Almost Half of all Small Businesses Would Close if the Founder Left
New research suggests small and medium enterprises are putting business at risk due to a lack of continuity planning
Nearly half of the UK’s small businesses would close within a year if the founder suddenly left, with a third set to only survive a month after the founder exited; new research from Network ROI has found.
The survey, which featured business owners and managers, revealed that businesses based in the North West and Scotland were the least confident of their chances of survival, with over 50% of companies from both regions saying they wouldn’t last a year without their founder.
Overall the survey indicated a widespread lack of continuity planning among small and medium enterprises as firms based in the rest of England demonstrated a lack of confidence; a third of business managers said their company they wouldn’t last a month if the founder left.
Businesses in Northern Ireland were the most confident about business survival; with two thirds of respondents said they would survive without their founder.
Sean Elliot, managing director of Network ROI, added:
“The results show that business continuity is an area that requires a greater deal of investment and understanding, especially within the small and medium enterprise space.’
“Succession planning represents an important part of the business continuity process, and it deserves some careful consideration as many smaller businesses fail in the immediate aftermath of losing a leader