Small firms unprepared for disruption
12th June 2018
Most SME owners are not prepared for the risk of disruption to their business, a report from the Federation of Small Businesses (FSB) claims.
The data shows that almost two-thirds (65%) of small businesses and the self-employed have no plans to cope with threats to their business operations or supply chains.
The biggest potential risk, according to 51% of small business owners, is customers who fail to pay for services or goods.
Second to this is the impact of losing key members of staff, with 37% of firms identifying this risk.
The research highlighted other common risks to business operations, including:
- cybercrime (17%)
- transport problems (15%)
- severe weather (13%).
Mike Cherry, chairman of the FSB, recommended that businesses should implement continuity plans to assess and mitigate these threats.
"The costs businesses face when their supply chains are impacted can be severe and therefore we stress the importance of planning for the future.
"Given the likelihood that an enterprise will encounter some sort of business interruption issue more than once in their life, it is key that firms are encouraged to consider all risks they could face."
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