Three in Ten UK Business Leaders Fear Closure Within the Year - Featured Image | CEO Monthly

Three in Ten UK Business Leaders Fear Closure Within the Year

KnowYourMoney.co.uk has commissioned a new survey of more than 530 decision-makers within UK businesses to uncover their financial outlook for 2021. It found:

  • 30% do not expect their business to survive the next 12 month
  • 46% plan to reduce the amount they spend on office space next year
  • 45% are likely to make redundancies, despite the Government’s new Job Support Scheme
  • 38% have taken on debt in 2020 but lack a plan of how and when it will be repaid

Three in ten business leaders in the UK fear their organisation will close within the next year, new research from KnowYourMoney.co.uk has revealed.

The comparison platform commissioned a survey of 534 decision-makers within UK organisations. It found that 30% do not expect their business to survive the next 12 months.

Almost half (46%) of decision-makers said their company plans to reduce the amount it is spending on office space next year. This figure rises to 61% among large businesses (over 250 employees).

Over two fifths (45%) of British businesses are likely to make redundancies in the year ahead, despite the Government’s new Job Support Scheme.

KnowYourMoney.co.uk’s research also showed that 38% of UK companies have taken on debt in 2020 without a clear plan of how and when it will be repaid.

Elsewhere, 42% of respondents said their business’ running costs had increased this year, while 46% had seen demand for the product or service they offer decline. Just 12% of decision-makers felt they could confidently predict their company’s turnover in 2021.

Nic Redfern, Finance Director at KnowYourMoney.co.uk, said: “The research exposes the brutal reality UK businesses are facing right now. Cost cutting is the order of the day for many, and financial planning has become difficult. The result is that many companies are fearing the worst for 2021.”

“But remaining positive and proactive is extremely important in the current climate. While the on-going challenges posed by the pandemic can make business leaders feel out of control, they must remember that there are still steps that can be taken to safeguard their futures.”

“The Government has introduced a wide range of financial support schemes, and so long as a sound strategy is in place for what must be borrowed and how it can be repaid, there is still good reason to believe that this storm can be weathered.”

Want to Be Recognised? Enter Our Awards Today!

Learn how to get recognised for your achievements and become a nominee in our prestigious awards programmes. Discover the criteria and steps needed to showcase your leadership excellence.

Find Out More
Get recognised banner - woman holding device

You might also like

Explore insights and updates tailored for business leaders and innovators, curated to inspire success.

November 30, 2022 10 Reasons Why Focusing on Equality Is Crucial in 2023

Following a turbulent, expensive and divisive year for many, it would be possible to look to 2023 with some degree of despondency but taking positive measures to create equality in the workplace could change the narrative of your business and chan...

March 25, 2024 Customer Acquisition – How Data Holds The Key To Your Success

Undoubtedly the primary aim of any business is the attraction of new customers. Nevertheless, in an era where markets are saturated and competition is increasingly savvy because of new technology, the task of acquiring new customers has become cha...

May 30, 2022 An Ace Up Your Sleeve: How Business Audits Add Value to Your Company

As a business owner, it is important to ensure that your company is growing in the right direction at all times. Here, we explore the benefits of having a business audit, specifying the ways in which it monitors and enhances the efficiency of your...