One in ten Small and Medium-sized Enterprises (SMEs) have suffered business disruption in the past two years, and those forced to cease trading for as little as two weeks have lost out on thousands of pounds, according to a new study.
The research, which comes from insurer Direct Line, revealed that business interruption for a period of two weeks has cost the average SME around £8,775.
Direct Line’s data also suggested that the average small business experienced a 39 per cent loss in customers, a 42 per cent reduction in revenue and a 48 per cent reduction in profits.
Mr Nick Breton, head of Direct Line for Business, said: “There are many reasons a business might need to halt trading and unfortunately a lot of them are unforeseen.
“Keeping a business afloat when there is a disruption can be stressful enough, especially when there are no funds being generated”.
Direct Line’s study also suggested that one in five of UK small businesses were unlikely to last more than a month in the event of being forced to stop trading.
Concerned parties are advised to contact tax and business planning experts in order to help keep track of their performance and maintain a steady and tax-efficient business structure.