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Bad Advice Costs UK Small Businesses Billions

Bad Advice Costs UK Small Businesses Billions

Almost fifth (16%) of micro and small businesses lost a combined £6.4bn last year due to poor professional advice – £20,842 per business – with 19% of business owners said to have lost between £50,000 and £100,000 due to consultancy issues. The data, outlined in a report by Direct Line for Business, estimates that 320,000 enterprises lost money due to deficient advice from consultants and third party advisors. Poor advice was found to have negatively impacted small firms in a number of ways; 46% of companies were forced to let staff go, 34% had to take out credit, 30% were required to scale back, 28% said it almost caused failure and 16% lost clients. Insufficient IT advisors was named as the top issue by 44% of companies, followed by poor consultancy in management (34%), marketing (32%), ... »