Small businesses ‘are concerned about future insolvency’

Posted 28/03/2010

Small businesses in the UK are worried about their likelihood of insolvency should another recession occur.

This was the discovery of recent research by trade organisation R3, which found that 28 per cent of small business owners fear that their company will fail if Britain slips into a so-called double-dip recession.

Those who run firms in the hotel and catering sectors were the most concerned, with 47 per cent saying they would probably have to seek the advice of an insolvency lawyer should this occur.

R3 president Peter Sargent said he is not surprised that the UK’s smaller companies are worried, as many had to use up large portions of their reserves to survive the last recession.

“We advise any business owner who believes their company may be on the path to insolvency to seek help sooner rather than later,” he commented.

Business information specialist Experian recently published data which showed that corporate insolvencies in the UK fell from 2,160 in February last year to 1,834 in February 2010.