The latest data concerning small firms in the UK following the pandemic has revealed that close to 17% of them are in danger of going bust within four years.
This data comes from the trade credit insurance provider Euler Hermes, and it suggests that smaller firms in the UK are struggling in the wake of the pandemic more than those in other countries across Europe. Among German small to medium-sized enterprises (SMEs), just 7% are in danger of collapse within the upcoming four-year period, while the figure is 13% among those in France.
By contrast, close to 17% of British SMEs stated that they were concerned about going bust for this study, which saw Euler Hermes speak to 525,000 European small businesses to estimate the numbers of insolvency risks by country.
The figures will make for alarming reading for the government as it phases out its Covid-19 business support measures. Seeking help from a small business accountant in Goole or any other part of the country could enable firms in financial trouble to find solutions.
Speaking to Small Business, Ana Boata from Euler Hermes said that money worries were very real for UK SMEs now that support was ending, adding:
“Supply chain disruption leaves many open to shortages and inflation, which will limit growth, but we also expect payment terms and the length of time it takes to get paid for orders to rise.”
According to the study, car industry suppliers and manufacturers, followed by firms in the energy industry, have the highest numbers at risk.