Business Failures Reduced in 2010

Sept. 3, 2010 - PRLog -- As we all know, we’ve been hit with the hardest recession in our nation’s history which was a result of huge credit debts resulting in the infamous ‘Credit Crunch’. The recession has affected many people’s lives in respect to obtaining personal & business finance. In the article we are at the recession has affected businesses in 2010 (Part 1) and what the future may hold for businesses in the UK (Part 2).

With the recession upon us, naturally a lot of businesses started to fail which obviously increased the number of companies that ceased to exist. The leap from businesses that closed in quarter 2 of the year 2008 were 6,409 which increased to 8,874 in 2009. However in 2010 the number of closers decreased by 1,699 to 7,175 which suggests that industries have picked up in the last year.

Recent information also shows that since 2009 businesses have changed the way they conducted themselves and have realised that keeping close control on cash and costs is vital to survival, hence the decrease in businesses going bust. This does not mean whatsoever those businesses are out of the woods, as financial control is only one factor of success and the industries market conditions are also crucial. With businesses willing to change and adapt in the current climate they have been able to enter into other markets meaning that they have more substance to their business rather than being a ‘sitting duck’.
It has not been doom and gloom for all companies and markets as there has been a lot of companies that have taken advantage of market conditions in the early stages of the recession and who are now making more profits than they could have imagined due to the economic state.

All businesses that have survived the recession have learnt valuable and positive lessons about themselves, like learning their own capabilities. Caution is a factor that all businesses will need to take with them into the future as the economy is still in its fragile state, along with the ability to adapt and change with market & economic conditions being crucial to success.

With business finance being arguably difficult to obtain, even ‘impossible’ over recent times, which other reports suggest different and have a more optimistic views based on the high level of enquires to the high level of completions throughout the process of the year.

Stay tuned for part 2, ‘What the future may hold for businesses in the UK have?’

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