The latest Business Distress Index from RealBusinessRescue.co.uk has revealed the number of IT SMEs in significant financial distress now stands at 47,000 – a 15% increase in the first quarter of 2021 and placing 185,000 sector jobs under threat.
The website, RealBusinessRescue.co.uk, set up by Begbies Traynor to advise business leaders in financial distress, analysed data from Red Flag Alert and discovered that these firms in significant distress are part of 713,000 SMEs in distress across sectors, with a total of 3.2 million jobs under threat.
In addition to this, RealBusinessRescue.co.uk discovered that the number of start-up IT firms (born after 2017) in significant financial distress had increased by 37% in the last quarter due to the pandemic. There are now 9,289 of these fledgling businesses compared to 6,779 at the end of 2020 – with an overall 149% increase since the start of lockdown 12 months ago when there were just 3,732 in distress.
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