MORE than half of all small firms have fallen victim to crime in the past year, according to new research.

Retailers have been hit hardest, with 74 per cent reporting their business has been adversely affected by lawlessness. This compares with 53 per cent of manufacturers and 50 per cent of business service providers.

More than a third of company owners are prepared to confront criminals should they catch them red-handed, according to the survey sponsored by Lloyds TSB Business.

Companies run by women are also proving more vulnerable, with 67 per cent having been targeted, compared with 57 per cent of male-owned businesses.

Vehicle damage is the type of crime most likely to affect business, with 23 per cent having been affected in this way. A fifth of firms have also been hit by one or more acts of malicious damage.

All of this is proving to be an unwelcome additional cost to companies.

Forty-four per cent estimated the overall cost, including preventative measures and insurance, to have been between £1,000 and £5,000 in the past year.

Unsurprisingly, retailers faced the biggest bills, with over half having paid amounts in this range.

David Singleton, managing director of business banking at Lloyds TSB, said: "Small firms work hard for their success and should be as high a priority for crime prevention as householders. Current economic conditions are tough for small firms and these unexpected additional costs can be a real threat to their survival."