethically correct and could benefit businesses. According to the survey, 77% of respondents thought such policies would boost customer confidence, and 68% believed they would increase the chances of trading with larger businesses or public bodies.
“Many very small businesses lack the bargaining power to refuse small bribes, forcing entrepreneurs to choose between paying the bribe or losing the business,” said Jason Piper, ACCA’s Head of Tax and Business Law. ACCA has over 247,000 members in 181 countries.
Unlike large companies, SMEs often lack structured reporting lines and management frameworks, relying heavily on personal relationships and daily interactions. This can make it difficult to recognize and address corruption issues until they become severe.
The survey also found that 49.8% of respondents believe bribery and corruption negatively impact the business environment, with 66% viewing it as a concern.
Despite high awareness and perceived effectiveness of anti-bribery legislation, compliance costs remain significant for SMEs, with 48% of respondents agreeing that local anti-bribery laws have added to their expenses.
The implications for SMEs involved in bribery can be severe. Unlike large multinationals, small businesses often lack financial buffers, and money spent on bribes is money diverted from profits and local economic support, stunting investment and growth.