The average UK SME is worth 3.1m, with a net profit of 620,000, according to research.
Legal & Generals new State of the Nation’s SMEs report kicks shows that the average SME owner in the UK is a 48-year-old male who has been in business for 12 years.
The ongoing study analyses the size, shape and make up of SMEs in the UK and highlights the risks faced by small business owners.
The research shows that businesses are not particularly worried about having protection in place. Forty per cent of small businesses say that they would cease to trade within a year of losing a key employee or owner, yet almost 60 per cent have no Key Person cover in place.
Helping these dedicated professionals and entrepreneurs overcome any obstacles they face, whether it’s a business issue or the loss of a key member of staff, is crucial,” says Richard Kateley, head of specialist protection at Legal & General Insurance.
“Business owners are very good at planning what would happen if they faced an IT failure or security breach, yet often overlook financially protecting the business through a lack of awareness or education.”
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The report shows that awareness of the risks have grown since Legal & Generals first report into this market in 2009.
However a large proportion of businesses are still not protected. Seventy-two per cent say they have not taken out cover because they did not see the need of it, had never considered it or had not been made aware of the risks.
Clearly business owners have the best interests of their company at heart, but our research shows that many people are unaware of the risks. Fifty per cent say it is not something that they have ever considered,” Kateley continues.