Mar 9 2006
One in five firms would be unable to pay their bills in the wake of an outbreak of avian flu in this country, a study has shown.

Research from the London Chamber of Commerce and Industry (LCCI) reveals that more than a fifth of capital businesses lack enough working capital to survive a 12-week outbreak of bird flu. Research has shown this is the average length of a pandemic.

The number of nervous company directors rises from nearly a quarter when the 17% who said they are unsure if they would survive are included.

A three-month pandemic would severely disrupt a business’ customer base, experts have said, and more than a now fifth worry they would no longer be able to operate their business model if up to half of their staff becomes unavailable to work.

“This is not scaremongering by the LCCI,” said its president, Michael Cassidy.

“Thinking ahead is the best way of tackling this type of threat. Running out of cash through lack of fore-thought is the swiftest way to insolvency, particularly with smaller businesses.”

Cassidy said the survey should be treated as a wake-up call for business, and the results suggest that it is being taken seriously by some.

Nearly a third of firms surveyed said they have updated their contingency plans to include such a threat, according to the poll.

However, only 17% have actually tested their new contingency plan.

Source - BCC