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Keeping insolvency at bay cost £16bn for UK entrepreneurs

Published on 29 Mar 2010 under category: legal

UK entrepreneurs spent around £16 billion of their own personal funds to keep their businesses from being wound down, claims new research.

Hiscox reported today (March 30th) in its second DNA of an Entrepreneur study that the directors of small and medium-sized enterprises (SMEs) propped up their own business through their savings, at substantial cost to their personal lives.

According to the specialist insurer's findings, one in five (20 per cent) of SME bosses invested on average £17,030 of their own savings, with just over a third (34 per cent) cutting their own salary to improve cash-flow.

In what has been dubbed the UK's 'piggybank recession', one in ten worked out 50 hours a week, 13 per cent saw their marriages suffer and just under a quarter (24 per cent) suffered sleepless nights.

Other common survival strategies reported by the businesses included making existing relationships with clients stronger (36 per cent), getting new business leads (31 per cent).

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.