Some 62% of SME business leaders have admitted that they do not know how they will leave their business, according to new research.
The Future Attitudes report by Aldermore found that 45% of UK SME business leaders believed that senior departures were the biggest threat to their business.
The report also found that 64% of SME bosses had no clear plan in place to ensure that their business did not suffer when key staff leave, up from the 61% reported in 2017.
The most common departure method for business leaders was liquidation (29%), followed by handing the reins to other senior colleagues (25%) or family members (23%).
Carl D’Ammassa, group managing director of business finance at Aldermore (pictured above), said: “For UK SME leaders who have planned their own departure, our research tells us that on average, they aim to leave their company in just under four years’ time.
“What is troubling is that there are fewer senior executives with formal business succession plans compared to a year ago.
“…it is vital that a succession strategy is planned out to ensure businesses across the UK do not suffer when changes to key executives occur.”
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Monzo raises £20m in latest crowdfunding round
Monzo has raised £20m in just over two days via its third crowdfunding round...
Could more banks look to use gamification?
Gamification is defined as the application of typical elements of game playing to other areas of activity, typically as an online marketing technique to encourage engagement with a product or service...
Bank Leumi (UK) appoints chief business officer
Bank Leumi (UK) has announced the appointment of Andy Mallin (pictured above) as chief business officer...
Handelsbanken launches UK banking subsidiary
Handelsbanken has launched its new UK subsidiary Handelsbanken PLC as it looks to continue the next stage of its growth in the UK...
Making the most of savings in 2019
Personal finance headlines and best-buy tables are dominated by retail savings products, with very few column inches dedicated to helping businesses determine the best places to stash their cash...
PCF posts 44% pre-tax profit increase
PCF Group PLC has reported a 44% increase in pre-tax profits to £5.2m (2017: £3.6m) in its preliminary results for the year ended 30th September 2018...
Mortgage Sleep Out raises over £100,000
Mortgage Sleep Out has raised more than £100,000 for End Youth Homelessness (EYH)...
Gatehouse Bank launches home purchase plan product
Gatehouse Bank has announced the launch of its first home purchase plan product after securing regulatory approval...
Monese offers free premium current accounts for dual UK/EU citizens
Monese has announced the launch of free premium current accounts for those holding dual EU/UK citizenship...
Masthaven selects Dock9 as digital development partner
Masthaven has chosen Dock9 as its digital development partner...
Aldermore appoints head of mortgage omnichannel
Aldermore has appointed Jon Cooper (pictured above) as its new head of omnichannel within its retail mortgage business...