· 1 min read · News

Fewer businesses are going bust

Published:

Seventeen per cent fewer businesses went bust in October 2010 than in the same month last year, according to figures released yesterday by Experian.

The figure means the insolvency rate is 0.08% of the business population.

However, not all of the news is good. While larger businesses have generally fared well this year, mid-sized companies (those between 51-100 staff) were the only businesses to see an annual increase in shutdowns, with the insolvency rate leaping to 0.24% of the business population – up from 0.19% in 2009.

In addition, London is the region with the lowest financial strength score (79.8 compared to the average of 81.0% nationally), while only 10 out of 35 industry sectors measured showed an improvement in their financial strength scores.

Max Firth, managing principal of PH, an Experian company, said: "It is encouraging that businesses in general are faring better than this time last year. But it remains important for organisations to ensure they understand and manage the risks in today’s marketplace."