Monthly Archives: September 2021

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Nearly 17% of small businesses at risk of insolvency

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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

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Hot Business News Today

Investment lies in hands of pension holders, says Sunak

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By Timothy Adler on Small Business – Advice and Ideas for UK Small Businesses and SMEs

EXCLUSIVE: The key to small business investment lies in the hands of those who pay into pensions, chancellor Rishi Sunak said this afternoon.

Mr Sunak said that it was up to everyone who pays into a pension to tell pension funds that they want some of their money invested in technology start-ups.

“Making sure these companies have access to capital is critical,” said Mr Sunak.

>See also: Nearly 17% of small businesses at risk of insolvency

The chancellor, who hosted the first Treasury Connect event in East London this afternoon, was in listening mode, taking in the observations of Pension Bee founder Romina Suvova, who said it was difficult for institutional invest to put money into unquoted companies.

One takeaway from the event, which brought together tech founders with Treasury mandarins, was the three-way disconnect between tech start-ups, which need investment – especially at the later stage – institutional pension funds and the public, who would support a small percentage of their pension to support fast-growth businesses.

The UK’s pension funds control £4tr of cash paid in by up to 30m people through workplace pensions, making the UK the second-largest pension

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