Manufacturers demonstrate strongest resilience in bouncing back from the brink of bankruptcy. Micro businesses most able to turn impending failure into outright success.
An extensive study by Experian analyzing approximately 44,000 businesses across the UK that were on the brink of bankruptcy in 2006 reveals that almost two-thirds (63%) survived one of the most turbulent periods in economic history. The analysis, published by Experian, the global information services company looks at how these businesses fared between 2006 and 2011, and reveals that half (50%) of the businesses that survived, managed to turn their business fortunes around and significantly improve their overall financial health. Financial health is measured by a score that combines numerous financial measures such as revenue, profitability, liquidity, gearing, cash flow and trends over time.
Approximately 44,000 businesses were identified as having a significant risk of bankruptcy within 12 months as of January 2006; Experian’s analysis highlights the characteristics of those businesses that survived. Despite the volatile economy, approximately one in eight (13%) businesses increased their employee base as well as significantly improving their overall financial health while just over a third (37%) improved the financial performance of their business whilst either maintaining or reducing the number of employees. Overall, 36% of businesses that were close to bankruptcy in 2006 went on to increase their number of employees over the next six years.
How did the businesses fare over the six year period?: To read the full story click on the link below.
Source: Experian Press Release