Entrepreneurs Going Solo Risk Illness That Could Close Their Business
5% of business owners would ask for help from Mum and Dad if they were unable to run their business
44% of UK small businesses would lose income and be forced to shut their doors if the owner was stuck by illness or had an accident, according to a report by AXA.
Of the UK’s five and a half million small firms, just under four and a half million are run by just one person – suggesting a business’s day-to-day running rests solely on the health of this individual.
31% of enterprise owners admitted their business could continue to operate if they were sick, but only if their family stepped in to ease the burden, with 5% admitting they’d rely on their parents to help out.
Just 28% said they could afford professional help if they suddenly were unable to complete their job, with the average business owner saying they could only afford to keep their business afloat for three months on their current funds.
When seeking financial support during times of unrest, using a personal credit card was cited as the first port of call (30%), followed by family and friends (25%) and business banking services (22%).
Darrell Sansom, managing director of AXA Business Insurance, said:
“We have a fantastic tradition of family at the heart of business here in the UK. Many entrepreneurs start out with a baby on their knee at the computer, or credit their earliest successes to the help and support of their partners and loved ones.
“But in an advanced economy like ours, businesses should also have a range of financial tools to call upon when they face unexpected illnesses, accidents, setbacks and shocks.”