SME owners consider quitting

SME owners consider quitting

Paul Aitken, CEO of borro

In the past five years 46% of all small business owners have seriously considered either selling their business or closing it down completely, according to borro.

When asked about the next five years, 21% say they are very likely to exit their business, either by selling their share or closing the business entirely, and 26% reveal they are quite likely to exit.

Further analysis of small business owner responses showed that 40% would be unlikely to start up their business today in the same form as they did at the outset. For those SME owners who used a loan to help finance the start-up of their business, this figure rises to 47%.

“The last five years have seen the nation’s small business owners really struggle to keep their heads above water,” said Paul Aitken (pictured), CEO of borro.

“It’s worrying to think that the small business landscape in the UK could shrink over the next five years if they continue to operate in uncertainty.”

The UK’s slump into a double-dip recession has also affected how small business owners perceive starting a new company. 46% of respondents said it would be harder to start a business this year than it would have been in 2011 – with 24% saying it is ‘much harder’ to do so. Only 16% felt it is easier to start a business during this year compared to last.