Many SME’s have considered closing due to the economy

Over 11% of all British SME’s have said that they have thought about closing their doors at some point during the last quarter as a result of the tough economic climate. The news comes from a new SME Risk Index from Zurich the global insurer.

The survey also found that 84% of all SME’s are concerned about the economic climate and another 38% stated that that they are very concerned. An additional 84% said that they do not believe the economy will get any better over the next quarter.

If the SME’s that thought they would have shut down their shop is put into perspective against the 4.5m SME’s in the UK it is easy to see that the business effect could be disastrous. Even more, it paints a picture of just how poor business confidence in the UK is.

The Midlands seems to be fairing the best with only 12% of SME’s considering a shutdown while the North reported that 17% of SME’s had thought about shutting down. The study served to continue to show the wide differences between the South and the North.

This is only the first SME Risk Index published by Zurich that was ordered by YouGov and takes a look at how SME’s are really dealing with the economic climate.

Some are even taking radical action in order to survive in the new climate, but evidence from the survey showed that businesses are looking at innovations, expansion, and how they can trim down their overall costs and expenses to help make business more profitable in the future.