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Extreme weather conditions cost small businesses £2.1bn

OVER one third of the UK’s SMEs had to close during last year’s extreme weather conditions at an estimated cost of £2.1bn, according to new research.

The survey conducted by small business telecom and broadband specialist XLN Telecom revealed that out of 397 SME owners, 38% were forced to close for between 1 and 4 days, whilst 41% were unable to retain a full workforce as a result of the poor weather.

XLN’s founder and managing director, Christian Nellemann, said: “While many small businesses were able to ensure normal service was maintained, this was simply not possible for a significant minority.

“If you look at the figures for business downtime and extrapolate them to the UK’s micro-business community, the loss to the economy could be estimated at over £2.1billion.”

Mr Nellemann also urged SMEs to remain resilient despite VAT increases, banks’ reluctance to lend and new pension requirements.

He added: “They make a major contribution to the economy and government should provide the support needed to preserve the growth and mobility of this sector in 2011.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .