Jump to content
House Price Crash Forum
Sign in to follow this  

Business Failure Rate Up In Miracle Economy

Recommended Posts


Business failures continue to rise
Business failures in the UK rose to 4,720 in the second quarter of 2006 compared to the same period in 2005, bringing the total for the year so far to 9,538 –
8.9% more than in the first half of last year
, according to the latest figures from Experian.
Following the highest increase in business failures since 1999 during the first quarter of 2006, the latest figures indicate a slowdown in the rate of increase of business failure but still mean that 80 companies went bust in the UK every working day of the year so far.
Richard Lloyd, Managing Director of Experian’s Business Information division, commented: “Although an increase of 2% is less alarming than the previous quarter’s 15% increase, there is no getting away from the fact that in 2006,
failures are already up by 8.9% on the previous year and look set to continue to rise.

Allegedly soaring HPI is little consolation to the failing business sector and the numbers of unemployed that result.

Share this post

Link to post
Share on other sites

Wonder if we will see much wider reporting of this?

Having attended several self employed business 'start up' courses over the years, it always bemuses me how they hardly ever mention that in the first 3 years of business, 2 out of 3 businesses are going to go under (probably worse now).

Don't want to tell the sheeple they are most likely going to get slaughtered.

Edited by Saving For a Space Ship

Share this post

Link to post
Share on other sites

While the number of business failures have gone up, its really not a big issue. If you look at the numbers this is still relatively low. Having had a look on the insolvencies website you can see that business insolvencies at this rate is actually quite low.

here are some charts, data is taken from:

http://www.insolvency.gov.uk and http://www.statistics.gov.uk

First table: COMPANY LIQUIDATIONS* IN ENGLAND AND WALES - Annually since 1992


Second Table: COMPANY LIQUIDATIONS* IN ENGLAND AND WALES - Quartely since 1998


and finally, as a percentage of companies set up in England and Wales:



While the rate of increase is larger, overall this is still quite a low rate, particularly when you look at it as a percentage of companies set up.

Also, two thirds of business do not fail after three years, the rate is around 50% after three years and for VAT registered businesses, only 1/3 of VAT registered business fail within three years.




Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.