MORE than half of Southampton's start-ups and growing businesses are at risk of failing following the coronavirus crisis.

A new study of almost 30,000 new and growing businesses in the UK by analyst Beauhurst has warned any national financial recovery will be impeded if these "economic powerhouse" firms are not targeted with support.

A total of 54 per cent of the Southampton firms tracked by Beauhurst were classed as "at risk" in April.

Eight per cent of which are at "severe risk", meaning they have suffered serious disruption to their operations.

Five per cent that were critical, and facing an "existential threat" to their ability to continue trading.

Beauhurst analysed various factors to determine the risk facing each business, such as whether their premises had been closed, social distancing had prevented them providing a product or service, or they were having to offer their products at a reduced cost.

Nationally, 17 per cent of start-ups and scale-ups were deemed to be at either "severe or critical risk", affecting 615,000 jobs, while a further 36 per cent were at moderate risk.

The research also revealed that some businesses could see a positive impact from the pandemic, if they are able to grow their operations or have otherwise seen a surge in demand, with tech companies faring particularly well.

In Southampton, 10 per cent of businesses fell into this category, compared to 15 per cent across the UK.

Councillor Steve Leggett, Cabinet Member for Green City & Place, said that the council are aware of "how critical" local business is for the economy and that "many may need support to survive".

He added: "Our teams are working tirelessly to support our local businesses.

"We’re proud to have already delivered £36.92m in grants to 2,822 businesses and are supporting more who are out of the scope of the main business grants with the Discretionary Grant.

"We’ve also offered business rate reliefs and holidays, support to our commercial tenants and, by using the £225k fund we received from Government, are helping the retail and hospitality sector re-open safely.

"The hope is that these measures, along with other Government support, such as the furlough scheme, will go some way to help."