Over 1.4 million jobs are at risk as 363,000 small businesses plan to stop trading in the next five years, according to a survey commissioned by business-for-sale marketplace, Bizdaq.
- Businesses closing at alarming rate – 363,000 small business owners plan to cease trading in the next five years
- 1.4 million jobs under threat – With the average small businesses employing just over 4 employees, there are 1.4 million jobs at risk
- Selling also on agenda – A further 510,000 business owners plan on selling in the next five years
- Labour losing 109,000 small business votes – Number of small businesses voting Labour lower than at the last election
- Young entrepreneurs closing due to Brexit fears – 35% of young (18-34 year olds) small business owners are closing due to Brexit – the most common reason in the age group
- Britain’s small businesses downsizing or stagnating since last election – 65% of small businesses say they’ve either seen negative financial growth or no growth at all since the last election
The research, conducted for Bizdaq by Opinium, found that over 363,000 small businesses plan to cease trading in the next five years, with the average small business employing four people. A further 510,000 small business owners plan to sell their business over the same period.
Of the 1.4 million jobs at risk from business closures, 529,000 of those will be at risk in the next 12 months, as businesses cease trading at an alarming rate.
Small business owners in the North East were found to be the most likely to leave their business in the next five years, with 29% planning to exit. Those in the West Midlands were revealed to be happiest in their business, with only 14% considering exiting.
The survey found Brexit uncertainty is the leading cause of business closures for young business owners, with 35% of young entrepreneurs (respondents aged 18-34) exiting their business because of Brexit. This figure dropped to 9% in 35-54 year olds, and just 3% for small business owners aged 55+, showing older generations aren’t as concerned by the vote to leave.
Sean Mallon, CEO of Bizdaq, said, “For too long, hard-working small business owners and their employees, who underpin the British economy, have been left without the support and advice they deserve from the government. Given the government’s continued campaign for job creation, it’s amazing so little is being done to preserve the number of existing jobs at risk within Britain’s small businesses.
“It’s clear that small business owners are undecided on the impact of leaving the EU, however the startling fact that our youngest entrepreneurs are most nervous paints a worrying picture.”