Small business insurance experts at Towergate Insurance surveyed 750 Small Business owners from across the UK to explore the threats they are facing in the wake of the cost of living crisis and the impact these are having on their business.
The survey shows that 57% of small business owners feel their business is at risk of closure in the coming year as a result of current economic instability – but where are small businesses most at risk?
Small businesses in Norwich are most at risk with 73.58% of small business owners stating they are at risk of closure in the coming year – 28% higher than the UK average.
Businesses in Manchester (67.21%), Sheffield (66.67%) and Brighton (62.96%) follow amongst those most at risk of closure, respectively ranking second, third and fourth.
Small businesses in the Human Resources sector are most at risk with 74.36% of small businesses owners stating they are at risk of closure in the coming year.
Small businesses in Finance (68.75%), Manufacturing & Utilities (59.57%) and Legal (58.54%) sectors follow amongst those most at risk of closure, respectively ranking second, third and fourth.
Supply chain delays stand as the biggest threat small businesses in the UK are facing in the wake of economic instability with 32% of small business owners citing these disruptions as their primary threat.
Retaining uniqueness (27.07%) and changing consumer demands (26.53%) follow amongst the main threats faced by small businesses respectively ranking second and third.
Alison Wild, Head of Marketing for Towergate’s SME insurance division, provides insights into how to approach protecting your small business.
Wild said, “Threats to your business manifest in a variety of ways and can take you by surprise. From liability losses to changing consumer demands, it can be hard to pinpoint and predict the biggest threats to your business. Taking time to identify and plan for probable risks over the coming year will further strengthen your business’ stability.
As demonstrated in this study, supply chain delays, retaining uniqueness and changing consumer demands are the most prevalent threats affecting small businesses in the UK. Harnessing this information and exploring in more detail what affects your specific sector and region can help you identify the most probable threats and how to best adapt accordingly.”