At the start of the economic downturn the media was saturated with news of small companies going bust and the number of recent company formations declining. However, according to a recent report, the number of small businesses going into administration is falling.
According to one business consultancy firm the number of companies increased by 20% during the first quarter of 2009, in comparison to the same period last year.
However, the number of companies going into administration, increased by just 3% when compared against the last six months of 2009.
Matthew Jackson, managing director of business advisory firm catalysts comments; “While the small business sector remains at risk and the number of administrations are still high, our report did reveal a slowing down in the rate of companies failing.”