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Realistbear

Business Failure Rate Up In Miracle Economy

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http://www.creditcontrol.co.uk/news/2006/07/00514.htm

Business failures continue to rise
18/07/2006
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.

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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

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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

1.gif

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

2.gif

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

ANNUAL RATE OF COMPANY LIQUIDATIONS - COMPANY LIQUIDATIONS AS A PERCENTAGE OF THE NUMBER OF COMPANIES REGISTERED - Quarterly since 1998

3.gif

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.

post-4797-1153236554_thumb.jpg

post-4797-1153236599_thumb.jpg

post-4797-1153236660_thumb.jpg

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  • 302 Brexit, House prices and Summer 2020

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      • down 5% +
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      • up 5%



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