Small businesses are suffering - survey
Twenty-seven per cent of small business owners consider their company to be in poor health, and one-third of business owners say their company is now in a worse position than this time last year, according to a survey by SME Discounts, a web-based B2B group buying service.
The survey shows that small businesses' main concerns are reduced turnover and weaker pricing, while one in 10 small businesses say that an inability to secure funding is proving a serious threat to their businesses.
The comment follows the release of Insolvency Service data which showed there were 1290 compulsory liquidations in England and Wales in the second quarter of this year, up 19.8 per cent on the previous quarter. There were also 2943 creditors' voluntary liquidations in the same period, down 3.3 per cent on the previous quarter.
Andries Smit, founder of SME Discounts, said the data: “Shows that businesses are suffering. The fact that almost 20 per cent more businesses were in such a poor state that they were forced to liquidate is a worrying indictment of our economic state.
He added: "Although liquidations are flat quarter on quarter, this is still significantly higher than pre-recession days.
"Those who lack a great product or innovative approach are not going to be able to climb out of the rubble left behind by the economic implosion of recent years.”
He added: "It is notable how many self-employed individuals are going bankrupt.
“There is an increase in consultants and contractors being laid off by big businesses, and at the same time there are head count freezes in big corporations, leaving them nowhere to go.”