Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .


Nearly two thirds of small and medium-sized business leaders do not have a succession plan

Nearly two thirds of small and medium-sized business leaders do not have a succession plan
  • Over two fifths (45%) of UK SME decision makers believe the biggest threat to their business is the departure of senior executives;
  • And yet, over three fifths (62%) do not know how they will leave their business;
  • Liquidation is the most common ‘out’ for bosses who have already planned their departure.

Aldermore’s latest Future Attitudes report has found that just under two thirds (64%) of bosses of UK’s small and medium-sized enterprises (SMEs) have no clear plan in place to ensure that their business does not suffer when key staff leave.

This equates to 3.52m[i] companies with fewer than 250 employees and is an increase from 2017, when the figure was 61%. [ii]

This is despite over two fifths (45%) believing that the biggest threat to their business would be if senior executives leave their organisation.

Three in five (62%) SME leaders also admit to not having their own exit strategy. However, the younger generation of UK SME owners seem to be more organised when thinking about their eventual departure. The research also revealed that over half (56%) of those aged 18-34 having a succession plan in place.

For business leaders of all ages who have already planned their exit, the most common ‘out’ is liquidation (29%), followed by handing over the reins to other senior colleagues (25%) or family members (23%), and this is likely to happen two to five years from now.

Top 5 ways of departure for business leaders 

Ways of departure % of SME leaders
Liquidation 29%
Handing over the reins to other senior colleagues 25%
Handing over to other family members 23%
Selling the business to another company 21%
Sell to a private equity firm or other investor 16%

 For bosses who haven’t planned their departure, a third (33%) say this is because they don’t ever plan to leave the business, with over a quarter (28%) saying they are currently focusing on building the business. Furthermore, a quarter (25%) admit that their departure is too far in the future to plan for now.

Carl D’Ammassa, Group Managing Director, Business Finance at Aldermore, 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 plan compared to a year ago.

“Running a business can be very time consuming with ongoing demands from customers and staff. These challenges exert substantial pressure on leaders, so 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.”

[i]SMEs figure – calculated using Federation of Small Business statistics that say the UK has 5.5m SMEs (2016 figures). Aldermore Future Attitudes research showed that 64% of SMEs do not have a succession plan. 64% of 5.5m = 3.52m

[ii] Research conducted by Opinium Research between 13 and 21 February 2017 with a nationally representative sample size of 1,003 senior decision-makers at UK SMEs.

Global Banking & Finance Review


Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post