2015 proved to be a triumphant year for businesses all over the UK, with start-ups at their highest number and closures at their lowest in the past three years. 2015 saw 610,589 start-ups in the UK, with the highest amount being in the Greater London area. This figure beats last year’s 586,939 and 2013’s 531,181 for start-ups in the UK, indicating a growing economy that helps businesses flourish. The decrease of company closures in 2015 also suggests that start-ups are stabilising and doing well in the economy.
There were 19,067 company closures in 2015, lower than 24,959 in 2014 and 29,139 in 2013. The average business age for the most company closures was 3-10 years with 9,779 companies in that age bracket failing; putting to bed the rumours that start-ups are more likely to fail than any other aged business. It comes as no surprise that the least amount of company failures are in established businesses aged more than 25 years old, however seemingly stable companies can still fail, 2015 saw 1,818 companies over 25 years old becoming insolvent. The highest amount of company closures came from the Greater London region, which is expected as it’s one of the biggest regions for business in the UK.
Here are the top ten industries that had the most company closures in 2015.
|Construction||3,070 -30%||4,385 -10%||4,853|
|Wholesale and Retail||2,471 -26%||3,330 -11%||3,747|
|Administrative and Support Service Activities||2,095 -17%||2,527 -30%||3,596|
|Professional; Scientific and Technical Activities||1,924 -22%||2,451 +6%||2,323|
|Manufacturing||1,793 -18%||2,193 -18%||2,679|
|Accommodation and Food Services||1,792 -23%||2,331 +3%||2,257|
|Information and Communication||1,079 -27%||1,486 -3%||1,527|
|Real Estate||771 -33%||1,146 -7%||1,234|
|Transportation and Storage||414 -32%||605 -11%||680|
|Financial and Insurance Activities||361 -31%||522 +1%||515|
Construction came in at number one for the industry with the most company closures in 2015. Construction companies were also topping the charts of our annual ‘most searched companies of 2015’ on the Creditsafe system, so there had been a lot of interest in them in 2015 but maybe for all the wrong reasons. Construction was also highlighted as the industry with the highest CCJ value in 2015 with over £40 million issued in CCJs.
Retail also has a high company closure rate, which could be the aftermath of the struggle the high street has faced in recent years trying to compete with internet shopping. We have seen giants such as Woolworths and HMV disappear from our high streets in the past, however with the improving economy we could see the business world improving even more in the future.
If you are a B2B company, monitoring your customers is essential, as so much can change in a short space of time. Even if they were creditworthy when you went into business with them, things can and do change. You don’t need to manually check all your customers from time to time, Creditsafe’s Risk Tracker can monitor your customer base for you on a daily basis, and alert you by email if anything changes on their company credit report. Don’t leave it to chance that businesses you are dealing with will continue to stay creditworthy, monitor them and stay ahead of any changes.