Small businesses ‘fear insolvency’ if there’s a double dip

More than a quarter of small businesses believe they will become insolvent if the economy suffers a double dip recession, a study has suggested.

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More than a quarter of small businesses believe they will become insolvent if the economy suffers a double dip recession, a study has suggested.

Statistics released by R3 show that 28 per cent fear this fate as they have struggled to stay afloat in the last few years.

Peter Sargent, president of the insolvency trade body, said that such a low level of confidence is to be expected.

He commented: “Many struggling businesses drew heavily on their reserves in order to survive and their resources have now begun to run out.”

The findings showed that the hotel and catering sector was the most worried, with 47 per cent claiming they would become bankrupt should the country fall into recession once more.

R3’s Double Dip Danger for Small Businesses was produced in March and examined the confidence of company’s in their financial stability if the economy was to seriously faulter again.

By Joe Shervin

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