Despite the UK coming out of the recession in the last quarter of 2009, some economists believe the country could go back in Q1 2010.
In a survey of 300 small businesses, 28% said that they would become insolvent if the UK re-entered recession and 16% said they would very likely close in those circumstances.
R3 president Peter Sargent said: "The low level of business confidence is to be expected. Many struggling businesses drew heavily on their reserves in order to survive and their resources have now begun to run out."
R3 said that there were 26,443 corporate insolvencies in 2009, up from 22,792 in 2008 and just 16,595 in 2007.
SMEs fear struggle in 'double-dip recession'
Over a quarter of small businesses in the UK fear closure if the UK goes through a 'double-dip recession', according to insolvency trade body R3.
