‘Staggering’ rise in business failures recorded in Q4 2008

Unsurprising, but disturbing nonetheless, is an 18.2% year-on-year rise in business failures during 2008 according to data released today by Equifax.

These figures add to the gloomy picture set out by the British Chambers of Commerce today which described the situation for small and medium-sized businesses as ‘frightening’.

On releasing the figures, Equifax’s Neil Munroe stressed that:

efforts from Government, such as the loan guarantee scheme announced today and the initiatives by banks such as fixing fees and releasing more credit, will be absolutely crucial, especially for smaller businesses struggling with cashflow management.

Figures for the final quarter of 2008 make for particularly hard reading with a Q4 increase in the number of businesses going into administration hitting 24.2%.

The region suffering most right now appears to be the North East which saw a ‘staggering’ 57.8% increase in businesses going bust in the last quarter of last year.

In terms of sectors, retail and construction suffered most acutely with 23.9% and 32.4% increases in firms folding during 2008.

[Picture credit: Rob Greg licenced from Flickr]