Small businesses are struggling in the current economic climate, with one in ten unable to afford to continue operating, research from insurance group RSA has revealed.
According to the data, 11 per cent of small and medium-sized businesses (SMEs) in the UK are unable to continue running, while 56 per cent have had to increase the price of their products or services due to rising outgoings.
“Increasing costs, a decline in consumer confidence and a lack of credit all add to the difficulties SMEs are facing,” small business director at RSA Mark Skinner explained.
Owners of SMEs may wish to discuss a debt management plan with their bank, with Mr Skinner noting that owners can “talk to their insurance brokers for advice on cover options and risk improvements that can help save them money”.
The British Bankers’ Association recently announced plans to help prevent SMEs from bankruptcy, while informing MPs of the action its members plan to take over the issue.
By Tom Musk