Value of Small Business Plummets
New research has found the average value of small businesses is falling fast, with small businesses in London alone falling by £20,000 in the last year.
10th November 2017
Online business transfer agent Bizdaq recently conducted a study into the valuations of over 75,000 small businesses across the UK. It reported that the average small business in the UK was worth around £90,000, while just in London business were around £115,000.
This figure has dropped since 2016 when the UK average was at £94,000, showing a huge drop in the value of small businesses.
Within London the report revealed the coffee shop had bared the biggest drop in value, falling by almost a third. Restaurant values across London also saw a fall in worth, signalling a severe drop in demand or a result of higher business costs.
Sean Mallon, CEO of Bizdaq, is disappointed for small business owners, but admits it’s not unexpected in the context of higher interest rates and the current Brexit uncertainty.
“Now I urge the government to work harder to relieve the strain on small business owners and allow them to make a fair return on their hard work. This should include allowing them to protect their investments through tax allowances when exiting their small business”.
James Salmon of CPA said that a fall in valuations may make it harder for small business owners to be able to access finance. It is therefore essential that they tap into the hidden capital within their business such as the late paying customers.
10th November 2017
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