It found that two-thirds of the sole traders it questioned had no plans in place in case they became incapacitated or died.

Among the over-55s, 47% said they had not made plans because it was "too soon to think about it".

BFP said the findings of the report, carried out by Mori as part of an ongoing study into the awareness and views of small firms about retirement and succession planning, were worrying.

A spokesman added:

"It is concerning that so many owners - and particularly those who work alone and have no obvious successor who could keep the business ticking over in their absence - are leaving the future of their business and that of their family or business partners to chance."