The research, conducted by Opinium, found that over 370,000 small businesses are planning to cease trading in the next five years
With 1 in 5 businesses struggling to handle the increased burden of red tape, is it time for further support for the nation's small businesses?
LEEDS, UK – Thursday 5 May 2016 - Over 1.8 million jobs are at risk as 370,000 small businesses plan to cease trading over the next five years, according to a survey commissioned by business for sale marketplace, Bizdaq (www.mybizdaq.com).
The research, conducted by Opinium, found that over 370,000 small businesses are planning to cease trading in the next five years, with these businesses employing 4.85 employees on average. A further 424,000 business owners plan to exit their business by selling within the next five years; selling being a method which is far more likely to protect jobs.
Of the 1.8 million jobs that could be affected, 370,000 of those will be within the next 12 months, as small business owners start to cease trading.
The survey found that business owners in London are most likely to be thinking about an exit within the next five years. 43% of London small business owners considering an exit, whilst those in the East of England are happiest running their businesses with only 11% of owners considering exiting.
Interestingly the revenue of businesses didn’t have an impact on whether an owner was planning to leave – the East of England had both the lowest exit rate and the lowest average revenue, whilst the East Midlands – which had the highest average revenue – was second only to London for business owners looking to exit.
Small businesses still not sure about Brexit
Despite the EU referendum edging closer small business owners across the UK are still split on the subject of whether to Brexit or not – 41% answered that the UK should stay, 44% answered the UK should leave, and 15% said they are still undecided.
The region most likely to support staying was Wales with 53% of respondents saying the UK should remain, whilst the North West is most likely to support leaving, with 59% answering that the UK should leave.
It also revealed that small businesses with a higher revenue were more likely to want to stay in the EU. The average annual revenue of those wanting to stay was £93,000 compared to those wanting to leave at £84,000 – a £9,000 difference.
The industries most likely to support the Brexit were the hospitality, construction and professional services industries, whilst those in education, IT and wholesale want to stay.
Sean Mallon, CEO of Bizdaq, said “It is astonishing, given the government's rhetoric around job creation, that little is being done to preserve the number of jobs at risk within Britain's small businesses. If the government were to make leaving a business easier and promote this as the “norm”, then hard working small business owners could capitalise on their efforts and we could retain over 1.8m jobs - it’s a win-win situation.
It is clear that Britain's small business owners are relatively undecided as to whether it’s “better the devil you know” and remain in the EU, or whether their business would actually benefit from less EU regulation and more state control. It seems the larger the business, the more EU trade they are likely to have and there seems to be a correlation with these companies wanting to remain in the EU.”
More info can be seen here:https://www.mybizdaq.com/small-business-closure-report
For further information please contact
Bizdaq (UK) Ltd
Tom Jeffries +44 (0)113 887 4063 email@example.com
Notes to editors
The Bizdaq Small Business report worked with Opinium to survey 300 small business owners (businesses with 0-49 employees) between the dates of 15th April 2016 to 22nd April 2016.
Bizdaq, the online marketplace for selling or buying a small business, is dedicated to making the process of selling a business easier and more cost effective for small business owners. Bizdaq features include an online valuation tool that instantly estimates the likely sale value of any business, step-by-step instructions and notifications to help business sellers and buyers through the business transfer process for themselves. This report is part of Bizdaq’s mission to increase the number of small business owners successfully selling their business and thus avoiding a sudden closure when the business is no longer viable, saving jobs and enabling business owners to realise the value of their hard work.
This press release was distributed by ResponseSource Press Release Wire on behalf of Bizdaq in the following categories: Personal Finance, Business & Finance, Construction & Property, for more information visit https://pressreleasewire.responsesource.com/about.