Recent research suggests that almost half of all firms in the South East face a higher than average risk of insolvency, despite the region being characterised by “entrepreneurism and innovation”.
The research found that at 44.9 per cent, the percentage of businesses at elevated risk was the highest of any region in the UK, with technology and IT, construction and retail all coming in at more than 40 per cent risk. Interestingly, however, at 34.2 per cent rick, agriculture was the only sector in the region to buck the national trend, which was 36.2 per cent.
Meanwhile, a third of businesses in the region said they were concerned about the potential impact Brexit will have on their suppliers and customers, with a further 15 per cent saying they had to review the impact of Brexit on their supplier and customer network.
However, of those which had reviewed the impact of Brexit on this group, 41 per cent said they felt reassured by what they had found, with 24 per cent feeling ‘somewhat reassured’.
As one of the report’s authors commented, it is encouraging that such a solid percentage have checked how their suppliers and customers are preparing for Brexit, as it is all too common for an otherwise successful firm’s financial health to suffer by customers or suppliers running into trouble.
He added that previous research found that more than a quarter of businesses in the UK suffered a hit to their financial health following the insolvency of a customer, supplier or debtor in the previous six months.
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