Risks ‘still there’ for smaller businesses, study by insurer Zurich suggests

One-in-eight smaller firms have considered closing down in the last few months despite the economic recovery, a new study suggests.

A survey of 500 SMEs by insurer Zurich found that a quarter had been forced to lower their prices over the past three months.

Meanwhile, 15% had laid off staff.

The company said the survey showed that a sizeable number of firms were “teetering on the brink” despite the improving economy.

“Our research demonstrates that while concern about risk among SMEs is falling, the risks themselves are still very much there,” Richard Coleman said.

“That the number of companies considering closing down because of the economic climate has remained consistent over the past 12 months suggests that serious financial difficulties are still on the agenda for many.

“While it’s great to see that SMEs are feeling better about the risks their businesses face, the findings suggest the recovery isn’t affecting all firms equally,” said Mr Coleman.

“It appears there remain at least two tiers of SMEs, with a reasonable number still struggling as the recovery gains pace,” he added.