Savannah Selle
Insolvency rates among the UK’s small businesses have improved dramatically, new research revealed.
According to Experian’s latest Insolvency Index report, 0.1% of the entire active business community, which totals 1,808 businesses, became insolvent in April 2011. This was a slight decrease compared to the same period in 2010 when 1,818 businesses failed.
However, it has been highlighted that small businesses in Wales saw the majority of these positive results. Failures fell at a faster rate where small businesses with 3 – 5 employees saw 17% fewer closures. Businesses with 26-50 employees suffered 24.6% fewer failures.
Max Firth, managing director of business information services at Experian UK & Ireland said:
“With business failure rates and financial strength fluctuating across different regions and sectors, it is especially important that any organisation extending credit to or relying on other businesses for goods and services is able to understand the level of risk associated with their commercial partners.”
Small businesses should continue to stretch optimism across the UK to help maintain confidence in the recovering economy.
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