By Timothy Adler on Small Business – Advice and Ideas for UK Small Businesses and SMEs
Nearly 17 per cent of small and medium-sized businesses in the UK are at risk of insolvency in the next four years as financial support from the Government winds down, says research.
Euler Hermes, the trade credit insurer, has found that Britain’s small businesses are in a more vulnerable situation than their counterparts in France and Germany.
Only 7 per cent of SMEs in Germany are at risk of failure within four years, and 13 per cent in France.
>See also: Swap Bounce Back debt for employee equity, say industry experts
Euler Hermes investigated insolvency risk across 525,000 small businesses across Europe.
The trade credit insurer said that manufacturers and suppliers to the car industry ranked among the most vulnerable, with more than 33 per cent in the sector exposed to the risk of insolvency. About 25 per cent of those in the energy sector and 20 per cent in construction were said to be at risk.
British business failures remained low during the pandemic, thanks to unprecedented Government support, as well as measures to protect companies from insolvency, but distress is expected to rise as the economy reopens, support is