Record Number of Small Business Owners Planning to Close Amidst Pandemic Struggles

  • 250,000 UK small businesses at risk of folding without further help
  • Record number of small business owners planning to close in next 12 months
  • Proportion predicting reduced profitability has risen from 38% to 58% over the past year
  • Almost half of exporters expect international sales to drop this quarter, up from 33% last year

A new report by the Federation of Small Businesses (FSB) reveals that around 250,000 UK small businesses are at risk of folding without further assistance. The Small Business Index (SBI) shows a record number of business owners planning to close their companies in the coming year and cutting staff numbers over the next three months. This is more than double the proportion recorded last year. FSB National Chairman, Mike Cherry, criticized the government’s lack of support measures compared to the first lockdown, stating that the small business community extends beyond retail, leisure, and hospitality sectors.

Factuality Level: 8
Factuality Justification: The article provides accurate information from a reliable source (FSB) and reports on the current situation of small businesses in the UK during the pandemic. It includes relevant data and quotes from an authoritative figure (Mike Cherry). However, it could be improved by providing more context about the Small Business Index and the specific measures taken by the government.
Noise Level: 3
Noise Justification: The article provides relevant information about the struggles of small businesses during the pandemic and highlights concerns from the Federation of Small Businesses. However, it could benefit from more in-depth analysis or discussion on potential solutions or long-term trends.
Financial Relevance: Yes
Financial Markets Impacted: Small businesses in the UK
Financial Rating Justification: The article discusses the financial struggles of small businesses, including retailers, and their potential closure due to lack of support from the government. This has implications for the economy and local communities.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk