Home > SME News > SME business failure rate increases

SME business failure rate increases

Published On 8 January 2007 at 15:45:02

Small to medium-sized enterprises (SMEs) were among the increasing number of high street firms that are said to have failed in the past year, claims a new report.

A study by Equifax has revealed that the retail sector saw a 17.2 per cent rise in business failures last year, with many SMEs forced to close their doors, reports Creditman.

It is thought that the rising popularity of the internet coupled with the increasing dominance of supermarkets is partially behind the figures.

Neil Munroe, the external affairs director at Equifax, confirmed that a number of the failures recorded would be small businesses.

"It is therefore vital that SMEs take advantage of the tools available to them to reduce the financial risks to their businesses," he said.

"Carrying out initial credit checks on customers and suppliers, supported by ongoing monitoring of any changes to their financial status is essential to protecting SMEs from the risk of bad debt and their business failing."

Welsh firms suffered the most failures last year, with a 13.4 per cent rise in failures posted.

 

Related SME News:

• Postal strike 'would hit SMEs hard'
  7 June 2007 at 16:23:50
  Any strike by Royal Mail staff could be disastrous for small and medium-sized enterprises in the UK, a business group has warned.
• SMEs 'encouraged to focus on emerging markets'
  7 June 2007 at 08:56:14
  Business groups have welcomed the findings of the Trade & Industry Select Committee's report on UK trade and investment (UKTI).
• Government acts to protect SME workers
  6 June 2007 at 09:00:30
  The government has launched a pilot scheme to try and crack down on the bosses of small and medium-sized enterprises (SMEs) who treat their staff poorly.
• Bosses 'can say no' to flexible work requests
  30 May 2007 at 16:12:02
  The bosses at the UK's small and medium-sized enterprises should not be afraid to refuse their staff's requests for more flexible working arrangements if they believe they will harm business.
• Manchester SMEs 'oppose road pricing'
  30 May 2007 at 08:51:09
  The vast majority of small business owners in the Manchester area are opposed to the proposed road pricing scheme which could be introduced in the city.
• Paternity rules 'will harm SMEs'
  29 May 2007 at 14:36:30
  New paternity regulation will harm the productivity of the UK's small and medium-sized enterprises (SMEs), a leading industry group has warned.
• Workers 'want to quit if they can't progress'
  25 May 2007 at 09:02:52
  The bosses of the nation's small and medium-sized enterprises need to do more to make sure their staff benefit from day-to-day training opportunities, industry experts have claimed.