According to a recent article at The Guardian, a big number of the U.K.’s small businesses are under threat. It is estimated that about 370,000 owners of small businesses in the UK might be shutting down within the next five years. The main reason given for this grim outlook is the burden of red tape within a jungle of bureaucracy.
Britain’s potential exit from the European Union is another potential threat for businesses, along with the overall global economic slump and the increasing burden of regulation.
Those are all factors that are threatening to drive small firms out of business, according to the recent annual business closure report published by Bizdaq.
According to those latest numbers it could have a big impact on the nation’s economy showed these small businesses cease trading. Today, the average small business in the United Kingdom employers five people. This means that more than 1.8 million jobs in the UK might be jeopardised.
One other study conducted by insurance provider Zurich comes to a similar conclusion. According to the study, business risk in the UK is now at its highest level.
When asked, 50% of their 1000 small business owners in the nation’s that that they are concerned about the current economic climate. Two in five stated that they feel that their business is at more risk they as compared to the previous year. 10% of this await said that they are considering to close shop.