Survey finds that many SMEs would not survive if their founder left

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18th November 2015 11:31 - Business Support

According to a survey of business owners and managers, by Network ROI, an IT services company, around one in three businesses in the Survey finds that many SMEs would not survive if their founder leftUnited Kingdom would not survive for more than a month if their company founder left.

The survey found that English businesses were the most cynical about their company’s prospects. One in three English businesses said that they would not survive for longer than a month if their founder left. In the West Midlands, 50 per cent of the respondents said that their company would fold no later than a month after their founder left.

When looking at the responses of those in Scotland, 50 per cent said that they would not last for longer than 12 months if their founder left the company. A further 25 per cent said that they would fold in less than a month.

On the other hand, Northern Ireland businesses display more confidence, with two in three claiming that their companies could continue should their founder leave. This represents the highest levels of confidence in the United Kingdom.

When looking at the different demographics of the respondents, those aged 65 and above were found to be the most confident, with 100 per cent of the companies in the survey claiming that their business could survive without their founder.

The Managing Director of Network ROI, Sean Elliot, said of the research findings:

“We carried out the business continuity and succession planning survey to get a better understanding of attitudes towards these issues within the UK small business community. The results show that business continuity is an area that requires a greater deal of investment and understanding, especially within the SME space.”

Elliot also added: “Succession planning represents an important part of the business continuity process, and it deserves some careful consideration as many smaller businesses fail in the immediate aftermath of losing a leader.

“Doing simple things like having a discussion with your family and professional advisors in the first instance are important. Blocking out a few hours in your work diary each week will give you enough time to put a simple plan together.”

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