Company insolvency rates ‘influence confidence’ for two in five SMEs

Published on January 11, 2013 by Crawfords Accounting

Company insolvency rates have a direct impact on confidence levels in 40% of small to medium-sized enterprises, according to the Aviva SME Pulse survey.

The biannual research looks at how small business leaders and entrepreneurs are feeling about the year ahead – and the latest instalment comes off the back of a unique set of conditions.

Summer 2012 included both the Jubikend – the weekend of festivities for the Queen’s Diamond Jubilee – and of course the London 2012 Olympic and Paralympic Games.

Together, the so-called ‘Jubilympics’, as Aviva refer to them, boosted confidence – and the New Year has continued that trend.

And while reports of company insolvency rates are only a direct concern to 40% of SMEs, that level of concern is bound to rise for any who enter financial difficulty.

When that occurs, seeking insolvency advice as promptly as possible could prove to be the difference between corporate survival and financial disaster.

Among the issues of greater concern is the more general topic of economic growth, which 57% of firms take into account – a topic intrinsically linked with the likelihood of a firm needing insolvency advice, and an indication of how company liquidations in general have a greater indirect impact on SMEs than the headline figure may first suggest.

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