Press Release
Business disruptions cost UK SMEs £23k each
Over half of UK SMEs (52 per cent) have experienced a major business disruption at an average cost of £22,914, according to entrepreneur think tank the Tenon Forum.
Of those owner-managers who have been affected by disruptions, ranging from natural disasters to major technological failures, over a quarter (27%) had to pay out in excess of £10,000 each in order to rectify the damage. Businesses in the Midlands and Wales have been hardest hit, with 35 per cent shelling out £10,000 or more in response to business disruption.
Six in ten of those affected were temporarily unable to do business as a result of the disruption, whilst 30 per cent lost profits and close to one in five (18 per cent) suffered a loss of clients or sales. Incalculable effects such as losing irreplaceable company records and files (16 per cent) and technology problems (36 per cent) added to the burden.
However, despite the potential costs, many entrepreneurs are leaving themselves at risk of business interruption. Almost a third (29 per cent) of owner-managers surveyed do not have any plans in place to deal with business interruptions – yet close to half (48 per cent) believe their company would be vulnerable in the event of a major disruption.
The most common disruptions impacting the SME owner-managers surveyed include major technology failure (26 per cent) and major power or utility failure (23 per cent), whilst eight per cent have suffered from natural disaster such as fire or flooding and three per cent have been victims of a terrorist attack.
Trevor Williams, Business Continuity Manager at Tenon, commented: “Entrepreneurs need to be prepared in the event of any sort of business interruption – be it a technological failure or a repeat of last year’s floods, where over 7,000 businesses were affected. The unpredictable nature of business means that it’s vitally important that owner-managers put rigorous plans in place to ensure their business can survive any disaster which may strike.”
Ends.
For more information or to arrange an interview with a Tenon Forum spokesperson or case study, please contact:
Heather Wilson 020 7419 7322, heather@bbpr.com
Catherine Jordan 020 7419 7314, catherine@bbpr.com
Notes to editors
About Tenon
Tenon is a leading provider of accounting and business advice to entrepreneurs, providing clients with expertise in Business Services, Tax, Financial Services, Corporate Finance, Recovery, Outsourcing and Forensic Accountancy. Tenon is the 9th largest UK accountancy firm with over 1900 staff UK wide with a turnover of £137.1m. Operating through a network of 44 offices, Tenon is able to offer local expertise but with the backing of a national plc.
Tenon is a sponsor of the National Business Awards and the award category is the 'Tenon Award for Entrepreneurial Spirit'. To learn more, please visit www.tenongroup.com/nba
About the Tenon Forum
A regular survey of SMEs is carried out every six months for the Tenon Forum. These findings, combined with the analysis by an independent think tank of entrepreneurs, form the Tenon Forum report. The Tenon Forum is an independent think tank made up of leading entrepreneurs from the UK’s small and medium sized business community. The Tenon Forum Think Tank meets to analyse issues arising from this research.
About the research
YouGov interviewed 976 private sector senior managers and above from small and medium businesses -firms with between 5 and 499 employees. Research was carried out online between 2nd and 14th October 2007. The survey covers all business sectors across the whole of England, Scotland and Wales. Results have not been weighted. YouGov is a member of the British Polling Council.
