Small business closure rate ‘alarming’ as young entrepreneurs get cold feet

BREXIT UNCERTAINTY is the leading cause of business closures for young entrepreneurs, according to new research.

The study from business for sale marketplace Bizdaq found that 35 per cent of entrepreneurs aged 18 to 34 are exiting their business because of Brexit.

This figure dropped to 9 per cent in 35-54 year olds, and just 3 per cent for small business owners aged 55 and over, showing that the older generations aren’t as concerned by the vote to leave the EU.

The Bizdaq study concluded that businesses are closing at an “alarming” rate, with 363,000 small business owners planning to cease trading in the next five years.

The Bizdaq statement said: “With the average small business employing just over four employees, there are 1.4 million jobs at risk.

“A further 510,000 business owners plan on selling in the next five years.”

Small business owners in the North East were found to be the most likely to leave their business in the next five years, with 29 per cent planning to exit, according to the survey.

Those in the West Midlands were revealed to be happiest in their business, with only 14 per cent considering an exit.

Sean Mallon, the chief executive of Bizdaq, said: “It’s clear that small business owners are undecided on the impact of leaving the EU, however the startling fact that our youngest entrepreneurs are most nervous paints a worrying picture.”

The research was conducted for Bizdaq by Opinium, the market research consultancy.