SME owners in the UK are really feeling the effects of the recession and it has been revealed that nearly half of them have seriously thought about selling up or closing down their businesses in the last five years. Research was carried out by ‘borro’ which is the fastest growing personal asset lender in the UK.
In its Enterprise Ladder Report, borro has revealed that 46 percent of SME owners had thought about taking this course of action. When asked about the future, 26 percent of SME owners said that they would be quite likely to exit their businesses in the next five years and 21 percent said that they would be very likely to do so.
Forty percent of SME owners said that they would not start up a business in the current climate in the same way as they did previously. Of those business owners who had used financial help in the form of a loan to set up their business, 47 percent said that they would not do it again.
The chief executive officer of borro, Paul Aitken, said that SMEs had really been struggling to keep their heads above water in the last five years. He said that it is worrying to think that there could be less of these SMEs in the future as they are such an important part of the UK economy. Because of the double dip into recession, many people would have second thoughts about starting a new business.
It is thought that 2012 is going to be one of the hardest years so far to launch a new business or to keep one running. SME owners are forever struggling to find the finance that they need. Mr. Aitken said that they need to be provide with quick and secure lending facilities and that it was no surprise that SMEs were representative of over sixty percent of their client base at borro.