Small businesses are missing out on an untapped source of labour and alienating a significant minority of possible customers by failing to consider applications from disabled people for jobs.

Research by Business Link for London suggests that one in six people now has a disability, which can include blindness, deafness and physical disability as well as people with disfigurements, progressive diseases such as HIV or cancer, or severe back pain.

Two years on from the introduction of the Disability Discrimination Act (DDA) - which called on companies to make reasonable adjustments to their business premises for staff and customers - more than a third (39%) of small companies say they are still unfamiliar with the act, while just 40% claim to have made adjustments to support disabilities.

But those companies that have made adjustments believe the benefits of being compliant with the law outweigh the risks, with the most common motivation being the ability to choose from a wider talent pool when recruiting and attracting more disabled customers.

"While it is worrying that many businesses don't seem to be taking the legislation onboard, it's encouraging to see those that believe themselves to be compliant reaping the benefits," said Ashley de Safrin, adviser at Business Link for London.

"Running a small business is a challenge and while red tape might be perceived as a necessary evil by time-limited entrepreneurs, taking the time to address legislation and seeking the support that is out there to help them is an investment well worth making and an excellent marketing opportunity," he added.

The Disability Rights Commission (DRC) has produced the following advice and guidelines on how small companies can comply with the DDA and meet the challenges of employing a disabled person:

• Take the time to think about how the law affects you. It is busineses that have given no thought to it at all and have made no attempt to meet their duties that are likely to end up discriminating
• Consult a disabled person about any adjustments they might need to enable them to do the job
• Talk with your staff about the DDA and the issues it raises. This can help you understand the issues and come up with solutions
• Remember that if you employ a disabled person you are more likely to be able to respond to the needs of your disabled customers because you will be familiar with some of the issues
• Ask for advice: you're not expected to know everything all at once. The DRC is here to help you and you can also use other advice services like ACAS, the job centre and your local Business Link or Chamber of Commerce
• Treat disabled people with respect and dignity. People may not look or behave in a way that you are used to but they should still be treated as an equal
• Remember that the law only requires you to do what is reasonable
• Don't make assumptions about disabled people. Many cannot get a job simply because employers assume they are unable to do the job effectively
• Don't assume that making reasonable adjustments will cost lots of money: most cost nothing and the average is £75. Many adjustments are about doing things a little differently. Remember that you may be able to use Access to Work to pay for many adjustments
• Don't be fearful of employing disabled people. Disabled people want to get a job and do it well. You want skilled and good quality staff and the best person for the job may be disabled. If you do your best to make your work practices fair, everyone will benefit