Business strength improves - PC Retail

Business strength improves

Research shows falling number of failing businesses, while small firms prove the most resilient
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The number of failing businesses fell in November across the UK, according to the latest insolvency index from Experian.

The rate of insolvencies fell to 0.09 per cent in November 2009, compared to 0.11 per cent in November 2008.

Very small businesses, especially those with one or two employees, are amongst the most secure.

Rolf Hickmann, managing director of pH, an Experian division, said: “The last four months have seen a fairly low and stable rate of insolvencies, compared to 2008, and certainly compared to the heights reached in the last recession in 1992. In fact the overall picture shows a very gentle decline in insolvencies throughout the year. Furthermore, the latest improvement in the financial health score is the fifth month in a row that the health of businesses has improved.

“Despite the prolonged recession, the UK’s entrepreneurial spirit continues to thrive. The number of micro businesses, those with one to two employees, is growing rapidly. They are enjoying amongst the lowest rates of insolvency and are relatively secure.”

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