The average owner of a small or medium-sized business (SME) is male, 48 and has been in business for 12 years, according to stats released by Legal & General.

L&G’s “State of the Nation’s SMEs” report also revealed that the average UK SME, stripping out the effect of micro-businesses and sole traders, is worth £3.1 million and makes an annual profit of £620,000.

The figures appear to contradict official stats revealing a big increase in the number of women starting businesses.

According to the Office of National Statistics female-led start-ups rose by 77,000 in the last three months of 2014, a whopping 87.5% of total starts.

The report is part of a campaign to highlight risks to small businesses and the need to insure key aspects of their operation, such as key people or vital data.

It found that four in 10 small businesses would fail within 12 months of losing their owner, yet 60% admitted they did not have key person insurance in place.

More than 70% said they hadn’t taken out a policy because they didn’t feel they need it, or had not been made aware of the risks.

Richard Kateley, head of specialist protection at L&G Insurance said: “Twenty-five million people in the UK are currently working for a small company. Our research highlights how important they are to the UK’s overall economic health.

“Helping these dedicated professionals and entrepreneurs overcome any obstacles they face, whether it’s a business issue or the loss of a key member of staff, is crucial.

“Business owners are very good at planning what would happen if they faced an IT failure or security breach, yet often overlook financially protecting the business through a lack of awareness or education.”