The lastest Insolvency figures show that things are tough, but they have been worse.
Here’s the Insolvency Service stats for the 2nd Quarter of 2011, in England & Wales:
The number of liquidations (compulsory liquidation and creditors’ voluntary liquidation) increased by 3% on the previous quarter – an increase of 4% on the same period a year ago.
Overall, approximately 0.7% of all active registered companies went into liquidation.
Is this a lot?
Well, not when you compare it to a peak of 2.6% in 1993.
The number of individual insolvencies decreased by 12% compared to the same period last year ~ which might be a surprise to many people.
Overall, this equates to approximately 1 in 349 people becoming insolvent.
Is this a lot?
Well, compared to an annual average over the last 28 years of 1 in 1,780 people, it is a worryingly high proportion.
Other interesting Insolvency stats
Retailers are showing more signs of stress than any other sector
40% are concerned about debt
8% say they are likely to become insolvent in the next 12 month.
Pub insolvencies increased by 30% in the first six months of the year compared with 2010.
Construction has seen a 4% drop in the number of companies going out of business.
The future: Who knows?
For many small business owners, things aren’t expected to get better any time soon.
The current problems include:
- spending cuts
- consumers tightening their purse strings
- the economic trouble in the US and Europe
- stock market wobbles
- rioting in the UK… a frequent bi-product of economic problems
It is not easy to be optimistic – but without some business confidence, we’ll never get out of this mess.
If you feel like you need a helping hand managing your businesses debt contact Clarke Bell for business insolvency advice with a free and discreet consultation.