The Federation of Small Businesses (FSB) has warned that the majority of UK small firms are ‘unprepared’ for the risk of disruption to the business posed by both internal and external threats.
Data published by the FSB revealed that 65% of small businesses do not currently have any plans in place to deal with an interruption to the firm or its supply chains. Some of the most common risks to businesses include: customers who fail to pay for goods or services; the loss of key members of staff; cybercrime and its associated threats; and severe weather and transport issues.
The FSB has urged larger businesses to assist smaller firms with forward planning. It has also called on local governments and authorities to emphasise the need for small businesses to put continuity plans into place.
Mike Cherry, National Chairman of the FSB, has called on small business owners to establish clear strategies in advance to help them to deal with potential threats.
Commenting on the issue, Mr Cherry said:
‘By implementing continuity plans, small firms can prepare for many of the sudden changes that can impact on them directly and their supply chains.
‘Given the likelihood that an enterprise will encounter some sort of business interruption issue more than once in their life, it is key to resilience that firms are encouraged to consider all risks that they could face.’
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.