Member Article

13% of businesses considered closing in last quarter

84% of senior decision makers from British SMEs say they are concerned about the current economic climate.

According to the SME Risk Index from global insurer Zurich, polled by YouGov, the highest level of concern amongst SMEs decision makers was in the construction industry (93%), closely followed by manufacturing businesses (88%) and retailers (85%).

As a result, 13% businesses stated they have considered closing down in the last quarter, up from 11% in the quarter before.

This proportion was as high as 25% for those in the construction industry. The research supported suggestions that the expected London 2012 “boost” did not materialise, as 79% of respondents said the Games had no impact on their business.

Richard Coleman, Director of SME, Zurich, comments: “British SMEs are clearly facing a huge amount of risk in the current climate, with narrowing profit margins, tighter operating environments and uncertain revenue streams.

“However, their focus on web-based solutions and innovation to cut costs shows a positive sense of direction and ambition to move forward. And a fifth have invested in business assets and operations over the last quarter.

“The fact that the majority of British SMEs have expanded their business activity to target new customers is reassuring. This demonstrates the agility of British SMEs; they are taking forward their own measures and diversifying their business to navigate through this difficult climate.”

This was posted in Bdaily's Members' News section by Tom Keighley .