Small Business News | Number of business failures drops

Recent reports released by Equifax show an overall drop in the amount of business failures since 2009. There was a 19.1% year on year drop for Quarter 2 2010 compared to Quarter 2 2009 and a 7% drop for Quarter 2 compared to Quarter 1 2010. However rates are still not down to the pre-recession levels of 2008. 

The report highlights how businesses have been tightening their control on cash flows and costs but also the great regional disparity that seems to exist between those business managing to keep their heads above the water, and others that are not quite so lucky. Scotland was revealed to be the best performer with a 31.9% drop in failures whereas the East and South East of England only dropped by 2 to 3%. Another point highlighted in the article was the difference between industry sectors with Transport, Communication and Manufacturing industries fairing far better than the Services sector who actually experienced an increase of 1.3% of business failure.

The overall tone of the article was that despite the seemingly positive results, businesses should be careful not to take their eye off the ball. It seems we are not out of the woods quite yet.  To read the full article please visit Business Matters website.

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