Midlands business failures down
A key indicator of the strength of the regional economy has revealed that the number of businesses insolvencies in the Midlands has dropped. Nottingham-based research company Experian’s latest insolvency index shows a year-on-year fall in the number of businesses going under in April. The East Midlands was the UK region showing most improvement, with an insolvency rate of 0.11 per cent in April 2010 compared to 0.15 per cent in April 2009. Some 116 companies went under in the East Midlands in April compared to 166 the previous year. In the West Midlands there were 194 insolvencies in April compared to 253 12 months earlier. But Rolf Hickmann, managing director of pH, an Experian company, warned that it continues to be vital for businesses to understand the circumstances of those they are doing business with and the risks to which they could expose their company. “It is easier for the smallest businesses, with just one or two employees, to make adjustments to their operations and pull in the reins when times are challenging. For the largest business, there is the flexibility that comes with economies of scale. Mid-sized businesses do not typically have the luxury of either of these benefits,” he said.
