Business Services

Half of businesses 'would close' if founder left

Laptop - Survey by IT firm Network - SantanderCB

A survey by IT firm Network ROI has revealed that almost half of SMEs fear that losing their founder would result in the business closing within 12 months, and nearly a third said their company would survive less than a month if this were to happen. In an indication of the impact experience can have on a company's prospects of survival, respondents aged 65 or over were the most bullish, with 100% confident their businesses could survive. The issue of resources being put towards business continuity is an ongoing concern in the UK, with a 2011 study by Aviva showing that 50% of SMEs admitted to not having business continuity or disaster recovery plans in place. A more recent study carried out by the BCI found that '77% of professionals are concerned about the effects of unplanned IT or telecommunications outage'. The impact of a lack of planning was highlighted by Federation of Small Business research which revealed that up to 80% of businesses affected by a major incident close within 18 months, while 90% of businesses that lose data from a disaster are end up shutting down within two years.


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