Business failures are set
to rise by up to 10% over the next 2 years according to a study by
BDO LLP recently.
Some 23,600 businesses collapsed in 2011. This is expected to hit over 25,000 in 2012 and nearly 26,000 in 2013 according to a BDO survey.
The pessimistic forecast
is based on lower levels of consumer consumption arising from weaker
earnings growth and rising unemployment.
Construction and
property, business services and retail and wholesale are the three
sectors to suffer the most during 2012.
Technology, media and
telecoms and manufacturing are ear marketed as the sectors likely to
grow.
A spokesman for BDO said,
“Businesses that develop innovative products, distribution channels
and a strong customer proposition will gain significant competitive
advantage – irrespective of sector. Those who do not respond to the
new normal are at a greater risk of falling into difficulty”.
The report also predicts
that after 2013 failure rates will start to decline.
Tim Corfield May 2012
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