IT firms among the most prone to collapse
Almost a quarter of smaller businesses specialising in telecoms or IT are at risk of going under in 2013, positioning the technology sector’s SMEs as among the most prone to collapse.
Only small and mid-sized construction businesses are at a higher risk of folding under the weight of financial pressure, given that nearly four in ten of them fear insolvency this year, up from one-third previously.
But concerns about closure are growing at a faster rate for their counterparts in ICT, as only 11 per cent of them were at a “high risk” of going out of business in last year’s third quarter, compared with 24 per cent currently.
Releasing these findings from its Risk Index, insurer Zurich said it was clear that some sectors, such as IT, seemed ‘particularly vulnerable’ when pollster YouGov quizzed 500 senior decision-makers at SMEs – firms with a turnover of £5m and under.
It is also clear that a “key factor in surviving and achieving growth is being able to strike a careful balance between taking necessary risks on the one hand, and then overcoming and preparing for risks on the other.”
“Getting this balance right is not easy but we urge small and medium-sized enterprises to plan accordingly and to seek advice where possible,” added Zurich’s SME director Richard Coleman.
“There’s no doubt that it’s still tough out there for UK SMEs, and these figures seem to indicate rising levels of concern”.