What does Q1 2019 mean for small businesses?

4,197 companies became insolvent between January and March this year, while 484,000 UK businesses are in significant financial distress, often a prewarning of insolvency. The Insolvency Service has reported that construction, administration and retail were the worst affected financially from the impacts of higher wages and pension auto-enrolment costs.

Mike Cherry, chairman of the Federation for Small Businesses says, “These latest figures show the immense strain that small businesses are currently under with rising employment costs and unfair business rates as well as a significant uncertainty as a result of the Brexit process.

16% of all business in Britain are in financial distress with 99.3% of that figure being SMEs (Small & Medium Business). Brexit does have its part to play in the situation, Julie Palmer, partner at insolvency firm Begbies Traynor says, “Many UK businesses are currently in limbo and differing major investment decisions. This combined with consumers holding back on big ticket purchases has resulted in increasing significant distress across many sectors”

So, if you’re a SME business owner, what can you do to support yourself and your business? There are many Growth hubs and services out there who could help you find your feet if you’re starting out and there’s also a lot of support for existing companies. The IOEE has all of that in one place.

If you want peace of mind for you and your business, have a look at the memberships on offer at the IOEE. We have memberships available to every level of entrepreneurialism from students and start-ups to affiliates, professionals and academics. Interested? Join here: http://bit.ly/2EjzYmr