Research reveals number of small and micro businesses at risk of going bust in face of rocketing costs

The potential collapse of small businesses would represent a £12bn hit

People outside a closed shop in Leicester (PA)

Around 630,000 small and micro businesses are at risk of going bust in the face of rocketing costs and pressures on consumers, according to new research.

Data analysis of 2.3 million British micro businesses – which are typically firms with fewer than 10 employees – highlighted growing pressure among small businesses due to rocketing costs, such as increased energy bills.

The Venture Forward report, produced by GoDaddy, indicated that the potential collapse of these companies would be a roughly £12bn blow to the economy.