New survey reveals more than 10% of UK SME’s have considered closing

Over 10% of all SMEs in Britain claim that they have thought about closing their doors over the last quarter as a result of the harsh economic climate according to a new SME Risk Index published by Zurich the global insurance company.

About 84% of the SME bosses were said to be fairly concerned about the current economic climate in the UK with another38% stating that they were very concerned. In addition, 84% also stated that they do not believe the economy is going to improve any over the next quarter and 70% do not believe it will improve before next year.

When you consider how much the 11% figure would add up to be if you computed it to include the 4.5m SMEs that are located in the UK, it is easy to see just how dismal the business scene is in the UK. It seems that the region that a business is located in plays a large role in the outlook as well. For instance, in the Northern overwhelming amount of 14% of SMEs report they considered shutting down while only 5% did in the Midlands.

This is the first SME Risk Index to be ordered by Zurich, but the report does offer a valuable piece of insight into how SMEs are currently managing in the harsh economic climate. Businesses currently believe that the largest opportunities for future growth lay in innovation.

This is followed by a reduction in operating costs and other expansions, and finally by learning to take more advantage of online marketing and web trading activities. Over the last quarter the survey also revealed that more than half of the businesses surveyed had already expanded online activities.